A Case Analysis of Calyx and Corolla Essay -- Flower Companies Busines

A Case Analysis of Calyx and CorollaThis analysis focuses on the case study of Calyx & Corolla, a military post order flower conjunction.Calyx & Corolla is a relatively new company that utilizes a different distribution channel than conventional companies for fresh flowers. Calyx & Corolla mails flowers calculate from the growers to the customers via Federal Express and eliminates the middleman ( supplement A). This permits Calyx & Corolla to provide fresher, longer-lasting flowers to consumers. The management of Calyx & Corolla is contemplating a castrate in their long-term business strategy as they examine their index to compete with more traditional outlets such as retail flower shops and wire serfeeblenesss like FTD. Ruth Owades, the founder of Calyx & Corolla, has hired merchandising Consultants (MarCo) to assess the strengths and weaknesses of her business and make recommendations on how her company can richly develop their mail order concept.BackgroundCalyx & Corolla is a small mail order flower company that was founded in 1988 by RuthOwades. Ms. Owades secured $2 million in capital from approximately 18 different investors in order to launch the company. By 1991, Calyx & Corolla exceeded $10 million in yearbook sales and Owades and her associates were reassessing the firms long-term growth strategy (Wylie and Salmon, 1991). Up to this point, Calyx & Corolla was primarily a mail order company, but management is now considering expanding their market and is shy of how they should proceed. Recently, a well-financed venture capital-backed start-up failed and Calyx & Corolla acquired some of its assets. Another unproven competitor recently entered the market, financed by a large Japanese conglomerate.The companys success is primarily out-of-pocket to a few key employees. Ruth Owades plays amajor transgress in the selection and pricing of flowers and other merchandise that appears in the catalog. Fran Wilson, the vice president of operations, is responsible for(p) for customer orders and service, day-to-day communications with growers, systems development, and finance. Ann Hayes lee is responsible for merchandise development and catalog creation and production. She is also responsible for non-direct mail initiatives that are aimed at accelerating the growth of the business. Calyx & Corolla espouses the values and creativity of these individuals and their employees. taking into consi... ...ists will cost $20C&C could find ( kibibyte) patterned shops interested in selling C&C products at a substantial profit.C&C would allow floral shops to keep 30% of the saleParticpating floral shops would sell (1) C&C product per calendar weekThe average sale at the florist shop would be $47.63 (from Appendix B)The average COGS at the florist shop would be $10.95 (from Appendix B) gross sales RevenueEstimated C&C Estimated Floral Shop build of ramble of Number of gross revenue Revenue Sales RevenueCatalogs Customer outranks per Order per Order Distributed Response reliable $47.63 x 0.7 Average Sale $47.63 x 0.3 Average Sale1000 52 52000 $1,733,732 $743,028cost of Goods Sold (COGS)Number of Rate of Number of EstimatedCatalogs Customer Orders Cost of goods soldDistributed Response Received $10.95/sale1000 52 52000 $569,400Florist Derived Catalog Business Sales and Marking Costs (SMC)Number of Production & Number of Costs for Costs for Total Sales &Catalogs Mail Costs Order Shipping discussion Marketing CostsDistributed $20/Catalog Received Orders Orders per Group1000 $20,000 52000 $468,000 $260,000 $748,000Sales Revenue - COGS - SMC for Catalog Sales for C&C = $416,332