Running head: AWESOME BOUTIQUE

Awesome Boutique

Name

Institutional Affiliation
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Awesome Boutique

Business Information Solution

Clothing refers to a variety of items that are worn on the body, it made of fabrics or

textile, however, over time it has comprised of garments from animal skin and other kinds of thin

materials put together (Macchion, Moretto, Caniato, Caridi, Danese and Vinelli, 2015). Cloth

wearing is restricted to human beings and is the characteristic of all societies. Clothing worn is

dependent on gender, geography, body size and society. Clothing plays different roles including

protection from elements like insect bites, rough surfaces, thorns, prickles, and insect bites by

creating a barrier between the environment and the skin. Clothing is also worn for fashion and

status. In addition, clothing helps to insult against heat or cold and ultraviolet radiations.

Due to its role in the human body, clothing is considered as one of the basic needs of a

human. A boutique is the most suitable business to serve this need (Macchion et al., 2015). The

name of the business is ‘Awesome clothing’ and offers a variety of stylish clothing ranging from

women, men and children's clothing. Other products offered in the boutique include jewelry,

magnets and other common luxury products. The proposed business seeks to provide for this

human need to the target market in the comfort of their homes (Macchion et al., 2015). The

target market will be reached through online shopping. A website will be created where

customers and browse to see products that are offered and their prices (Bakker, 2015). For the

customers who want to know the texture and other physical aspects that cannot be determined

from browsing they will have an opportunity to visit the store.

Strategic Business and Operational Value

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The main strategic business value that is provided by ‘Awesome clothing’ is providing

for the fashion needs of the customers. In the current society, fashion plays a very important role

that why stylist dressing is crucial. Fashion helps to satisfy two needs to a person that includes

novelty and conformity (Brenot, Chuffart, Coste-Manière, Deroche, Godat, Lemoine and

Tornaire, 2019). Thus, there is a huge demand in society for stylish clothing and other luxury

products. Awesome clothing identified this gap in the market and established itself as a business

that is in touch with the current trends in fashion by offering stylist product (Brenot et al., 2019).

The business ensures customer satisfaction by providing products that are in touch with the

present trends in fashion.

The main operational value of the business is online shopping that helps customers to

browse products offered at the comfort of their homes (Bakker, 2015). Once the customer has

identified the product to buy they then place an order and it delivered at their doorstep. Customer

is able to control their daily operation without the problem of traveling to the shop. In addition,

the business is able to save on space because most of the transactions are done online which

helps to reduce the cost of operation (Bakker, 2015). Due to, cost reduction the firm can offer

better prices to the customers.

Measurement and Evaluating Performance

Measuring and evaluating the performance of ‘Awesome clothing’ will done by a

balanced scorecard (BSC). The BSC is a strategic planning and management method that will be

used by the business in various ways (Akkermans and Van Oorschot, 2018). It will be used to

communicate what the business wants to accomplish, helps to align daily operations with

strategy, give priority to the business and determine progress to strategic needs. It helps to bridge

the gap between the vision, mission, core values and results to the aim of the organization. The
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main strategic objective of the balanced scorecard method is customers, financial, process and

organizational capacity (Akkermans and Van Oorschot, 2018). The table below gives a summary

of measures, targets, and initiatives put in place for each objective of the firm.

Balance scorecard of Awesome Clothing

Objective Measures Targets Initiative

Customers Sales revenue Sales revenue of $ 10 Use of online

of the firm million per financial marketing and word

period of mouth

Financial Net profit of Net profit of $ 10000 Cost reduction by the

the firm per financial period use of online sales

and economies of

scale when buying it

product

Process The time is Deliver goods to the Use of the latest

taken from to customers within a day technology and

deliver an employing with the

order to the technique required to

customers operate the system

Organization capacity Number of Serve at least 200 Adequate staff serve

people customers in a day the customers

serviced per

day
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Customers

Customers are the main stakeholders of a business. It is because they are the main

provider of income, thus they satisfaction is of importance. The firm will measure its

performance on customers using the sales revenue. The firm targets to reach $ 10 million by the

end of the financial period. The projected revenue in the four quarters of the finance is shown in

the figure below. It is projected that sales revenue for the firm will be $ 150 hundred in the first

quarter, in the second quarter it will be $ 200 hundred, in the third quarter it will be $ 250

hundred and in the fourth quarter, it will be $ 400. Those targets will help the firm to reach its

target. The projected sale volume will help to determine the firm is performing as expected.

Sales revenue per quarter

450
400
350
300
250
200
150
100
50
0
1st 2nd 3rd 4th

Sales revenue per quarter

To achieve the target for customer satisfaction the firm has put various measures that

include. Firstly, the clothing provided by the firm is unique and stylist that will make the

customer feel good when wearing those clothing (Agnihotri, Dingus and Krush, 2016). The

second measure is a high presence online that makes it easy for the customer to view the
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products provided. Awesome clothing has a website that displays pictures of the product

provided and its prices (Agnihotri, Dingus and Krush, 2016). In addition, the customers are able

to place their order from the website. Once the order is placed the firm prepares it and is

delivered at the doorstep of the customers (Ren, Qiu, Wang and Lin, 2016). Those initiatives

make the customer to feel special and are satisfied with the services provided. The special feeling

by the customers makes them tell their friend about the services provided. It is found that word

mouth is one of the most effective methods of advertisement (Ren, Qiu, Wang and Lin, 2016).

Thus, Awesome clothing will try to promote word of mouth among its customers.

