15.566 Information Technology
Calyx and Corolla Case Questions

Leslie Prince Rudolph
2/25/98

15.561A and 15.566
Example Case Writeup for
Calyx and Corolla

#1 – Value Added Chain
The value-added chain for typical florists can be depicted as follows:
Customers
call in order

growers

distributors

wholesalers

florists

consumers

The distributors are typically located in the growing regions. The wholesalers are geographically dispersed. Most flowers are ordered directly from the florist and delivered to the recipient (consumer). Small family-operated companies dominate the entire chain. In many cases, industry participants have some role across the organizations
(i.e. some wholesalers also grow some flowers). Mark-ups are substantial from one organization to the next, causing a resultant mark-up of almost 800% from the growers to the consumer.
In contrast, the value-added chain using Calyx & Corolla’s approach can be depicted as follows: Calyx & Corolla send order info to growers

Customers call in order growers Fed Ex

consumers

With the Calyx and Corolla approach, information travels from the customers to Calyx &
Corolla, directly to the growers. The growers then package the flower orders in their final consumer packages. The flowers are transported by Fed Ex to the consumer. The
Calyx & Corolla approach allows consumers to receive fresher flowers by as many as 710 days over the traditional approach.
#2 – Strengths and Weaknesses
Strengths
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Fresher flowers to consumers
Less “middle-men”, more profit for those involved

15.566 Information Technology
Calyx and Corolla Case Questions

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Leslie Prince Rudolph
2/25/98

Allows Calyx & Corolla to gather consumer information (what they order, how often)
Customer service can track orders with on-line tracking system
Continuity programs