...1. How does L.L. Bean use past demand data and a specific item forecast to decide how many units of that item to stock? Based on the book forecast and past demand data, L.L. Bean calculates a point forecast for the item in the future period. Then, actual demand / forecast ratio is calculated to forecast the range of inventory of the item. The last step in forecasting demand is finding the service level based on a profit margin calculation. Since L.L. Bean wants to compare the probability of each unit of item bought and the loss generated from liquidating, L.L. Bean calculates a fractile for the items since the fractile calculation indicates what point is optimal to hold the stock in order to balance overstocking and understocking costs, which then determines the number of units to stock. 2. What item costs and revenues are relevant to the decision of how many units of that item to stock? The cost of the item for L.L. Bean and the price at which they can sell the item are the two factors that are relevant in determining how many units of an item should be stocked. L.L. Bean can, then, calculate the profit margin by subtracting item’s costs from the selling price. The profit margin relates to the cost of understocking. Thus, subtracting liquidation value from the original cost of the item gives the loss for failing to sell that item, which also means overstocking an item. Additional cost associated with overstocking is the annual holding time of their facility when they...
Words: 648 - Pages: 3
...L.L. Bean Inc. Case Study Situation L.L. Bean, Inc. is an organization that has always experienced rapid growth. The company’s simple focus on customer service, and delivering value has been its business philosophy from the very beginning. This is an evaluation case. Though growth is something all companies strive for, L.L. Bean finds itself in a situation where it wonders how it can keep up with such rapid growth without straying too far from its identity. Questions This situation raises many questions. The protagonist, Leon Gorman raises many questions that are directly related to the situation: 1. How can sales projections be achieved, and how sales growth be achieved while maintaining and enhancing product quality and services? What are we doing well? Where can we improve? 2. Is it possible to develop human resources to meet growth needs? And is the needed at talent available locally in Maine? 3. Is it possible to achieve the productivity levels needed to meet projections? 4. Can the company continue as a family-owned business with growth, given potential estate and management succession problems? 5. Can the company maintain its image, and not change the essential nature of the business? 6. What criteria about our business do consumers like best (and least)? Price? Product? Delivery (place)? Hypothesis After conducting a preliminary review of possible criteria (e.g. from exhibit 4: price, variety, customer service etc.), current practices, and...
Words: 1795 - Pages: 8
...L. L. Bean Case Study 1. Each catalog for L.L. Bean had a gestation period of about 9 months. Its creation included merchandising, design, product, and inventory specialists. The first step of its creation process is initial conceptualization followed by the preliminary forecasts of total sales. Then forecasts were developed by book. After the layout and pagination of the books, initial commitments to vendors were made. The subsequent step is that item forecasts were repeatedly revised and finally the items were fixed. When catalogs were in the hands of customers, inventory managers decided on additional commitments to vendors, scheduled replenishments, handle backorders, etc. inventories which cannot be sold at that time might be liquidated, marked down and sold through special L.L. Bean promotions, or carried over to the next year. 2. The company determine their actual demand based on historical forecast errors. The historical forecast errors were computed for each item in the previous year and the frequency of these errors. The frequency of past forecast errors was used as a probability distribution for the future errors. For example, in the past year, if there were 50% of the forecast errors for “new” items were between 0.7 and 1.6. Then the company can assumed that the forecast errors for “new” item in the current year also would be between 0.7 and 1.6 with the possibility 50%. If the frozen forecast for an item is 1000 units, we can assume that with the probability...
Words: 459 - Pages: 2
...University/Faculty Regulations No plagiarism in report/academic work and writing (MerriamWebster’s Collegiate Dictionary, Eleventh Edition, USA, 2003) to steal and pass off (the ideas or words of another) as one’s own to use (another’s production) without crediting the source to commit literary theft to present as new and original an idea or product derived from an existing source No cheating in examination Grade: E Instructor & Teaching Assistant Puspa I. Sandhyaduhita (p.indahati@cs.ui.ac.id) Build. A Room Nb. 1232 Ika Chandra Hapsari (ikahapsari24@gmail.com) Consultation: With appointment (office hour, weekdays) TA See Scele Introduction to Supply Chain Management Learning Objectives Understand the basic concepts of supply chain Identify the supply chain decision phases and know the significance of each decision phases Understand the goal of a supply chain and the impact of supply chain decisions on the success of the firm What is a Supply Chain? All stages involved, directly or indirectly, in fulfilling a customer request Includes manufacturers, suppliers, transporters, warehouses, retailers, and customers Within each company, the supply chain includes all functions involved in fulfilling a customer request product development, marketing, operations, distribution, finance, customer service What is a Supply Chain? [2] Includes movement of products from suppliers to manufacturers...
