Mba530

Harrison-Keyes

Andres Gonzalez

MBA/590

Michael E. McCalister, PhD

University of Phoenix

February, 13, 2006

Problem Solution: Harrison-Keyes

Harrison-Keyes has been facing increasing industry consolidation and competition which had lead to a decline in sales, market share and over all profitability. Harrison-Keyes systems and processes are outdated to get ahead of the competition.

Alternative Solutions and Benchmarking Validation (Step 4)

Recently, along with Boeing Co., Lockheed Martin Corp., and BAE Systems, Raytheon has been part of talks to form a single Internet business-to-business venture for brokering everything from aircraft and weapons parts to data services (Cole & Gomes, 2000). The primary goal is to enable original equipment manufacturers and suppliers-as well as their airline customers-to manage, buy, sell, and trade parts and services, develop demand-forecasting and inventory planning programs, and access technical expertise (Velocci, 2000). These four largest aerospace and defense companies would join forces with Commerce One and Microsoft to create what is expected to be the largest and most complex business-to-business E-commerce website ever built (Marsan, 2000). This would be a major E-commerce development for these companies and the world (Cole, 2000) and at this time, the business environment is ripe for such cooperation (Velocci, 2000).

Howard Aylesworth who tracks E-commerce initiatives for the Aerospace Industries Association in Washington, D.C. said, "In the future, for all aerospace companies, the entire business will be run on the Web. We're looking to better integrate ourselves with our customers and suppliers and to have a seamless way of doing business" (Marsan, 2000, p. 8). This venture would be very helpful to Raytheon in many ways, as long as they continue to use their balanced scorecard approach to this area of their business.

Analysis of Alternative Solutions (Step 5)

Traditional booksellers are impacted by the growth of electronic commerce looking for solutions that do not include the use of the internet can be difficult because of the enormous success and now influence Amazon.com has over the industry. The concept of cooperative web ventures has been reviewed a couple of times and implemented by companies such as Barnes and Noble and Borders, two strong brick competitors now joined in a cooperative web environment, combining the resources of both companies to be completive with Amazon.com.

Risk Assessment and Mitigation (Step 6)

Going back to the cooperative web venture, Barnes and Noble and Borders some of the following risks for each company had to be taken into account.

* Who owns the customer?

* Will profits from one company support the other on-line companies solutions

* Where will fulfillment of services be handled?

* What brand name will be promoted on-line and off-line

Optimal Solution (Step 7)

The use of the web as an alternate channel can increase the bottom line for this company. Many companies have unlocked key growth areas of their business by the use of the internet. Not all applications are suited for the internet however since Amazon.com's creation of the "on-line" bookstore. To ensure adequate e-commerce capabilities, several firms formed alliances to fill important gaps.

Implementation Plan (Step 8)

Creating an e-Publishing unit will require a champion; in this case the CEO should be the champion for this initiative. The division will require a new team that will include a divisional leader to handle the daily operational functions. The staff unit will include new talent and talent from outside the company. The development plan will include a detailed budget, a technology refresh; the company will also need to acquire new technology to support the development. A training program will be required for all titles whether they are engaged in this new division.

The alignment of the organization within the company will be the final step, leading towards a kick off of the new venture.

Gap Analysis and Estimated Implementation Costs--Evaluation of Results (Step 9)

The implementation costs for this project should to exceed 5% of the total expected gross sales figure $32M. The company has set goals to be able to meet the objectives within six months of implementation. Judging success of the web venture will require a metric to be put in place. Those metrics are as follows.

* Frequency of customer return visits to the e-commerce site

* Average yearly, weekly, daily sales.

* Customers survey's to gage customer satisfaction

Conclusion

Harrison-Keyes has been facing increasing industry consolidation and competition which had lead to a decline in sales, market share and over all profitability. Harrison-Keyes systems and processes are outdated to get ahead of the competition. Traditional booksellers have been affected as much or more than any other industry. Amazon.com has been the leader in the industry. The survival of the company will require the development of an e-commerce solution that encompasses the profitable portfolio of the company.

References

Velocci, A. L. (2000, May 1). Cooperative Linkups seen as key efficiency gains. Aviation Week Space Technology, 152(18), p. 40. Retrieved April 27, 2002, from ABI/Inform Global database on the World Wide Web: http://proquest.umi.com

Marsan, C. D. (2000, April 3). Aerospace firms look to build big B2B web site. Network World, 17(14), p. 8. Retrieved April 27, 2002, from ABI/Inform Global database on the WorldWide Web: http://proquest.umi.com

Cole, J. (2000, March 28). Shrikhande is set to steer Boeing into new ventures. Wall Street Journal, p. B10. Retrieved April 27, 2002, from ABI/Inform Global database on the World Wide Web: http://proquest.umi.com

Cole, J., & Gomes, L. (2000,