Nova Southeastern University Huizenga College of Business & Entrepreneurship

Assignment for Course: ISM5150- IS Strategy & Data Management (on-Line)
Submitted to: Dr. N. Patnayakuni
Submitted by: Jack Pierre-Louis (N01698367) (410 Arizona Ave, Fort Lauderdale FL, 33312) (Home and Work # 561 853-8294)
Date of Submission: Sunday June 6, 2016
Title of Assignment: Vermont Teddy Bear case Study Analysis

Certification of Authorship: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.

Student’s Signature: Jack Pierre-Louis
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Strategic challenges at Vermont Teddy Bear
Founded in 1981 at the end of a severe economic recession that has affected the majority of the industrialized world, Vermont Teddy started out slow selling its products out of a cart. John Sorinto, the founder saw the potential and the enthusiasm of the public very quickly. Because of his early successes in that enterprise, he decided to make better qualities teddy bears according to Wheelen & Hunger, 2004. The company was so successful during its first fifteen years that management had to decide to change its approach and its business model not only to keep growing but also to stay in business. As researches show, companies can cause their own demise when they grow too fast without a long term plan in the work, Miller Danny (1990). Analysis Vermont Teddy Bear’s main problem is the fact that its business model is not in alignment. VBT’s operational capabilities is weak and because of that the company has many challenges meeting clients’ demand during peak seasons. VBT’s information system is also very weak when taking into account the department operational needs and its strategy. For the company to move forward, Bob Stetzel wants to have a well-organized and efficient enterprise IT infrastructure that could serve as a strong platform for the company in its quests to change its business model. With this in mind, the company brings on board in 2009 a new vice president to help in the reorganization of its information platform. However, the question is whether to invest in a full-featured Enterprise resource planning package or take a short term course or quick fix that would yield some quick but tangible results for the company.

Theories and concepts A reliable IT infrastructure is critical for a company success in the 21st century. The IT infrastructure becomes so strategically important that management in most successful companies decide to align the IT system with operations and other divisions inside of these companies. At Vermont Teddy Bear, The IT infrastructure was broken, dysfunctional and almost irrelevant. Management did not make the necessary investment in IT infrastructure that would allow information to flow or to synch properly as most applications were not build to meet these requirements. As Magal and Word point out in chapter one of the text book, poor coordination is a lack of visibility in any process. At Vermont Teddy Bear, the information system is organized in such a way that only a few designated employees in that department have the ability to assist when some urgently-needed new functionalities are requested as Stetzel had mentioned to John Gilbert during a recent meeting. Consequently, the employees of the company were not always on the same page which causes great frustration inside of the organization. Also, to manage inventory Vermont Teddy Bear uses different accounting related applications which cause some disparity sometimes in the results.

If Vermont Teddy Bear wants to stay in business, it is critical that management finds ways to align its IT infrastructure. The organization may consider to spend time troubleshooting the current system which could yield some results but will not solve really the problem. (Thomas, Wheelen, & Hunger, 2006) think the IT department should develop a detailed list architectural blueprint document that describes the network configuration, servers, and core enterprises applications as well as data flows across such applications that had an impact on fiscal statements and financial statement. Alternative
Strategically, the idea of investing in a new system is making completely sense for Vermont Teddy Bear because strategy is about winning. Magal and Word also think it is important for information to flow objectively between employees of an organization in order to achieve coordination. In that regard, it will not be beneficial for Vermont Teddy Bear to just look for a quick fix in such a broken system. This writer believes that Vermont Teddy Bear should get rid of its complex middleware and mismatched apps by introducing a better system. This proposal of course would require a great deal of investment and commitment from management but clearly is a better strategic solution with a long term approach. Not only That Vermont Teddy Bear needs to invest in that new IT infrastructure; if management wants to find new source of revenue and keep the company relevant in the industry, it is imperative that it works to create a competitive advantage and there is no better way to do it for the organization than having a long term and a strategic approach when it comes to technology.

Eventually management cannot just focus on just one aspect to make the organization successful. The company has to be proactive and gives serious attention to others factors such as described in the balance score card. It provides a framework that not only takes into account a company performance measurements, but also helps management identify what should be accomplished. References
Magal, S., & Word, J., (2011) Integrated Business Process with ERP Systems 1st ed. Hoboken, New Jersey: Wiley & Sons
Miller D. The Icarus Paradox: How exceptional Companies Bring About Their Own Downfall. New York: HarperCollins, 1990.
Wheelen, T., & Hunger, J. (2006) Strategic Management and Business Policy 10th ed. Upper Saddle River, NJ: Pearson Prentice Hall. Wheelen, T., & Hunger, J. (2004) Strategic Management and Business Policy 9th ed. Upper Saddle River, NJ: Pearson Prentice Hall.