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Case Solution for Lifely Wellness Ltd Micro Business Operations Strategy and Supplier Management

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Get the Lifely Wellness Ltd Micro Business Operations Strategy and Supplier Management Case Study Solution and Analysis by Stanley Frederick W. T. Lim, Jas Kalra, Anastasia Vainas | Case ID: W26108. We guarantee that this case solution is 100% original, official, and not AI-generated. It is a plagi...

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Uploaded on July 14, 2025
Number of pages 13
Written in 2024/2025
Type Case
Professor(s) Mr tim
Grade A+

Institution Case Management
Course Case Management

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LIFELY WELLNESS: MICRO BUSINESS OPERATIONS STRATEGY
AND SUPPLIER MANAGEMENT CASE STUDY SOLUTION

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SYNOPSIS
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Lifely Wellness Ltd. (Lifely Wellness) is a micro business owned by sole proprietor and founder Carla Ann
Parra. Based in San Diego, California, the business is focused on cannabidiol (CBD)-based products. One
core product, Jordan’s Oil, is sourced from MegaCorp Supplies Company (MegaCorp Supplies), a large
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supplier in the region, and a focal point of the business challenge. The case is set at a point where the
supplier’s opportunistic behaviour breaks a key term in the relational contract between Lifely Wellness and
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MegaCorp Supplies, forcing Parra to rethink her supply relationships. While Parra, in principle, should be
able to take her business elsewhere, she cannot afford to alienate a key player in the CBD market. Should
Lifely Wellness continue working with MegaCorp Supplies despite the supplier’s behaviour, or should
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Parra switch to other partners for her supply base?
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The Case Solution Starts From page 6

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ASSIGNMENT QUESTIONS

1. Identify Parra’s strategic priorities.
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2. What are the key challenges associated with being a micro business?
3. Using the five dimensions of competitive priorities—speed, quality, dependability, flexibility, and
cost—highlight the pros and cons associated with each supplier; note what you find interesting,
surprising, or different about the suppliers. Other than the five competitive priorities, what criteria
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should Parra consider?
4. Should Lifely Wellness source an alternative supplier for its products? What strategy should it use and why?
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5. The case outlines supplier selection decisions based on Lifely Wellness’s current
business model; however, long-term goals are also an important consideration when making operations
strategy decisions. If Lifely Wellness takes the future operations strategy of online sales into
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consideration before making a supplier selection decision, which supplier (or suppliers) should Lifely
Wellness select? What are the potential challenges of each supplier (based on the conflict between
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federal and state CBD regulations)?
6. (Optional question 2; applicable only to students in the San Diego area): Visit the Lifely Wellness store
in La Jolla and make observations to determine the best supplier selection decision. Who are the
customers? What do you observe about the location and presentation of the store? How is the selling
space organized? What is the behaviour of the sales staff? How is this observational information
essential for making an informed supplier selection decision?

The Case Solution Starts From page 6

,ANALYSIS

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1. Identify Parra’s strategic priorities.

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Parra’s main strategic priorities are to provide quality products and to be a source of CBD information to
the community. To meet these two goals, Parra’s next strategic priority is to have a supplier relationship

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that strategically and proactively adds value to her operation, rather than a transactional supplier
relationship. Parra values talking with her customers, informing them about the benefits of CBD products,
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and helping to alleviate the ailments and suffering of her customers. Meeting all of these strategic priorities
requires Parra to have the products available in the store to meet customer demand, which she cannot do
without a dependable supplier.

Another of Parra’s strategic priorities is to partner with a supplier who is ethical and who provides quality
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products, which is a core value of Lifely Wellness. Parra would rather experience stockouts than
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The Case Solution Starts From page 6

,6. Visit the Lifely Wellness
store in La Jolla and make observations to determine the best supplier selection decision. Who
are the customers? What do you observe about the location and presentation of the store? How
is the selling space organized? What is the behaviour of the sales staff? How is this
observational information essential for making an informed supplier selection decision?

A visit to the store is likely to create a “feel good” factor among students. Typical Lifely Wellness customers
tend to be holistic, gentle, intelligent people who prefer Eastern remedies to Western medicine. The location
reflects Parra’s overall message and passion—she genuinely wants the best for her customers and values their
health over profits and sales. The sales staff are caring people whose goal is to inform customers about the
benefits of Lifely Wellness products. Although this is a common sales strategy, the staff’s genuine and authentic

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The Case Solution Starts From page 6

, EXHIBIT -1: THE SAND CONE MODEL

Cost

Flexibility

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Quality

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The Case Solution Starts From page 6

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