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Information Analysis of Organization Systems - Case Study Example

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Jalupa Musical Instruments Company is experiencing continued decline of the sale of guitars in the last five years since its target market, rock & roll generation is gradually aging out of the market. The decrease in the company’s target market that includes baby boomers leads…
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Information Analysis of Organization Systems
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"Information Analysis of Organization Systems"

Download file to see previous pages The reliance on $50 million loan with annual $10 million balloon payments is an irrational economic base of trying to solve the business problem. The huge debt will limit the company’s growth for five years. Moreover, the JalupaBook project limits the company’s growth by limiting the funding for other prioritized and more beneficial initiatives like manufacturing plant modernization. Ultimately, the organization system relies on an IT department with inexperienced, junior, incompetent staff to design and implement JalupaBook project.
The organization systems could not guarantee a suitable market presence and failed to contain the continued decline of the sale of guitars in the last five years. The company decided to change its organization systems to establish a new market that resonates with the modern musical industry.
Yes. The company’s competitors are yet to utilize the integrated ecommerce component that promises immense market returns. The company must establish another market to survive. The proposed organization systems correlate with the modern global trends that embrace social media as a business medium.
The project seeks to attract potential new customers through social media activities and connections with prominent guitar players. The project aims at enabling customers to interact through social media and establish a new generation of musicians.
The company encounters barriers to entry since it is new in online commerce. The company might lose its traditional customers and conservative advertisers who may not prefer online interactions. The huge imminent debt for implementing the project is not feasible. Moreover, the inexperienced and incompetent IT department will jeopardize the project.
The company’s gross margins on guitars and guitar amplifiers stand at 42% that supports the project. The company enjoys the highest net margins in the industry with a convincing ...Download file to see next pagesRead More
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