Introduction
In this case analysis, the relationship between different drivers of profit for Store 24 are examined and its implications on retention. In the first part, employee tenure, and several site location factors will be examined relative to the goal of profitability. After that, several recommendations will be done to the management of Store 24 regarding the employee retention program. Next to this, a possible relation is examined between managerial skill, service quality, and profit. Hereafter, data analyses are applied to test hypothesis regarding these variables.
PART A
Correlations
We first look to the correlation between profit (dependent variable) and the other independent variables (table 1). We can see that MTenure has a correlation of 0.455 and CTenure 0.254. At this moment, we can assume the level of manager and crew tenure has a positive effect on profit, especially the level of manager tenure is high. Other variables that have a strong relationship with profit are: population within a 0.5 mile radius and pedestrian foot traffic.
Table 1
Furthermore, we find a strong correlation between Pedcount and Pop (0.608). This is not remarkable, because it is likely that with the presence of a population within 0.5 mile, there is also pedestrian foot traffic.
Regression Analysis and impact
If we run a regression analysis including the variables, MTenure, CTenure, Comp, Visible, Pedcount, Hours24, and Res. We find that all the variables are significant at the 0.05 level, except for visibility (table 2). This means that Visibility is not significant and does not contribute to or model. In other words, it does not influence profit. Therefore we run another regression analysis without the variable visibility (table...
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...lationship between the variables, we reject hypothesis 5,
We conducted an extra analysis with profit as the dependent variable. Store24 wants to know if managerial skill and service quality have an influence on profit and how large that influence is when they are both present at the firm. The equation belonging to the hypothesis is the following:
Profit= β_0+ β_11*MgrSkill+β_21*ServQual + β_2N*Control Variables + ε (H6)
The control variables are added to the independent variables to make the model more reliable. The output can be seen in Appendix B, Regression analysis 6. Both variables are significant in this model. The coefficient of management skill is 46,162.001, and the coefficient of service quality is 1,069.619. Since they are both positive and significant, Store24 should focus on both aspects to boost profit. Therefore, we can accept this last hypothesis.
CP has two concerns, first, establishing a stronger organizational system that will unite both locations, and second, how to effectively manage a growing number of employees. Because of their lack of experience in operating multiple stores, CP has retained Management Improvement Consultants, LLC (MIC), to develop and purpose a new organizational and control system for their newly expanded business.
Tim’s Coffee Shoppe is a well established business that has been running as a sole proprietorship for over 30 years. The business needs to improve on its management strategy in order to perform optimally in its present environment. The purpose of this paper is to provide the owner Tim with suggested improvements on managing the human as well as financial resources of the coffee shop so as to remain competitive and increase profits. The Coffee house is conveniently located close to several metro stations, ensuring a steady flow of traffic. It is also situated near a University, presenting the business with a steady clientele of college students. The business is facing stiff competition from Queequeg’s coffee with 7 shops located near Tim’s. However, the restaurant seems able to hold on to its market share judging from the reported sales revenue of $ 400,000, and increasing sales. The Shoppe recently underwent a remodeling of its interiors and exteriors, and has purchased several new equipment including computers and a freezer. Tim’s is however facing challenges in staff management.
11. Kathryn M. Bartol & David C. Martin, Management 3rd edition (Boston, Massachusetts Burr Ridge, Illinois Dubuque, Iowa Madison, Wisconsin New York, New York San Francisco, California St. Louis, Missouri 1998),
Regression analysis is also used to understand which among the independent variables are related to the dependent variable, and to explore the forms of these relationships. In restricted circumstances, regression analysis can be used to infer causal relationships between the independent and dependent variables. However this can lead to illusions or false relationships, so caution is advisable;[2] for example, correlation does not imply
1. Context: In early September’08 Giant Consumer Products, Inc. (GCP) realized that Frozen food division, which had been growing at 2.8% (compounded annual growth) rate since 2003 to 2007 and accounted for almost 33% of GCP’s overall business volume, is not doing well now. The sales as well revenue volume is around 3.9% behind the target. Most specifically marketing margin (key parameter for GCP business) was also under plan by 4.1%. GCP had been doing well in wall-street but performance of past couple of quarters has increased the worries of GCP i.e. whether GCP will able to maintain its profitable growth.
