Smart-Buy Case Study
Recently, Largemart, Inc. and Bullseye, Inc., two large, regional retailers in their own right, went through a merger. The newly formed company operates under the name Smart-Buy, Incorporated. Smart-Buy, Inc. is a large retailer with $11.5B USD in annual sales and 80,000+ employees. Smart-Buy is in the process of merging its operations,
Currently, Smart-Buy has retail stores on the West Coast, as well as in Plain and Southern states, but intends to expand into other regions. The company is in the process of determining where its new headquarters will be, so Smart-Buy executives are splitting their time between Largemart?s and Bullseye?s headquarters in California and Oklahoma, respectively. The combined company has retails stores, transportation and distribution centers, as well as a few manufacturing plants.
There were many factors weighed by the company executives and board of directors prior to merging the two companies. One company had distribution centers and manufacturing plants that could prove to be advantageous to the combined company since there would be no need to ramp up new facilities or create facilities from green fields. And, the fact that Largemart already have retail stores in California, meant that the newly formed company would have a Human Resource and Legal Department already well versed in the strict workplace laws and regulations used in California. Additionally, with a significantly larger workforce and store locations, the executives saw that the new combined revenue and synergies between the two companies would be a powerful force to take into the marketplace.
Smart-Buy?s workforce has full-time, part-time, and seasonal workers. During the holiday sales period, their levels generally peak since this is the time of year that Smart-Buy generates their highest sales.
Smart-Buy is in the process of changing its store banners (e.g. Largemart store and Bullseye store signage and related company logos) and implementing SAP as their enterprise resource planning (ERP) system. It has taken a considerable longer time to implement the new system as Smart-Buy works through taking on new best practices as it relates to their business processes and upgrading their technical infrastructure to support the larger company. In the meantime, financials, including payroll, are still being done in separate legacy systems. While this is cumbersome, Smart-Buy?s Chief Information Officer (CIO), thinks that it was more strategic to get the new ERP system implemented as quickly as possible, than to have his limited information technology (IT) teams concurrently working on an interim solution that will be thrown away once the new ERP system was fully functional. As a result, each quarter and annually, there is a manual process of combining financials and reporting. This manual process has caused earning restatements and delays in providing financial information to executives.
Smart-Buy has hired Young & Jolly (Y&J), LLC, a Big 6 Accounting Firm to help expedite payroll reporting. It is critical that Y&J completes this task as expeditiously as possible, especially taking into account all of the recent employment regulation changes. As Y&J Consultants, your team has been asked to tackle this assignment. The Managing Partner of the Oklahoma City practice specifically asked for your team to work on this effort because of the outstanding results she saw on your last assignment and because she knows that you do not take shortcuts or wait until the last minute to get your work done. The Managing Partner also gave your team specific instructions to get started on this assignment now because of the large amount of data.
?This is more data than we typically work with,? she said. ?This is Big Data!?
Smart-Buy has provided you with employee files, consisting of demographic information, for records coming out of the two separate legacy systems. In addition, Smart-Buy has provided you with quarterly payroll files from fiscal year 2015 for each of the two companies. Specifically, you should have the following files for each company:
Part 2 Questions
Prepare a report that answers all of these questions including visualizations. Also include a Process Memo that details the technical details of how you arrived at your solutions.