This section provides a recommendation and rationale for how the system will be acquired.Often a combination of

This section provides a recommendation and rationale for how the system will be acquired.Often a combination of acquisition strategies are used, especially when both end-user hardware and enterprise systems are part of the solution. First, list the components that need to be acquired, grouping them into categories as appropriate (e.g, end-user hardware, vs. each item separately).Then, for each component (or category of components), answer the following questions that are applicable to that item: Scope of what to buy:Buy as a product or service? (some items may be purchased and others may be acquired as a service)Commercial-off-the-shelf (including open source) or custom?Will in-house staff or external contractors support custom development, integration, or sustainment?What infrastructure will need to be acquired?Will system hosting services be needed? How will connectivity be made available?What security considerations should be included in the contracts?Will any specific hardware or software need to be acquired to provide security? Will Business Continuity requirements need to be included in the contract(s)?Will separate Business Continuity solutions or components need to be acquired? Are there any data management considerations to be included in the acquisition(s)?What type of contract(s) should be used? Approach to Developing this Section Before beginning this section, read the “Basics of Defining Information System Acquisition Strategies,” in the Week 6 Content.It explains how to approach acquisition planning and will help in responding to the questions above.That document provides a guide to completing the documentation for a full acquisition strategy plan, which would include many of the same topics as are included in the business case.For this section, focus on responding to the questions above, as they apply to what will need to be acquired for the system you are proposing.Multiple acquisition strategies may be identified for the proposed solution.For example, some components may be purchased outright, other products or services may be leased or available by subscription/service contracts.If such is the case with the proposed solution, all of the applicable questions for each type of acquisition recommended need to be considered and responses should be provided if they apply to what is being acquired.Some questions may not apply to the component being acquired (e.g., there does not need to be a data management strategy identified for a printer that is to be purchased).The presentation of the information will be clearer if separate responses to the questions are developed for each component or category of components.Keep in mind that the full security requirements and solution will be covered in Section XII (yet to be developed), but your solution should have identified what security hardware and software would need to be acquired, and you should include here any security requirements that should be included in contracts or service requests associated with your solution.


I.
Acquisition Strategy
This section provides a recommendation and rationale for how the
system will be acquired. Often a combination of acquisition
strategies are used, especially when both end-user hardware and
enterprise systems are part of the solution.
First, list the components that need to be acquired, grouping
them into categories as appropriate (e.g, end-user hardware, vs.
each item separately). Then, for each component (or category of
components), answer the following questions that are applicable
to that item:
• Scope of what to buy:
o Buy as a product or service? (some items may be
purchased and others may be acquired as a service)
o Commercial-off-the-shelf (including open source) or
custom?
o Will in-house staff or external contractors support
custom development, integration, or sustainment?
• What infrastructure will need to be acquired?
o Will system hosting services be needed?
o How will connectivity be made available?
o What security considerations should be included in the
contracts? Will any specific hardware or software need
to be acquired to provide security?
o Will Business Continuity requirements need to be
included in the contract(s)? Will separate Business
Continuity solutions or components need to be
acquired?
o Are there any data management considerations to be
included in the acquisition(s)?
• What type of contract(s) should be used?
Approach to Developing this Section
Before beginning this section, read the “Basics of Defining
Information System Acquisition Strategies,” in the Week 6
Content. It explains how to approach acquisition planning and
will help in responding to the questions above. That document
Building a Business Case – 10/02/2018
1
provides a guide to completing the documentation for a full
acquisition strategy plan, which would include many of the same
topics as are included in the business case. For this section,
focus on responding to the questions above, as they apply to
what will need to be acquired for the system you are proposing.
Multiple acquisition strategies may be identified for the proposed
solution. For example, some components may be purchased
outright, other products or services may be leased or available by
subscription/service contracts. If such is the case with the
proposed solution, all of the applicable questions for each type of
acquisition recommended need to be considered and responses
should be provided if they apply to what is being acquired. Some
questions may not apply to the component being acquired (e.g.,
there does not need to be a data management strategy identified
for a printer that is to be purchased). The presentation of the
information will be clearer if separate responses to the questions
are developed for each component or category of components.
Keep in mind that the full security requirements and solution will
be covered in Section XII (yet to be developed), but your solution
should have identified what security hardware and software would
need to be acquired, and you should include here any security
requirements that should be included in contracts or service
requests associated with your solution.
