Cross Functional Decision

The weight-loss industry is very competitive, with annual revenue sales estimated to $60 billion a year. So, it is pertinent to Jenny Craig transmit the right information to potential customers. Jenny Craig’s key marketing tool to advertise its products is the use of celebrities’ spokesperson. They not only emphasize and share successful weight-loss stories on their website as their competitors, but they also promote the image of celebrities as a model to be followed. They are several famous celebrities that has represented Jenny Craig as spokesperson such as Kirstie Alley, Valerie Bertinelli, Qeen Latifah, and most recently Jason Alexander – Seinfeld star.
Jenny Craig applies Customer Relation Management and E-Collaboration as two major ways of information business initiatives. CRM system is an information integration system that is able to share all the customers’ information such as history, or payment status through all the departments such as sales, marketing, or customer service. In order words, the company uses multi-channel services with its customers where they are able to interact with sales representatives and customer service personnel through several communication systems such as e-mail, fax, web, etc. Through costumer’s interviews and feedbacks, the company is able to gather import information of customers needs and wants to better assist them and also devise more efficient advertisements to catch new costumer’s attention to their services.
In addition, Jenny Craig uses e-collaboration in order to improve customer relations and teamwork. E-collaboration is a use of technology that support and improve work activities, management systems, or social networking. Jenny Craig has used Wyse software to enhance communication among the company departments, so the information can be accessible to the majority of employees. Since Jenny Craig affiliates are spread over five countries and several US states, it was imperative for them to create integrated collaboration environments (ICEs). Thus, their teams have better access to information through the systems to elaborate projects, make decisions, etc. Jenny Craig is also on social networking sites such as Facebook, MySpace, Twitter in which users share diet experiences, lifestyle change, food recipes, etc.
Jenny Craig’s financing transactions consist of franchisee fees, foreign capital investments, and private venture capital. They have first offered stock shares in 1991 when at the time it was worth $21. During the mid 1990s the company went through several legal businesses issues that caused the stock price to fall to $6.25. Eventually, Jenny Craig was traded out of the New York Stock Exchange and the company remained as a loyal brand name in the industry that was later acquired by Nestle in 2006 for $600 million.
The company Human Resources department has a great amount of work to manage. First, the company is a great source of employment opportunity worldwide. They are increasingly hiring personnel to manage their business locally and oversee. They also give membership discounts for employees – average of 25 percent - so they are motivated to engage into the program. Thus, it shows Jenny Craig’s commitment with it clients and community.

Inventory Selection

In order to meet customer demand and satisfaction, Jenny Craig needs to make sure that there is a stock of materials used to facilitate production. This involves making sure that the inventory is always correct and up to standards. Since Jenny Craig is a goods and services based company they have to make sure that they are servicing the clients accordingly, this can mainly be done by keeping the inventory of their products on hand and on point.
In order to protect against uncertainties Jenny Craig maintains a safety stock inventory process. There is a maintained lead-time of two days, which allows each center to have enough inventory of their products on hand to service the clients. Every center is equipped with a computer system that records the amount of orders and products being sold. Once the inventory control system reaches a certain reorder point the company then sends out an order for delivery. A delivery is made every two days to each center depending on the demand and quantity being sold, this entails their lead time.
Jenny Craig mainly supplies each customer with entrees that are all made and owned by the company, which decreases the item costs. An ordering cost is crucial in a company such as Jenny Craig because of the high demand for its products. The company pays for transportation cost, purchasing cost, and receiving cost on all its deliveries each week. Due to the computer systems that record all orders there is little need for a carrying cost. Jenny Craig only holds enough inventory needed until the next delivery, which reduces the carrying cost of its’ products.
Jenny Craig runs on a periodic review system or otherwise known as the P system. This entails that the stock position is reviewed at fixed intervals. “When the review is made the stock position is ordered up, to a target inventory level.” The target level is set to cover demand of Jenny Craig’s products until the next periodic review plus the delivery lead-time. Jenny Craig finds it very important to keep a healthy relationship between service level and inventory level. Customer service levels must be balanced with investment in inventory, since higher customer service levels require higher inventory investment. Jenny Craig would not be able to service their clients without having the goods in inventory to supply them with. A precise inventory set up is crucial for Jenny Craig to operate and have a high customer satisfaction rating.

Process Selection

When it comes to process selection, Jenny Craig tends to use assembly-line flow, which uses a linear sequence of operations. The food products of Jenny Craig move from one step to the next, in order, until the final product is distributed to its customer. Based on the demand for a specific food product, the Jenny Craig Headquarters determines how many of each product it is going to make. With over 80 different food choices, the company produces each product on a Make-to-Stock basis. Orders are forecasted and production begins. After each product is finished it is placed in finished goods inventory. When members are ready, they can pick and choose which food they would like to receive. There are two ways in which a customer can obtain their order from Jenny Craig. They can either place their order online or over the phone and pick it up from a local Jenny Craig center; or they can have it shipped directly to their home by using Jenny Direct. Either way, members will receive full meals, targeted to their nutritional and weight-loss needs.

Prime Operations Activities

Jenny Craig conducts its operations management by following the transformation process. Its inputs are a team of health practitioners, facilities, consultants, medical advisory board, clients, food and energy. Jenny Craig’s outputs are providing the best one-on-one service available in the weight loss industry, supporting and encouraging clients throughout their weight loss and weight management programs, and they provide meals and health services.
Jenny Craig manages quality control by ensuring customer satisfaction. The program offers its clients one-on-one attention and individual support.Their knowledgeable and caring consultants provide motivation, encouragement and helpful information at Jenny Craig Centers, or over the phone as part of their at-home Jenny Direct Program.Jenny Craig also offers different programs for adults, teens, men, older adults, and people with diabetes.Jenny Craig takes a personalized approach to continually evolve the program to best meet their clients' dynamic needs. It has a highly regarded Medical Advisory Board whose expertise enables them to incorporate the latest research in nutrition, physical activity and behavior change to create effective strategies for long-term weight loss and a healthy lifestyle.
Jenny Craig makes its capacity decisions based on the 600 Company-owned and franchised Centers in the U.S., Canada, Australia, New Zealand, Puerto Rico and Guam. Due to the many locations Jenny Craig employs approximately 4,000 employees to maintain each client’s individual eating styles. Jenny Craig also offers an at home program, therefore they have to make sure they have enough trained consultants and support available online and through phone services.
Jenny Craig manages its inventory based on its 5 million clients worldwide. It offers over 80 Jenny's Cuisine breakfast, lunch, dinner and snack items, as well as videos, audiocassettes, cookbooks and exercise accessories. Jenny's Cuisine offerings and merchandise mixes are continuously refreshed with new products and limited-time offers. Jenny Craig is also an owned subsidiary of Nestlé and gets most of its stock from them.