Questions
What are the differences between marketing strategies and marketing tactics?

What are the differences between marketing strategies and marketing tactics?

In: Operations Management

Arlo Industries manufactures three types of dog collars: a deluxe model with solid leather and upgraded...

Arlo Industries manufactures three types of dog collars: a deluxe model with solid leather and

upgraded leash rings, a standard model using a "leatherette" compound, and a bargain model

that they sell to discount outlets. The profit contributions of these collars are $12 Deluxe, $10

Standard, and $8 Bargain. All collars must be cut, assembled and shipped using three different

production lines. The following table shows the time (in minutes) for each operation:

Production Line

Deluxe

Standard

Bargain

Cutting

10

7

6

Assembly

8

7

6

Shipping

5

5

5

Next month, the company estimates there will be 380 hours available for cutting, 370 hours for

assembly and 400 hours available for shipping. In addition, up to 80 hours of overtime is

available that can be used on either the cutting and/or assembly production lines at a cost of

$20 per hour. The company has already received orders for 1200 deluxe collars, 1000 standard

collars, and 600 bargain collars that must be filled, but believes they can sell as many collars as

they can make. The company is interested in maximizing profit, subject to the constraints listed

above.

In: Operations Management

*Answer the 4th question ONLY* Read the case study Italy Defied Starbucks—Until It Didn’t, i only...

*Answer the 4th question ONLY* Read the case study Italy Defied Starbucks—Until It Didn’t, i only left the rest because they are related.

“We arrive with humility and respect in the country of coffee,” Howard Schultz, the former longtime CEO of Starbucks, told Corriere della Sera, Italy’s leading daily, last week. He was about to inaugurate, in Milan, the first Italian outpost of the global chain that supersized coffee and now vies with McDonald’s and Coca Cola as a symbol of American gastronomic imperialism. Even, of course, if Italy has one of the world’s most developed coffee cultures, which in fact is what inspired Schultz to convince the founders of the small Starbucks coffee company to open its first coffeehouse in 1984.

Italy is a country where the pumpkin is generally found in the ravioli, not the latte, and so the Milan Starbucks isn’t just any Starbucks branch. It’s a huge “Roastery” in the former Milan outpost

of the Poste, the Italian postal service, and is meant as a full “experience,” Starbucks said in a press release that has already been mocked by Eater. (“Eight Ridiculous Things Starbucks Is Saying About Its New Store in Milan.”) The Roastery, the first in Europe after others in Seattle and Shanghai, will offer coffee and food and also illustrate Starbucks’s roasting process.

Okay. But a question leaps to mind: Does Italy need Starbucks? “Che tristezza,” one Italian friend told me when I asked her about it opening in Milan. “How sad.” I called the Tazza d’Oro, one of Rome’s most historic coffee shops—they’re called bars in Italian—and Laura Birrozzi, a manager, offered some thoughts. “We and Starbucks sell something completely different. We have quality Italian espresso,” she said. I asked her if she’d ever been to a Starbucks, and she said she had on one occasion, on a visit to London. “It wasn’t the coffee I’m used to,” was all she’d say.

At the Milan Roastery, an espresso will cost 1.80 euros “sitting or standing,” Corriere della Sera noted, since in Italian coffee shops, the price changes depending on whether you have table service or gulp your drink down at the bar. A cappuccino will cost as much as 4.50 euros. This has already prompted Italy’s consumer association to file a complaint with Italy’s antitrust authority, saying the prices were far above average for Milan. Online, Italians are already complaining that Starbucks could drive up prices elsewhere in Italy. (Still, from the coverage, it seems the Roastery piqued people’s curiosity; the lines were around the block for the musical-gala opening party.)

The announcement last year about the opening did not go over well. The columnist Aldo Cazzullo wrote in Corriere della Sera then that “as an Italian,” he considered the opening of Starbucks in Italy nothing short of “a humiliation.” Though he conceded that the arrival of the chain might make some Italian coffee shops step up their game: Starbucks “represents a philosophy, as well as a sort of office for people who don’t have an office,” he wrote. “Maybe our bars will also become more hospitable.”

