Business Plan: Technology Investments to Improve the Business - Assignment Example

BUSN460 Week # 3&4 Week 3 Overview In week three’s video it is clear that Jack and Warren are not satisfied with there current process layout CanGo needs to consider some technology investments to improve their business.. However, changes in this area are often expensive and are relatively difficult to reverse. Jack and Warren, of CanGo, have decided they need an Automated Storage Retrieval System to help prepare for increased sales volume, brought about by their new online gaming systems, book orders, CD orders and other products. Benefits of technologies such as bar-coding and ASRS, are increased flexibility and increased speed of delivery. The tangible impact of such benefits may are often not immediate, but rather occur in future capabilities and products. In the week three meeting, Warren and Debbie meet with Jack to discuss an ASRS for CanGo’s operations. Jack explains the occupational flowchart and how the system will eliminate, integrate and automate their workflow. The bar code system will reduce labor in the manufacturing facility. He also explains how two ASRS would handle twice the number of shipments. Warren has concerns about costs. He is also hesitant to pull his staff off their current bandwidth and security projects to concentrate on the integrating data flow of the ASRS system, which requires attention in several key areas. Maria is concerned about what will happen when pickers are replaced by the new system. Liz is concerned about how the new system will work with other departments. Jack reassures Maria that pickers will be used in other parts of the facility. He tells Liz that the new system can be tied to the back end of the order fulfillment application. As the price is non-negotiable, Liz must get approval from the board. Clark likes the idea that the new system will be capable of changing book volume, book variety and any other changes. Warehouse spaces will be freed up, so concerns about more space are dealt with. There are still many details to be worked out by various team members. So, Jack suggests they delay recommendations for now, taking the time to look at the long-term strategic impact of the process change. Week 3 Recommendations Any technology upgrade can be costly. Jack must do a better job of convincing Warren and Liz that the ASRS system will benefit CanGo in the long run, using a flowchart. If Jack & Warren can show in their chart where the long term goals and objective of this system could take the company, I think that Liz and Finance would find the money to make for the new process. Once they agree to get the system, they can sit down and tailor the new system to the company’s current needs, future needs and budget. Week 4 Overview In this week’s Video, CanGo is trying to get a pulse on Consumer Behaviors. Using their understanding, Marketers should focus on influencing that process with messages that make consumers feel good about each phase of their purchase decision. By sending the right messages, the site stimulates consumers to click through each page. If all goes well, consumers who reach the final page will have developed such intense liking for the product that theyll buy it. However, consumers often shop around to compare prices, or just lose heart when the time comes to open their wallets. As Andrew and his team learn, a large number of e-consumers fail to "pull the trigger"-complete the transaction with that final click of the mouse. There are many things to o take into account when designing an online store. Problem Recognition, in which consumers realize they have a need that they might fill with some product, motivates the search for an appropriate product. Consumers gather data about products during the Information Search. Initially they may not pay close attention to ads and product information. As interest in particular products develops, their search may grow more intense, seeking more detailed information. In general, the more expensive or complicated the product, the more intensively the consumer will search for information. Consumers then compare other options, through Alternative Evaluation, to assess advantages and disadvantages, before making the final decision, or Purchase. Post purchase Evaluation (or purchase outcome), occurs when consumers assess their purchases. Often, consumers experience cognitive dissonance or misgivings about their purchases, particularly when the product was expensive. CanGo must determine if this is occurring with their online store. Andrew assigns Gail and Nick to research the online shopping process, in regard to the current store, to determine where the customers are falling off and if CanGo is included in the 75 percent as Whitney stated. In review, I have identified CanGO’s strengths as getting a head start on projects and remaining competitive in the market. Warren’s team should demonstrate more organizational skills in completing projects; as well as, forming a system showing who’s in charge of each project. The new Japanese shoppers have provided a different outlook on consumer buying and will allow insight into future Japanese shopping habits. I discovered the Japanese are most subject to buy products when convenience and speed of shipping are present. RECOMMENDATIONS The phone system shows roughly at a minimum calls would be handle in about 13 minutes and 37minutes 30 seconds at a maximum. Customer service call times are very high. I would suggest the pick station operators be trained and used within the customer service department, to help reduce customer hold times. In addition to speeding up the customer order process by phone, the online ordering process gives them another option. A web-site like CanGo’s should be able to more effectively move the customer toward the purchase decision. Using the VALS2 tool, which the most well-known psychographic segmentation tool available, Andrew and his team can gain significant insight into the online purchasing process of consumers. Three self-orientation patterns included in VALS2 are principle-oriented, status-oriented, and action-oriented. Principle-oriented consumers may purchase what they consider a good value for the price. Status-oriented consumers choose products that are popular with others, including designer labels and name brands. Action-oriented consumers choose catchy titles or those that are unique. Andrew is on the right track in addressing customer needs and getting more of them to “pull the trigger.” Works Cited Consumer & Company Research. Retrieved November 21, 2007 from http://www.comingofage.com/Research/index.htm Encyclopedia of Business and Finance. Retrieved November 20, 2007 from http://www.enotes.com/business-finance-encyclopedia/consumer-behavior. Dematic Automated Storage and Retrieval Systems. Retrieved November 21, 2007 from http://www.dematic.us/23608/Products/AS%2FRS/AS%2FRS/btc_dematic_pic_right.asp DeVry University. Retrieved November 21, 2007 from http://www.devryu.net. JETRO (2007). Investing in Japan. Retrieved November 21, 2007     from http://www.jetro.go.jp/en/invest/. Mind Tools. Retrieved November 21, 2007 from http://www.mindtools.com/pages/article/newTMC_97.htm Read More