Hallstead Jewelers Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

BACKGROUND

Hallstead Jewelers was founded in 1924 in the largest city in the three state region of the United States of America. The owner of Hallstead has made his back breaking efforts in running the operations of the business and had taken his business to the peak of the success with in a few years after its inception. Halstead has made a reputable name in the market and is well renowned for its jewelry and gift items. The items in which Hallstead has made its brand are fine jewelry, gems, watches, tabletop gifts of different kinds, and artistic gifts.

Hallstead is not only renowned for its best quality as well as forexcellent customer care services in the entire tri-state region, but it is also well renowned and considered as a better brand all over the United States of America. People come from all over the United States to purchase gifts from Hallstead. Due to its paramount and finest goodwill, any gift item on which Hallstead tag is attached to, adds value to the gift its self. People who were brand conscious are the major customers of Hallstead.

By its immense reputation and exceptional quality, Hallstead has been enjoying the benefits of monopoly in its market to some extent. It offers its products with attractive prices as well as it brings innovation in its products very frequently in order to please and attract\t its customers.

After 50 years from the foundation of the business, the owner of Hallstead jewelers died. After the death of the owner, the business was taken over by his son. He ran the business for almost 28 years. During this time period, he was able to maintain the goodwill and quality of the business and gave a real tough time for his competitors. In 2002 he also died. After his death, the business was taken over by his 3 children, namely, James, Gretchen, and Michaela. These three children have taken over the business as an equal partner by signing an agreement.

They started running the business operations effectively. In 2004 they realized that the building needs some renovation as the building had been renovated only once since 1924. According to their perception, the renovation would attract its customers more towards the store and the customers would feel more comfortable. The building had been renovated before 2004 but the renovation only includes repaint and furnishing, they haven’t increased the surface area of their shop. The store was still located in the original store location in the Lake Avenue and Second Avenue. The Lake Avenue and Second Avenue were considered to be the destined retail shopping area, as all the reputable brand stores were located there.

During 2004, the principal shopping areas were shifted. The shopping areas were shifted to two blocks west to Washington Street. The departmental stores located in the shifted area are comparatively much bigger than the shops in Lake Avenue.

Hallstead has also moved to a new location, they had taken new building on a five year lease agreement. The partners were of the view that the goodwill and customer loyalty of Hallstead is so strong that it will still bring its customers to the new location of Hallstead. In 2005,then again renovated the building, the renovation includes repaint, furnishing as well as 50% increment in the surface area of the business.

After the renovation, they had predicted that this renovation would be profitable in the interest of the company, and the business would be able to make comparatively huge sales than before.Later, they realized that their prediction went wrong as the company had suffered loss of almost double the income of the last normal year.

Hallstead Jewelers Case Solution

They were unable to find the reason as to why the business is facing loss. They have closely looked the operations of the business and they thought that renovation costs would be the reason for their loss. In start of 2006 they thought that this would be the new beginning of their business and they would be able to achieve high profits in 2006. In the end of 2006, they found that the company has again suffered from loss.

They were unable to identify the reason and were curious to find out that what had gone wrong. They hired an accountant to find out the reason of such decline............

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.