Reference no: EM132230016
Answer the following question in one or two paragraphs. The case study the relates to the question is listed below. (Be sure to use terms, concepts from the text, and that directly relate to an SCM strategy):
1) Assume Ms. Rice moves forward with her plan to change the menu. This could alter the current customer base. Advise her on actions she should take to address customer defections. Explain how the actions will benefit her and potentially prevent customer defections, integrate your answers with strategies from the text.
Case Study:
Iris Rice has managed Polly’s Sweet Treats and Drinks for 10 years. The owner, Mamie Hammond, essentially gave Iris full control about seven years ago. Mamie had established Polly’s almost 30 years ago and has been in semi-retirement for about the last five years. Mamie is considering selling the store and is giving Iris first choice. Iris is extremely excited about the prospect of owning her own business. However, Iris wants to expand the offerings and ultimately increase the number of locations.
Currently, the menu consisted of dessert like food such as cakes, pies, tarts, muffins, doughnuts, and other pastries. The drinks were a variety of sodas that included diet and caffeine free drinks. Polly’s also served a variety of hot and cold teas, hot and cold coffees, as well as milk, hot chocolate, milk shakes, frozen drinks, etc. Iris thinks that she will have to expand the menu to include things beyond sweet treats and drinks.
She talked it over with Mamie. Mamie’s concern was that since such a variety of customers visited Polly’s it would be a challenge to fulfill all their likes. Plus, many people liked the store as it was. They had visited it as children and now brought their kids there. Would they lose customers or gain them if changes were made? After much discussion Mamie and Iris agreed that they needed more information about what their customers liked and didn’t like.