Technology
With new hardware and software emerging every day and the continuous cost accumulation, Musician’s Friend with the help of Blue Pumpkin Activity Manager, worked out a whole new approach to establishing a strategic technology plan for analyzing, choosing and implementing new technology within their company. One of the advantages of expanding their business to the Internet is that Musician’s Friend now has a worldwide broadcasting capability. This gave the company a mechanism for information dissemination, a medium for collaboration and better interaction with their customers, business partners and their computers without regard for geographic location. Musician’s Friend could identify the needs of their company and set objectives that would build a strong foundation for guiding future actions and they were able to establish their budgets to control new product costs and their technological expense.
Rapid Change
Never before has rapid change had such demand for innovation, flexibility and adaptation. Musician’s Friend is beginning to see that their future depends on how fast and how well their organization can learn and put that knowledge to work. Musician’s Friend knew that in the music business today, the market is very competitive and continuous product innovation is critical to their business.
Internal Change
Musician’s Friend started out as a mail order catalog company in Robert and Deanna Eastman’s home in southern California and converted their garage to a mini warehouse. The company began expanding with more products and relocated to a dairy barn in southern Oregon. The company kept on expanding which prompted them to open up another distribution center in Knoxville, Tennessee, which allowed the company to reach their customer’s quicker. The company outgrew their Tennessee warehouse and decided to consolidate the two warehouses into one large distribution center in Kansas City, Missouri. The company’s call center in Oregon did not have adequate telemarketing sales reps, which prompted them to open up a call center in Utah. Utah has a great telecommunications infrastructure with numerous call centers, which could handle the current and potential customers (Salter).
External Change
In the early 90’s, Musician’s Friend decided to open up a chain of retail outlets in seven states totaling nine stores in the chain. The launching of the new retail stores was putting Musician’s Friend in the red but the catalog and website was still making money. Guitar Center, the world’s largest music instrument retailer, needed to have an Internet operation and partnered with Musician’s Friend, the number one company in direct marketing. Together, the two companies are the largest retailer and supplier of music instruments, accessories and other equipment necessary for bands and individual musicians. As a result, the business earnings have more than doubled in just one year after the two companies decided on a merger and became business partners (Salter and Mount).
E-Business
E-Business (Electronic Business) as defined by Kalakota is a “complex fusion of business processes, enterprise applications, and organizational structures necessary to create a high performance business model” (aictc). However, IBM’s definition, which is not so different, describes E-Business as “the use of Internet technologies to improve and transform key business processes” (aictc). Basically, E-Business is exactly what it is, Electronic Business, or the act of conducting one’s business on the World Wide Web via the Internet.
Applying Technology
This is what the Musician’s Friend Company did with their business and since then has been successful and continued to earn a profit despite the expenses for developing the E-Business section of the company. Musician’s Friend was able to build their electronic business based on their business models by using technology resources and management approaches and applying these resources to become successful. From a start-up business in the garage of a husband and wife team, Musician’s Friend developed into a nation-wide catalog and Internet musical retail business.
Building New Relationships (Internal and External)
Combining E-Business applications, services and platforms allows Musician’s Friend to create business relationships both internally and externally. When the business expanded, they were able to create an internal relationship with their employees and business associates from manufacturers to their distribution transportation partners. Externally, they were building relationships with customers not only in their direct community, but through the Internet, they were able to contact and service customers throughout the United States of America.
Diversity
Diversity is a comprehensive term that extends beyond race and gender but what exactly is diversity? Diversity refers to age, gender, lifestyle, religious preference, belief, physical characteristics, disabilities, economic status, education, profession, sexual orientation, and ethnic and racial background (Cavanaugh, 5). Diversity can also describe a company’s internal and external customers and how a relationship can form between the company and the customers. Internal customers refer to a company’s employees including business partners and company stockholders, and external customers refer to current and prospective customers who will purchase or use the company’s products and services. Diversity is about creating a culture where each individual can thrive and contribute to the organization. The approach a company takes to the diversity in their employee and customer ranks can make or break the company.
Diversity in a Company
Diversity in a company can clarify the cultural complexities of the workplace, attract diverse customers and quality recruits, reduce employee turnover, improve communication and work relationships, create a positive, productive workplace, and enhance the company’s effectiveness in the marketplace. In order for a company to remain in business and be competitive, they need to incorporate an aggressive diversity plan to address their high level business strategy (Negri).
Diversity in Musician’s-Friend-Dot-Com
Musician’s Friend diversity plans include a monitoring system to measure the diverse representation by function at all levels to ensure a balanced workforce. In addition, it will strengthen the company’s ability to attract, hire, retain, and develop the most highly qualified managers and employees. For example, Musician’s Friend utilized a software program to measure and monitor what employees are doing when they log on to the system. Such as which tasks an employee spends the most time on, excels at, or is neglecting. The software program can determine if employees spend their time well and adhere to their schedules or need time management assistance. It also allows employees to track their own performances against management objectives. In addition, it highlights an employee’s strengths and weaknesses (Myron).
Conclusion
The Musician’s Friend is a very good example of a small business developing into a successful company that now includes large business partners. From the garage of their home, the Eastman’s were able to build their business by combining their business models, applications and services on the Internet. Thus, creating a good business model for electronic business solutions that other businesses can follow. They also became successful by utilizing their management resources such as supply chain management and customer relationship management. Musician’s Friend took their business concepts, applied it to technology and e-business and gained a rapid change, diversity and a solid foundation of managers and employees.
Works Cited
Cavanaugh, William. “New Definition of Diversity.” Executive Excellence, Jan
2001, Vol. 18 Issue 1, p5, 1p. Master FILE Premier on-line. EBSCO Publishing. 02/19/02 <>
Myron, David. “Workforce Optimization.” Destination CRM, July 2002
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Negri, Richard A. “Companies Link Diversity to Business Strategies.” Sept. 1999
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Rabiee, Hamid, Dr. “AICTC E-Business.” July 2001.
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Salter, Trent. “Robert Eastman.” Musician’s Hotline. Jan./Feb. 2002.
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