Building a Business Case – 10/02/2018
2
Basics of Defining Information System Acquisition Strategies
Dr. Jennifer Carter, July 2016
M. Burke and K. Hogan, editors
Acquisition Strategy Overview
Acquisition refers to the procurement of products and/or services to meet a business
requirement. In addition to directly purchasing a product, acquisitions often include
contracting for engineering or management services to support in-house development,
customization, or integration. Acquisition of information systems can be complex. The system
scope typically includes software, hardware, services, data, and processes. Some of this scope
will be newly acquired but some may also be leveraged as part of the existing infrastructure.
For this reason, an information system acquisition may be a single comprehensive contract or a
set of contracts for products and services that are managed together to obtain an information
system.
Not all acquisitions are for new systems. The scope for an information systems acquisition could
also be focused on the operation, data management, modernization, information assurance, or
maintenance of an existing system. Information systems acquisitions are further complicated by
the fact that the buyer is not always the end user. Often the Chief Information Office or
Information Technology Department is responsible for the information system acquisition
intended to provide services for an entire organization comprised of their customers. This
perspective adds complexity because of the need to establish long term customer support,
often with varied responsibility and accountability for customer satisfaction.
There are three major decision areas required to define an effective IS/IT acquisition approach:
1) What are you going to buy?
a) Will it be bought as a product or service?
b) Will it be commercial off-the-shelf or custom?
c) Who will be responsible for development, customization, integration and/or
sustainment?
2) What infrastructure will you leverage or include?
a) Where will the system be hosted?
b) How will connectivity be made available?
c) How will security be handled?
d) How will business continuity requirements be handled?
e) What are the data management considerations?
3) What contract options will provide the best outcome (cost and performance) over the
life cycle?
Each one of these has its own set of alternatives and criteria for consideration to determine the
strategy that best meets the requirements.
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1) What are you going to buy?
This section provides the basic questions that need to be answered in order to determine the
scope of what will be bought. While these decisions are related and have similar pros/cons, the
separation into multiple perspectives helps add clarity to the decision process. Often the
decisions for complex acquisitions require hybrid approaches or a modular approach where the
solution is comprised of multiple capabilities acquired in different ways. For these cases, the
strategy would provide an acquisition overview, describe the modular aspects, define the
different approaches and finish with a summary of how they combine to satisfy the
requirements.
There are three aspects to be considered:
a) Will it be bought as a product or service?
b) Will it be commercial off-the-shelf or custom?
c) Who will be responsible for development, customization, integration and/or
sustainment?
a) Will it be bought as a product or service?
Product
Buying a product refers to the purchase of hardware, software, or a system that is delivered
and then owned (or possibly leased, as in the case of licensed software) by the customer.
Pros:
– Ability to configure as needed
– Ability to control system operation
– Ability to integrate into the local secure environment
– Leverages existing infrastructure
– Can be customized as a unique instance
Cons:
– Initial investment costs
– Typically requires more time than a service for setup and configuration prior to
availability
– Lack of flexibility to move to a new solution based on investment costs
– Scalability may be limited
– Requires product maintenance
Service
Many requirements for information systems can be satisfied by purchasing a capability as a
service instead of the traditional approach of buying hardware/software and establishing your
own service. Examples include public enterprise service offerings such as e-mail, web
conferencing, chat, storage, and business software. Many of these are bundled into integrated
service packages such as Office 365. Service contracts are set up with defined performance
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levels. These service level targets ensure that the service will meet customer needs and include
the service levels for customer support. Typical service level measures include availability and
response times. The market research should provide information on the availability and types
of service offerings and products available to meet the requirement.
Pros:
– Low capital or up-front investment costs
– Puts the burden of operations, maintenance and infrastructure on the
provider/contractor
– Typically more scalable for dynamic number of users
– Depending on the contract terms for use of service, this option typically provides more
flexibility for changing to a new service offering in the future, i.e. less lock-in to a
particular solution
– Focus organization’s activities/people on core mission versus IS/IT services
Cons:
– Dependent on provider service performance
– Limited or no ability to make changes to the service
– Limited information and control for resolution of potentially high impact of service
interruptions
– Security is dependent on the provider infrastructure and environment, typically shared
with other customers
– Dependent on network access
b) Will it be commercial off-the-shelf or custom?
Commercial off-the-shelf
These are products and/or services that have already been developed and can be
demonstrated. Generally, they will be in use by other organizations. The customer
organization obtains the off-the-shelf product as-is and usually has little limited ability to
customize it to the organization’s particular needs.
