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Kelly's Salon Case Study

In 1995, Kelly's Salon was opened by Kelly Kostanza in a strip mall near the College campus. Kelly's Salon

started as a barbershop with one chair. Over the years, Kelly has expanded her business to include hair

styling for both men and women. Her business has grown to three barber chairs, three hair styling

stations , and a shampoo station. In response to her customers’ requests, Kelly would like to further

expand her b usiness by adding two stations for manicures. The small gift shop next door to her has

recently 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 r adius. It was one of the

first businesses to open in the strip mall where it is located, and the number of customers has increased

each year. Over the years a couple of other barbershops have opened around the area, and there is

news that a Hair Cuttery (offering men’s and women’s haircuts and styling only) will open about 5 miles

away. In the shopping center across the street, an expensive spa has n ow opened where hair styling is

offered along with manicures. Just around the corner from Kelly's Salon is a home with a sign offering

manicures.

While Kelly's Salon continues to grow and profits are increasing, Kelly is sure that she could improv e her

operation in the areas of scheduling, supply ordering, inventory management, collecting customer

information, and marketing.

Customer and Employee Scheduling: Currently, Kelly takes appointments by phone and accepts

walk -in customers on an as -available basis. If there is a vacancy in the schedule , she is happy to have a

walk -in customer for that time slot. As her business has expanded, Kelly has found that keeping track of

which employees will be working at any particular day and time, and matching that with customer

appointments has become almost unmanageable. Until recently, she has been comfortable with allowing

staff to decide what days and times they want to work, and most of them are part -time. So far, little

effort has been made to find a substitut e if one of her employees cannot come to work. Now, Kelly has

recognized that she is t urning away a significant number of walk -in customers, and at other times, her

staff is not busy at all. It seems to Kelly that she is very busy on Saturdays, and that Mondays are slow

days, but she has no real data to use to make a schedule for her emplo yees. She would like you to help

her 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 also

concerned about maintaining an adequate stock of supplies. It has become difficu lt for her to keep track

of what supplies have been used and what needs to be ordered. She knows that if she runs out of

shampoo or hair spray, for example, that she will not be able to serve her customers. She makes notes

to herself and sticks them on h er office message board to remind herself to place orders, but she only

knows to do so when one of the employees tells her that the last container of a product has been taken

from the supply cabinet. Many times, the shop is very busy and either the employ ee forgets to tell her,

or she forgets to make a note. Kelly is happy her business is growing, but the chaos of making sure

there 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 really

does not have time to place orders to her suppliers. Over time, she has noticed that the prices she is

paying seem to be going up quickly, but she has no way check to see if she could order supplies at a

lower cost. She is wondering if she could save money by finding lower -cost suppliers, suppliers who offer 7/8/2016 – Re v 1 2

free shipping, or suppliers who sell in bulk. It has become apparent that Kelly's Salon needs an improved

supply ordering process.

Customer Information : There are some regular customers who come to Kelly's Salon , and Kelly

recognizes them, but often cannot recall their preferences. Several of these customers have called

requesting appointments with their favorite barber or stylist, and, while Kelly knows this is important to

them, she cannot assure the customers that it will be possible. Many of her barbershop customers come

in every two weeks, while most of her customers who want a haircut and style are more likely to visit a

few times a year. Ke lly would like to know in which category each of her customers fall. She is also

seeking your help in finding a better way to document the process of maintaining customer preferences

and personal information.

Marketing: Kelly would also like to contact h er customers and keep them coming back, but currently

she has no way to do that. She would also like to make sure when she contacts each customer that she

is doing so appropriately. She would also like to provide special offers such as coupons around the time

of their birthday, believing that these types of marketing efforts would increase her repeat business and

her 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 it

did 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 and

produce 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 her

profits if she did a better job of marketing in combination with better sch eduling and management of her

supplies.

Kelly's Salon currently uses no technology. There is not even a computer in the back office. Kelly has

hired you to help her with determining how she could apply information technology to help her manage

her growing operation. Throughout this course you will assist Kelly with analyzing her busi ness and

applying a technology -related solution to improve the operation of Kelly's Salon . Your advice will be

based on the business practices discussed in the class and the course materials to help her increase

revenue, 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 attract

new customers, it is not a technology solution.

Note 2: As you approach the assignments, you will find it helpful to think about your own experiences

with a barbershop or styling salon . Making a trip to a local barbershop or salon may help you think about

the processes, challenges, and opportunities.