Words: 1738 - Pages: 7
...mainstay in GE’s efforts to has also been adopted by such divers organizations as General Motors, Home Depot, Frito-Lay, L.L. Bean, Sears, IBM, and the World Bank. The impetus for the Work- Out was the belief by GE’s CEO that the company’s culture was too bureaucratic and slow to respond to change. He wanted to create a vehicle that would effectively engage and empower GE workers. Essentially, Work-Out brings together employees and managers from many different functions and levels within an organization for an informal 3-day meeting to discuss and solve problems that have been identified by employees or senior management. Set into small teams, people are encouraged to challenge prevailing assumptions about “the way we have always done things” and develop recommendations for significant improvements in organizational processes. The Work-Out teams then present their recommendations to a senior manager in a public gathering called a Town Meeting. At the town Meeting, the manager in charge oversees a discussion about the recommendation and then is required to 4 The Institute reserves the right to conduct a separate Viva exam on telephone, as a part of the student's exam in case the Subject Lecturer recommends it in any particular student’s case. make a yes-or-no decision on the spot. Only in unusual circumstances can a recommendation be tabled for further study. Recommendations that are accepted are assigned to managers who have volunteered to carry them out. Typically, a recommendation...
Words: 404 - Pages: 2
...Case Study 1 Are Workplace Romances Unethical A large percentage of married individuals first met in the workplace. A 2005 survey reveled that 58 percent of all employees have been in an office romance. Given the amount of time people spend at work, this isn’t terribly surprising. Yet office romances pose sensitive ethical issues for organizations and employees. What rights and responsibilities do organizations have to regulate the romantic lives of their employees? Take the case of former General Electric CEO Jack Welch and Suzy Wetlaufer. The two met while Wetlaufer was interviewing Welch for Harvard Business Review article, and Welch was still married. Once their relationship was out in the open, some accused Wetlaufer of being unethical for refusing to disclose the relationship while working on the article. She eventually left the journal. Other accused Welch of letting his personal life get in the way of the interest of GE and its shareholders. Some even blamed the scandal for a drop in GE stock. Welch and Wetlaufer didn’t even work for the same company. What about when two people work together in the same work unit? Chicago advertising firm, started dating Kevin, one of her account supervisors. Their innocent banter turned into going out for drinks, and then dinner, and soon they were dating. Kevin and Tasha’s bosses were in house competitors. The problem: Sometimes in meetings Kevin would make it seem that Tasha and Kevin were on the same side...
Words: 786 - Pages: 4
...Thomas Haug Work Improvement Method School of Professional Studies GBA603 – Organizational Theory Dr. Steven Englehart May 30, 2015 The origins of total quality management are uncertain, however, research has traced the theory of quality control back to the early 1920s when statistical analysis was used in conjunction with quality control. Walter A. Shewhart developed a statistical control chart in 1923 while working at Bell Telephone; although it wasn’t implemented until three years later at plant for Western Electric (Total Quality Management). The actual method of total quality management as a management approach was introduced in the 1950s. Originally the process of TQM utilized the concept specifically dealing with product inspection and production but today it has transformed into a method that can be applied to analyze all of the operations within an organization. The process of total quality management was first established after WWII when Japanese manufacturers started to make civilian goods instead of military equipment (Total Quality). Having a reputation as the country with the most inferior exports, Japan welcomed outside help from American quality experts, specifically W. Edwards Deming. Instead of focusing on the process of product inspection, Japanese manufacturers focused on improving all of the procedures through their workers. The Japanese were able to transform their negative reputation by increasing the quality and decreasing their prices. American...
Words: 1174 - Pages: 5
...Case No. 61 .Epsilon 2011 Name : Kartik Kapoor Roll No. 32 Question 1: Study the incident and prepare a write up in your own words describing the incident with focus on the specific information security failure (Maximum of 150 words). Answer 1: The breach occurred on March 30 ‘2011 at Epsilon, a Texas-based firm that handles email communications for more than 2,500 clients worldwide, including seven of the Fortune 10 companies. Epsilon sends 40 billion emails annually. Epsilon is the largest e-mail marketing company in America. Two and a half thousand companies use its services and entrust their customer e-mails to it. At least 50 companies, including Target, Best Buy, Walgreens and JP Morgan Chase, had their client e-mail addresses stolen So far, 26 companies have come forward as affected by the breach. The first company to report the data breach was the grocery chain Kroger. From there, it quickly spiraled, as a barrage of companies came forward over the weekend to report their email databases had been accessed without permission The list currently includes: TiVo, Barclays Bank of Delaware, McKinsey & Company, Marriott Rewards, Ritz-Carlton Rewards, New York & Company, Brookstone, L.L. Bean, Ameriprise Financial, The College Board, The Home Shopping Network, Lacoste, Disney Destinations, Ralphs, Food 4 Less, Fred Meyer, Fry’s, King Soopers, U.S. Bank and City Market. Fortunately for those affected, the stolen email lists included only customers’ names and...
