15.566:
INFORMATION TECHNOLOGY AS AN INTEGRATING FORCE IN MANUFACTURING

SPRING 1998

Case Study Questions: Calyx & Corolla

Please prepare the Calyx & Corolla Case. You must turn in at the beginning of class a written case assignment addressing the following six questions. Your write-up should be approximately 1100-1300 words (or 3 pages of 1.5 spaced 12pt font text). You should provide a separate answer to each question. Please be concise and to the point. Do not repeat facts or arguments relevant to more than one answer; instead refer the reader to the answer they appear. You may write up your answers in "bullet" format, if you so prefer. All questions carry approximately equal weight for grading purposes.

1. Briefly, compare the structure of the value-added chain in Calyx & Corolla's approach to flower delivery to that of the traditional florists. In particular, compare the stages these two approaches involve across all organizations participating in the production and distribution of flowers, starting from the flower growers and ending with delivery to the final consumer.
   
   Note: The value-added chain in this question is not the value chain within a single organization. Specifically, a value-added chain encompasses the value chains of all organizations that are involved in processing "raw materials" into finished products delivered to the final customers. In answering this question, you do not need to describe in detail the internal operations of each organization participating in the two value-added chains you are comparing.
   
2. What are the strengths and weaknesses of the Calyx & Corolla approach?
   
3. What are Calyx & Corolla's core competencies? (A core competency is a specific skill, knowledge or ability of an organization that is central to its business. Different organizations in the same line of business may develop or emphasize different core competencies; therefore core competencies can distinguish an organization from its competitors, and can result in competitive advantage.)
   
4. What is the role of Information Technology in Calyx & Corolla at the time the case was written (1992)?
   
5. What are the barriers to entry for competitors that would like to clone the concept, should it prove successful?
   
6. Outline three business (as opposed to technical) strategies available to Calyx & Corolla to sell flowers on the Internet. Which one should they pursue?
   
   Note: "business (as opposed to technical)" means that you should outline business strategies, such as "Calyx and Corolla should purchase America Online and offer free Internet connect time with every flower purchase", as opposed to technical implementation, such as "Calyx and Corolla should buy 50 web servers (one for Internet requests from each state) and 10 high-speed connections to an ISP".

For purposes of class discussion, you may also want to look up information on more recent developments related to this case.