Identify and explain the next steps in implementing the solution (Stage 5)

The case study and assignments address the Course Outcomes to enable you to:

STAGED ASSIGNMENTS

The re are four staged assignments which use the Case Study and are designed to follow the relevant

course topics in the class schedule . The weight of the assignments is shown in the Course Syllabus. The

Purpose of the Assignment s

This case study specifically addresses the following course outcomes to enable you to:

 analyze business strategy to recognize how technology solutions enable strategic outcomes

 analyze internal and external business processes to identify i nformation systems requirements

 identify and plan IT solutions that meet business objectives

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due dates are shown with the Assignments . Upon completion of these assignments , you will have

performed an array of activities to demonstrate your ability to apply the course content to a “real world

situation” to :

 Analyze the business environment and justify Kelly 's selected generic strategy and process for

improvement

o Stage 1 Project: Business Environment Analysis (Word document with analysis)

 Determine the functional (business) requir ements by analyzing inputs , processing and outputs for

the process selected for improvement , using the process model provided

o Stage 2 Project: Business Analysis and Functional Requirements (Word document with

table of inputs , processing and outputs )

 Evaluate various IT requirements

o Stage 3 Project: IT Requirements (Word table)

 Propose an IT solution and e valuate what it would take to implement your solution

o Stage 4 Project: Proposed IT Solution and Next Steps (Word document )

Course Learning Outcomes : These assignments are designed to help you identify how to effectively

analyze and interpret information to improve the business. This is an opportunity for you to apply course

concepts, vocabulary, and critical thinking skills and think like a business professional. When you are

writing a paper or developing a presentation , write in third person, preparing your document as if it is

going to the owner, Kelly Kostanza , whom you want to impress with your knowledge and abilities.

Writing Expecta tions: For academic writing, the writer is expected to write in the third person. In

third person, the writer avoids the pronouns I, we, my, and our. The third person is used to make the

writing more objective by taking the individual, the “self,” out of the writing. This method is very helpful

for academic writing, a form in which facts, not opinion, drive the tone of the text. Writing in the third

person allows the writer to come across as unbiased and thus more informed.

Do more than just going thr ough the mechanics of pulling together information -- think about what you

are doing, why you're doing it, whether it make sense, whether the information seems realis tic, and what

the results show. Support your recommendations with course concepts, vocabu lary, and your research.

Resources : Several of the a ssignments require external research, using sources other than the

materials provided in the classroom. It is important that you identify relevant, timely resources that

specifically support the points or information you provide in your assignments. You should read the

source and assimilate the information first, and then put it into your own words and incorporat e it into

the flow of your writing (with an appropriate in -text APA citation and a list of references at the end of

your paper). Direct quotes should be used very sparingly —only when the author’s own words uniquely

present a concept that would be lost if paraphrased by you.

Evaluation: The grading rubric is included with each assignment. Review the rubric to ensure all

aspects of the assignment have been addressed.

Example: Be sure to read and refer to the “Walmart Example” posted in the classroom to help you

understand what is expected for each of the assignments.

Format: One of the prerequisites for this course is that you have a fundamental working knowledge of

word processing software. Detailed instructions for each Staged Proje ct, 1 through 4 , are posted in the

designated area of the classroom. You must prepare each assignment in the indicated format (i.e., table,

outline, report, double -spaced , or other specified format) and submit it by the date indicated in the

schedule. No credit will be g iven for late assignments or those submitted in file formats other than those

stated in the assignment instructions. 7/8/2016 – Re v 1 4

Software Expectations: Because these assignments require you to use Microsoft Word , or produce

documents that can be read using MS Word (as indicated in the instructions), you may need to "brush

up" on your familiarity with Word to use functions that perhaps are new to you. Therefore, do not wait

until the last minute to begin an activity. You should read through all the assignments in advance to

ensure you (1) understand what is expected, and (2) allow enough time to effectively create the

information being requested.

There is a significant amount of information available to you to assist in developing your skills in using

the Microso ft Office Products. MS Word, or its equivalent, is required for these exercises. Do not

hesitate to use the on -line help and wizard tools built into the MS Office applications for help as you work

with the software tools. There are also many web sites that provide tips. Even YouTube has some useful

videos demonstrating various techniques.

If you use software tools other than Microsoft, it is your responsibility to ensure that the documents you

submit can be read, and retain their formatting, when they a re read and reviewed using the Microsoft

Office suite.