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...
... middle of paper ...
...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.
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
In order to find out what are some of the key drivers’ of the analysis I will further run different sensitivity analysis. I think some of the key drivers of our assumptions could be sales growth, production costs as a percentage of sales, inventories as a percentage of cost of goods sold etc.
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
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.
...he highest achievable grade and letter “F” representing the lowest grade achievable (Wohlstetter et. al, 2008). Much like the first two studies this study also lacks in the representation of various groups espondent pool. Because this study was conducted online and was only available in two languages it is difficult to determine if all ethnic groups affected had a voice. An additional recommendation for study 3 would be to have all surveys be similar in length and wording. While all three articles show differences in sample sizes, the population sampled, and hypotheses presented, the fact that customer satisfaction is of utmost importance to have a successful business can not be argued. Managerial style does have an effect on the employees. One would have to contend that happy employees yield happy customers and happy customers yield high business volumne.
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.
What competitive pressures must Oliver’s Market be prepared to deal with? What do we learn about the nature and strength of the competitive pressures Oliver’s faces from doing five-forces analysis of competition? Which of the five competitive forces is the strongest?
Schneider, B. 1991, "Service quality and profits: can you have your cake and eat it too?", Human Resource Planning, no.14, pp.151-157.
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),
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.
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.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must also take into consideration that the additional business units will not hinder the profitability of the existing business units.
(1) efforts to improve the quality of their services, and (2) efforts to market themselves more effectively. Both service quality and services marketing have received considerable attention from researchers over the years and the application of these concepts in the service settings is therefore not surprising (Parasuraman et al., 1985; Rust and Oliver 1994; Zeithaml et al., 1990). One evidence of the importance of service quality and service
OLLIER-MALATERRE, ARIANE; ROTHBARD, NANCY P.; BERG, JUSTIN M. Academy of Management Review (Oct2013), Vol. 38 Issue 4
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