But, he ended on a discordant note: “I wonder how many of the 350 jobs announced in Milan will go to young Italians and how many to young immigrants,” Cazzullo wrote. It’s unclear what kind of immigrants he had in mind, or why hiring immigrants would be an issue. What is clear is that in Italy, coffee seems to connect in unexpected ways to national identity. There were polemics last year after Starbucks sponsored a garden of palm trees in Piazza Duomo, to drum up enthusiasm ahead of its opening this year. This prompted Matteo Salvini, then only the leader of the far-right League party and now Italy’s interior minister and deputy prime minister, to decry what he called the “Africanization” of Italy, and to call for the defense of the “Italianness” of coffee. “All that’s missing are the sand and camels, and the illegal immigrants will feel at home,” he said then.

Schultz has been trying to open Starbucks in Italy for decades, and the fact that Italy has such excellent coffee everywhere—even the coffee at the average highway rest stops in Italy is better than much of what’s served in good restaurants elsewhere in the world— was no doubt a major issue. In 1998, Michael Specter wrote in The New Yorker about Schultz’s efforts to open Starbucks and said a branch of the chain would open in Italy “next year.”

So why the delay? For one thing, Italians don’t drink coffee the way Starbucks serves coffee. In Italy, coffee—espresso—is drunk generally standing up, at a coffee bar. Cappuccino or caffè latte is drunk in the morning or sometimes in the late afternoon if you haven’t had a proper lunch, and never after meals, because who can digest milk after a meal? Italians are very attuned to proper digestion.

Also, Italy has a market economy with some protectionist elements. In her interview with Schultz for Corriere, the journalist Daniela Polizzi noted that the context had changed in the past 20 years, from one of adjusting to globalization to one in which trade barriers have become an issue. Starbucks now has 30,000 stores in 77 countries, including 3,400 stores in China, with 45,000 employees, Schultz answered. Italy hasn’t given up quite so much ground, but the chain has now established a beachhead there.

Some saw the arrival of Starbucks as a window into the challenges to the Italian economy. “The lack of Starbucks indicates a double anomaly: On the one hand, the biggest coffee chain in the world wasn’t present in Italy, and on the other, the biggest coffee chain in the world isn’t Italian,” the journalist Luciano Capone wrote in Il Foglio, an intellectual daily, this week, citing the economist Luigi Zingales. It seemed a sign of how Italy’s economy is based on smaller businesses with more modest ambitions. More than 90 percent of Italian companies have fewer than 15 employees.

Then there’s the flip side. “Operating in Italy, in competition with Italian coffee bars, it’s probable that Starbucks will soon learn to make excellent espressos and cappuccinos,” Capone continued. “But will the Italian system manage to learn from Starbucks how to create a global chain? It would be a small step for us, but a great step for mankind: Finally the rest of the world would discover that coffee and pizza aren’t the kind on offer at Starbucks and Pizza Hut.”

So if the wheel is coming full circle, does Olive Garden have any plans to open in Italy? I asked its spokeswoman, Meagan Mills. “We do not have any plans,” she wrote back. “Thanks for thinking of us, though!”

Questions to answer

  1. What are the main marketing environment factors affecting Starbucks business in the Italian market? Why are these factors affecting the Italian market?
  2. Explain the impact of these factors on Starbucks’ marketing. Give a specific example for each factor.
  3. Based on your analysis of the two previous questions, discuss the promotion strategies of Starbucks in the Italian market. What modifications to the company’s product components might be necessary?
  4. For the promotion strategies that you have outlined in the previous question (Q3), suggest two specific recommendations for these promotion strategies. Give a specific example of how Starbucks should implement these two recommendations in the Italian market.

In: Operations Management

ERP System recommendation for Nike Company.

ERP System recommendation for Nike Company.

In: Operations Management

Share a source (e.g., news, expert opinions, academic articles and so and so forth) and discuss...

Share a source (e.g., news, expert opinions, academic articles and so and so forth) and discuss how it informs your understanding of the full-price apparel and fashion retail industry.

