StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Teambuilding and Conflict Resolution at LL Bean - Case Study Example

Cite this document
Summary
The study "Teambuilding and Conflict Resolution at LL Bean" focuses on the critical analysis of the major issues in the teambuilding and conflict resolution at LL Bean. The statement is being made in comparison to demand as it is captured or not captured in a physical store…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.3% of users find it useful
Teambuilding and Conflict Resolution at LL Bean
Read Text Preview

Extract of sample "Teambuilding and Conflict Resolution at LL Bean"

? LL Bean Case Study Table of Contents Question 6 Question 2 7 Question 3 8 Question 4 8 References 10 Question The ment is being made in comparison to demand as it is captured or not captured in a physical store. In a physical store, the demand capture data is relative to a certain maximum number, and that number is the amount of physical goods that is present at the store. Beyond that maximum physical number, there is no way for the physical store to find out what the real demand is if all customers potential customers were provided with the amount that they want. If the inventory runs out, then the store can re-order, but there is really no way of knowing whether while the good is out of stock more people want that particular good or not, because there is no catalog or mechanism for the store to demonstrate what an out of stock good looks like, unless there is a physical sample and the physical stores have an supply on demand option. Moreover, in a physical store, the audience for a particular good is limited to those who physically go to the stores to view the merchandise, limiting the potential demand to the shop frequenters. In contrast, LL Bean, by making the catalogs available for the duration of a season, and allowing for orders, is able to capture the demand for a larger subset of potential customers. In this case this demand is more real or comprehensive than the more limited demand subset that the physical store is able to address/cover. On the other hand, one can also say that the audience for the good is limited to those who receive the catalogs. In this sense this demand is arguably not universal enough. Moreover, from the point of view of being able to satisfy all demand, the statement needs to be qualified. Demand forecasting is part art in LL Bean, as has been demonstrated in the study, and even with the use of A/F and probability distributions for probable demand there are many opportunities to overshoot targets. This is especially true when the costs associated with overstocking on an item are larger than the costs of understocking, or being conservative on demand projections. In the case where stocks on hand turn out to be larger than the actual demand, then one can say that LL Bean is indeed able to capture the true demand, with the caveats on the limits of catalog marketing being able to capture all possible demand as discussed above (Schleifer, 1992, pp. 1-5). Question 2 Recording demand for an item that is out of stock may not have much of a bearing in that current season, given that for many of the items there is a long lag time for deliveries that replenishing out of stock items during the current season is often not feasible. First if it were feasible to restock within the season, obviously not being able to capture demand for an item that is out of stock means that the company misses out on any additional sales tied to that non-captured demand. The company is unable to know how many of that out of stock item to reorder. Second, for most items that cannot be replenished during the season, the implications for LL Bean are with regard to being able to record future demand and factor them into the forecasts. This is so because from the case itself, LL Bean uses historical actual demand and forecast demand figures as a weighting factor to determine how many to order of individual items for the coming seasons. If LL Bean is unable to record demand for items that are out of stock, then they are no different from operations that are purely based on physical stores, and their future demand forecasts then become continuously flawed and inaccurate Such inability to record out of stock demand translates to perpetual misses in future forecasts for the demand for that out of stock item. This has consequences for the company’s profits obviously (Schleifer, 1992, pp. 1-5). Question 3 The marginal unit profit for a sale of the shirt is $ 25. This is selling price minus cost. The marginal unit loss for a non-sale is $15. This is cost minus liquidation price per shirt. The most optimum size for the number of shirts to order is tied to the fractile of demand tied to this marginal profit versus loss profile of the shirt’s demand probability distribution. The question says that the forecast is 1,000 shirts. At the 0.75 fractile of the demand probability distribution, the multiplier is 0.3. Going by the prescribed method of the case therefore, Fessenden should order 1,000 x 0.3 or 300 shirts (Schleifer, 1992, pp. 1-5). Question 4 Liquidation costs as far as the current methods are concerned are fixed to the cost of producing the shirt, but there are other costs to consider when computing for liquidation costs, and those include the costs of keeping the stock in inventory and tying the money to that unsold inventory, or cost of money, among other cost items. There are also operational costs that are eaten up along the way, including the costs of transporting the items, and the costs of continuing to house the stock in warehouses, occupying space that could otherwise be used by faster selling goods. These latter costs are essentially on-going overhead costs that are incurred as long as the items remain in the hands of the firm. Marginal contribution too is likewise lacking in these material inputs that add to the costs of the item. In both cases the total costs are understated, so that marginal profits are overstated, while marginal losses are understated. In the case where a particular item remains overstocked in large quantities, for instance, these costs are larger because the multiplication factor is proportional to the number of unsold goods. In other words, poor forecasts that lead to overstocking may lead to higher losses. These currently are not imputed in LL Bean’s computations for the costs of overstocking, and if imputed may dampen enthusiasm for new items and for the propensity to overstock (Schleifer, 1992, pp. 1-5). . References Schleifer, A. (1992). LL Bean Inc. Item Forecasting and Inventory Management Harvard Business School. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“LL Bean Case Study Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/business/1487669-case-study
(LL Bean Case Study Example | Topics and Well Written Essays - 750 Words)
https://studentshare.org/business/1487669-case-study.
“LL Bean Case Study Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/business/1487669-case-study.
  • Cited: 0 times

