The 99 Cents Stores Company Case Study

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Introduction

Information Technology is said to have both tangible and intangible benefits to a business (Senn, 2000). It helps a business make profits while producing the results the customers want. It also promotes efficiency while saving time and resources to achieve greater output.

The 99 Cents Stores Company has been described as a leader in embracing IT in its stores and this has differentiated it from the competitors. The company uses technology to ensure efficiency in the way business is conducted. For this reason, they always make greater profits.

Overview

The 99 Cents Only Stores has been seen to be a leader in championing the use of IT in its business ventures. The ‘pickers’ are directed by an automated voice control that ensures efficiency in goods selection and transportation. The 99 Cents Stores also employed different approaches when doing their business.

Instead of only targeting the population with low and medium income earners, they targeted the rich. They knew full well that the rich equally valued the idea of saving. Therefore, they made the most profits in stores that were located in rich neighbourhoods such as the Beverly Hills.

The former CEO and founder, Mr. Gold together with his executives had one objective of developing the simplest way of identifying the correct customer for their inexpensive items. In order to make this happen, they employed the IT team to drive all decisions relating to this.

Therefore, IT ensured efficiency in identifying the proper goods and efficiency in distributing them into their stores. At the same time, IT ensured that there was no overstocking or under-stocking. This way, the 99 Cents Stores Company remained the leader in its industry.

Despite the fact that Gold does not fancy computers and technology himself, he appreciates the role of IT in his company. He describes Adams as the perfect choice for the company since he has a big IT team (Oz, 2008). He delegates much authority to the team, which ensures that the work is done.

He was also impressed when the IT team wrote the whole code (software) for the POS systems. The IT team also ensure that the information systems are flexible so as to accommodate modifications in-house.

Problem definition

Some businesses have not realised the importance of using IT and embracing technology in their undertakings. The dollar stores were described to be slow in adopting some of the cutting edge technology available.

This describes the difference between these stores and the 99 Cents Stores since the latter seemed to be ahead of them (Oz, 2008). Whenever they could not develop software in-house, they employed software companies to design systems specific for the operations in their chains.

For this reason, the 99 Cents Stores managed to build big stores and made much more profits as compared to their competitors.

However, David Gold did not fully understand the importance of technology and the need to invest heavily in it. He rarely used his personal computer. Despite the company’s great profits, it spent a very small fraction to invest in technology.

Recommendation

Technology is said to improve efficiency of operations in businesses (Stephen, 2000). It helps a business preserve its resources such as space and time. Businesses also depend on technology when it comes to issues such as the Point of Sales systems and information management systems.

These systems should have the capability to handle all kind of information. Such information may include accounting and tracking, and the automated systems.

Automated systems are usually used in large-scale production of goods. Packaging, sorting and other forms of communication and marketing are also assisted by the use of technology.

Globalization was also made possible due to the use of technology (Stephen, 2000). Technology made it possible for businesses to grow and expand in the way it has today. The importance of technology (IT) has made it a huge industry in itself.

This explains the existence of software design and development. Computer hardware manufacturing and robotics have also developed for this reason.

Technology is a vital tool in improving efficiency and increasing profits. Computers are efficient due to their speeds and ability to provide up-to-date information. Technology also makes automation possible.

This way, it reduces or replaces physical employees. Doing business manually may increase human errors and consume valuable time.

Therefore, automation may be important when a business needs to save time and reduce errors. The 99 Cents Stores, for example, has used automation in directing the staff to pick the items in the stores.

Conclusion

Technology (IT) is vital to any business today. It is important in that it ensures efficiency of operations. Technology has made it possible to automate services where humans are now replaced with more efficient and accurate machines.

In 99 Cents Stores, technology has been used to save time and improve accuracy and efficiency. This explains why it makes greater profits than its competitors do. It has also managed to grow its business steadily.

Therefore, businesses should embrace technology and understand the importance of technology in their operations. The 99 Cents Stores Company should also consider investing more of its profits in technology.

References

Oz, E. (2008). Management information systems (6th ed.). New York: Course Technology Ptr.

Senn, J. (2000). Information technology in business: Principles, practices and opportunities. Upper Saddle River: Printice-Hall, Inc.

Stephen, C. (2000). Information technology in business processes. Business Process Management Journal, 6(3), 224, 237.

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IvyPanda. (2019, July 2). The 99 Cents Stores Company. https://ivypanda.com/essays/the-99-cents-stores-company-case-study/

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