In: Operations Management

What are the main reasons why Starbucks chooses to retain operational control of its domestic operations?...

What are the main reasons why Starbucks chooses to retain operational control of its domestic operations? Why does Starbucks rely on licenses for most of its international operations? Does the company risk the dissipation of any of its advantages by relying on licensing?

no case study . Based on google knowledge of Starbucks

In: Operations Management

Can you find examples of Starbucks facing inter-regional liability of foreignness? How did Starbucks deal with...

Can you find examples of Starbucks facing inter-regional liability of foreignness? How did Starbucks deal with this? What could have been done differently?

In: Operations Management

West Coast Architects (WCA) has been operating for the last ten years now. No longer the...

West Coast Architects (WCA) has been operating for the last ten years now. No longer the new kid on the block, the organization has steadily become more professional during your time here. Five years ago, the company had 50 employees and now has grown to 100 staff in Vancouver, Calgary, and Toronto. You have been successful in your career as a people manager practicing what you learned in your many years ago. You are managing an HR Department that is based out of Vancouver and has a mixture of recruiters, HR consultants, and payroll staff. You silently take stock of your situation and marvel at how lucky it has been to grow with a company that has really appreciated your contributions. That brass name plaque on your office door could use some polishing as its developing some patina!

question

WCA has just sent a dozen (mostly white male) managers from Canada to its new site in a remote area of China. Few of these managers have worked with Chinese employees, so the company has asked you to design an on-site one-day experiential training program to help these managers to minimize perceptual problems that might otherwise occur. The program must be experiential (i.e. participants interact with each other rather than attend an awareness lecture) and the activities must help the managers to discover biases that may be hidden or unknown to them. Describe a minimum of two key features of this training program and discuss its conceptual foundations.

In: Operations Management

Describe the four market-related strategies an organization uses to identify alternate market opportunities.

Describe the four market-related strategies an organization uses to identify alternate market opportunities.

In: Operations Management

What type of queuing system is used at a: restaurant? car dealership? Zappos?

What type of queuing system is used at a:

restaurant?

car dealership?

Zappos?

In: Operations Management

To what extent is Starbucks a global company? How would you evaluate Starbucks’ role in the...

To what extent is Starbucks a global company? How would you evaluate Starbucks’ role in the process of

globalisation?

In: Operations Management

Read the Italy Defied Starbucks—Until It Didn’t case below and answer the 4 questions: “We arrive...

Read the Italy Defied Starbucks—Until It Didn’t case below and answer the 4 questions:

“We arrive with humility and respect in the country of coffee,” Howard Schultz, the former longtime CEO of Starbucks, told Corriere della Sera, Italy’s leading daily, last week. He was about to inaugurate, in Milan, the first Italian outpost of the global chain that supersized coffee and now vies with McDonald’s and Coca Cola as a symbol of American gastronomic imperialism. Even, of course, if Italy has one of the world’s most developed coffee cultures, which in fact is what inspired Schultz to convince the founders of the small Starbucks coffee company to open its first coffeehouse in 1984.

Italy is a country where the pumpkin is generally found in the ravioli, not the latte, and so the Milan Starbucks isn’t just any Starbucks branch. It’s a huge “Roastery” in the former Milan outpost

of the Poste, the Italian postal service, and is meant as a full “experience,” Starbucks said in a press release that has already been mocked by Eater. (“Eight Ridiculous Things Starbucks Is Saying About Its New Store in Milan.”) The Roastery, the first in Europe after others in Seattle and Shanghai, will offer coffee and food and also illustrate Starbucks’s roasting process.

Okay. But a question leaps to mind: Does Italy need Starbucks? “Che tristezza,” one Italian friend told me when I asked her about it opening in Milan. “How sad.” I called the Tazza d’Oro, one of Rome’s most historic coffee shops—they’re called bars in Italian—and Laura Birrozzi, a manager, offered some thoughts. “We and Starbucks sell something completely different. We have quality Italian espresso,” she said. I asked her if she’d ever been to a Starbucks, and she said she had on one occasion, on a visit to London. “It wasn’t the coffee I’m used to,” was all she’d say.