Pros:
– Larger user base enables economies of scale
– Upgrades and maintenance can be purchased with the product
– Least time to delivered product, no development time
– Proven performance and reliability
Cons:
– Requires some compromise on the requirements for a “best fit”
– May lock customer into a particular vendor for a period of time
– May or may not be able to leverage/integrate existing infrastructure or align with
planned architecture
– Limited ability to influence new features or upgrades
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Custom
This category refers to solutions specifically designed to meet a set of specified requirements.
It generally requires the system to be designed and developed “from the ground up” to meet
the requirements. It is then often owned by the organization that paid for its development, and
is not shared with other organizations.
Pros:
– The system fully meets the customer requirements.
– The solution is owned by the organization so there are no data rights or licensing issues
– Full control of the system
– Ability to make changes to the system to meet dynamic requirements
– Possibly provides a competitive advantage with unique capabilities
– Potential to make revenue from sale of rights to developed code
Cons:
– Long term maintenance and upgrades are all the responsibility of the organization
– Schedule requires development time
– Typically requires custom integration with architecture or security
– Higher performance risk with an unproven, unique solution
– Typically higher cost to maintain
c) Who will be responsible for development, customization, integration, or sustainment?
The choice here is to use in-house staff or external staff acquired through a contractual
arrangement.
In-house staff
Those who develop, customize, integrate and/or maintain the system are employees of the
organization.
Pros:
– Results in local expertise/knowledge about the product or service that enables
resolving issues and future enhancements to respond to dynamic requirements
– In-house developers have expertise on the mission and requirements.
– Clear control and accountability for the work and results
– Staff is incentivized directly and has vested interest in outcome
Cons:
– Typically requires long-term commitment, funding and benefits for staff
– Often IS/IT development is outside the organization core competency, diluting
organizational focus
– May require specialized skills not already on staff; typically hiring process is slow. May
require staff training which can extend the delivery schedule.
– Requires reallocation of staff after completion of development
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External (contractor) staff
These resources are acquired via a contract and are managed by the contractor. The contractor
is responsible for hiring, training and employing the resources to perform the job, and has the
flexibility to provide specialized staff for short periods, as needed, to complete the project.
Pros:
– Can leverage specialized expertise for a limited time, just when needed
– No long term commitment to staff and related benefits
– Keeps internal labor focused on core business versus enablers or side projects
– Inherent culture and processes of the provider organization
Cons:
– Labor rates are typically higher
– Less control over the work and the schedule
– More risk that product/service may not meet needs
– Limited ability to influence performance for external labor
2) What infrastructure will you leverage or include?
This section will narrow down the scope of the procurement by determining what related
infrastructure will be part of the acquisition. This includes designating what existing
infrastructure will be leveraged, thereby requiring specific standards, interoperability or
integration as part of the acquisition. Some of these infrastructure decisions may be defined
within the requirements, but in general, the requirements will not specify the solution. Not all
of these decisions need to be made ahead of time, but if not, the information on options,
architecture, and related constraints would be provided to potential bidders. For most
information systems, key infrastructure decisions include computing platform, connectivity,
security, continuity of operations, and providing for appropriate management of the data.
a) Where will the system be hosted?
Information systems require a computing platform. In many cases an organization already has
an existing computing infrastructure such as a data center or cloud architecture. If there is a
mandate to use the common environment, then these constraints should be documented and
provided to the potential bidders. If not, then the alternatives should be evaluated to
determine what to include as part of the procurement. Specifically, the contract can specify
dedicated servers, use of a data center, or cloud computing. The pros and cons of each will be
highly dependent on the application, however, the following provides some general
considerations for each.
Dedicated servers
If dedicated servers are to be used to host the system, they may already be owned by the
organization, or they may be purchased under the same contract along with the system, or they
may be separately acquired and provided by the organization to host the system.
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Pros:
– Computing performance is not affected by competing priorities
– Can be located to minimize latency and network access issues for the specific
application
– Can be configured and optimized for the specific application
– No constraints on choices of computing platform (servers), operating system,
development tools, etc.
– Can be isolated in a secure environment
Cons:
– Typically higher cost, pay for all server capacity including unused
– Requires staff for system administration
– Need to obtain related supporting infrastructure: power, space, connectivity, and
cooling.
