Ifsm 300 umuc

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UMUC Haircuts Case Study

In 1995, UMUC Haircuts was opened by Myra Morningstar in a strip mall near the College campus. UMUC

Haircuts started as a barbershop with one chair. Over the years, Myra has expanded her business to include hair styling for both men and women. Her business has grown to three barber chairs, three hair

styling stations, and a shampoo station. In response to her customers’ requests, Myra would like to

further expand her business by adding two stations for manicures. The small gift shop next door to her has recently come up for sale, and she is thinking about acquiring that area for manicures.

When UMUC Haircuts first opened, it was the only barbershop within a ten-mile radius. It was one of the

first businesses to open in the strip mall where it is located, and the number of customers has increased

each year. Over the years a couple of other barbershops have opened around the area, and there is news that a Hair Cuttery (offering men’s and women’s haircuts and styling only) will open about 5 miles

away. In the shopping center across the street, an expensive spa has now opened where hair styling is offered along with manicures. Just around the corner from UMUC Haircuts is a home with a sign offering

manicures.

While UMUC Haircuts continues to grow and profits are increasing, Myra is sure that she could improve

her operation in the areas of scheduling, supply ordering, inventory management, collecting customer information, and marketing.

Customer and Employee Scheduling: Currently, Myra takes appointments by phone and accepts walk-in customers on an as-available basis. If there is a vacancy in the schedule, she is happy to have a

walk-in customer for that time slot. As her business has expanded, Myra has found that keeping track of which employees will be working at any particular day and time, and matching that with customer

appointments has become almost unmanageable. Until recently, she has been comfortable with allowing

staff to decide what days and times they want to work, and most of them are part-time. So far, little effort has been made to find a substitute if one of her employees cannot come to work. Now, Myra has

recognized that she is turning away a significant number of walk-in customers, and at other times, her staff is not busy at all. It seems to Myra that she is very busy on Saturdays, and that Mondays are slow

days, but she has no real data to use to make a schedule for her employees. She would like you to help her improve her process for scheduling staff and customers.

Inventory Management: Now that she has employed four part-time barbers, six part-time stylists, and two part-time shampoo girls, and is contemplating adding at least two manicurists, Myra is also

concerned about maintaining an adequate stock of supplies. It has become difficult for her to keep track of what supplies have been used and what needs to be ordered. She knows that if she runs out of

shampoo or hair spray, for example, that she will not be able to serve her customers. She makes notes

to herself and sticks them on her office message board to remind herself to place orders, but she only knows to do so when one of the employees tells her that the last container of a product has been taken

from the supply cabinet. Many times, the shop is very busy and either the employee forgets to tell her, or she forgets to make a note. Myra is happy her business is growing, but the chaos of making sure

there are adequate supplies is creating a great deal of stress for her.

Supply Ordering: Even if Myra successfully keeps track of the supplies that have been used, she really

does not have time to place orders to her suppliers. Over time, she has noticed that the prices she is paying seem to be going up quickly, but she has no way check to see if she could order supplies at a

lower cost. She is wondering if she could save money by finding lower-cost suppliers, suppliers who offer

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free shipping, or suppliers who sell in bulk. It has become apparent that UMUC Haircuts needs an

improved supply ordering process.

Customer Information: There are some regular customers who come to UMUC Haircuts, and Myra recognizes them, but often cannot recall their preferences. Several of these customers have called

requesting appointments with their favorite barber or stylist, and, while Myra knows this is important to

them, she cannot assure the customers that it will be possible. Many of her barbershop customers come in every two weeks, while most of her customers who want a haircut and style are more likely to visit a

few times a year. Myra would like to know in which category each of her customers fall. She is also seeking your help in finding a better way to document the process of maintaining customer preferences

and personal information.

Marketing: Myra would also like to contact her customers and keep them coming back, but currently

she has no way to do that. She would also like to make sure when she contacts each customer that she is doing so appropriately. She would also like to provide special offers such as coupons around the time

of their birthday, believing that these types of marketing efforts would increase her repeat business and

her profits. She would also like to reach more new customers, especially as she expands her business. UMUC Haircuts uses very little marketing except word-of-mouth, and essentially still operates the same

as it did in 2000 when Myra opened her one-chair barbershop.

UMUC Haircuts is a for-profit business and must cover its variable costs, fund future improvements and

produce a reasonable profit for the owners. Myra would like to expand into the gift shop area next door, and improve her current management practices. She also believes that she could actually increase her

profits if she did a better job of marketing in combination with better scheduling and management of her supplies.

UMUC Haircuts currently uses no technology. There is not even a computer in the back office. Myra has hired you to help her with determining how she could apply information technology to help her manage

her growing operation. Throughout this course you will assist Myra with analyzing her business and applying a technology-related solution to improve the operation of UMUC Haircuts. Your advice will be

based on the business practices discussed in the class and the course materials to help her increase revenue, keep the business running, and bring the business into the 21st century.

Note 1: You will be looking for a technology solution. While installing a tea and coffee bar may attract new customers, it is not a technology solution.

Note 2: As you approach the assignments, you will find it helpful to think about your own experiences with a barbershop or styling salon. Making a trip to a local barbershop or salon may help you think about