At the Milan Roastery, an espresso will cost 1.80 euros “sitting or standing,” Corriere della Sera noted, since in Italian coffee shops, the price changes depending on whether you have table service or gulp your drink down at the bar. A cappuccino will cost as much as 4.50 euros. This has already prompted Italy’s consumer association to file a complaint with Italy’s antitrust authority, saying the prices were far above average for Milan. Online, Italians are already complaining that Starbucks could drive up prices elsewhere in Italy. (Still, from the coverage, it seems the Roastery piqued people’s curiosity; the lines were around the block for the musical-gala opening party.)

The announcement last year about the opening did not go over well. The columnist Aldo Cazzullo wrote in Corriere della Sera then that “as an Italian,” he considered the opening of Starbucks in Italy nothing short of “a humiliation.” Though he conceded that the arrival of the chain might make some Italian coffee shops step up their game: Starbucks “represents a philosophy, as well as a sort of office for people who don’t have an office,” he wrote. “Maybe our bars will also become more hospitable.”

But, he ended on a discordant note: “I wonder how many of the 350 jobs announced in Milan will go to young Italians and how many to young immigrants,” Cazzullo wrote. It’s unclear what kind of immigrants he had in mind, or why hiring immigrants would be an issue. What is clear is that in Italy, coffee seems to connect in unexpected ways to national identity. There were polemics last year after Starbucks sponsored a garden of palm trees in Piazza Duomo, to drum up enthusiasm ahead of its opening this year. This prompted Matteo Salvini, then only the leader of the far-right League party and now Italy’s interior minister and deputy prime minister, to decry what he called the “Africanization” of Italy, and to call for the defense of the “Italianness” of coffee. “All that’s missing are the sand and camels, and the illegal immigrants will feel at home,” he said then.

Schultz has been trying to open Starbucks in Italy for decades, and the fact that Italy has such excellent coffee everywhere—even the coffee at the average highway rest stops in Italy is better than much of what’s served in good restaurants elsewhere in the world— was no doubt a major issue. In 1998, Michael Specter wrote in The New Yorker about Schultz’s efforts to open Starbucks and said a branch of the chain would open in Italy “next year.”

So why the delay? For one thing, Italians don’t drink coffee the way Starbucks serves coffee. In Italy, coffee—espresso—is drunk generally standing up, at a coffee bar. Cappuccino or caffè latte is drunk in the morning or sometimes in the late afternoon if you haven’t had a proper lunch, and never after meals, because who can digest milk after a meal? Italians are very attuned to proper digestion.

Also, Italy has a market economy with some protectionist elements. In her interview with Schultz for Corriere, the journalist Daniela Polizzi noted that the context had changed in the past 20 years, from one of adjusting to globalization to one in which trade barriers have become an issue. Starbucks now has 30,000 stores in 77 countries, including 3,400 stores in China, with 45,000 employees, Schultz answered. Italy hasn’t given up quite so much ground, but the chain has now established a beachhead there.

Some saw the arrival of Starbucks as a window into the challenges to the Italian economy. “The lack of Starbucks indicates a double anomaly: On the one hand, the biggest coffee chain in the world wasn’t present in Italy, and on the other, the biggest coffee chain in the world isn’t Italian,” the journalist Luciano Capone wrote in Il Foglio, an intellectual daily, this week, citing the economist Luigi Zingales. It seemed a sign of how Italy’s economy is based on smaller businesses with more modest ambitions. More than 90 percent of Italian companies have fewer than 15 employees.

Then there’s the flip side. “Operating in Italy, in competition with Italian coffee bars, it’s probable that Starbucks will soon learn to make excellent espressos and cappuccinos,” Capone continued. “But will the Italian system manage to learn from Starbucks how to create a global chain? It would be a small step for us, but a great step for mankind: Finally the rest of the world would discover that coffee and pizza aren’t the kind on offer at Starbucks and Pizza Hut.”

