store 24

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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.

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