Case

Study
Chapter
1
Submitted By:

James Q. Monsanto
Laibert Turla
William Dancel

Submitted To:
Prof. Gina
Clemente

I.

Time Context
July 1999
November 2000
May 2001

II.

Viewpoint
Old CEO - Steve Fishman
CEO - William Podany
Shopkos CIO - Paul Burrows
Pamidas CIO - Dan Nicklen
Catalysts Vice President - Dan Trew

III.

Statement of the Problem

1. What action plans are needed to overcome the challenges that will arise?
How they will prevent it?

2. How important Shopko and Pamida in the form of business?

3. What are the possible will happen if they not change or update their
systems?
4. How they will improve their sales, distribution center in other years?
IV.

Objectives
1. The action plan is providing the customer with merchandise which is
always available as advertised. Work for a plan b and also doing a sale
strategy to their products. They can prevent it, if they will work together.
They must have a good leader and employees so that the challenge will
face is easy for them.
2. Shopko and Pamida products are clothing, footwear, bedding, furniture,
jewelry, beauty products, electronics, market, housewares, and contact
lenses. This product is for human needs. Shopko and Pamida merged into
one company.
3. The possible will happen is, the company will take to financial loss
because of lack in the compatibity of system that they are working. In this
generation, needed a great technology to fasten the work. Also for their
competitors some of their buyers will go to other. They will be go down
and starting to lose some of their consumer.
4. They can improve it by using of product and sale strategy, more updating
in their system. Changing some styles of system. They must hire a
software specialist or system specialist. This improvement of systems will
helps them for the mobilization of technology, and more comfortable to
their business.

V.

Areas of Consideration/SWOT Analysis

Strength
Organization has structure that comprises in different level based on
authority and responsibility.

ShopKo information system enables company to price a product

according to season, geography, local taste and past demand.

Increasing no. of stores and sales year on year.

Small local stores acquired and turned to Shopko.

Weaknesses

Company faced legal allegations in the past

The software made management difficult to layout and run a full

service center in the most logical and efficient manner.

The first few mark down buyer tend to take care are very conservative.
So, ShopKo end up taking too many markdown

Low geographic reach as compared to some global companies

Opportunities

Growth and expansion opportunities to other markets and neighboring

countries.

IT services might increase efficiency.

More advertising and services to attract customers.

ShopKo wanted to expand the number of Pamida store in small town.

Threats

Threat of competitors in the existing market.

The brand can be affect by economic recession and unfavorable market

conditions.

The consolidation concept was to transfer the warehouse from a flow

through facility to a full service distribution center.

Old systems, some of other system didnt updating, so other companies

will take advantage on it.

VI.

Alternative Courses of Action

Shopko need to empty its shelves in time for the arrival of the new cycle
product and get rid of the overstock merchandise at highest possible price.

Implement mark down optimizer from the spotlight to help the company in
optimizing prices during the process.

System updates or adding new systems, for storage of products and

distribution center. Also for the other problem and information to the other
stores.

VII.

Recommendation
We recommend that providing the customer with merchandise which is
always available as advertised, so, the company has to make a decision and
formulate action plan to solve organization problem. Also we recommend
thinking a great plan in overall system so that the company will take a thrifty
way for it. Information system must always good performance.
Recommending of great system analyst so that he/she always suggest the
update, plan and design on the system. All system that are using must always
working good. ShopKo executives need to learn more about Management of
Change so they can manage any future acquisitions better.

VIII.

Conclusions/ Detailed Action or Implementation Plan

They need to implement Information systems that facilitate the

acquisition, transformation, and distribution of information. Information
systems can improve decision making, enhance organizational performance,
and help increase firm profitability, thus contributing to corporate value. Also,
they need to plan technical approach to information systems that emphasizes
mathematically-based models to study information systems and the physical
technology and formal capabilities of information systems. They also need to
take a plan b if they will have a problem on the system. ShopKo should have
taken much more initiative and leadership in the above type of analysis, and
perhaps the final decisions. Systematic business analysis, and cost-benefits
evaluation, of all major alternatives should have been performed before
replacing the main computer systems/software. Since Pamida was acquired
by ShopKo, the above analysis should have been performed from the overall
perspective of ShopKo-level corporate goals and business strategy, as well
as associated IT strategy.