So if the wheel is coming full circle, does Olive Garden have any plans to open in Italy? I asked its spokeswoman, Meagan Mills. “We do not have any plans,” she wrote back. “Thanks for thinking of us, though!”

Questions to answer

1- What are the main marketing environment factors affecting Starbucks business in the Italian market? Why are these factors affecting the Italian market?

In: Operations Management

Why is integrated marketing communications important to marketers?

Why is integrated marketing communications important to marketers?

In: Operations Management

Delivering Business Value with IT at Hefty Hardware “IT is a pain in the neck,” groused...

Delivering Business Value with IT at Hefty Hardware

“IT is a pain in the neck,” groused Cheryl O’Shea, VP of retail marketing, as she slipped into a seat at the table in the Hefty Hardware executive dining room, next to her colleagues. “It’s all technical mumbo-jumbo when they talk to you and I still don’t know if they have any idea about what we’re trying to accomplish with our Savvy Store program. I keep explaining that we have to improve the customer experience and that we need IT’s help to do this, but they keep talking about infrastructure and bandwidth and technical architecture, which is all their internal stuff and doesn’t relate to what we’re trying to do at all! They have so many processes and reviews that I’m not sure we’ll ever get this project off the ground unless we go outside the company.”

“You’ve got that right,” agreed Glen Vogel, the COO. “I really like my IT account manager, Jenny Henderson. She sits in on all our strategy meetings and seems to really understand our business, but that’s about as far as it goes. By the time we get a project going, my staff are all complaining that the IT people don’t even know some of our basic business functions, like how our warehouses operate. It takes so long to deliver any sort of technology to the field, and when it doesn’t work the way we want it to, they just shrug and tell us to add it to the list for the next release! Are we really getting value for all of the millions that we pour into IT?”

“Well, I don’t think it’s as bad as you both seem to believe,” added Michelle Wright, the CFO. “My EA sings the praises of the help desk and the new ERP system we put in last year. We can now close the books at month-end in 24 hours. Before that, it took days. And I’ve seen the benchmarking reports on our computer operations. We are in the top quartile for reliability and cost-effectiveness for all our hardware and systems. I don’t think we could get IT any cheaper outside the company.” “You are talking ‘apples and oranges’ here,” said Glen. “On one hand, you’re saying that we’re getting good, cheap, reliable computer operations and value for the money we’re spending. On the other hand, we don’t feel IT is contributing to creating new business value for Hefty. They’re really two different things.”

“Yes, they are,” agreed Cheryl. “I’d even agree with you that they do a pretty good job of keeping our systems functioning and preventing viruses and things. At least we’ve never lost any data like some of our competitors. But I don’t see how they’re contributing to executing our business strategy. Surely in this day and age with increased competition, new technologies coming out all over the place, and so many changes in our economy, we should be able to get them to help us be more flexible, not less, and deliver new products and services to our customers quickly!”

The conversation moved on then, but Glen was thoughtful as he walked back to his office after lunch. Truthfully, he only ever thought about IT when it affected him and his area. Like his other colleagues, he found most of his communication with the department, Jenny excepted, to be unintelligible, so he delegated it to his subordinates, unless it absolutely couldn’t be avoided. But Cheryl was right. IT was becoming increasingly important to how the company did its business. Although Hefty’s success was built on its excellent supply chain logistics and the assortment of products in its stores, IT played a huge role in this. To implement Hefty’s new Savvy Store strategy, IT would be critical for ensuring that the products were there when a customer wanted them and that every store associate had the proper information to answer customers’ questions. In Europe, he knew from his travels, IT was front and center in most cutting-edge retail stores. It provided extensive self-service to improve checkout; multichannel access to information inside stores to enable customers to browse an extended product base and better support sales associates assisting customers; and multimedia to engage customers with extended product knowledge. Part of Hefty’s new Savvy Store business strategy was to copy some of these initiatives, hoping to become the first retailer in North America to completely integrate multimedia and digital information into each of its 1,000 stores. They’d spent months at the executive committee meetings working out this new strategic thrust—using information and multimedia to improve the customer experience in a variety of ways and to make it consistent in each of their stores. Now they had to figure out exactly how to execute it, and IT was a key player. The question in Glen’s mind was how could the business and IT work together to deliver on this vision, when IT was essentially operating in its own technical world, which bore very little relationship to the world of business?

