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7/8/2016 – Rev 11Kelly’s Salon Case StudyIn 1995, Kelly’s Salon was opened by Kelly Kostanza in a strip mall near the College campus. Kelly’s Salonstarted as a barbershop with one chair. Over the years, Kelly has expanded her business to include hairstyling for both men and women. Her business has grown to three barber chairs, three hair stylingstations, and a shampoo station. In response to her customers’ requests, Kelly would like to furtherexpand her business by adding two stations for manicures. The small gift shop next door to her hasrecently come up for sale, and she is thinking about acquiring that area for manicures.When Kelly’s Salon first opened, it was the only barbershop within a ten-mile radius. It was one of thefirst businesses to open in the strip mall where it is located, and the number of customers has increasedeach year. Over the years a couple of other barbershops have opened around the area, and there isnews that a Hair Cuttery (offering men’s and women’s haircuts and styling only) will open about 5 milesaway. In the shopping center across the street, an expensive spa has now opened where hair styling isoffered along with manicures. Just around the corner from Kelly’s Salon is a home with a sign offeringmanicures.While Kelly’s Salon continues to grow and profits are increasing, Kelly is sure that she could improve heroperation in the areas of scheduling, supply ordering, inventory management, collecting customerinformation, and marketing.Customer and Employee Scheduling:Currently, Kelly takes appointments by phone and acceptswalk-in customers on an as-available basis. If there is a vacancy in the schedule, she is happy to have awalk-in customer for that time slot. As her business has expanded, Kelly has found that keeping track ofwhich employees will be working at any particular day and time, and matching that with customerappointments has become almost unmanageable. Until recently, she has been comfortable with allowingstaff to decide what days and times they want to work, and most of them are part-time. So far, littleeffort has been made to find a substitute if one of her employees cannot come to work. Now, Kelly hasrecognized that she is turning away a significant number of walk-in customers, and at other times, herstaff is not busy at all. It seems to Kelly that she is very busy on Saturdays, and that Mondays are slowdays, but she has no real data to use to make a schedule for her employees.She would like you to helpher improve her process for scheduling staff and customers.Inventory Management:Now that she has employed four part-time barbers, six part-time stylists,and two part-time shampoo girls, and is contemplating adding at least two manicurists, Kelly is alsoconcerned about maintaining an adequate stock of supplies.It has become difficult for her to keep trackof what supplies have been used and what needs to be ordered.She knows that if she runs out ofshampoo or hair spray, for example, that she will not be able to serve her customers.She makes notesto herself and sticks them on her office message board to remind herself to place orders, but she onlyknows to do so when one of the employees tells her that the last container of a product has been takenfrom the supply cabinet.Many times, the shop is very busy and either the employee forgets to tell her,or she forgets to make a note.Kelly is happy her business is growing, but the chaos of making surethere are adequate supplies is creating a great deal of stress for her.Supply Ordering: Even if Kelly successfully keeps track of the supplies that have been used, she reallydoes not have time to place orders to her suppliers.Over time, she has noticed that the prices she ispaying seem to be going up quickly, but she has no way check to see if she could order supplies at alower cost.She is wondering if she could save money by finding lower-cost suppliers, suppliers who offer
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7/8/2016 – Rev 12free shipping, or suppliers who sell in bulk. It has become apparent that Kelly’s Salon needs an improvedsupply ordering process.Customer Information:There are some regular customers who come to Kelly’s Salon, and Kellyrecognizes them, but often cannot recall their preferences. Several of these customers have calledrequesting appointments with their favorite barber or stylist, and, while Kelly knows this is important tothem, she cannot assure the customers that it will be possible. Many of her barbershop customers comein every two weeks, while most of her customers who want a haircut and style are more likely to visit afew times a year. Kelly would like to know in which category each of her customers fall.She is alsoseeking your help in finding a better way to document the process of maintaining customer preferencesand personal information.Marketing:Kelly would also like to contact her customers and keep them coming back, but currentlyshe has no way to do that. She would also like to make sure when she contacts each customer that sheis doing so appropriately. She would also like to provide special offers such as coupons around the timeof their birthday, believing that these types of marketing efforts would increase her repeat business andher profits. She would also like to reach more new customers, especially as she expands her business.Kelly’s Salon uses very little marketing except word-of-mouth, and essentially still operates the same as itdid in 2000 when Kelly opened her one-chair barbershop.Kelly’s Salon is a for-profit business and must cover its variable costs, fund future improvements andproduce a reasonable profit for the owners. Kelly would like to expand into the gift shop area next door,and improve her current management practices. She also believes that she could actually increase herprofits if she did a better job of marketing in combination with better scheduling and management of hersupplies.Kelly’s Salon currently uses no technology.There is not even a computer in the back office.Kelly hashired you to help her with determining how she could apply information technology to help her manageher growing operation. Throughout this course you will assist Kelly with analyzing her business andapplying a technology-related solution to improve the operation of Kelly’s Salon. Your advice will bebased on the business practices discussed in the class and the course materials to help her increaserevenue, keep the business running, and bring the business into the 21st century.Note 1: You will be looking for a technology solution. While installing a tea and coffee bar may attractnew customers, it is not a technology solution.Note 2: As you approach the assignments, you will find it helpful to think about your own experienceswith a barbershop or styling salon. Making a trip to a local barbershop or salon may help you think aboutthe processes, challenges, and opportunities.STAGED ASSIGNMENTSThere are four staged assignments which use the Case Study and are designed to follow the relevantcourse topics in the class schedule. The weight of the assignments is shown in the Course Syllabus. ThePurpose of the AssignmentsThis case study specifically addresses the following course outcomes to enable you to:analyze business strategy to recognize how technology solutions enable strategic outcomesanalyze internal and external business processes to identify information systems requirementsidentify and plan IT solutions that meet business objectives
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