Its Not Luck

Good Essays
Its Not Luck
All solutions focused on customers; no new capital available as UniCo planned to sell the companies to pay down on debt.

I Cosmetics bought for $124 m; valued at $30m; sold for $270 m VCA (Customer’s perspective) Penalized for small orders
Large orders sit on shelves/ stockroom (cash flow; obsolete inventory) Consignment model Fill smaller orders more frequently Customer pays when goods sold Reduces A/R for IC
 Technical
- Decision relevance is enhanced by more direct and frequent contact with customers.
- Better process understanding – based on replenishment needs of customers,
I-C can better understand which product lines are resold (to consumers), which will allow I-C to produce and develop products that address customers’ product offering needs.
Behavioral attributes
- Taking the customer perspective changed how Bob (I-C’s manager) approached finding a solution to the eminent sale of the company.
- The successful sale of his company (a measure) made Bob proud of his achievements and encouraged him to welcome the change and the opportunity to develop the business with broader product offerings. Cultural attributes
- Alex and the manager at I-C were able to motivate their team to make significant improvements even though the business was being sold (which could have caused serious moral issues).

 Quality
- experience of the customer is greatly enhanced because the new strategy is designed to meet their needs
- new strategy encourages stronger relationship with customer Time
- orders are fulfilled quickly so stores are not out of stock
- new products are introduced promptly (reduces need to sell obsolete stock) Cost
- lower cost to customer based on cash flow advantages
- less obsolescence for both the customer and I-C
- lower inventory holding costs for customer

Yes, it was a good deal for UniCo to sell. They got a high price and I-Cosmetics was

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