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Calyx And Corolla Case Solution Essay

1371 words - 6 pages

15.566 Information Technology
Calyx and Corolla Case Questions

Leslie Prince Rudolph
2/25/98

15.561A and 15.566
Example Case Writeup for
Calyx and Corolla

#1 – Value Added Chain
The value-added chain for typical florists can be depicted as follows:
Customers
call in order

growers

distributors

wholesalers

florists

consumers

The distributors are typically located in the growing regions. The wholesalers are
geographically dispersed. Most flowers are ordered directly from the florist and
delivered to the recipient (consumer). Small family-operated companies dominate the
entire chain. In many cases, industry participants have some role across the organizations ...view middle of the document...

• Calyx & Corolla doesn’t see flowers to do quality check
• Reliance on both growers and Fed Ex with Calyx and Corolla’s reputation on the
line.
• Reliance on a fairly small group of growers (30) compared with other retail
establishments
#3 – Core Competencies
Relationship with other members of the value chain
Calyx & Corolla has been able to develop strong relationships with both their growers
and Fed Ex to ensure that their consumers get the quality product they expect. Calyx and
Corolla have exclusivity contracts with their growers. They have trained the growers to
package the flowers in presentable and durable consumer packages, and pay them for this
extra work. They have developed good communication lines for supply and demand
information. Fed Ex provides Calyx & Corolla with the most reliable name in delivery
services. Fed Ex first thought of Calyx & Corolla as a small player with special requests
that were difficult to fulfill. Calyx and Corolla has worked on this relationship, and now
Fed Ex delivery personnel determine whether it is appropriate to leave a delivery when
nobody is home (if it is too cold, the flowers will freeze).
Customer Service
Calyx & Corolla hires customer service representatives that have a passion for flowers
and can help customers make an ordering choice. They provide freshness tips and
information about the flowers in their catalog. They provide delivery on the day
requested, and have an on-line tracking system to follow-up on problems. They provide
fresh quality flowers and a money back guarantee. The satisfaction of their customers is
exemplified in the letters in the case.

15.566 Information Technology
Calyx and Corolla Case Questions

Leslie Prince Rudolph
2/25/98

Logistics
Calyx and Corolla recognized that several steps of the value chain were non-value added
and took the necessary steps to delete those steps without negatively impacting the
consumer. Their research on the preservation and packaging needs of flowers and the
training of growers in packaging techniques is a novel approach. By teaming with Fed
Ex, they were able to latch onto the delivery competency that Fed Ex has already
perfected. All this results in fresher flowers, and happier consumers.
Marketing
Calyx & Corolla uses information on existing customers to determine how to make new
sales and new customers, and how to best distribute catalogs. The management is
involved in the design of new flower arrangements and the layout of the catalog. Calyx
& Corolla have also been successful at some very novel marketing approaches like the
Bloomingdale’s vase purchase/flower give-away promotion, and the Contact
purchase/flower discount program. They have also been able to reduce seasonality with
their continuity programs. Lastly, they have pursued media attention as a way of
promoting their name and concept.
#4 – Information Technology
Calyx & Corolla uses the Fed Ex tracking system as described in...

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