MBA 5401
Colombia Southern University
MBA 5401
Unit VI Case Study
Soma Bay Prospers with ERP in the Cloud
Soma Bay is known as a first class resort located in Egypt. The community is known for
their resorts, spa, stores as well as luxurious vacation homes. In 2011, Egypt was struggling
with political turmoil and the president was overthrown. This caused Egypt’s economy to spiral
(Laudon, K. C., & Laudon, J. P. 2020).
Soma bay started to see a drop in their tourist revenue. Soma Bay noted that
approximately 1.3 billion US dollars was lost in revenue. This was due to an airline that was
shot down and tourists felt that it was not safe to come to the resort. Soma Bay quickly realized
in order to stay alive; they need to implement a technology software that will help them identify
where their profits are and what was causing the loss in revenue (Laudon, K. C., & Laudon, J.
P.
2020).
Soma Bay was recorded their profits with excel spreadsheets. This made it hard to
gather data between the groups and utilize the information to make quick decisions.
Spreadsheets also made it challenging to translate the different currency to know true profits.
Soma Bay decided to implement JD Edwards Enterprise Planning system (ERP) to help with
these issues (Laudon, K. C., & Laudon, J. P. 2020).
Some of the challenges that Soma Bay noticed was the software was complex. The
spreadsheet; although cumbersome; was easy to input data. Developing the software to fit their
needs was very detailed. Soma Bay had to be careful not to alter too many features of the ERP
as it can degrade the systems performance. Finally, the cost of ERP system are expensive.
, Companies need to budget against that and the training, and changes in process and sometimes
procedures to make the software effective (Circa, C., Almasan, A., Margea, R., Margea, C.
2015).
Even with these challenges, Soma Bay was able to turn around their situation thanks to
the ERP system. Soma Bay was able to streamline their system. Having all the data located in
one software program made it easy for their team to pull data and see where they were making
money and where the opportunities lied. This help reduce labor cost, as the new system was
much quicker. The team could also had a backup system that stored all their data. This came in
handy when they had weather disasters. Implementing the system-helped Soma Bay survived
their countries disasters and stay profitable (Laudon, K. C., & Laudon, J. P. 2020).
A Nasty Ending for Nasty Gal
Nasty Gal was an edgy vintage clothing and accessory eBay store. In 2006, the CEO; Sophia
Amoruso; started this store out of her apartment. She purchased vintage clothing, did her own
photography and enlisted her own models. Sophia Amoruso had a hand in every aspect of her
company (Laudon, K. C., & Laudon, J. P. 2020).
Nasty Gal went on the social media with full force. Nasty Gal could be found in just
about every social media outlet. Overnight, the company became a global name. Customers
could see their products and leave feedback. This quickly became an issue for Nasty Gal
(Laudon, K. C., & Laudon, J. P. 2020).
Nasty Gal did not have a clear vision of their customers wanted. This electric style only
targeted the California area. Nasty Gal did not have reliable data to know how much or how far
their styles reached and did not change their style with the ever-changing customer needs (Kamal, K.,
Eren, O. 2019).
Since the company was on social media and customer could leave feedback, customers
Colombia Southern University
MBA 5401
Unit VI Case Study
Soma Bay Prospers with ERP in the Cloud
Soma Bay is known as a first class resort located in Egypt. The community is known for
their resorts, spa, stores as well as luxurious vacation homes. In 2011, Egypt was struggling
with political turmoil and the president was overthrown. This caused Egypt’s economy to spiral
(Laudon, K. C., & Laudon, J. P. 2020).
Soma bay started to see a drop in their tourist revenue. Soma Bay noted that
approximately 1.3 billion US dollars was lost in revenue. This was due to an airline that was
shot down and tourists felt that it was not safe to come to the resort. Soma Bay quickly realized
in order to stay alive; they need to implement a technology software that will help them identify
where their profits are and what was causing the loss in revenue (Laudon, K. C., & Laudon, J.
P.
2020).
Soma Bay was recorded their profits with excel spreadsheets. This made it hard to
gather data between the groups and utilize the information to make quick decisions.
Spreadsheets also made it challenging to translate the different currency to know true profits.
Soma Bay decided to implement JD Edwards Enterprise Planning system (ERP) to help with
these issues (Laudon, K. C., & Laudon, J. P. 2020).
Some of the challenges that Soma Bay noticed was the software was complex. The
spreadsheet; although cumbersome; was easy to input data. Developing the software to fit their
needs was very detailed. Soma Bay had to be careful not to alter too many features of the ERP
as it can degrade the systems performance. Finally, the cost of ERP system are expensive.
, Companies need to budget against that and the training, and changes in process and sometimes
procedures to make the software effective (Circa, C., Almasan, A., Margea, R., Margea, C.
2015).
Even with these challenges, Soma Bay was able to turn around their situation thanks to
the ERP system. Soma Bay was able to streamline their system. Having all the data located in
one software program made it easy for their team to pull data and see where they were making
money and where the opportunities lied. This help reduce labor cost, as the new system was
much quicker. The team could also had a backup system that stored all their data. This came in
handy when they had weather disasters. Implementing the system-helped Soma Bay survived
their countries disasters and stay profitable (Laudon, K. C., & Laudon, J. P. 2020).
A Nasty Ending for Nasty Gal
Nasty Gal was an edgy vintage clothing and accessory eBay store. In 2006, the CEO; Sophia
Amoruso; started this store out of her apartment. She purchased vintage clothing, did her own
photography and enlisted her own models. Sophia Amoruso had a hand in every aspect of her
company (Laudon, K. C., & Laudon, J. P. 2020).
Nasty Gal went on the social media with full force. Nasty Gal could be found in just
about every social media outlet. Overnight, the company became a global name. Customers
could see their products and leave feedback. This quickly became an issue for Nasty Gal
(Laudon, K. C., & Laudon, J. P. 2020).
Nasty Gal did not have a clear vision of their customers wanted. This electric style only
targeted the California area. Nasty Gal did not have reliable data to know how much or how far
their styles reached and did not change their style with the ever-changing customer needs (Kamal, K.,
Eren, O. 2019).
Since the company was on social media and customer could leave feedback, customers
