Calyx
AGRI-BUSINESS MANAGEMENT
ASSIGNMENT I CASE ANALYSIS
CALYX AND COROLLA
Submitted to: Submitted by
INSTITUTE OF RURAL MANAGEMENT ANAND
INTRODUCTION Calyx and Corolla (C&C) is a company started by a entrepreneur, Ruth, M. Owades in 1988 which delivers flowers to the end customers using the courier service provided by Fed ex. Customers are provided with an option to order fresh flower and bouquets from a four-color catalogue by placing an order to the company, which also shows floral bouquets, plants, preserved designs, and corporate gifts. The fresh flower order goes immediately to one of 30 growers in the C&C network, who picks and packages the flower and ships them via FedEx. The flowers arrive fresher and last about 10 days longer than flower ordered from stores-best retailers. The credit for such an efficient value chain goes to the sophisticated system and C&C strong alliances with FedEx and the grower. Calyx & Corolla was primarily a mail order company, but management is now considering expanding their market and is unsure of how they should proceed. FTD1 florist network is one of the major competitors of Calyx & Corolla which has a member owned worldwide co operative of 25000 florists2. The calyx & Corolla top management team has exceptionally talented members like Owades and Lee but the things that the company is concentrating upon is that of the future strategy of the company to tackle various externalities faced by the company in future due to arrival of IT as a very strong medium. Again to capture significant market share they will have to spend specific amounts on the advertisement therefore it will have to assess the financial implications of spending heavily on the advertisements. Moreover what should be the strategy to advertise is also an issue because the catalogue medium was already fetching results then would it be safe getting into aggressive indirect advertising. VALUE CHAIN Before Calyx & Corolla: The industry was highly
ASSIGNMENT I CASE ANALYSIS
CALYX AND COROLLA
Submitted to: Submitted by
INSTITUTE OF RURAL MANAGEMENT ANAND
INTRODUCTION Calyx and Corolla (C&C) is a company started by a entrepreneur, Ruth, M. Owades in 1988 which delivers flowers to the end customers using the courier service provided by Fed ex. Customers are provided with an option to order fresh flower and bouquets from a four-color catalogue by placing an order to the company, which also shows floral bouquets, plants, preserved designs, and corporate gifts. The fresh flower order goes immediately to one of 30 growers in the C&C network, who picks and packages the flower and ships them via FedEx. The flowers arrive fresher and last about 10 days longer than flower ordered from stores-best retailers. The credit for such an efficient value chain goes to the sophisticated system and C&C strong alliances with FedEx and the grower. Calyx & Corolla was primarily a mail order company, but management is now considering expanding their market and is unsure of how they should proceed. FTD1 florist network is one of the major competitors of Calyx & Corolla which has a member owned worldwide co operative of 25000 florists2. The calyx & Corolla top management team has exceptionally talented members like Owades and Lee but the things that the company is concentrating upon is that of the future strategy of the company to tackle various externalities faced by the company in future due to arrival of IT as a very strong medium. Again to capture significant market share they will have to spend specific amounts on the advertisement therefore it will have to assess the financial implications of spending heavily on the advertisements. Moreover what should be the strategy to advertise is also an issue because the catalogue medium was already fetching results then would it be safe getting into aggressive indirect advertising. VALUE CHAIN Before Calyx & Corolla: The industry was highly