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IT Policy And Strategy

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Strategic Analysis Paper

Jimmy Beans Wool opened a physical retail location in Reno, Nevada. Customers can purchase yarn and fabric from the company's online store. The business is owned by Laura and Doug Zander, a married pair who were both software developers in the past. After five years in business, the company saw a rise in sales, reaching $1 million in revenue. The company's revenues reached an incredible $7 million in 2013.

Because it posted videos on YouTube and used social media to promote its products, the firm was successful. These videos featured product reviews as well as how-to tutorials for the items the company offered for sale. By using its social media accounts to interact with customers, the company gained their respect and saw an increase in overall sales.

Due to the company's outstanding success, upper management began to think about strategies to grow the company to boost revenue. The decision to sell yarn and fabric was made by the management. Jimmy Cool Beans' goal at the time was to double total sales in three to five years. Significantly, the company wanted to achieve $100 million. The objective of raising the company's sales, meanwhile, was not met. As of June, the company was experiencing declining sales, a sign that the decision to consider growing the business was not going to be successful. Consequently, the Zanders ceased receiving paychecks from the workers and instead used their funds to pay the staff. The company needed to reconsider how it planned to grow.

To get back on track, Zander believed the corporation needed to invest more money. It did not, however, succeed because the sales continued to drop. The company had to reconsider its spending practices to revive the firm, even if it meant raising total spending. The company intended to concentrate on growing its internet trade to boost its worldwide sales. The Chief Technology Officer of the company made frequent trips, even though efforts to boost sales were becoming less and less. Given the declining revenues, it was clear that the company was close to failing (Gardella, 2019).

Recommended technology to serve James Cool Bean in its expansion plans

The executives are confronted with difficulties in managing staff overseas as the company explores expanding internationally. All of the firms' operations must, nevertheless, remain coordinated by the company. As a result, the company must spend money on the virtual communication technologies that international companies like Nestle have selected. Nestle implemented a system that has facilitated communication between the management of the company's American subsidiary and those of its European and Asian businesses. Nestle's executives can thus monitor the products' development, as well as the areas in which the company's products have performed well and those in which they have fallen short of expectations. This kind of information is vital for product distribution since it helps offer products that the market would accept by speaking with local executives of the company that makes the products.

Online retailers have different requirements, and James Cool Beans has demonstrated a desire to expand globally. The use of inventory tracking, which connects digital and physical activities, is necessary to expand the firm internationally. James Cool Beans plans to optimize its operations in all sales channels by utilizing inventory management technologies (Akhtar, 2019). Additionally, the business will see a reduction in total operating costs as a result of using these inventory systems.

The goal of developing an inventory system is to maximize growth and operations. James Cool Beans will access data in real-time by using the inventory system. As a result, the team in charge of inventory can log in using a mobile device, PC, or laptop instead of waiting for a receipt to be printed or physically visiting the warehouse. It is beneficial to access the most recent stock inventory data at all organizational levels. Maintaining a more consistent inventory is also crucial, requiring price adjustments, recorder modifications, and other adjustments to account for supply and demand. A company needs to be aware of the purchasing patterns. James Cool Beans, for example, can determine whether a product—the yarn or the fabric—sells better. Ideally, the system can identify annual sales changes and assist the business in expanding its product line to better suit client preferences (Moussaoui et al., 2019). The Coca-Cola Corporation has managed its operations, including product distribution across international borders, by using an inventory system. The multinational's effective inventory system helps it to maintain its position as a leading soft drink manufacturer in the world.

To boost sales, one must assess consumer behavior in the marketplace. In this sense, the company can assess its customer base's origins, by assisting in the formulation of an online and marketing plan that targets the most lucrative and promising consumers.

Online company productivity software allows managers to monitor the organization's progress at each stage of goal completion, and James Cool Beans might make use of it. To guarantee meeting deadlines and enhancing performance, it also provides prompt coaching and reinforcement (Jain & Patel, 2016). Employees at James Cool Beans will be more productive because they will be allowed to grow professionally and be held to a high standard.

References

Akhtar, S. (2019). Impact of Social Networking Sites in Marketing Communication and Sales: A Study on Nestle Bangladesh Limited. World, 6(1).

Gardella, A. (April 2, 2019). Seeking Even Faster Growth, an E-Commerce Company Stumbles. The New York Times. Retrieved from https://www.nytimes.com/2018/04/23/opinion/teachers-protest-education-funding.html?ribbon-ad idx=4&src=trending&module=ArrowsNav&contentCollection=Small%20Business&action=swipe&region=FixedRight&pgtype=article

Jain, Y., & Patel, N. (2016). Analyzing the impact of online CRM practices on companies' productivity and customer retention. International Journal for Research in Business, Management and Accounting, 2(12), 25-35.

Moussaoui, I., Williams, B. D., Hofer, C., Aloysius, J. A., & Waller, M. A. (2019). Drivers of retail on-shelf availability: Systematic review, critical assessment, and reflections on the road ahead. International Journal of Physical Distribution & Logistics Management, 46(5), 516-535.