The results of the above table show that the three independent variable factors have an adjusted R2 value of 0.002 which shows that they explained approximately a paltry 0.2% of the variance in employee and customer satisfaction which is insignificant. Their corresponding beta coefficients are; innovation culture (-0.02, p>0.05), organizational learning (0.123, p>0.05) and organizational flexibility (0.0444, p>0.05) which show that they also had insignificant contributions to profit. According to Stevenson, Seville, Vargo & Roger (2010), resilient organizations are those that are able to survive and thrive in this world of uncertainty. Survival and thriving is much more a function of low employee turnover and customer satisfaction than it is about making profit. A retail organization can satisfy both its employees and its customers before it is able to make any profit. Moreover employee satisfaction also involves how much and how consistently they are paid among other motivational factors, which in itself is a cost to the organization. Consequently, it is therefore possible to achieve low employee turnover and high employee satisfaction at the expense of profit levels. 4.3 RECOMMENDATIONS The results of the study show that, for the retailers who were interviewed, organizational resilience was more focused on adaptation and survival, rather than making the step further and generating profit. Besides being able to survive the dynamic business environment in Zimbabwe, retailers also need to make profit. We therefore recommend adoption of the following measures: 4.3.1 Exploiting new markets The demand for retail is driven by a number of factors including customer related aspects such as population size, population growth and existin... ... middle of paper ... ...he population of retailers in Zimbabwe, therefore results cannot be generalized the entirety of retailers in Zimbabwe. It was difficult to get access to company records so subjective measures of resilience based on customer satisfaction, employee morale and company performance were used. These cannot be generalized since they are not objective. Further studies may need to be done in other areas of the city and in other towns in the country. 4.5 CONCLUSION Businesses are operating in a complex and dynamic environments hence the need to adapt quickly to afford extinction. In Zimbabwe, the economic fundamentals weigh too heavy on retailers. Based on the study conducted on resilience of retailers, not only should they learn from past experiences and competitors and become flexible in decision making and implementation, they also should adopt measures to make profit.
Sears has created a “Financial Crisis” when hedge fund manager Edward Lampert took over control of the company. The mentality of investors of a CFO is an important viewpoint during crisis because it can help streamline process and reduce cost. Retail experience should be dominant the retail in order to feel the pulse of the consumer desires and to determine proper margin levels while eliminating inefficiencies in the organization. According to Marina Strauss of the Globe and Mail, “a sweeping change will be required to improve the retailer’s outlook”. She quoted the (CEO of Sears-Canada) Mr. McDonald saying in a memo that “Our store are too difficult to shop in. We have inconsistent execution…We do not offer the right product in the right market” (STRAUSS M., 2011).
The retail stores of JC Penney and Sears have face headlines of “Which is Worst: JCP or Sears?” The end maybe near for both companies (Andersen2014). The customers look at the employees like their idiots. The public believes that poor management is the reason for the down fall of these companies. Eddie Lambert and Ron Johnson are the CEO’s of being credited to running these companies with wrong management strategies (Andersen 2014). Ron Johnson who is now the former CEO was highly qualified with his retail instincts tried to run the store like a retail boutique. He never took the time to consult a survey on what the consumer’s thought were and after two years he jeopardized the company (Andersen 2014). Whereas the CEO Eddie Lambert of Sears
This part of the report will highlight the problems within the external environment that affect Marks and Spencer. Before planning and decision making can take place an organisation must be aware of these issues. The key factors that impact upon all organisations are Political, Economic, Social and Technological. These factors are commonly referred to as PEST factors. Political changes like change of government could affect the minimum wage that M&S workers are paid. Economic factors such as inflation could affect the pricing of garments. The Social factors that would need to be taken into account are lifestyle changes and demographics, M&S would need to consider where their target market stood. Technological advances could also affect M&S sales just recently their website has been updated from a corporate site to a new website offering online buying. Globalisation is a huge environmental factor affecting M&S. Globalisation is the increase in cross-border economic, social and technological exchange. For organisations it increases competition and the search for cost advantages.
Levy, Michael, Barton A. Weitz, and Dhruv Grewal. Retailing Management. ed. New York, NY: McGraw-Hill Education, 2014. Print.
