Brics: Introducing the Clicks!

On New Year’s Eve of 2018, Amjad Dar, head of Brics Online, is considering alternatives going forward for operating Brics Online, a business-to-consumer (B2C) e-commerce arm of Brics Pakistan (Brics). The main decision to be taken is whether Brics Online should be operated centrally (through a dedicated warehouse) or merged with stores to allow for decentralized operations. Centralized operations in the first year of Brics Online produced considerable losses due to various factors, including the lack of planning, follow-up, and resource capabilities. The managing director of Brics Pakistan, Yoso Manovo, has asked Dar to give his decision on a proposal put forward by two other experienced company personnel to decentralize Brics Online’s operations. Dar knows that his decision will impact the future of not only Brics as a retail organization but also Brics Online and its sustainability. Whatever decision Dar takes should ideally result in optimized operational costs while supporting future growth and expansion for the Brics Online venture.

This case can be taught in graduate-level programs (master of business administration or executive master of business administration) as part of courses focused on operations management or retail management. It also serves as an appropriate case for modules related to operations management for omnichannel retailers in courses targeted toward retail management. Students can analyze various facts and details given in the case and decide whether centralized or decentralized operations would be the best fit for Brics Online. Students also have the opportunity to critically evaluate the parent company, Brics, and its e-commerce venture, Brics Online, in terms of their strengths and weaknesses in core operations and operations strategy. After reviewing the case and discussing the assignment questions, students should be able to do the following:<br><br><ul><li>Discuss and identify various channels and modern retail types.</li><li>Understand the difference in the nature of bricks-and-mortar retail and online retail in terms of operations resource requirements and operations strategy formulation for Brics.</li><li>Identify and evaluate critical links and elements required to create operational synergy between a Brics store and Brics Online.</li><li>Discuss the pros and cons of centralized and decentralized operational models for Brics Online.</li><li>Identify the trade-offs involved for bricks-and-mortar retail in achieving profitability and scalability while adopting e-commerce as a separate channel.</li></ul>

• Ecommerce, Online Retail, Operations