A retail chain similar to Hollister this one is called Aero and it sells clothes and very high end accessories. The company started with one store in Toronto, Canada, and the chain has expanded to 50 outlets throughout the US and Canada in the past five years, with a huge online component that is responsible for the majority of sales. Online sales exceed in-store sales by 80%, the stores or more of an advertisement for the website, as most product is available on the website and not ‘in-store’. The company has moved rapidly from a small company to a large one with a board of directors and a multi-layered management structure. There are corporate offices where employees work on the ?business of the business (such as marketing and such) and there are specific retail locations as well as a warehouse for distribution of product and for the online business. The employees at the corporate offices tend to stay a long time, the employees at the retail outlets tend to be short-termers (this is not necessarily a problem). The company is generally profitable and successful and intends to stay in the market for a long time. They are focusing on expanding their online offerings and making the process of online shopping seamless, so that shoppers can go to a store and shop and order the correct size online or return online purchases in store. The company feels that the online business is a lucrative market and they will not really expand into actual stores much at all, mostly they are focused on their online business. Potential problems with this company involve the following:
All employees, both at corporate and at retail locations, complain that they are not evaluated fairly and that they are not promoted or compensated fairly. The retail locations work on a commission basis and employees are not always motivated by this they tend to become too competitive with each other, which has affected customer satisfaction. You should research the degree to which this has been a problem, how commissions, compensation and evaluations work and don’t work and employee attitudes about compensation and evaluation. You will get your data from human resources and store managers (make up your own data).
You will be handing your work in a packet including at least the following
1) Introduction 2) Methodology 3) Findings 4) Implication 5) Solution.
conducting : 1)Use cost-effective solution such as training for managers, employees. 2)employee evaluation 3) types of compensation, promotion 4) commission system 5)motivation
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