MBA Case - VTB

1. CASE SUMMARY

2. VERMONT TEDDY BEARS
Teddy
Bear
Pajamas
Calyx
Flowers
Valentine’s
Day in Feb
Mother’s
Day in May
Christmas
in December
Web
Mail Order
Telephone
Retail
3 Products
3 Peak Seasons4 Channels

3. Chronological Background
1981
• Founded
by John
Satino,
ranked
no 21 in
Inc
Magazine
1990
• Bear
Gram
Service
1993
• 17 mil $
in
Revenue,
Raised
IPO for 10
mil $
1997 - 1999
• “Make a
Friend for
Life”,
Retail
Partner
Zany
Brainy.
2003
• Acquired
Calyx and
Corolla
2005
• Returned
to Private
Ownershi
p

4. Cause Effect Diagram
Incomplete
documentation
Best of Breed
Approach
Dissimilar
software
languages used
Disruption in
workflow
Information
Silos
Lack of
mandatory
standards
Separate Packages
patched up
haphazardly
Lack of
Prioritization
Complicated
Middleware
Employee Layoffs

5. What the company needs?
 An efficient well organised enterprise IT
architecture that serves as a robust
platform for the company's changing
business requirements, and support their
long term strategic and operational goals.

6. Other Issues
Problem
 Uneven Demand.
Steps Taken
 Inducing Buy in during non peak times by
 Gift Bag Boutiques (Bundling)
 Offering Collectibles
 Complementary Accessories
 Sign Licensing Deals with TV and movie
studios.

7. Taming the Middleware
 An expert team to recover missing
information.
 Contemplating implementation of a single
ERP.

8. QUESTIONS FACED BY CIO STETZEL
 Enhancing the Middleware or implementing a
ERP package?
 How to achieve tangible results faster?
 Sub Questions:
 How do you ensure documentation for retaining
information about implementation of different
software's from employees?
 How do you identify and enhance the existing IT
Architecture?
 How is middleware supporting front end applications?
 If you are choosing to enhance middleware, how do
you allocate workforce to routine IT tasks and
enhancements?

9. QUESTIONS FACED BY CEO GILBERT
 How do we address the changing demographics
of the buyers?
 How do you match up to the competition?
 What new product varieties can be considered?
 How to improve analytics to enhance marketing?
 How to address the need for a robust content
management system?
 Catering to the changing moods of the customer,
possibly through bundling.

10. Possible Solutions
Pros of Implementing ERP
 Increase in complexity of middleware with evolving
business.
 Software Updates are easier to address for ERP.
 Proliferation costs are low
Cons of implementing ERP
 Delayed benefits.
 Training employees during ERP implementation.
 High Cost
Solution:
Parallel implementation of ERP along with existing
packages.
Phased replacement of existing middleware system.

11. How to achieve these solutions?
 IT Strategy Planning.
 Commitment from the High Level
Management.
 Change Management.
 Coordinating marketing, forecasting and
production across production lines with
better analytics.

12. THANK YOU