ISFM-300 Case Study, Stage 1 Business Environment Analysis .docx

ISFM-300 Case Study, Stage 1: Business Environment Analysis
Before you begin this assignment, be sure you:
1. Have completed all previously assigned readings, particularly
those assigned in Week 1 of the class
2. Read the “UMUC Haircuts Case Study" and review the
“Walmart Example.”
(
Purpose of this Assignment
This assignment gives you the opportunity to apply the concepts
of the Porter Five Forces model to a specific business,
explain and support an identified
a strategy for competitive advantage
for UMUC Haircuts, and
analyze the identified business process
that could be improved with the use of technology. This
assignment specifically addresses the following course
outcomes to enable you to:
analyze business strategy to recognize how technology solutions
enable strategic outcomes
analyze internal and external business processes to identify i
nformation systems requirements
analyze business strategy to recognize how technology solutions
enable strategic outcomes
analyze
internal and external business processes to identify information
systems requirements
)

Overview of Business Environment Analysis for UMUC
Haircuts
UMUC Haircuts has been in business since 1995 and has seen
an increase in competition from a variety of competitors, as
described in the Case Study. With the news that a Hair Cuttery
is likely to open only five miles away, Myra, the owner of
UMUC Haircuts, is concerned and has begun analyzing her
situation and what could be done to remain competitive in this
changing environment. She has recognized that scheduling her
employees and her customers is causing her problems, and she
thinks she should focus on that first, as it is fundamental to her
business. Myra also believes that there must be a technology
solution that could help her run her salon, but she has no idea
where to start.
You are a Systems Analyst, and Myra has asked you to help her
with determining how she can improve her business. Myra has
requested, specifically, that you verify and provide added
support to her own analysis that has resulted in the
identification of a Strategy for Competitive Advantage and a
Business Process for Improvement. This will be the basis for
defining business and systems requirements for an IT solution.
This Strategy and IT
Solution
will help to bring UMUC Haircuts into the 21st century and
take advantage of current technology. You will analyze her
business environment using Porter's Five Forces Analysis.
Then, you will use the results of that analysis to explain how it
supports Myra’s Strategy for Competitive Advantage, and the
business process that she selected for improvement through the

use of technology.
It is important to note that a business owner has many areas
where improvements can be made, such as: staff, building
facility, supplier agreements, advertising, etc. There are also
many possible solutions that could improve the business
strategy and processes. Since time and costs are involved, the
owner should address basic problems first in choosing the
strategy and which processes to improve. (Consider a lemonade
stand; while it would be nice to have a chair to sit behind a
table to serve the lemonade to customers, that is not crucial;
however, having lemonade and cups are crucial to the business.)
A second important concept for this class is that, among all the
ways that competitive advantage and processes can be
improved, the focus is on information technology solutions. In
your role as a Systems Analyst, you will be supporting Myra's
selected strategy and process for improvement, and proposing
an appropriate IT solution. This work begins with an analysis
of UMUC Haircuts using the Five Forces Model.
Five Forces Analysis:
You know that Michael Porter’s Five Forces Model is a useful
tool for analyzing a business. The Model is used to help
understand the importance of the five competitive forces and
determine a strategy to develop and maintain a competitive
advantage. The Five Forces are described and discussed in
Chapter 7 of the e-textbook. They are:

· Buyer Power
· Supplier power
· Threat of substitute products or services
· Threat of new entrants
· Rivalry among existing competitors
Strategy for Competitive Advantage:
After reviewing Porter's Generic Strategies for competitive
advantage, as shown in the table below, Myra has decided on
the Cost Leadership Strategy because she wants to provide a
variety of services at a cost that is lower than her competitors
and thereby attract more customers. She knows that she can
offer lower costs than the Hair Cuttery that is opening nearby,
but she will need to make some improvements to do that.
Target Scope
Advantage
Low Cost
Product Uniqueness
Broad
(Industry Wide)
Cost Leadership Strategy
Differentiation Strategy
Narrow
(Market Segment)
Focus Strategy

(low cost)
Focus Strategy
(differentiation)
Business Process:
Following a Five Forces Analysis and selection of a strategy for
competitive advantage, the next step is to identify a process for
improvement that will support the strategy and provide the most
benefit, and position the business for future improvements.
While there are several areas in need of improvement, Myra has
decided that Customer and Employee Scheduling is the most
important process to be improved.
In your role as Systems Analyst, Myra wants you to provide
solid justification for the strategy for competitive advantage and
the business process that she has selected, and help her
determine if an information technology solution can help.
Assignment: UMUC Haircuts Stage 1: Create a document that
includes:
I. Introduction
Brief introduction providing the background of the case, why
you are writing and what is to come in your paper. This should
only be 3-5 sentences.
II. Five Forces Analysis
Perform a Porter's Five Forces analysis for UMUC Haircuts,
addressing each of the five forces in two or three sentences.