According to the American Psychological Association website, there are 10 different ways to build resilience. Those 10 ways are Make connections, Avoid seeing crises as insurmountable problems, Accept that change is a part of living, Move toward your goals, Take decisive actions, Look for opportunities for self-discovery, Nurture a positive view of yourself, Keep things in perspective, Maintain a hopeful outlook, Take care of yourself, and Additional ways of strengthening resilience may be helpful (apa.org). In my perspective, three out of the 10 different ways to build resilience are more important: Make connections, avoid seeing crises as insurmountable problems, and accept that change is part of living.
Walmart is one the biggest companies in the world. In 2012, Walmart regained the No. 1 spot for fortune magazine’s list of 500 American companies’ ranked by revenue. This is no small feat with sales being over 400 billion dollars in 2012 alone. The United States in 2012 only accounted for 62% of the net profits of Walmart making a multinational enterprise. In the business world there are multiple types of performance measures that can be applied to Walmart showing how large this multinational enterprise truly is and the quality it provides. Walmart is able to maximize customer savings and its profit margins by controlling its supply chain by focusing on key aspects. Walmart’s operation’s strategy is the key to their success and must be understood before their performance can be measured as well as how their supply chain effects that performance.
Answer to Question 1. Measures of employee satisfaction are potentially more important than measures of financial performance and this could be explained by the links in the service-profit chain (or the employee-customer-profit chain which we have already discussed during the classes). The key point in the service-profit chain is that in case if employees of the company are satisfied with job and company at whole, then this will bring to employee loyalty, retention; that in turn will result in customer satisfaction. Customer satisfaction will bring to increase in sales since customer retention and recommendations. This fact will obviously influence positively on overall financial performance of the Sears. Moreover, the importance
What workers have to learn to be able to adapt to the constantly changing working environment is resilience. To be resilient means to know “how to design and implement positive adaptive behaviors quickly that are m...
Even the slowdown in current global economies could not bring retail sector down as retailers keep seeking for opportunities overseas to avoid challenging economic condition, which make this sector becoming more globalised and competitive. As an heir of an industrial components retailer, I also believe there are bountiful opportunities to grow in this emerging industry. But without deeply and truly understanding in every aspect of retailing, one could not survive in the battle. For this reason, I would like to pursue my education further by studying Master in retail management to obtain knowledge in retailing and hopefully become successful in the field.
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. It accounts for over 10 per cent of the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is the world’s fifth-largest global destination in the retail space.
The idea of change is the most constant factor in business today and organisational change therefore plays a crucial role in this highly dynamic environment. It is defined as a company that is going through a transformation and is in a progressive step towards improving their existing capabilities. Organisational change is important as managers need to continue to commit and deliver today but must also think of changes that lie ahead tomorrow. This is a difficult task because management systems are design, and people are rewarded for stability. These two main factors will be discussed with reasons as to why organisational change is necessary for survival, but on the other hand why it is difficult to accomplish.
Wal-Mart Stores, Inc. is a renowned retail goods superstore that sits atop the Fortune list at number one. It would be very difficult to find an individual who is unaware of Walmart’s position as the largest brick-and-mortar retail chain in the world. The company has thrived over the past few years and is continuing to grow by effectively managing its store operations and distribution strategies. One of the major contributors to the business consistently meeting market expectations is directly attributable to their management approach. Walmart has revolutionized the way retail companies manage their supply chains in more ways than one. But, perhaps the most revolutionary was the practice of unprecedented coordination with suppliers (Chekwa,
Staying ahead of the competition and increasing profits are the fundamental objectives for every organization. However, many firms today continue to invest extensively in business development activities and less on employee productivity. This mindset ignores the firm’s chief asset and its core foundation, its workforce.
...s in the corporate world by setting new standards to promote and better satisfy their employees. We chose four leading companies in four different industries. The above analysis definitely reveals that perhaps one of the reasons why these companies are the leaders in their industry is because they are well aware of the importance of the work force. They mention in their mission statements as well that yes in deed customers are important but in order to make the customer happy they first need to motivate and satisfy the employee as well. According to Citibank, the general belief is that a happy worker is a motivated and loyal one. So keeping employees' spirits high is a sure-fire way of maintaining a productive workforce. A productive work force would ultimately lead to a healthy organization which would not only promote the society its working for but also itself.
On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...