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Vermont Teddy Bear Case Solution


In order to effectively manage its business operations and finances in the diverse and competitive market, the company incorporated I.T systems. As a mix of homegrown and packaged application which were integrated through efficient implementation of middleware. Furthermore, it was identified that seven IT experts were working under the company’s CEO, Stetzel. They were experts in domain knowledge and were highly value and considered as the assets of the company.

However, it was determined that the I.T architecture documentation of the company was non-existent. Furthermore, in the time of crises, various shadow application were developed by the experts to tackle any situation, which would result in mitigating its adverse effects of the situation (Pena, Horan, jaynes, larson, & Murphy, 2008).

Furthermore, it was identified that the company’s core transactional infrastructure was strong. Additionally, in order to increase its sales revenues, market share and increase its overall presence in the market, Vermont implemented four distribution channels to reach its customers including Retail, mail, phone and web, which were all controlled, managed and supported through softwares.

Moreover, the CEO decided to employ two additional employees to maintain and support the operation process of the company, which would enable it to sustain its sale margins by increasing its customers satisfaction levels, which, in turn, would increase its customers’ retention rate and increase the inflow of recurring customers. Additionally, John Gilbert identified that the people took comfort in the simple pleasures of life after his visit to Toy Fair (Gogan, 2011).

Additionally, it could be determined that the CRM would not be beneficial for Vermont attributed to the fact that a significant amount of customers bought the product as gifts for mothers and girlfriends.

Problem Statements

The primary problems faced by varmint was, decoding the business logic of Middleware as most of it, was undocumented. Additionally, Vermont was also faced with ineffective marketing strategies, which compromised its ability to target larger customer bases. Furthermore, the CEO of Vermont faced tremendous challenge of allocating scarce fund towards an efficient I.T architecture before the next season of sales. However, Stetzel wanted to make the shift towards the I.T infrastructure gradual, which would allow him to have better control over the I.T transformation.

The additional problem faced by Stetzel was that the gathering of hidden information relation to various I.T application from silo member, which, in turn, would allow new employees’ layout to have minimal effect on the I.T transformation. Moreover, in the transition period to an efficient I.T system, the main issue created by the transition period was that the middleware was required to be managed which was used to integrate the various I.T platform of the company. Similarly, the additional challenges were created to rectify the problems in the application developed by previous employees (Pena, Horan, jaynes, larson, & Murphy, 2008).

Furthermore, the primary issue faced by Gilbert was that he faced issues developing strategies to sustain Vermont’s share in the market by launching competitive toys and increasing the market penetration of calyx flower unit. Moreover, he tried to speed up the deployment of new IT architecture.


Vermont has been facing IT architectural problems with sales instability, which is intense on occasions like Christmas, new-year and mother’s day, while it gets less intense in other season, which has disturbed the whole profit-revenue structure of the company. Vermont has strong processing infrastructure for meeting its operational needs, however the operational cost is high due to which it has become complicated for the company to match the prices of its products in the market, while also operating on the cost differentiation strategy.

The company has recently expanded its functions, which has cost the company a lot especially in IT. The company’s IT department needs to be revamped again in order to maintain the functions and sales structure. However the major issue with the IT system is that all the software and plan in the IT department are standalone projects which cannot be integrated with othersoftware to meet the demand and requirement of time. In addition, an additional cost occurs whenever new customization is made in the process.

Vermont depends on four functions to run its business, these are mail, phone retail and web. All these means require a high integration of IT system to record and estimate rightamount of sales and order. However, all these means use standalone software that does not get integrated with each other, leading the company to spend irrelevantly on advertisement where it may fail to tap the actual customer base...........................

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