– Inefficient for applications with dynamic processing requirements
– Growth in processing requirements requires procurement of new servers impacting
scalability and flexibility
– Time consuming to setup new, dedicated computing resources.
– Requires security be established and updated
Data Centers
Data center environments can be provided by the organization, by the contractor, or by a third
party. If the organization has its own data center, it may well choose to have the new system
run in that data center. The contractor that is providing the system may offer to host the
system in its data center. It may also be determined that using a third party data center is
most cost effective.
Pros:
– Less time required to leverage existing infrastructure
– Can take advantage of economies of scale
– Less time required to leverage existing infrastructure
– Typically enables use of existing, more advanced, cybersecurity
– Computing is typically dynamically scalable and virtualized
– Leverage existing compliance standards, certifications, configuration management
processes, information assurance updates, etc.
Cons:
– Shared assets may impact performance
– Access to/from data centers may impact performance
– Possible constraints on computing alternatives such as operating systems,
development environments, etc. due to data center architecture, standards, and
configuration
– Dynamic scalability dependent on shared architecture
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Cloud computing
As in the case of the data center option, the cloud computing environment can be owned by
the organization, the contractor, or a third party vendor. If the cloud environment is owned by
the organization, it will have pros and cons more aligned to those identified for a data center.
The considerations below generally apply to cloud computing environments provided by the
contractor or a third party.
Pros:
– Reduced capital investment cost
– Large economies of scale
– Pay for what is used
– Dynamically scalable
– Improved disaster recovery
– Provides access from anywhere
– Professionally maintained and serviced
– Has potential to improve security
Cons:
– Constant internet connection required; performance dependent on network
– Corporate data and intellectual property more accessible to others
– Vendor lock-in
– Potentially high cost to shift cloud solutions
– Limited control and flexibility; architecture and standards constraints
b) How will connectivity be made available?
The business case will set the scope and constraints on connectivity. The range of solutions
should be narrowed down enough to specify a comprehensive approach that supports
expected growth. For example, connectivity alternatives may include internet, community or
local network, mobile carrier, and often all of the above. Some connectivity alternatives, such
as internet service provider or mobile carrier agreements, may require separate contracts. If
buying software as a service, the network is a critical dependency. For cloud services and
remote data centers, the network characteristics, such as bandwidth, potentially have a
significant impact on performance. In addition, some cloud based services, such as storage,
may incur additional network fees for data access.
c) How will security be handled?
There are multiple approaches to achieve desired levels of information security, to include
perimeter defense, identity management, data security (at rest), encryption (data in transit),
user access controls, automated monitoring, and defense in depth. When designing an
information system, it is important to clearly specify the security requirements and that they
enable meeting security objectives without overly driving cost or constraining the commercial
solution alternatives. The security approach often impacts the ability to integrate, modify, scale,
or upgrade the solution in the future.
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d) How will business continuity requirements be handled?
There are multiple approaches for obtaining continuity of business operations. A common
approach is to use a smaller scale capability at an alternate location from the primary, either
on-site or remote. The requirements need to clearly state any ranges of acceptable recovery
times and/or data loss. An acquisition strategy should address whether the solution for
continuity will be through the same contract (i.e. dependency on the same provider and
contract vehicle) or whether there will be a separate in-house or contracted recovery ability.
Using the same contract vehicle adds significant risk in the event that the contractor is not able
to perform. If the strategy is for a system backup with a separate provider, then there are
potential issues with intellectual property, accountability, additional cost, contract overhead,
and clear allocation of responsibility for meeting the performance requirements between
parties.
e) What are the data management considerations?
For most information systems, management of the data is fundamental to the system
performance. In many cases, such as business and health systems, the data volume is so large
that it is a driving force in the system design and overall cost. There are also many cases where
the ability to access, view or analyze legacy data is required. The operational use of the data
provides the context for acquisition related decisions regarding the analytic environment. For
example, systems primarily used for data archiving can utilize low cost, offline storage
alternatives, whereas systems that are used for real-time, flexible analysis of business data may
require in-memory storage for rapid access. In any case, the data must be adequately
protected and available to the owning organization when contracts are terminated.
3) What contract options will provide the best outcome (cost and performance)
over the life cycle?