Words: 1305 - Pages: 6
...BENCHMARKING AT XEROX Report submitted in partial fulfillment of the requirement for the Operations Management II Course PGDM Under the Supervision of Ms. Sanjita Jaipuria By Group R To Rajiv Gandhi Indian Institute of Management Mayurbhanj Complex, Nongthymmai, Shillong – 793 014 Nov. 2014 TABLE OF CONTENT Topics Page No. List of Figures……………………………………….................................. 5 List of Tables………………………………………................................... 6 Glossary…………………………………………………………..………. 7 Case……………………………………………………………………….. 8 Annexure 1 …………………………………………………….…………. 11 Annexure 2 ……………………………………………………………….. 12 Annexure 3………………………………………………..……………… 14 Annexure 4………………………………………………..……………… 15 Abstract We have used the Xerox methodology for benchmarking, with some slight modifications that place more emphasis on the planning and analysis phases which are thought to be more relevant to the stage of Total Quality Management. Benchmarking is defined as either internal or external, i.e. competitive, generic, or functional, and we can apply the Xerox methodology to both. We found internal benchmarking very useful initially as it enabled familiarization with the benchmarking process throughout the company and encouraged cross functional communication. It also enable people to make their benchmarking errors within the company. The external benchmarking has been mainly competitive and generic. Much of the benchmarking...
Words: 3399 - Pages: 14
...Zhuhao (Andy) Zhang BUS 340 Marketing Case: L.L.Bean Nov.11th 2014 Question 1: What forms of direct marketing does L.L.Bean employ? Which additional forms of direct marketing should L.L.Bean consider using? L.L.Bean currently employs multiple forms of direct marketing, including catalog marketing and online retailing. Catalog marketing is one of L.L.Bean’s core direct marketing methods. In the United States, catalogs have been a popular way for stores to reach customers for over two hundred years. However, due to the Internet boom in the recent decades, many stores have shifted their advertising budgets from catalogs to online advertisement. L.L.Bean still maintains its well-known catalogs, but has reduced them in size. Instead of making full-line catalogs, L.L.Bean provides more specialized catalogs for different marketing segments to highlights various themes, including road trips, hunting and holidays. L.L.Bean currently manages over 50 specific seasonal catalogs, which are mailed to over 160 countries in the world. In addition to catalogs, L.L.Bean also utilizes online retailing for direct marketing activities to keep up with the growing trend of Internet use. L.L.Bean focuses on multi-channel digital marketing to compete with other brands. The company not only has established a web-based store, but also has developed its mobile shopping app. Online retailing enables customers to get immediate access to L.L.Bean product information and place orders at any...
Words: 1456 - Pages: 6
...to begin an exciting journey toward learning about marketing. To start you off in the right direction, we’ll first define marketing and its key concepts. Then, you’ll visit the various philosophies that guide marketing management and the challenges marketing faces as we move into the new millennium. The goal of marketing is to create profitable customer relationships by delivering superior value to customers. Understanding these basic concepts, and forming your own ideas about what they really mean to you, will give you a solid foundation for all that follows. After studying this chapter, you should be able to 1. define what marketing is and discuss its core concepts 2. explain the relationships between customer value, satisfaction, and quality 3. define marketing management and understand how marketers manage demand and build profitable customer relationships 4. compare the five marketing management philosophies 5. analyze the major challenges facing marketers heading into the next century Our first stop: Nike. This superb marketer has built one of the world’s most dominant brands. The Nike example shows the importance of — and the difficulties in — building lasting, value-laden customer relationships. Even highly successful Nike can’t rest on past successes. Facing “big-brand backlash,” it must now learn how to be both big and beautiful. Ready? Here we go. T he “Swoosh” — it’s everywhere! Just for fun, try counting the swooshes whenever you pick up the sports pages, or watch a pickup...
