Writing Assignment-Week 5
ITT Tech Online
BU131-Business and Information Systems
Instructor: James Lance
Eastern Mountain Sports, an outdoor supply company, is become one of the largest specialty retailers in the country. Their high quality gear has been trusted in the field for over thirty years (Laudon). Personally, I have used these products when backpacking and have been more than satisfied.
Two possible decisions that Eastern Mountain Sports staff might have to make are handling inventories and the decision to enter or exit certain markets. Operational management generally handles the restocking of inventory. They are responsible for keeping shelves stocked. After reviewing information, they choose which products need to be ordered and what items need to be discontinued. Managers order the highest ...view middle of the document...
Unsold inventories tie up cash flow and on the other end, customers can’t buy what is not there. Operational management first must discover and identify products that move and don’t. After determining this, managers will implement clearance and markdowns to unpopular items and have a minimum on-hand quantity of popular items. The choice and implementation is swift because profitability is on the line.
The decision-making process is very detailed at the Senior Management level. Companies spend a lot of money getting precise information. This is especially true when exploring new markets. Before making a decision, manages must determine if it will be profitable or not. These managers’ device plans on how to enter the markets, and work with middle management to design marketing plans. After careful consideration, the choice is made and the Senior Management delegates to the other management to “make it happen.” Senior Management will continue to monitor the new markets to make sure they are just as profitable as the research showed.
Entering a new market is very important to growing a business. Therefore, the decision to do so must be that of quality. This decision must be accurate and all facts must be considered. This is a strong investment in the company and a lot of money is at stake. This is why companies will make sure all bases are covered before getting involved. Efficiency is the result of preparation. The business world will take notice and admire the process if it goes off without a hitch. EMS will gain credibility with its customers also.
Eastern Mountain Sports will continue to grow because of its willingness to support information systems. The company’s ability to recognize issues and correct them immediately will ultimately lead to profitability. Personally, I hope EMS will spread a little closer to my location!
Laudon, Kenneth C. & Laudon, Jane P. (2009). Essentials of Management Information Systems (8th ed.). Upper Saddle River, NJ: Pearson Education, Inc.