CHECK THESE SAMPLES OF Teambuilding and Conflict Resolution at LL Bean

House of Cards Developed by Jill Hickman

The paper "House of Cards Developed by Jill Hickman" has successfully achieved the aim of describing a team-building exercise for conflict resolution that could be presented in an organizational atmosphere by using the House of Cards developed by Hickman.... The aim of the paper is to describe a team-building exercise for conflict resolution that one would present in an organizational atmosphere, and how it would be conducted.... The discourse would contain an introductory paragraph prior to delving into the team-building exercise chosen for conflict resolution....
4 Pages (1000 words) Essay

INDIVIDUAL DEVELOPEMENT PLAN

Initially, my personal assessment reveals the need to improve on interpersonal skills, leadership, communication, negotiation, and even conflict resolution and decision-making skills need to be improved.... I propose to enhance personal skills in conflict resolution and negotiation through research on these topics, through advice from professionals, and through experience.... Others need to exert extraordinary efforts to develop personal skills in teambuilding and group interaction....
3 Pages (750 words) Research Paper

Team Building

In this piece of writing, a simple teambuilding exercise has been recommended to effectively handle interpersonal conflicts that are very common among individuals, which aims to make the individuals understand the importance of communication in conflict resolution.... conflict resolution process is essential to resolve conflicts that arise between individuals and/or groups.... Communication skills that are essential in conflict resolution include listening, asking appropriate questions, clarity of words and speech, and translating the conversation in the right manner that is acceptable to both the parties involved in the conflict....
3 Pages (750 words) Essay

Leadership, Teambuilding, and Communication

This context documents on the various activities that occur in the daily undertakings of the organization and the controllable variables.... Organizations comprise of factors of production, with labor implying on the personnel of the organization.... .... ... ... According to the paper different personnel win chances to promotions thus creating a hierarchy of leadership throughout the different positions vested on them....
6 Pages (1500 words) Term Paper

The Real Cause of Conflict

Research will endeavour to prove that personality differences are a cause of conflict, however, this conflict can either be used positively to enhance a situation and individual learning, or it can be negative, causing a strained and stressful relationship between the two individuals....
4 Pages (1000 words) Essay

The difference between a group and a team

Both the words are entirely different and used at different circumstances.... "A team is a small group of people with complementary skills and abilities who are.... ... ... mmitted to a common goal and approach for which they hold each other accountable.... A group can be defined as a small group of people with complementary skills and abilities who are committed to a leaders goal and approach and are willing to be held accountable by the leader”....
5 Pages (1250 words) Essay

Leadership, Teambuilding, and Communication

The study focuses on how leadership, teambuilding, and communication can influence the organization's performance.... It examines the impact of leadership style in PepsiCo Inc, which is a multinational food and beverage company based in America.... .... ... ... Organizational leadership, teamwork, and communication determine the success of the organization....
9 Pages (2250 words) Research Paper

Leadership, Teambuilding and Communication

In the paper 'Leadership, teambuilding and Communication' the author discusses the art and process of persuasion whereby one influences a group of workers to work towards achieving the objectives of the organization.... The objectives can be achieved by successfully being able to direct the human behavior....
6 Pages (1500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us