The selection of an appropriate set of contract vehicles is a critical component of the
acquisition strategy. Not only is the contract type important, but the number of contracts, the
term, and the method to ensure accountability are also critical factors. While a single contract
for the entire scope of work provides the simplest contracting approach, it also typically results
in higher cost and less flexibility. Since many information systems share common infrastructure
components, there may be opportunities to leverage existing contracts for some portion of the
acquisition scope. The pros and cons of a longer contract term will be very dependent on the
scope of the acquisition. Similarly, the performance measures will be dependent on priorities.
The important aspect of performance is to ensure the basic success criteria are defined and
measurable so that they can be incorporated into contract incentives, quality assurance
planning and source selection.
There are several contract types. The contract types are categorized into fixed price, cost
reimbursement, indefinite delivery, and purchase agreement. There is no single right answer
for which type of contract is best for a particular information system acquisition. However,
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there are some general guidelines and principles to consider. One of the major factors to
consider is risk. Fixed price contracts shift the risk to the contractor, while cost reimbursable
contracts retain more risk within the organization. Other major factors are flexibility and
control, both of which are limited for fixed price contracts. Schedule is another major factor,
and contract vehicles such as indefinite delivery indefinite quantity or blanket purchase
agreements provide opportunities to reduce contracting time through use of existing vehicles.
The cost benefit of specific contract types will be dependent on the scope of the procurement
and the market pricing trends.
In addition to these formal contracts, there are a variety of single-purpose contractual
arrangements available. Telecommunications (e.g., internet and cellular services) may be
acquired through a standard service contract offered by the provider to all customers.
Hardware may be acquired through a purchase order with a hardware vendor, where the list
price is paid and a warranty may be included. Many software-as-a-service vendors offer the
use of their software online via a “subscription” at a fixed cost that may vary by number of
users, storage used, etc. Cloud service providers may also offer similar subscriptions.
It is not unusual for an acquisition strategy to include several different acquisition approaches
for the various components of a system. These may all be “bundled” together so that a single
contractor (“integrator”) is responsible for acquiring, coordinating and managing the entire
system project. Or, the individual components (hardware, software, and telecommunications)
may be separately acquired and integrated and managed by the organization itself. This may
result in lower cost, but may increase risk. Acquisition strategy development is about making
the tradeoffs outlined throughout this paper and determining the best approach for the
organization and the system being acquired.
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The SaaS Cloud Solutions RFMS
Jerry’s business needs software in order to complement the hardware’s operation; this includes
Operating system that would be used by the servers, workstations among the other PCs within
the business. The business would also need Firewalls and antivirus software that would be used
to secure the customer and the business data and information.
Eventually, Jerry would be required to acquire a custom business software that would be used by
the Jerry’s customer to place and order among other business operation. The SaaS system will
need to be designed for carpets store. The RFMS SaaS system is great because it is already set up
for Carpets store. There are three parts to RFMS. There is the Management System, Productivity
Tools and Measure.
The Management System offers operations features daily aspects of productivity, sales, and
installation, the overall interpretation of the company vision. It also offers Accounting Features
uniqueness of the flooring industry. It is unique because RFMS is engineered for carpet store
needs and address the specific accounting, inventory and sales functions that flooring operations
demand (RFMS Corporation).
The Productivity Tools offers a wide variety of tools that Jerry will take advantage of to help
grow his business. The first and the most important is the RFMS Mobile. Which is designed for
the sales professional on the go, it will create new quotes and keep users up to date with their
projects. Another Great tool offer under Productivity Tools is the RFMS Schedule Pro, This
makes manages all flooring installations a simple task, and employee will be able to and track
jobs and crews. The Bid Pro will estimate projects on the spot for salesmen, so they can give
estimates to customers on the spot. Another product under Productivity Tools is direct deposit.
This will allow Jerry to pay employee account electronically. RFMS has an inventory barcoding
software has a module that is integrated with inventory and works with a hand-held laser
tricorder that will track and speed up the time to do inventories (RFMS Corporation).
RFMS Measure is an estimation software that does the estimating process. Jerry can create
precise estimates in only five easy steps. The Measure Tool will approximation carpet, tile,
laminate and hardwood flooring for projects of all sizes. Then it will create a floor plan with the
software powerful drawing tools. Then it defines and assign all materials needed, then it will
create all the product information, including description, color, size and price. The RFMS then
will add Project Details like floor, stairs, borders and walls. Then it will give an Estimate, with
material cost and labor cost. Then Printthe layout and cut diagrams for installers and customers
(RFMS Corporation).
