Javita

Implementing ERP in the Network Marketing Company Javita 1
Implementing ERP in the Network Marketing Company Javita
By
Christina Cecil
An assignment submitted in partial fulfillment of the requirement for MGT 608
School of Business Management
National University
Gary Solomon
12/19/2015

Executive Summary
In this project I plan on implementing ERP in Javita’s multi-level marketing set-up in the
company. In order to understand why I plan on implementing these changes it is important to
understand the company’s background and how Javita works. The main problem Javita has lies
in there being a lack of information shared across all departments in the company. I propose that
by integrating ERP via salesforce.com and by utilizing social media by creating a LinkedIn
group for sales members to join this should boost sales and allow for better penetration into new
markets. This paper will go in-depth into these changes and how these changes will benefit the
company.
Background
“Javita is a company committed to enhancing the lives of millions of people by bringing
together two great industries—coffee and direct selling” (Javita Inc., 2013, p. 1). Javita is both a
home party and a multi-level marketing company in that sales and recruiting are done by inviting
people over for coffee socials where they are given a presentation on the company and products;
then are extended an invitation to get involved in the multi-level marketing that the company
does. This is done “by recruiting other sales-people the original salesperson get a commission
percentage on sales” (Coughlan, Anderson, Stern, & El-Ansary, 2006, p. 36).
Javita Coffee Company was started in 2011 and the corporate office is located in Boca
Raton, Florida in just four short years the company has become completely debt free. The

company chose the name Javita from combining two words the word “Java” which is a term used
for coffee and the Latin word “Vita” meaning life. Javita’s coffee is “100% natural, instant
gourmet coffee infused with herbs and other beneficial ingredients” (Javita Inc., 2013, p. 1).
(Leweb, 2014, ¶2).
The two types of coffee Javita has are their burn + control as seen above on the left and
their energy + mind as seen above on the right. The burn + control coffee is designed to naturally
boost your metabolism and curve cravings with the active ingredient garcinia cambogia. Garcinia
cambogia is known to “boosted leptin levels (leptin is a hormone linked to appetite control),
improved capacity to metabolize glucose and blood sugars, elevate serotonin levels (serotonin is
linked to mood and believed to help control emotional eating) and reduce bad cholesterol levels”
(Pure garcinia cambogia extract review, 2013). The energy + mind coffee is designed to increase
“energy, alertness and mental clarity” with active ingredient bacopa monnieri (Javita Inc., 2013,
p. 7). Bacopa monnieri is “an Indian traditional medicinal plant effective against cognitive
impairment” (Saini, Singh & Sandhir, September 2012, p. 1928).

Problems
Javita has done a great job with the launch of the company but there are several issues
with information not being integrated across all departments both internally and externally in the
company. This has happened because of how the system has been set up with being a multi-level
marketing company. The other problem Javita has lies in that the company has yet to tap into
growing international markets where both tea and coffee consumption is increasing.
Project Goal
Since “organizations…cannot effectively manage cost, provide superior customer
service, and be leaders in SCM without leading-edge information systems” (Turner, 1993, p. 54).
Implementing ERP in Javita would eliminate the problems with information gaps since “ERP
systems integrate internal and external management of information across an entire organization,
embracing finance, manufacturing, sales and service, customer relations management and other
functions” (Elmuti & Topaloglu, 2013, p. 16).
With being a multi-level marketing company there is a lack of communication between
the corporate office and the sale people and there is a lack of communication amongst sales
personal in the same area or even internationally. “The globalization of software development
creates software engineering challenges, especially in communication and coordination. This is
largely due to diverse cultural teams working across different time zones, with differing language
skills, where the geographic distance means that members of a development team may never

meet face to face. This global distance calls for novel and effective techniques to achieve the
promised productivity and quality gains” (Mistrík, Beecham, Richardson, & Avritzer, 2014, p.
232). Provided that Javita’s corporate officials are willing to implement ERP via salesforce.com
and even including a company LinkedIn group these implantations should improve sales for
everyone in the company and fix the communication issues.
In an online multi-level marketing company it is important to not only integrate
information but to utilize social media. Foster (2014) cited a statistic done by Experian that states
“27 percent of all time on the Internet is spent using social media” (p. 32, ¶ 5). Utilizing social
media once ERP is integrated into the company would boost sales since “74 percent of all
consumers say they rely of social networks to guide their purchases” (Gartner as cited in Foster,
2014, p. 32, ¶ 6). This can be achieved by utilizing Facebook, Twitter, LinkedIn, Google +, and
Saleforce.com these sites provide several avenues to reach the target market both locally and
internationally. This would be an advantage for Javita since “the average American consumes an
estimated 442 cups [of coffee] yearly, while the Finns and Norwegians both consume over 1,000
cups [of coffee] annually on average” (China Briefing, 2013, ¶ 3).
Once everyone in the company is on the same page and communicating with one another
the company will then be able to utilize online sales from social and mobile sources that are
available to everyone. With “50 of all online sales [being] predicted to come from social and
mobile by 2015” (Gartner as cited in Foster, 2014, p. 32, ¶ 7). Javita should be utilizing social
media to boost sales since “only 1 percent of e-commerce transactions can be traced back to
social media” (Forrester Monetate as cited in Foster, 2014, p. 32, ¶8). This would allow for

