Mk Case Study

Topics: Mary Kay Pages: 5 (906 words) Published: August 6, 2014
Year
2014
Exam Sitting
AUGUST

Subject
E-COMMERCE
Weightage
25%
Submission Date
31/7/2014

Regulations
A. Late Submission
A 10% deduction per day of total coursework marks (excluding weekends and public holidays). Late submission between 5 to 10 days, results in a 50% deduction of total coursework marks. Late submission past 10 days results in an automatic 0% for coursework and the student will be barred from the final examination. B. Deliverables

Students must submit all materials supporting their coursework listed in the deliverable section.

The coursework must be done individually and must be entirely your own work. Please make sure that you are aware of the rules concerning plagiarism. If you are unclear about them, please consult your program coordinator/lecturer.

The coursework should exhibit formal research skills i.e. with a table of content, proper citations, references, and appendixes. The coursework write up must be able to demonstrate critical analysis and application of both theory and practical issues to the company that you have selected. Student may include additional relevant data/information apart from the proposed guidelines in conjunction to your research. Additional marks will be awarded for such attempt. Your coursework should be minimum 2000 words.

You should bind your coursework with the coursework cover as the 1st page. A CD containing the softcopy version of your coursework should be submitted as well (if required). Students have to use APA referencing style.

Read through the following case study carefully before answering the questions. This is an individual assessment.

Task
Read through the following case study carefully before answering the questions. MARY KAY'S EC SYSTEMS

Founded in 1962, Mary Kay (marykay.com) has about 1.8 million consultants selling its cosmetics and fragrance in 34 countries. In 2008, the company had about $2.4 billion in wholesale sales. As a company that has based its reputation on personal contacts in door-to-door visits and home gatherings, one might think that Mary Kay would not benefit from EC. Actually, the opposite is true. Currently, more than 95 percent of Mary Kay's independent salespeople place orders via the internet.

The Problem

The cosmetics market is very competitive, but it is growing rapidly, especially in developing countries. Mary Kay is trying to capitalize on this trend. The My Kay business model enables rapid growth into new markets. By the early 2000s, consultants found that more and more customers wanted to shop online. With a long and global supply chain and the need to manage almost 2 million consultants, it was clear that automation was needed, but Mary Kay's existing computer system was old and lacked web or e-commerce applications. Therefore, a major overhaul of the information systems was needed. Finally, it became clear that the emergence of social computing might provide a golden opportunity for Internet marketing by the company.

The Solution

Mary Kay's IT department is now split into three divisions: e-commerce, supply chain, and back-office support. Because of pressure from the consultants, the restructuring focused on e-commerce.

The company's goals and objectives were set based on industry best practices and this will determine what, how, and when the company is operated, and these also apply to EC initiatives. Mary Kay's EC solution included the creation of an electronic service desk that supports consultants in 30 countries in a standardized way. Mary Kay also introduced a global electronic ordering system, called Atlas, that allows the consultants to communicate with company warehouses. An intelligent data repository that dynamically maintains a logical model of the EC environment that can be accessed by Mary Kay IT staff.

Mary Kay and its consultants are also making extensive use of social computing. The following are some representative examples of how Mary Kay...
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