Week 2 learning
activity
Learning Activity #1
Greta’s Glamps
Read the following case scenario:
Greta owns a business that makes geometric shaped lamps
called Glamps. The glamps are made from
plastic panels that fit together like puzzle pieces. The pieces make lamps of
different shapes, patterns and colors.
The Glamps come in a variety of shapes and sizes with the largest ball
lamp being 4’ in diameter, or 4’ x 4’ square.
The largest lamp sells for $125 while the most popular model, a 15”
diameter model sells for $49.99. People
who purchase more than three glamps get one free. The choice can be hanging
lamps or sit on a desk or a table.
Glamps are popular with children and teenagers for room decor. Party planners like Glamps because they can
set a mood in the room and they can be use again in different ways
supplementing the patterns or colors from time to time.
Greta first started the business in a kiosk of a local mall.
The overhead was low and sales varied. She broke even almost immediately. By the end of the first year; she was making
a profit. Greta expanded to another mall
by the end of second year doubling sales.
Encouraged by the success, Greta thought it may be time to open a
shop. She looked for a spot in a small
strip of stores but not in a strip mall. She found a place on the main street
of “Old Town” in Ellicott City, .
It was a small store with questionable parking.
Greta began doing lighting for party events and sales
skyrocketed. Yearly sales went from
$200,000 to $500,000. Thrilled with her
success, Greta began to take on help. She even considered opening a shop or
kiosk at the Baltimore Harbor Pier thinking she would have a lot of foot
traffic. Greta was constantly thinking
of ways to expand the customer base of the company. She opened a kiosk in the
Harbor Building housing “Philips,” a popular landmark restaurant. Sales were far from stellar but the business
still showed growth. The company was now
looking at over a million dollars in sales with expenses of just over $500,000.
The business had 18 employees. At this
point, Greta had not really explored internet sales or social media.
Unbeknownst to Greta, who had been very busy growing the
business, You Tube was showing instructional videos on how to make the lamps
and included online websites where people could purchase the panels and other
materials needed to make the lamps. One
day, a downtown employee spoke with Greta about the videos. Greta was shocked. The employee said she
overheard someone say to a friend, “Yes I think they are cute too, but you can
go online and buy the panels and make it yourself for half the price.”
Within six months of this conversation, Greta, found that
sales were dropping in the various kiosks, but not in the party business. Greta closed two of the kiosks, the Baltimore
and the location at the first mall. She
stuck with the store and the second mall location. Sales were doing well at both locations
although profits were flat. One year later, Greta closed the remaining kiosk.
She kept the party business in the store front.
Later, Greta would close the party business as well but continued to
work out of her house. Her million-dollar business had reverted to $300,000 in
the span of three years.
Explain how Greta might have used the life-cycle theory to
manage her business better.
Would a PESTLE OR SWOT analysis have helped her as well? Why
or why not?
Learning Activity #2
Greta Glamps – The Sequel
Part A
Using the facts from the case scenario, Greta’s Glamps in
Learning Activity #1, how could Greta have positioned her company for
growth?
Explain the five disciplines theory and apply the theory to
Greta’s situation.
Identify ways that
Greta did not position her company for growth according to the theory.
Give specific suggestions as to how Greta might have planned
her growth differently and achieved success. Be sure to explain the reasons for
your conclusions, and support it with your class material.
Part B
After speaking to several small business owners, Greta
decided to increase her party work and include a place in the store where
customers could make their own lamps.
Her sales rebounded and this year grew to $500,000.
What should Greta do to sustain the growth?
What lessons should she take from the 5 disciplines?
