Especially for You Jewelers is a small jewelry company in a
college town. Over the last couple of years, it has experienced a
tremendous increase in its business. However, its financial
performance has not kept pace with its growth. The current
system, which is partly manual and partly automated, doesn’t
track accounts receivables sufficiently, and the company is
finding it difficult to determine the reasons why the receivables
are so high. The company runs frequent specials to attract
customers but has no idea whether these efforts are profitable or
if the benefit—if there is one—comes from associated sales.
Especially for You Jewelers wants to increase repeat sales to its
existing customers; thus, it needs to develop a customer database.
It also wants to install a new direct sales and accounting system to
help solve the outlined problems.
The new direct sales and accounting system for Especially for
You Jewelers will be an important element in the growth and
success of the jewelry company. The direct sales portion must
track every sale, be able to link to the inventory system for cost
data, and provide a daily profit and loss report. The customer
database must be able to produce purchase histories to assist
management in preparing special mailings and special sales to
existing customers. Detailed credit balances and aged accounts for
each customer would help to solve the problem with the high
balance of accounts receivables. Special notice letters and credit
history reports would help management reduce accounts
receivable.
Write a six to eight (6-8) page paper in which you:
Suggest at least five (5) expected business benefits that Especially
for You Jewelers company might derive from a new system.
Provide a rationale for your suggestions.