Entering his office, with its panoramic view of the downtown core, Glen had an idea. Hefty’s stores operate in a different world than we do at our head office. Wouldn’t it be great to take some of our best IT folks out on the road so they could see what it’s really like in the field? What seems like a good idea here at corporate doesn’t always work out there, and we need to balance our corporate needs with those of our store operations. He remembered going to one of Hefty’s smaller stores in Moose River and seeing how its managers had circumvented the company’s stringent security protocols by writing their passwords on Post-it notes stuck to the store’s only computer terminal.

On his next trip to the field he decided he would take Jenny, along with Cheryl and the Marketing IT Relationship Manager, Paul Rivera, and maybe even invite the CIO, Farzad Mohammed, and a couple of the IT architects. It would be good for them to see what’s actually happening in the stores, he reasoned. Maybe once they do, it will help them understand what we’re trying to accomplish. A few days later, Glen’s emailed invitation had Farzad in a quandary. “He wants to take me and some of my top people—including you—on the road two weeks from now,” he complained to his chief architect, Sergei Grozny. “Maybe I could spare Jenny to go, since she’s Glen’s main contact, but we’re up to our wazoos in alligators trying to put together our strategic IT architecture so we can support their Savvy Stores initiative and half a dozen more ‘top priority’ projects. We’re supposed to present our IT strategy to the steering committee in three weeks!

“I need Paul to work with the architecture team over the next couple of weeks to review our plans and then to work with the master data team to help them outline their information strategy,” said Sergei. “If we don’t have the infrastructure and integrated information in place, there aren’t going to be any Savvy Stores! You can’t send Paul and my core architects off on some boondoggle for a whole week! They’ve all seen a Hefty store. It’s not like they’re going to see anything different.” “You’re right,” agreed Farzad. “Glen’s just going to have to understand that I can’t send five of our top people into the field right now. Maybe in six months after we’ve finished this planning and budget cycle. We’ve got too much work to do now. I’ll send Jenny and maybe that new intern, Joyce Chan, who we’re thinking of hiring. She could use some exposure to the business, and she’s not working on anything critical. I’ll email Jenny and get her to set it up with Glen. She’s so great with these business guys. I don’t know how she does it, but she seems to really get them onside.”

Three hours later, Jenny Henderson arrived back from a refreshing noontime workout to find Farzad’s request in her priority in-box. Oh #*!#*@!, she swore. She had a more finely nuanced understanding of the politics involved in this situation, and she was standing on a land mine for sure. Her business contacts had all known about the invitation, and she knew it was more than a simple request. However, Farzad, having been with the company for only eighteen months, might not recognize the olive branch that it represented, nor the problems that it would cause if he turned down the trip or if he sent a very junior staff member in his place. I have to speak with him about this before I do anything, she concluded, reaching for her jacket.

But just as she swiveled around to go see Farzad, Paul Rivera appeared in her doorway, looking furious. “Got a moment?,” he asked and, not waiting for her answer, plunked himself down in her visitor’s chair. Jenny could almost see the steam coming out of his ears, and his face was beet red. Paul was a great colleague, so mentally putting the “pause” button on her own problems, Jenny replied, “Sure, what’s up?”

“Well, I just got back from the new technology meeting between marketing and our R&D guys, and it was just terrible!” he moaned. “I’ve been trying to get Cheryl and her group to consider doing some experimentation with cell phone promotions—you know, using that new Japanese bar coding system. There are a million things you can do with mobile these days. So she asked me to set up a demonstration of the technology and to have the R&D guys explain what it might do. At first, everyone was really excited. They’d read about these things in magazines and wanted to know more. But our guys kept droning on about 3G, 4G, LTE, and HSPA technology and different types of connectivity and security and how the data move around and how we have to model and architect everything so it all fits together. They had the business guys so confused we never actually got talking about how the technology might be used for marketing and whether it was a good business idea. After about half an hour, everyone just tuned out. I tried to bring it back to the applications we could develop if we just invested a little in the mobile connectivity infrastructure, but by then we were dead in the water. They wouldn’t fund the project because they couldn’t see why customers would want to use mobile in our stores when we had perfectly good cash registers and in-store kiosks! “I despair!” he said dramatically.

