Strategic Issues Of Pascoes Jeweller

Ensuring Exact Product Mix at Appropriate Locations

Discuss about the Strategic Issues of Pascoes Jeweller.

Pascoes Jewellers, New Zealand, faces two strategic issues (pascoes.co.nz 2018). The first issue includes stocking of the appropriate product mix in the accurate location while the second issue lies in the maintenance of the existing customers in spite of the company believing in ‘hard sell’ technique. Such a technique is designed based on getting a customer for purchasing a service or good in short term instead of evaluating his or her options and waits for the purchase. The report however put forward a descriptive analysis for each of the issues. The accurate product mix in appropriate location is important due to the expansion of the store (Varley 2014). This implies that different stores have different requirement. The requirement of St Lukes store is definitely different from the store located in Glenfield.  Lack of understanding on what needs to be sold in a particular location can be devastating for the entire company, as it cannot sell the inventory held in St Lukes when there is a higher demand of a different item in the Glenfield store that is presently running out of the stocks. This would result in higher level of stock and lower turnover rate across the entire organization. This would result in reversing any advantages gained through venturing into the newer market and there result in huge financial losses as the company has to discount the excess stock.

There are three strategic options available for getting appropriate product mix in a concerned location (Parsons and Wilkinson 2015). The first option lies in the creation of a computer system for keeping a track of the item sold in each of the locations. The second option lies in purchasing an already existing system capable of performing the same actions. The third strategic option however lies in utilizing the existing system for keeping a track of the sales and the stock levels across the company. However, for the creation of completely newer system in tracking the product mix, Pascoes Jewellers, needs to seek help of a software company for engineering the program from the ground level. Although the process would incur huge expenses but the system could undergo complete customization for performing each of the actions considered important by the company. On the other hand, the purchase of an existing system would be less expensive but fall short of customization as per the needs of the company. This includes buying software package from Specialist and trying to fit the company procedures into the package. Thus, the advantage of using the existing system lies in cost savings while the disadvantage lies in altering the system in performing necessary actions of tracking inventory and sales of the concerned company (Weller 2013).

Available Strategic Options for Pascoes Jeweller

Availability of Resources:

Given the present financial condition, Pascoes Jeweller, has the affordability of paying a software company for implementing and designing a new system (Flew 2014). They have however done so with the present computer system. This also requires employing software engineers for the purpose of writing and maintaining such program.

Acceptability of the System:

A new system should experience any kind of objections from the stakeholders, as the only change experienced by the company is IT related. This implied that the only employees resisting to the change would only be the ones already working with computer system. The other stakeholders would consider it beneficial since it enabled in keeping track of the proper product in the right market.

Coherence of the System:

The new system would help in streamlining an entire process of inventory control thereby enhancing the effectiveness of the operations of the company(Molloy and Larner 2013). The new system would conform to the values of Pascoes Jewellers and thereby help the company in providing better experience to the customers tailored for different markets.

Effectiveness of the System:

Designing of a custom-made system would be quite effective since it is possible in structuring it from the ground level in executing the accurate task required by Pascoes Jewellers. Although there would be bugs in the system but only for a short term that does cause much issues over long term.

Sustainability of the System:

This particular option focuses itself towards the sustainable advantage since the system created has no access to the other competitors. The advantage of stocking items in respect to the locations also acts as advantage.

Availability of Resources:

Pascoes Jewellers has the affordability of purchasing an existing control system package for its inventory. The company however has various package options to make a choice. Training of the existing staff is necessary for the operation of the system. However, maintenance and troubleshooting activities carried by the company responsible for designing the software.

Acceptability of the System:

Similar to option 1, purchasing of a packaged system of inventory should not face any objections from the stakeholders since the only changes implemented are IT related. This implies that the system might face objection from the people already working with computer systems (Phillips 2013). Others would consider it as beneficial since it would help identify the proper product for the concerned market.

Coherence of the System

Similar to the option 1, a packaged inventory system would help streamline the whole process of inventory control thereby leading to an increase in effectiveness of the operations of the entire company. It system also conforms to values of  Pascoes Jewellers thereby helping  the company in providing  better customer experience designed for the different markets.

Incorporating an Entirely New System

Effectiveness of the System:

This is aspect where the company undertakes the maximum research.  The system of packaged inventory control can undergo little customization and hence requires the company in changing the manner of operation for fitting into the system as opposed to changing the company’s system for fitting the procedures.

Sustainability of the System:

The option allows the Jeweller in gaining an advantage via an advanced control system of the inventory. This acts as an advantage till the time the competitors of the company realize the fact and make a purchase on either the similar lines or a better system. Thus, the advantage is not sustainable.

Availability of Resources:

 As the system already exists in place, there are no requirement additional costs involved.

Acceptability of the System:

The current system will deal with information related to the credit sales and transactions related to purchase and hire transactions across stores in New Zealand and Australia(Walker  2016). As it is unable in providing information relevant to the product sales by the local, it might not find acceptability amongst the stakeholders.

Coherence of the System:

The existing system acts as the benchmark presently used by company

Effectiveness of the System:

The effectiveness is based on the assumption that the existing system is not effective compared to the other options. Although, the system might less expensive but the system is not specialized as other available options.

Sustainability of the System:

The existing system does not prove to be advantageous for the company. There might be presence of other more advanced program in the larger Jewellery stores.