Words: 18287 - Pages: 74
...CHAPTER 2 A review of related literature and studies, both local and foreign which are relevant in reinforcing the conceptual framework of reference on which this study is anchored, are contained in this chapter. Foreign Studies A recent study was conducted by the Direct Marketing Association (DMA) on the issue of Direct Marketing as a Global Industry. The potential reward are great, and direct marketers continue to venture outside the bounderies of thier native countries. The DMA estimates that Japans’ catalog market was worth $21 Billion in 1996 and that there are 500 catalog marketers competing for that market. A number of U.S firms among the successful competitors, driven by the Japanese desire for U.S products and their need for convenience. A survey few years ago, when the automibile industry was trying to ascertain how to advertise to the emerging women’s market, Ford Motor Company turned to an approach called “Curriculum Theory”. Based on theories of learning that you have probably studied in psychology or consumer behavior classes, “Curriculum Theory” argues that when the purchase is large or otherwise risky, direct marketers must move prospects through a carefully constructed series of steps that will culminate in a purchase. A study was conducted with the L.L Bean in marketing its products in Japan for a number or years. The D.M.A estimates that Japan’s catalog market was worth $21 Billion in 1994 and that there are 500 catalog marketers competing for that...
Words: 2583 - Pages: 11
...exciting journey toward learning about marketing. To start you off in the right direction, we’ll first define marketing and its key concepts. Then, you’ll visit the various philosophies that guide marketing management and the challenges marketing faces as we move into the new millennium. The goal of marketing is to create profitable customer relationships by delivering superior value to customers. Understanding these basic concepts, and forming your own ideas about what they really mean to you, will give you a solid foundation for all that follows. ᭤ After studying this chapter, you should be able to 1. define what marketing is and discuss its core concepts 2. explain the relationships between customer value, satisfaction, and quality 3. define marketing management and understand how marketers manage demand and build profitable customer relationships 4. compare the five marketing management philosophies 5. analyze the major challenges facing marketers heading into the next century Our first stop: Nike. This superb marketer has built one of the world’s most dominant brands. The Nike example shows the importance of — and the difficulties in — building lasting, value-laden customer relationships. Even highly successful Nike can’t rest on past successes. Facing “big-brand backlash,” it must now learn how to be both big and beautiful. Ready? Here we go. T he “Swoosh” — it’s everywhere! Just for fun, try counting the swooshes whenever you pick up the sports pages, or watch...
Words: 18289 - Pages: 74
...EXECUTIVE SUMMARY Multi-domestic organization needs a good corporate strategy as the basis to help them to compete successfully at a business level by adding values to the separate parts of the business or by using synergies or channeling resources between business units. This report on Whitbread will be oriented in answering this question: What market or businesses should whitbread invest in, including diversification in related activities, entering new market, new geographies and how much to invest in each business so as to maximise its long-run profitability? First, after giving the mission and vision of the company, we discuss the internal and external environment with relevant models. Secondly, the design formulation of the business portfolio strategy to answer our question and thirdly, we give a conclusion. This approach will help the corporate parent to use its core competencies in an effective and efficient manner to help its multi-domestic strategy to earn above-average returns. WHITBREAD ENVIRONMENT ANALYSIS 1. INTRODUCTION Established in 1742, Whitbread is one of the UK’s oldest and well-respected companies. The story really begins in August 1720 with the birth of Samuel Whitbread, who began his brewing apprenticeship in 1736, then founded his first brewery six years later. In 2001, Whitbread become the company it is today. They sold their breweries and left the pub and bar business, refocusing on the growth areas of hotels and restaurants. Their reinvention as...
Words: 4355 - Pages: 18
...3 Organizational Strategy, Information Systems, and Competitive Advantage When Dee asked her boss for a budget to create her blog, he responded by asking the questions at the start of Chapter 2 (page 20). Using the knowledge in that chapter, she was able to respond, and he tentatively approved her budget request. Before he did so, however, he said that he wanted a memo from her on how her blog would provide a competitive advantage. He wanted that memo so that he could include it in the documentation he would use to justify the expense to his manager. The knowledge presented in this chapter will help her write that memo. An optional Extension for this chapter is CE3, “Knowledge Management and Expert Systems.” Study Questions Q1 Q2 Q3 Q4 Q5 Q6 How does organizational strategy determine information systems structure? What five forces determine industry structure? What is competitive strategy? What is a value chain? How do value chains determine business processes and information systems? How do information systems provide competitive advantages? How does the knowledge in this chapter help Dee and you? 37 38 Chapter 3 Organizational Strategy, Information Systems, and Competitive Advantage Industry Structure New Vendors Competitive Strategy Value Chains Business Processes Information Systems Threat of new entrants Lowest cost across the industry Customers Better product/service across the industry Better product/service within...
Words: 8410 - Pages: 34
