After working for years as a regional manager for a retail organization, Scott Parry opened his own business with Susan

Gonzalez, one of his district managers, as his partner. They formed S&S to sell appliances and consumer electronics.

Scott and Susan pursued a clicks and bricks strategy by renting a building in a busy part of town and adding an

electronic storefront.

Scott and Susan invested enough money to see them through the first six months. They will hire 15 employees within

the next two weeks3 to stock the shelves, 4 sales representatives, 6 checkout clerks, and 2 to develop and maintain

the electronic storefront.

Scott and Susan will host S&Ss grand opening in five weeks. To meet that deadline, they have to address the following

important issues:

1. What decisions do they need to make to be successful and profitable? For example:

a. How should they price products to be competitive yet earn a profit

b. Should they extend credit, and, if so, on what terms? How can they accurately track what customers owe and

pay?

c. How should they hire, train, and supervise employees? What compensation and benefits package should they

offer? How should they process payroll?

d. How can they track cash inflows and outflows to avoid a cash squeeze?

e. What is the appropriate product mix? What inventory quantities should they carry, given their limited

showroom space?

2. What information do Scott and Susan need to make those decisions?

a. What information do the external entities they interact with need?

b. What information do management and other employees need?

c. How can they gather, store, and disseminate that information?