Introduction
-
Background
Joann Fabric and Craft Stores, more famously known as Joann, is a leading store in the United States that deals in fabrics, crafting, and sewing. The company was established in 1943 and has been operating for over 80 years (Joann, 2019). Established as the Cleveland Fabric Shop in Cleveland, Ohio, a simple fabric store, it expanded into a US fabric and craft store giant through the years. The company operates through over 800 shops across 49 states, and its headquarters are in Hudson, Ohio (Joann, 2019).
-
Problem
Joann is experiencing many financial problems that may lead to its closure in the near future. Like many businesses, it has since suffered a decline in earnings as the initial growth it experienced during the COVID-19 pandemic for DIY crafting and sewing waned, coupled with declining companies’ stocks and Joann’s debt burden (Joann, 2019).
MBA FPX 5910 Assessment 1 Capstone Project Summary
The other significant issue is the firm’s lack of flexibility in changing post-pandemic retail and crafting consumer market trends (Joann, 2019). Some negative impacts include high inflation levels, supply, and materials that have impacted the buyers’ operating costs.
-
Reasons
Joann is a perfect case for the analysis because of today’s weak financial performance and the problems that affect the whole industry (Joann, 2019). It has been a well-established business, focusing on the crafting industry over the decades.
However, the current problems signal many retail outlets that have not adapted to market trends, especially when the COVID-19 outbreak began. Knowledge of Joann’s competency threats, like reduced revenue, low share price, and increased operating costs, can help more people understand structural problems that affect the retail industry (Hackett, 2021).
-
Opportunity
The project will address the operational issues that would help the company develop and enhance its e-commerce strategy to reach more consumers. Analyzing the current consumer behavioral changes in favor of online outlets, Joann may recover some of its market share by enhancing its digital platforms or supply chain efficiency (Hackett, 2021).
MBA FPX 5910 Assessment 1 Capstone Project Summary
Another area that can be potentially developed is to expand the range of goods offered in the stores of Joann, which would attract customers who are not crafty but who want to engage in activities that involve the design and construction of clothing or accessories or home decoration (Penttinen & Palmer, 2020).
-
Scope
The scope of this project outlines the main issues. It analyzes the possibilities that Joann could use to overcome its problematic financial situation and find ways of gaining a competitive advantage in retail clothing sales. In particular, the evaluation of Joann’s business strategy and its strategy in response to a highly disruptive shift in consumer preference from physical stores (Hackett, 2021).
The work will analyze how current challenges such as inflation, supply chain crises, and increased operating costs affect Joann’s profitability and viability (Penttinen & Palmer, 2020). The project will also identify other potential areas of innovation, including the extension of online selling and advertisement and offering a more comprehensive array of products to different consumer segments.
Level of Accessibility
The accessibility to data necessary to analyze Joann’s business issues is somewhat high. Most of the needed information can be found in joint financial statements, industry reviews, and retail store performance data (Joann, 2019). The US Securities and Exchange Commission (SEC), research papers or market reports from outlets such as Nielsen or Ipsos, and press releases will give detailed information about Joann’s revenues, cost of operations, net income, and stock price in a competitive analysis and researching industries it could be required to get a subscription to a retail-oriented magazine or a database (Javaid et al., 2021).
MBA FPX 5910 Assessment 1 Capstone Project Summary
The two critical inputs that can be difficult for the reader to access include marketing research or specific consumer data that may be available only to subscribers or through special arrangements with the holder of the databases or organizations (Penttinen & Palmer, 2020).
-
Outcomes
|
MBA Program Outcome |
Grading Criteria (at the Proficient Level) |
|
1. Apply foundational knowledge and an understanding of business systems, processes, and technology within and across core disciplines. |
Change management is also relevant as Joann navigates structural shifts in consumer behavior, from enhancing their online presence to improving supply chain resilience. Finally, omnichannel retail strategies highlight the integration of digital platforms with traditional in-store experiences, which is crucial for Joann’s growth in a tech-driven market (Joann, 2019). Applying some basic business theory to Joann’s case, for instance, Porter’s five force model can be used to evaluate the level of competition that Joann experiences. Change management is also helpful because Joann deals with structural changes such as brand-building for consumers and strengthening supply chains (Hackett, 2021). |
|
2. Integrate information across disciplines and from differing perspectives. |
From a financial perspective, reports on declining revenue and stock value highlight the company’s economic instability. Looking at operations management shows that the supply chain breaks and increasing costs follow these problems. The marketing perspective reveals an inconsistency between Joann’s existing customers and new tendencies in the targeted segment (Joann, 2019). |
|
3. Think critically and analytically to provide evidence-based solutions to business challenges and opportunities. |
It implements an omnichannel strategy to integrate its e-commerce and physical store operations better. Sales and debt manufacturing with a view of eradicating unnecessary expenditures. Increasing its supply chain responsiveness would also help reduce the effect of disruptions across the globe (Javaid et al., 2021. |
|
4. Apply innovative, strategic, and sustainable approaches to business practice and planning. |
A possible strategy regarding sustainable sourcing for fabrics and materials may be a response to consumer appreciation for environment-friendly products. Using information technology, firms can analyze consumer characteristics to obtain additional information for marketing and inventory purposes. Education and training of employees can result in heightened staff participation and better customer relations (Hackett, 2021). |
|
5. Lead and collaborate in virtual, global, and culturally diverse environments. |
Organizations can integrate workplace collaboration tools to ease the working of employees in different regions across the world. Management should ensure that their employees receive ownership of cultural impressions in the organization to improve cultural sensitization among staff. Using virtual collaboration tools, including teleconferencing and project management tools, Joann can enhance cooperation and guarantee that all employees in the global/sociable architecture firm can feel relaxed and included (Penttinen & Palmer, 2020). |
|
6. Integrate principles of ethics and integrity into business decisions. |
Joann should communicate verbally with the employees and other parties when responding to ethical dilemmas. A sound ethical standard can help workers investigate and reconcile compromising situations. |
References
Hackett, L. J. (2021). Sewing history: consuming culture. Clothing Cultures, 8(1), 27–48.
https://doi.org/10.1386/cc_00043_1
Javaid, M., Haleem, A., Singh, R. P., & Suman, R. (2021). Substantial capabilities of robotics in enhancing industry 4.0 implementation. Cognitive Robotics, 1(1), 58–75.
https://doi.org/10.1016/j.cogr.2021.06.001
Joann. (2019). JOANN Fabric and Craft Stores. Joann.com.
Penttinen, E., & Palmer, J. (2020). Improving firm positioning through enhanced offerings and buyer-seller relationships. Industrial Marketing Management, 36(5), 552–564.