Part A • Using the facts from the case scenario, Greta’s Glamps in Learning Acti
ID: 350820 • Letter: P
Question
Part A • Using the facts from the case scenario, Greta’s Glamps in Learning Activity #1, how could Greta have positioned her company for growth? • Explain the five disciplines theory and apply the theory to Greta’s situation. • Identify ways that Greta did not position her company for growth according to the theory. • Give specific suggestions as to how Greta might have planned her growth differently and achieved success. Be sure to explain the reasons for your conclusions, and support it with your class material.
The background:
Greta owns a business that makes geometric shaped lamps called Glamps. The glamps are made from plastic panels that fit together like puzzle pieces. The pieces make lamps of different shapes, patterns and colors. The Glamps come in a variety of shapes and sizes with the largest ball lamp being 4’ in diameter, or 4’ x 4’ square. The largest lamp sells for $125 while the most popular model, a 15” diameter model sells for $49.99. People who purchase more than three glamps get one free. The choice can be hanging lamps or sit on a desk or a table. Glamps are popular with children and teenagers for room decor. Party planners like Glamps because they can set a mood in the room and they can be use again in different ways supplementing the patterns or colors from time to time.
Greta first started the business in a kiosk of a local mall. The overhead was low and sales varied. She broke even almost immediately. By the end of the first year; she was making a profit. Greta expanded to another mall by the end of second year doubling sales. Encouraged by the success, Greta thought it may be time to open a shop. She looked for a spot in a small strip of stores but not in a strip mall. She found a place on the main street of “Old Town” in Ellicott City, Maryland. It was a small store with questionable parking.
Greta began doing lighting for party events and sales skyrocketed. Yearly sales went from $200,000 to $500,000. Thrilled with her success, Greta began to take on help. She even considered opening a shop or kiosk at the Baltimore Harbor Pier thinking she would have a lot of foot traffic. Greta was constantly thinking of ways to expand the customer base of the company. She opened a kiosk in the Harbor Building housing “Philips,” a popular Maryland landmark restaurant. Sales were far from stellar but the business still showed growth. The company was now looking at over a million dollars in sales with expenses of just over $500,000. The business had 18 employees. At this point, Greta had not really explored internet sales or social media.
Unbeknownst to Greta, who had been very busy growing the business, You Tube was showing instructional videos on how to make the lamps and included online websites where people could purchase the panels and other materials needed to make the lamps. One day, a downtown employee spoke with Greta about the videos. Greta was shocked. The employee said she overheard someone say to a friend, “Yes I think they are cute too, but you can go online and buy the panels and make it yourself for half the price.”
Within six months of this conversation, Greta, found that sales were dropping in the various kiosks, but not in the party business. Greta closed two of the kiosks, the Baltimore and the location at the first mall. She stuck with the store and the second mall location. Sales were doing well at both locations although profits were flat. One year later, Greta closed the remaining kiosk. She kept the party business in the store front. Later, Greta would close the party business as well but continued to work out of her house. Her million-dollar business had reverted to $300,000 in the span of three years.
Explanation / Answer
The lamps business own by Greta where they made lump called glamps, because of its unique structure, color, puzzle pieces which fit together they got an immediate positive response from children and teenagers, this positive respond make greta to expand her business. she put lots of offers like buy more than 3 lamps get one free due to which sales got an increase but as the business didn't have the good start and suddenly by putting efforts the greta is in the position where she can think of company growth. so encouraged by the success she opens a shop and then one more after that. five discipline is a theory which needs to be learned by an organization for better growth period and to get good revenue in return. 1.personal mastery 2. mental model 3. building shared vision 4. team learning 5. system thinking. this theory explains to us how a person needs to act in different situation face by him or her while running the business. the group which works as a team need to use their skill to make the business run. here, in this case, Greta doesn't put effort when she finds out about the videos. which disobey the mental model point, because of the news which she got the need to put the team together and need to develop an idea to handle that situation. there are many ways in which we can find she didn't put effort as an owner of the company. when she got revenue from the first shop she expands her business, she mainly focuses on revenue and doesn't want to take any risk. when she finds out about the videos then again she back out too easily and don't want to take a further risk so she closes her shop and continues the party business. firstly, when she had a good revenue from the first shop she must expend her team in order to generate more ideas for marketing her products, which make her product more visible among people. secondly, she only focuses on revenue which again makes her less risk-taking due to this she opens her second shop in corner area which effects her publicity not at that time but afterward. thirdly, when she finds out about the videos then they need to work as a good team and as a leader she needs to find different ways to make her business go.