Javita’s salesforce to start penetrating growing global markets locations such as Finland,
Norway, Germany, and China. In a recent Time magazine article Sabrina Toppa cites ICO’s
executive director Roberio Silva who interviewed with the Wall Street Journal his statement
being that, “consumption is increasing as societies in India, China, and Latin America continue
to be Westernized” (February 16, 2015, ¶2).
(Kelly, May 2013, ¶25).
This chart shows the top countries and how much coffee they consume; while this chart is
a couple of years old the numbers for Finland and Norway have stayed relatively the same. With
these high levels of consumption in Finland and Norway for coffee these are two great markets
that Javita needs to get involved in since the company produces coffee that is all natural, free
trade, non-gmo, and portable in the form of instant single serving packages. Germany is a great
market to get into since “fair trade [coffee] is relatively small in the German market” (Kolk,
2011, p. 9, ¶1). This gives Javita a market that has room to grow since all of their coffee beans
are fair trade from suppliers in Brazil.

For China while they may be far from being the world’s biggest coffee market “instant
coffee accounts for upwards of 80 percent of all coffee consumption on China” (China Briefing,
2013, ¶ 6). This is great news for Javita since the their coffee products are in instant packages.
“With the expansion of coffee consumption groups, coffee culture also arises at the historic
moment; coffee became an indispensable thing in people's lives. China's coffee annual
consumption of 40,000 tons, about 15% per year rate of increase, economists estimate that China
will rank among the most important coffee consuming world within 10 years” (Guangzhou Yifan
Exhibition Service Co.Ltd., 2013).
SWOT Analysis
Strengths
 Javita’s mission
 Vision for the company: To help people get healthier
 The company is debt-free and growing
 Already started penetration in the global market
 High quality coffee beans, free trade, non-gmo, premium green tea from Japan
 Variety of products
 All natural products with herbal benefits
 Free websites to Javita independent sales distributors
Weaknesses
 Flow of information needs to be better integrated
 Need to improve the standard presentation format
 Need to increase knowledge management for all employees
 Stigma related to network marketing
Opportunities
 Tap into the health and wellness market more
 Implement Enterprise Resource Planning systems: needs an employee community
and integrated conference calling system

 Ingrate information so it accessible to all members such as creating a company
Linkin groups and implementing ERP Cloud solution software from
Salesforce.com
 Coffee consumers who want to lose weight, and improve health internationally
 Penetrate markets in Finland, Norway, Germany, China, India and Latin America
Threats
 Competition
 Economic downturns in the coffee supply
Solution
Javita’s “mission is to create a successful global business, based on a foundation of
integrity, honesty and teamwork, with a commitment to everyone’s success” (Javita Inc., 2013,
p.12). In order to fulfil this mission Javita needs to implement EPR to improve communications
in the entire organization. “ERP system can integrate all areas of an enterprise including
customer relation, manufacturing, human resources, financial management and distribution with
customers and suppliers, and data sharing” (Mertins, & Joshem, 2005, p. 182).
Implementing ERP is important since “most collaboration technologies enable text
communication. Field studies and case studies of collaboration technologies have found that
communication is improved when a group utilizes collaboration technology” (Fjermestad &
Hiltz, 2001, p.122). By using ERP Cloud solution site salesforce.com it would allow Javita to
deliver connects “directly with resellers, distributors, and partners to increase sales. Enable
partners to find the information and experts they need, register new leads, update records, and
manage funds” (Salesforce, 2015, ¶ 1). Salesforce provides “online community software to
create social, mobile, branded Employee Communities. Enable employees to find the

information they need to be most engaged and productive” (Salesforce, 2015, ¶ 4). For
salesforce.com their employee community cloud only cost $25 USD/user/month this cost could
easily be covered by the company and would allow for communication across all departments.
Conclusion
“Successful implementation of an ERP system can reduce inventory, production,
shipping, labor, and IT maintenance costs, and thus lead to greater effectiveness and better
competitive edge in terms of improved strategic initiatives and responsiveness to customers”
(Bharadwaj S., Bharadwaj A., & Bendoly, 2007, p.450). With the implementation of ERP this
can lead to individuals having a “better understanding of the decision context, improves user’s
decision making productivity, produces a change in user activity and changes the decision
maker’s perception of the usefulness of the system” (DeLone & McLean, 1992, p. 87). By going
with the ERP solution provided by salesforce.com it would be important for Javita to track the
cost of the program vs. the profits received from the implementation of the new system.

10
References
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