In the case regarding to Dana Wakefield’s company Basket Case, we saw how a small, family run store that grew into a nationally recognized leader in the gift basket industry is recently suffering from poor sales margin due to growing competition and technological advancement. From this case it was very clear that Basket Case is suffering from large management expenses, especially within the IT department, as well as poor management efficiency. It was also evident that the industry is price sensitive especially since the industry leader Giftoram offered the lowest prices. I believe that the “C.E.O.” has to make rightful decisions that would drastically improve the efficiency of the firm in order to remain competitive. The case tells us about several issues that Dana was facing in running the company. The most notable among them were the huge IT costs that the company was bearing every year, the inefficiency of its workers about how the orders were completed and the company’s poor communication methods with its suppliers. We have seen that even though the company’s sales were high, the net income growth has been very poor because of the company’s inefficient management and operations.…show more content… I believe Dana made a good decision by hiring a Chief Information Officer (CIO). I agree with Dana on the fact that “Basket Case is a company that runs on information and depends on information technology, despite its all too physical products” (Koufaris 3). I think information and technology could be the answer to improve the efficiency of the firm. I believe investing in technology to automate many of the process now could greatly cut the cost in the future thus improving the profit