For each of the five forces, your analysis should include:
· Explanation of the force and what it means to UMUC Haircuts
· Assessment of the force’s impact (Positive, Negative or
Neutral) on the business
· A statement as to whether it should affect Myra’s strategy for
a competitive advantage (yes or no).
You will copy the table below into your paper and use it as the
framework for this analysis.
FIVE FORCES ANALYSIS
FORCE
EXPLANATION
(Minimum 2 good sentences)
IMPACT(POSITIVE, NEGATIVE, or NEUTRAL)
AFFECT STRATEGY? (YES/NO)
BUYER POWER
SUPPLIER POWER
THREAT OF SUBSTITUTE PRODUCTS OR SERVICES

THREAT OF NEW ENTRANTS
RIVALRY AMONG EXISTING COMPETITORS
[Note] Do not identify solutions or things that Myra should do
to address the force’s impact. (The idea is to simply identify an
assessment of the impact and if the force will affect UMUC
Haircuts’ Strategy for Competitive Advantage.)
III. Justification of Selected Strategy for Competitive
Advantage
· Explain how Myra’s selected strategy for competitive
advantage – Cost Leadership Strategy -- is justified and
supported by the Five Forces Analysis.
· Relate the strategy back to each of Porter’s five forces
discussing the impact of the strategy based on your assessment
of the force (positive, negative, or neutral).
IV. Business Process
· Explain how the process Myra has identified to be improved –

Customer and Employee Scheduling -- is related to and supports
the strategy for competitive advantage Myra selected.
· Explain generally how a technology solution could help
improve the process. (Do not provide any specific solution.)
References: Provide at least one external resource in your
paper on an area of your choice. Note that two or more external
resources are required for maximum points. An external
resource is a resource other than those provided in the class or
textbook. Incorporate a properly formatted APA citation in the
text of your document. Then, place an APA style reference
page at the end of your document.
Formatting:
For academic writing, the writer is expected to write in the third
person. In third person, the writer avoids the pronouns I, we,
my, and ours. The third person is used to make the writing more
objective by taking the individual, the “self,” out of the writing.
This method is very helpful for academic writing, a form in
which facts, not opinion, drive the tone of the text. Writing in
the third person allows the writer to come across as unbiased
and thus more informed.
· Write a short concise paper: 2-3 double spaced pages of
content; table entries for the Five Forces analysis should be
single spaced.

· Use at least one external resources with APA formatted
citation and reference.
· Include a title page and a reference page.
· Compare your work to the Grading Rubric below to be sure
you have met content and quality criteria.
· Submit your paper as a Word document, or a document that
can be read in Word.
· Your submission should include your last name first in the
filename: Lastname_firstname_Stage_1
GRADING RUBRIC:
The "right" and "wrong" answers have to do with whether or not
you correctly incorporated the course vocabulary and concepts
from the textbook to support your choices and have addressed
all parts of the assignment.
ISFM-300 Case Study, Stage 1 Rubric: Business Environment
AnalysisCriteria
90-100%
Far Above Standards
80-89%

Above Standards
70-79%
Meets Standards
60-69%
Below Standards
< 60%
Well Below Standards
Possible Points
Five Forces Analysis
41-45 Points
Analysis covers all 5 forces, explaining them and their impact
on the business in the case study (Positive, Negative or Neutral)
and whether it should affect the strategy (Yes/No); and strongly
demonstrates understanding of course vocabulary and concepts,
analysis and critical thinking.
36-40 Points

and whether it should affect the strategy (Yes/No); and
demonstrates understanding of course vocabulary and concepts,
analysis and critical thinking.
31-35 Points
and whether it should affect the strategy (Yes/No). Minimal use
of course concepts and vocabulary.
27-30 Points
Analysis covers 1-4 forces, and/or lacks explanations and/or
strategy; may be lacking in demonstration of understanding of
course concepts, analysis, and/or critical thinking.
0-26 Points
Analysis not included, or does not address many of the 5 forces.
45
Justification of Selected Strategy for Competitive Advantage
18-20 Points