Financial

The financial performance is important for the business to ensure maximum shareholder

value. It is also used to determine bonuses for the employees especially the executive employees.

The performance will be measured using net profit. The business targets to have a net profit after

interest and tax of $ 10000 in a given financial period. The targeted net profit in the four quarters

of the financial year is shown in the figure below. In the first quarter, the firm targets to have a

net profit of $ 1500, in second-quarter $ 2000, in the third quarter $ 2500 and $ 4000 in the

fourth quarter.

To achieve this target the main initiative of the firm is cost minimization. Selling

products online is cheaper than selling them in a physical store. It is because the business is not

subject to cost like rent, licensing and other overhead costs associated with a physical store

(Tang, Tay, Quek and Liang, 2017). Awesome clothing has tried to gain this advantage by

selling its products online. The second measure for the firm to reduce its cost of operation is by

the use of economies of scale (Li, De Bosio, Chen, Chaudhary, Vasquez and Guerrero, 2016).
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Buying goods in bulk will enable the business to get trade discounts that will significantly reduce

the cost of operation.

Net profit in per quarter

4500

4000

3500

3000

2500

2000

1500

1000

500

0
1st 2nd 3rd 4th

Net profit in per quarter

Process

For a business to effective in the market, it is required to have effective processes that

ensure the highest value for the customers. Effectiveness in the process helps the firm to ensure a

competitive advantage in the market. The performance of the firm will be measured using the

time taken to deliver an order to the customer. The business targets to be delivering goods to the

customer within a day. To ensure that this target is reached the firm needs to have a system in

place that responds in real-time (Akhmetshin, Vasilev, Puryaev, Sharipov and Bochkareva,

2017). The firm has invested in the latest technology that will ensure that the firm responds in

real-time to the needs of the customers. The use of advanced technology cannot be effective

without the use of staff who are able to handle it effectively (Akhmetshin, Vasilev, Puryaev,
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Sharipov and Bochkareva, 2017). The firm has hire staff with the required expertise to handle

this technology.

Organizational Capacity

The capacity of the business will be determined by the number of customers that is able

to serve per day. A firm will want to serve the highest number of customers in the most effective

way. However, it is constrained by resources that lead to a reduction in its potential. In addition,

the firm is with issues like turning away customers due to limited resources. The performance of

the firm in its capacity will be determined using the number of customers it services per day. The

target of the firm is to service at 200 customers per day. The initiative that the firm will put in

place to ensure that it was able to increase its capacity is to ensure that it has adequate staff

(Тpyhob, 2015). It will require personnel to respond to customers online and offline. It will also

need workers in charge of packaging and delivery of orders. The number of workers will be

determined by the need in the market.

Theory Used to Justify the Need

The theory that justified selection of the business solution was the task technology fit

theory. The theory refers to the extent an individual uses technology in performing their task.

Information systems are created to enable people perform their task more effectively. Therefore,

many organizations spend a lot of money to develop the information system to enhance

performance of their organizations (Urus, Mat, Nazri and Fahmi, 2019). Technology is a tool that

is applied by people in the conduct of their task. While task are the activities of an individual to

convert input in to output. Every organization is required to know the technology that is most

appropriate to effectively carry out their task. The theory indicates the importance of technology
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on progress of a firm and operation (Urus, Mat, Nazri and Fahmi, 2019). It is because it helps to

makes things easier and improve accuracy due to elimination of human error.

The boutique business was established to use technology that will help reach more

customers. The most effective technology to effectively carry out the task was a website. In the

current world of internet and other telecommunication advancement is part of everyday life.

Integration of technology in operation of a business does not only helps to improve efficiency in

the business but also gives a competitive advantage (Urus, Mat, Nazri and Fahmi, 2019). In

addition there is an increase trend among consumers to shop online. Consumers find it

convenient to shop from the comfort of their homes rather than going to a physical store

searching for the products they want.

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References

Agnihotri, R., Dingus, R., Hu, M. Y., & Krush, M. T. (2016). Social media: Influencing

customer satisfaction in B2B sales. Industrial Marketing Management, 53, 172-180.

Akhmetshin, E. M., Vasilev, V. L., Puryaev, A. S., Sharipov, R. R., & Bochkareva, T. N. (2017).

Exchange of property rights and control as a condition of the innovation process

effectiveness at collaboration between university and enterprise. Academy of Strategic

Management Journal, 16(S), 1.

Akkermans, H. A., & Van Oorschot, K. E. (2018). Relevance assumed: a case study of balanced

scorecard development using system dynamics. In System Dynamics (pp. 107-132).

Palgrave Macmillan, London.

Bakker, A. (2015). Online shopping and the absence of touch: finding the best strategy to

improve the online shopping experience (Master's thesis, University of Twente).

Brenot, A., Chuffart, C., Coste-Manière, I., Deroche, M., Godat, E., Lemoine, L., ... & Tornaire,

C. (2019). Water footprint in fashion and luxury industry. In Water in Textiles and

Fashion (pp. 95-113). Woodhead Publishing.

Chen, S. C., & Hung, C. W. (2016). Elucidating the factors influencing the acceptance of green

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Li, C., De Bosio, F., Chen, F., Chaudhary, S. K., Vasquez, J. C., & Guerrero, J. M. (2016).

Economic dispatch for operating cost minimization under real-time pricing in droop-
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Macchion, L., Moretto, A., Caniato, F., Caridi, M., Danese, P., & Vinelli, A. (2015). Production

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Ren, L., Qiu, H., Wang, P., & Lin, P. M. (2016). Exploring customer experience with budget

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