Consulting National Chains
IT402: IT Consulting Skills
Prof: Abdellah Tazi
August 21, 2013
There are many different ways to look at whether or not the national chain should change their IT applications to help support the customer loyalty program. First the consultant needs to look at all the pros and cons of both changing the applications and the pros and cons of not changing the applications.
First we can look at the pros of changing the IT applications to include a customer loyalty program. A good thing that may come out of changing the IT applications would be that the national chain would hope to keep the customers that the regional chain ...view middle of the document...
This in turn could cause the general population of that area to boycott shopping at that store after the merger, and this would cost the national chain even more money then they have already lost. Another con of changing the IT applications would be that the national chain would have to retrain a lot of their employees on the new system because they have been running on their own. This change will cost the national chain even more money in training and lost time.
Next we will look at the pros and cons of not changing the IT application to include a customer loyalty program. There are a few pros not changing the IT application and one is that the national chain will save some money on this part of the merger by simply adapting the regional chain into all the rules of the national chain. This would make the merger a little smoother and there would have to be many changes to the national chain. The regional chain would have to make small changes within its actually store but this would be far less expensive than changing an entire system throughout the whole national chain. Another pro is that you would only have to train a select amount of people on the order of operations because only the employees at the regional store would need to be trained. All the other employees already employed by the national chain would have been trained and would not have the need to be re-trained. A con to not changing the IT applications is that you will more than likely be losing a lot of customers that are only shopping at that store because of the loyalty program. A lot of customers are always looking for the best deal and if it is no longer at that store, they will take the business elsewhere and to try and save money. This will cost the national chain money because they will have less customers coming through their doors. Another con to not changing the IT applications is that they might be looked at being out dated and without the customer loyalty program, they may lose potential customers that would have otherwise shopped there as well as customers that they already have that may choose to shop at another chain because they are now offering a customer loyalty program.
After weighing all the pros and cons from both changing the IT applications and not changing the IT applications, I would have to make the recommendation that the national chain make the change to have their IT applications support the two different prices as part of the customer loyalty program. I would say this because it would eventually make the much more money in the long run. They would have to put up some extra funds at the beginning of this project, but the reward of changing the IT application by far out weighs the potential lost of customers for not continuing the customer loyalty program.
When trying to decide whether or not the national chain wants to adapt a new IT application that would allow the store managers to take advantage of certain deals that come along, there are a few...