Some core competencies that must be exploited are: Brand Kmart is an existing well-known and trusted national brand in USA Kmart has private label and designer clothing that is well endorsed Infrastructure Kmart has a large number of well-located, low-cost, leased stores in urban far away from competitors through out the country ( Appendix B ). Staffing Confidence by the market in Kmart is created by the achievements of its staff and management. With the turn-around strategy in place, new blood has been put into the top management structures. In any renewal there will be retrenchment as unprofitable stores are closed. This can be used as an opportunity to retain and move high performing staff to where they are needed and to get rid of non-performing staff. Anderson the chairperson of Kmart is well supported by Wall Street and the board of Directors. These new staff members enter the company with needed skills to address problems in certain areas that previously were poorly managed such as inventory control and merchandising. Store locations, layout and Performance Stores conveniently located away from competitors like Wal-mart and Target therefore less to compete for customers face-to-face. There are 250 non-performing stores who have already been identified as being more cost effective to close than continue with running costs. Expertise exists in-house for the planning of store layout and appearance to meet different customer segments. This concentration of effort will enable focus on key areas Technology Kmart has already invested in good retailing systems. The system can be use to control inventory, supplier payments, track customer buying and monitor income versus profit margins across all stores. Research and Development The planning department is well established and in cross-functional to provide various perspective. The planning department to ensure that strategies at all levels are executed can further use the access to past data and knowledge of changes in buying patterns. Financial Backing JP Morgan Chase has agreed to support Kmart to avert the current threat of closure due to bankruptcy.
Managers in the more profitable regions were achieving/surpassing their sales goals, while managers in the less active regions were unable to achieve their sales goals. These underperforming managers were penalized by a system that they neither fostered nor developed. In all likelihood, the underperforming managers were disincentivized by unrealistic budgetary goals for their region, needing further assurances from corporate that their vision could be achieved. All retail stores suffered from a lack of product, destroying the potential sales that they could have gained. The stores in less popular/populated regions may have garnered a reputation for being unreliable and continually out of stock.
This case study was about the president of Bubba Gump Shrimp Company, a restaurant chain specializing in seafood, whose practice structure and secret to success was to have and maintain minimal management turnover. In fact, his focus on turnover was so successful that he did not have a general manager leave for 3 years, and he has decreased management turnover from 36% to 16% in 2 years. The motivation of an organization’s employees significantly affects it success. Additionally, employee turnover, absenteeism, and tardiness weaken employee productivity.
Where x is the quantity/output, Ci is the total cost, and U is the utility. A firm's action can have a substantial effect on the other.
A Review and Assessment of Its Critiques, Journal of Management, SAGE. Viewed on5th April 2011, at http://jom.sagepub.com/content/36/1/349.full.pdf+html
Williams, P. & Naumann, E. 2011, "Customer satisfaction and business performance: a firm-level analysis", The Journal of Services Marketing, vol. 25, no. 1, pp. 20-32.
10. The performance reports shows the sales and cost of goods sold for a certain period in the company. The controlling part of the company then monitors this kind of data and that’s when it determines if the company is going in the right
Tan Teck-Hong and Amna Waheed, Asian Academy of Management Journal, Vol. 16, No. 1, 73-94, January 2011, http://web.usm.my/aamj/16.1.2011/aamj_16.1.4.pdf
OLLIER-MALATERRE, ARIANE; ROTHBARD, NANCY P.; BERG, JUSTIN M. Academy of Management Review (Oct2013), Vol. 38 Issue 4
This paper presents a case study regarding Omega Inc., which has a contract sales force for its products. The contractors are employed by independently operated franchised dealers and do not work directly for Omega. Recently, Omega provided a training program for the sales force designed to improve sales performance and the franchisees instituted a performance management system to measure goal accomplishment. There are six primary steps in a performance management system and this paper will review five of the six steps as each relates to the subsequent step.