The selected strategy for competitive advantage is exceptionally
well supported based on the explanation of the results of the
Five Forces Analysis of the business, and is fully explained
demonstrating a strong understanding of course vocabulary,
concepts, analysis and critical thinking.
16-17 Points
The selected strategy for competitive advantage is well
supported based on the explanation of the Five Forces Analysis
of the business and is adequately explained demonstrating
understanding of course vocabulary, concepts, analysis and
critical thinking.
14-15 Points
The selected strategy for competitive advantage is supported
based on the explanation of the Five Forces Analysis of the
business and explained demonstrating some understanding of
course vocabulary, concepts, analysis and critical thinking.
12-13 Points
The selected strategy for competitive advantage is not
adequately supported based on the explanation of the Five
Forces Analysis of the business, does not come from analysis of
the Case Study, and/or is lacking in demonstration of
understanding of course vocabulary, concepts, or analysis.

0-11 Points
No analysis and/or discussion of strategy for competitive
advantage selected is provided or little effort is shown.
20
Process to Improve
9-10 Points
The explanation of how the selected business process is related
to and supports the strategy for competitive advantage and the
explanation of how technology could improve the process are
clear, complete and convincing; and demonstrate a strong
understanding of course vocabulary, concepts, analysis and
critical thinking.
8 Points
clear and complete; and demonstrate a good understanding of
course vocabulary, concepts, analysis and critical thinking.
7 Points

both provided; and demonstrate an understanding of course
vocabulary, concepts, analysis and critical thinking.
6 Points
explanation of how technology could improve the process may
not both be provided, or may not be clear or relevant; and may
demonstrate a lack of understanding of course vocabulary,
concepts, analysis and critical thinking.
0-5 Points
not provided; or little effort is shown.
10
External Research
9-10 Points
Two or more sources other than the textbook are incorporated
and used effectively. Sources used are relevant and timely and
contribute to the analysis. References are appropriately

incorporated and cited using APA style.
8 Points
At least one source other than the textbook is incorporated and
used effectively. Source(s) are relevant and contribute to the
analysis. References are appropriately incorporated and cited
using APA style.
7 Points
At least one external resource used and properly incorporated
into the text. Reference is cited using APA style.
6 points
A source other than the textbook may be used, but is not
properly incorporated or used and/or is not effective or
appropriate and/or is not relevant or timely; and/or does not
follow APA style for references and citations.
0-5 Points
No external research is incorporated or reference listed is not
cited within text.
10
Report Format
14-15 Points
Report is very well organized and is easy to read. Very few or

no errors in sentence structure, grammar, and spelling; double-
spaced, written in third person and presented in a professional
format.
12-13 Points
Report reflects effective organization; has few errors in
sentence structure, grammar, and spelling; double-spaced,
written in third person and presented in a professional format.
10-11 Points
Report has some organization; may have some errors in
sentence structure, grammar and spelling. Report is double
spaced and written in third person.
9 Points
Report is not well organized, and/or contains several grammar
and/or spelling errors; and/or is not double-spaced and written
in third person.
0-8 Points
Report is extremely poorly written, has many grammar and/or
spelling errors, or does not convey the information.
15
TOTAL Points Possible
100

3/27/2015 - for Summer 2015 1 | Page
ISFM-300 Stage One Case Study
3/27/2015 - for Summer 2015 ISFM-300 Case Study,
Stage 1: Business Environment Analysis
2 | Page
3/26/2015 1
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
3/26/2015 2

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
the processes, challenges, and opportunities.
Identify and explain the next steps in implementing the solution
(Stage 5)
The case study and assignments address the Course Outcomes to
enable you to:
STAGED ASSIGNMENTS
There are four staged assignments which use the Case Study and
are designed to follow the relevant
course topics in the class schedule. The weight of the
assignments is shown in the Course Syllabus. The
Purpose of the Assignments
This case study specifically addresses the following course
outcomes to enable you to:

solutions enable strategic outcomes
identify
information systems requirements
3/26/2015 3
due dates are shown with the Assignments. Upon completion of
these assignments, you will have
performed an array of activities to demonstrate your ability to
apply the course content to a “real world
situation” to:
generic strategy and process for
improvement

o Stage 1 Project: Business Environment Analysis (Word
document with analysis)
analyzing inputs, processing and outputs for
the process selected for improvement, using the process model
provided
o Stage 2 Project: Business Analysis and Functional
Requirements (Word document with
table of inputs, processing and outputs)
o Stage 3 Project: IT Requirements (Word table)
implement your solution
o Stage 4 Project: Proposed IT

ISFM-300 Case Study, Stage 1 Business Environment Analysis .docx

ISFM-300 Case Study, Stage 1 Business Environment Analysis .docx

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