“And you know what’s going to happen, don’t you? In a year or so, when everyone else has got mobile apps, they’re going to want us to do something for them yesterday, and we’re going to have to throw some sort of stopgap technology in place to deal with it, and everyone’s going to be complaining that IT isn’t helping the business with what it needs!” Jenny was sympathetic. “Been there, done that, and got the T-shirt,” she laughed wryly. “These tech guys are so brilliant, but they can’t ever seem to connect what they know to what the business thinks it needs. Sometimes, they’re too farsighted and need to just paint the next couple of steps of what could be done, not the ‘flying around in jetpacks vision.’ And sometimes I think they truly don’t understand why the business can’t see how these bits and bytes they’re talking about translate into something that it can use to make money.” She looked at her watch, and Paul got the hint. He stood up. “Thanks for letting me vent,” he said. “You’re a good listener.”

I hope Farzad is, she thought grimly, as she headed down the hall. Or he’s going to be out of here by Thanksgiving. It was a sad truth that CIOs seemed to turn over every two years or so at Hefty. It was almost predictable. A new CEO would come in, and the next thing you knew, the CIO would be history. Or the user satisfaction rate would plummet, or there would be a major application crash, or the executives would complain about how much IT cost, or there would be an expensive new system failure. Whatever it was, IT would always get blamed, and the CIO would be gone. We have some worldclass people in IT, she thought, but everywhere we go in the business, we get a bad rap. And it’s not always our fault.

She remembered the recent CIM project to produce a single customer database for all of Hefty’s divisions: hardware, clothing, sporting goods, and credit. It had seemed to be a straightforward project with lots of ROI, but the infighting between the client divisions had dragged the project (and the costs) out. No one could agree about whose version of the truth they should use, and the divisions had assigned their most junior people to it and insisted on numerous exceptions, workarounds, and enhancements, all of which had rendered the original business case useless. On top of that, the company had undergone a major restructuring in the middle of it, and a lot of the major players had changed. It would be a lot easier for us in IT if the business would get its act together about what it wants from IT, she thought. But just as quickly, she recognized that this was probably an unrealistic goal. A more practical one would be to find ways for business and IT to work collaboratively at all levels. We each hold pieces of the future picture of the business, she mused. We need to figure out a better way to put them together than simply trying to force them to fit.

Knocking on Farzad’s door, she peeked into the window beside it. He seemed lost in thought but smiled when he saw her. “Jenny!” he exclaimed. “I was just thinking about you and the email I sent you. Have you done anything about it yet?” When she shook her head, he gave a sigh of relief. “I was just rethinking my decision about this trip, and I’d like your advice.” Jenny gave her own mental sigh and stepped into the office. “I think we have a problem with the business and we need to fix it—fast,” she said. “I’ve got some ideas, and what to do about the trip is just part of them. Can we talk?” Farzad nodded encouragingly and invited her to sit down. “I agree with you, and I’d like to hear what you have to say. We need to do things differently around here, and I think with your help we can. What did you have in mind?”

Discussion Questions

1. 1. Overall, how effective is the partnership between IT and the business at Hefty Hardware? Identify the shortcomings of both IT and the business.

2. 2. Create a plan for how IT and the business can work collaboratively to deliver the Savvy Store program successfully.

In: Operations Management

Is there a way to bring consensus and standardize the EMR systems without alienating productive physicians...

Is there a way to bring consensus and standardize the EMR systems without alienating productive physicians who bring large revenues to the hospital?

How can the dilemma of inefficiency and patient dissatisfaction be prevented?

What steps should the CIO take in the future to prevent these types of issues from occurring again?

In: Operations Management