Making the correct choice would involve four different logical steps:

1. Identification of the options
2. Evaluation of the options against the preference
3. Selection of the best option
4. Undertaking necessary action

However, the real world has various internal and external forces at the work that makes simpler decisions more complex. Nevertheless, the chosen strategy for inventory management system involves the combination of the creation of an entirely newer system along with maintaining the recent one. The present system for Pascoes Jewellers would be custom made that supported alternations for the performance of any required task. Creation of a newer add on module would not be a difficult task for the programmers since they have been already working with the company and possessed the experience of creation of an initial system (Kennedy 2015). This will not only help in lowering the cost by utilizing the resources of the company while reaping the benefits of adopting the custom designed new system. In this manner, the company will be able to deliver the right product at the right locations thereby meeting the consumer needs more personally thereby creating a value.

Purchasing Existing Inventory Control System Package

Maintenance of a customer base is necessary since retail business is not able to function without the customers returning for a purchase of the products. The present sales focused strategy of Pascoes Jewellers depends on the theories of the sales, the techniques of whom depends heavily on the concept of ‘hard sell’ and the aptitude of the sales person in convincing the customers for making a purchase(Clark and Pinch 2014). This represented a throwback of marketing techniques that prevailed following end of Second World War and is referred as the selling orientation.

Companies that follows a selling orientation tends to succeed more in making one off sales to the customers instead of concentrating on repeat business. This enables the creation of the buyer’s remorse and a feeling of pushy and dishonest sales representative amongst the buyers. The issue has relevance in case of Pascoes Jewellers due to the primary focus on the sales of the company.   

Available Strategic Options for Pascoes Jeweller

The available strategic options involved with the issue portrays on whether to use the hard sell technique or opt for an alternative (Cave and Buda 2013). Sticking to the existing techniques can although satisfy customer needs for sometime but often leads to the closing of a sale. Continuing with the sales strategy do not sound wise for large sales based company like the Pascoes Jewellers. Removal of the existing sales technique although seems necessary but is impossible and also expensive since there has already been sufficient amount of spending on the technique.  

Availability of Resources:

There has already been an investment and the staffs remain trained in the ‘hard sale’ technique put forward by the Friedman.

Acceptability of the System:

There has already been an approval of the system by the stakeholders of the company stakeholders. They have also chosen means of spending close to millions of dollars in determining the initial setup. This also represents a good sign of acceptability

Coherence of the System:

Pascoes Jewellers adopted the sales technique based on the corporate culture and so it fits the organization.

Effectiveness of the System:

Observing the earnings of the company, the sales representative seemed quite efficient in using the technique.

Sustainability of the System

The advent of the internet has made it possible for the consumers in reaching both purchase and research online (Abdelkafi and Tauscher 2016). Since, iewellery represents a personal preference so a consumer can search for a particular design online before going to the stores. This implies that the sales people can hardly influence the educated consumer since they know they exactly know the item they are looking for. Therefore, it depends on the ability of the salesperson in matching the customer demand to the right item. This implies that the current sales structure seems unsustainable.

Making Use of an Existing System

Availability of Resources

This would not only be very expensive since the company already made an investment in a different sales structure (Zeidan et al. 2015). The adoption of new system would involve retraining the staffs and creation of a new system of rewards.

Acceptability of the System:

This actually depends on the results. This is because the new system will have to create higher revenue to find acceptance amongst the stakeholders

Coherence of the System:

On considering of the fact that the culture would change, implementation of a new system would not fit the current values of the company.

Effectiveness of the System:

This is actually unknown. There does not exist, many pre-packaged techniques of sales that are more prevalent than the hard sell technique put forward by Friedman.

Sustainability of the System:

As long as sales technique reflects current industry sales and marketing theories, it would ensure attaining a sustainable competitive advantage.

The present system still represents the ideal strategic choice for Pascoes Jewellers. Although there exists,  clear disadvantage related to the sustainability aspects the advantages  of  retaining the represent system outweighs the costs of making a switch to the newer one (Wesener 2017)

References:

Abdelkafi, N. and Täuscher, K., 2016. Business models for sustainability from a system dynamics perspective. Organization & Environment, 29(1), pp.74-96.

Cave, J. and Buda, D., 2013. 7 Souvenirs as Transactions in Place and Identity: Perspectives from Aotearoa New Zealand. Tourism and Souvenirs: Glocal Perspectives from the Margins, 33, p.98.

Clark, C. and Pinch, T., 2014. The hard sell: The language and lessons of streetwise marketing. Sociografica.

Flew, T., 2014. Creative industries: A new pathway. InterMedia, 42(1), pp.11-13.

Kennedy, J., 2015. Embracing the tall poppy: overcoming tradition in customer jewellery design preference.

Molloy, M. and Larner, W., 2013. Fashioning Globalisation: New Zealand Design, Working Women and the Cultural Economy. John Wiley & Sons.

Parsons, A. and Wilkinson, H., 2015. Retailing in New Zealand: Where Are We and Where To Next?. In European Retail Research (pp. 141-160). Springer Gabler, Wiesbaden.

pascoes.co.nz 2018. [online] Available at: https://www.pascoes.co.nz/ [Accessed 28 May 2018].

Phillips, J., 2013. Settlers: New Zealand immigrants from England, Ireland and Scotland 1800-1945. Auckland University Press.

Varley, R., 2014. Retail product management : buying and merchandising. Routledge.

Walker, L., 2016. Seep. The Journal of Modern Craft, 9(3), pp.333-344.

Weller, S.A., 2013. Creativity or costs? Questioning New Zealand’s fashion success: A methodological intervention. Journal of Economic Geography, 14(4), pp.721-737.

Wesener, A., 2017. Adopting ‘things of the little’: intangible cultural heritage and experiential authenticity of place in the Jewellery Quarter, Birmingham. International Journal of Heritage Studies, 23(2), pp.141-155.

Zeidan, R., Boechat, C. and Fleury, A., 2015. Developing a sustainability credit score system. Journal of Business Ethics, 127(2), pp.283-296.