Trusty Carpets
Background: Jerry Montgomery has been selling carpets for 20 years from his
store, Trusty Carpets, which is located in a strip mall that, over the past few years,
has become a busy shopping center. The location is in what had been a quiet town
near a large city, but recent area growth has resulted in many new homes being built
and the town council has started to consider ordinances to create zones to protect
unique architecture, improve overall property condition, and protect the
environment. Their focus is on creating an up-scale community attracting “clean”
businesses to improve the quality of life and its tax base.
The current business model: Since he opened his Trusty Carpets store, Jerry has
advertised in the local paper and done all of his business in his showroom where he
has carpet samples on display. Jerry employs two sales people to serve customers
in the store. One is his daughter Ann who he would like to take over the business
when he retires. Since he has little storage space, Jerry’s inventory has been limited
to overstock, end pieces from installations, and samples. When a customer makes a
selection from the samples, the salesman checks the manufacturer’s information to
determine the availability of the selected carpet and the current price. Jerry’s
brother-in-law, Mike Baker, has a carpet installation business and has been subcontracting the installation of the carpets sold by Trusty Carpets. The sales staff
coordinates installation with the customer and with Mike.
Jerry employs an accountant (who has other customers and does his work at his own
office) to keep track of his finances, pay bills, send invoices, collect payment and do
payroll. Jerry’s finances are very straight-forward, and he uses the accountant only
because he does not like to do the paperwork.
Jerry’s company sells about 250,000 square feet of carpet a year (70% of it is midgrade carpet and padding) for sales of about $1.2 million. This results in a net profit
of about $100,000. His current costs are in line with industry averages but his profits
are below the averages. He attributes this to the fact that he keeps his prices low to
be more competitive and grow his business.
Technology support: The Trusty Carpets store has a basic information technology
(IT) infrastructure with an internet connection. There is a computer with a multipurpose printer (scanner/fax/printer) in Jerry’s office. It is connected to a router
supplied by the Internet Service Provider. The router also provides a wireless
network within the store, and the 2 salesmen have tablet computers that they use to
check carpet availability and price, and to enter and check orders. Order forms are
simple Google document forms that are stored in the Google cloud and are shared
among the employees and with the installer and the accountant. Jerry and his
salesmen each have a Gmail account. One of the salesmen, Ben (who has been with
Jerry 6 years), is studying IT at the community college. He set up the current
technology in the store just six months ago. Jerry expects Ben to learn about any
new technology that gets installed and help solve minor in-store IT problems.
Rev 6 8/20/2018
1
Recent changes: Jerry has been quite successful and has recently acquired Metro
Carpets, a store on the other side of town. Metro Carpets has a large showroom and
an adjoining 20,000 square foot warehouse. The showroom contains two room
displays, one a living room with their top line carpet and one a family room with midline carpet. The remaining display space is for samples and remnants, including a
small area for closeouts. The warehouse is about 50% utilized. It contains rolls of the
top line carpet in a wide range of popular colors for immediate installation. Although
it is a relatively large business, the previous owner was not well organized, had no
information technology at the store, and kept all of his customer records and carpet
inventory in hand-written ledgers. Jerry plans to retain the three sales staff and two
warehouse people at Metro, and he wants to continue to expand sales in his original
store. Metro generates about $3 million in annual sales at a 12% profit. Costs are in
line with industry averages. Carpet sold at Metro breaks down as follows: 10%
bottom grade, 50% mid-grade and 40% top-of-the-line.
In addition, Jerry and Mike (the installer) have decided to combine their businesses
into one carpet sales and installation business. They will do this after they have
reviewed the impact of an EPA initiative, the WARM Program, to improve the rate of
carpet recycling to lower greenhouse gas emissions. A description of the WARM
Program is posted with the Case Study under Course Resources. Jerry feels
recycling is important and wants to be able to make the appropriate business
accommodations. Mike runs his business out of his home since all of the work is done
in customers’ homes. He has two installation teams (2 people each) and installation
equipment is stored in the trucks. Mike expects to increase the number of installation
teams since Jerry acquired Metro Carpets. Mike’s wife Carol handles the
bookkeeping, and while all of their work is paper-based, they are well organized. He
earns about $1.50/square foot for his services.
The opportunities: With the expansion of his business, Jerry needs a way to be
able to manage the two separate locations and the installation operation as one
business. He is also looking at ways to increase his business through internet sales,
establishing relationships with new home builders, and in-home sales where he
believes that he could reach more customers if his salespeople could go to
customers’ homes, take measurements and