Case Analysis
I. Statement of the Problem
How can Cherie Cosmetics improve the operations and marketing of the Elegante division?
How can the communications between the operations department and Elegante division be improved for better coordination?
II. Areas of Consideration
Cherie Cosmetics is a wholly-owned subsidiary of the International Cherie Company of New York. The company is directed by Ralph Nolk and has four distinctive product lines each headed by a general manager. Heather King is the general manager of the Elegante Division in Toronto, Canada. Bob Shaw is the Vice President of Operations. Dennis Green, the purchasing manager of operations, is Heather King’s main contact.
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Elegante is the first new product line that Cherie Cosmetics introduced in twelve years and is the most exclusive line of the prestigious company. A lack of sales history for Elegante combined with the complex dynamics of a new product line made forecasting for Elegante difficult. Elegante needed the operations department to be responsive and cooperative to its marketing needs. Overall, the success of Elegante hinges on the support and coordination of the operations department.
Since the beginning, however, Elegante encountered various problems. There were errors in shipping and warehousing, production and purchasing, which affected the sales of the Elegante division and reduced employee morale.
Bob Shaw hired Sandra Mirano to fill a new position of product coordinator in the hopes of improving communication between marketing and operations for Elegante and other product lines in the company. After Sandra Mirano’s appointment, however, communications continued to deteriorate.
One particular situation involving tester units portrayed the problems between the operations and Elegante division. Tester units allow the testing of Elegante products before purchase and are vital to the success of the division. The completion