tech solution

This section of the business case explains the background and environmental analysis of Trusty Carpet. Trusty Carpets is a company owned by Jerry Montgomery who has been in the business for 20 years. This section further discusses some of the different environmental analysis. (the executive summary provides the essential facts from the business case for the decision-maker and is written at an appropriate level of detail. a well-written, clear and compelling conclusion is provided.)

Trusty Carpets, owned and operated by Jerry Montgomery, is a carpet sales business with 20 years in the industry. The recent acquisition of Metro Carpets and imminent merger with Mike’s Carpet Installations will expand Trusty Carpets’ sales while adding organic installation capabilities with combined annual revenue of approximately $4.6 million with a 9% profit margin. The recent changes have driven a review of how Trusty Carpets will manage sales, inventory, and employees across multiple locations and mobile installation teams. The IT Squad has been hired to examine the business and develop and implement an information technology (IT) solution that will help to increase Trusty Carpets’ sales and profits.

An environmental analysis of Trusty Carpets indicates that there are several internal and external factors that should be considered as the company implements its expansion.

Trusty Carpets’ acquisition and the imminent merger have opened several avenues for growth. By re-evaluating the business’s strategic objectives, Mr. Montgomery and Mr. Baker can chart a new direction for the company to grow in-home and online sales, new construction and use Ann Montgomery’s connections to interior decorating to drive growth.

Trusty Carpets operates with manual business processes that have been assisted by information technology. The recent acquisition of Metro Carpets brought on paper-based ledgers and sales records that require digitizing to fit the current system or a proposed solution. Mike’s Carpet Installations is also paper-based and will require similar digitization. Further, Trusty Carpets has a limited, if any, internet presence, as it advertises in newspapers, so modernization of the business model to include e-commerce is necessary.

The company does not have a dedicated IT infrastructure or staff to support operations. To properly support multiple locations, a warehouse, mobile installation teams, and the development of an online presence will require an overhaul of processes and the acquisition of infrastructure to support the demands. The technology opportunities available for Trusty Carpets are vast. Technology is continuously growing, and businesses use it to improve customer relationship management, business processes, and sales.

Industry reports suggest that the demand for carpet has increased because of increased housing construction, renovation, and remodeling across the United States (Carpet and Rug Mills, 2021). Rising incomes aid the increased demand. Consumer trends also increase demand for sustainable and environmentally friendly carpets (Mordor Intelligence). Trusty Carpets has a prime opportunity to increase its sales by tapping into these trends.

Carpet industry competitors, such as Mohawk Industries, Inc., offer carpet tiles, which are on-trend (Mohawk Industries, Inc.). Carpet tiles are often viewed as easier to maintain and install. Carpet manufacturers are also producing more durable carpets, particularly waterproof carpeting. Finally, given the societal focus on environmentally friendly products, manufacturers also make carpets from recycled materials (Flooring, Inc., 2021). As Trusty Carpet implements its expansion, it has an opportunity to integrate these new products into its business.

The current and future direction of the city council is headed down a clear path of going green. This can be expensive to align the business organization. However, Trusty Carpets has recently acquired a warehouse, and allocating storage space to support carpet recycling is an opportunity to change practices and become an early adopter. This presents an opportunity for Trusty Carpets to re-brand and label their company green through the EPA’s WARM recycling program for carpet waste. This is an easy win for the company with minimal effort to transport and store used carpets for monthly pick-up.

II. Problem Analysis

Due to the recent acquisition of Metro Carpets and the imminent merger with Mike’s carpet installation business, Trusty Carpets needs to seamlessly combine the three separate businesses into one business, although the business will operate from multiple locations. Currently, all three businesses employ a different method for managing business processes, such as invoicing and payment collection, and maintaining business data, such as customer data. Further, the three businesses have minimal or no technological support.

Trusty Carpets uses an accountant, who does not work solely with Trusty Carpets, to handle invoices, payments, bills, and payroll. Although minimal, Trusty Carpets is the most technologically advanced of the three businesses with a basic IT infrastructure. Metro Carpets has no IT infrastructure and has hand-written ledgers for business data, which are not well-organized. Similarly, the installation business does not have an IT infrastructure, however its paper-based business files are well-organized.

Using three different methods for business processes and maintaining business data is outdated, inefficient and costly. Paper-based files are not widely accessible, may require substantial physical space, may be error-prone, are less secure and not likely to be recovered if lost or damaged. Further, navigating through paper files takes time which increases the time needed to process business transactions and in turn, decreases the amount of business sales.

To operate as a single business, Trusty Carpets needs all business processes and business data to use the same system. Developing and implementing a system that consolidates the business data for all three businesses is a critical first step to the goal of operating as a single business. Consolidation will also assist with the goal of increasing profits. Trusty Carpets should immediately plan to resolve this problem and implement a solution within the next 6 months.

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