Arise: a Destination-for-a-Day Spa
ARISE: A Destination-for-a-Day Spa
OVERVIEW
The ARISE: A Destination-for-a-Day Spa case describes how a spa going through the business development stage is struggling with employee turnover as well as has been operating at a loss for the past two years. ARISE, the spa in question, was built on the business strategy of differentiation which emphasizes employee-customer relationships. Within these relationships, ARISE employees act as Personal Wellness Coaches (PWC) helping clients create “integrated health and happiness plans”. The key stakeholders in the case are the President and CEO: Kristen Chambers; Vice President of Business Operations: Sam Solti; Vice President of Spa Operations: Twyla Thompson; and Director of Spa Services: Danielle Dunn; who all offer differing opinions and proposed solutions for this dilemma. Included in these stakeholders are also the ARISE employees and their client base. CRITICAL ISSUES
The first critical issue ARISE is dealing with is that it has been operating at a loss for the past two years (since the time it was established). ARISE has a limited amount of funds put aside anticipating the breakeven point and cannot afford to pay out year after year in order to keep itself afloat. The risk of going under is apparent if this issue is not resolved in a timely manner.
ARISE’s second critical issue, which can assist the first issue of bringing up the bottom line, is that there an excessive amount of employee turnover. Chambers has allowed a three month period in which Thompson must figure out a solution to the employee turnover issue. This problem is especially important because it concerns ARISE’s overall business strategy. ARISE’s business strategy of differentiation through customer service requires having a strong and consistent workforce. Without the support of its employees, ARISE will crumble.
There are also costs to cycling through a workforce. The hiring process and training of new staff are costly business
OVERVIEW
The ARISE: A Destination-for-a-Day Spa case describes how a spa going through the business development stage is struggling with employee turnover as well as has been operating at a loss for the past two years. ARISE, the spa in question, was built on the business strategy of differentiation which emphasizes employee-customer relationships. Within these relationships, ARISE employees act as Personal Wellness Coaches (PWC) helping clients create “integrated health and happiness plans”. The key stakeholders in the case are the President and CEO: Kristen Chambers; Vice President of Business Operations: Sam Solti; Vice President of Spa Operations: Twyla Thompson; and Director of Spa Services: Danielle Dunn; who all offer differing opinions and proposed solutions for this dilemma. Included in these stakeholders are also the ARISE employees and their client base. CRITICAL ISSUES
The first critical issue ARISE is dealing with is that it has been operating at a loss for the past two years (since the time it was established). ARISE has a limited amount of funds put aside anticipating the breakeven point and cannot afford to pay out year after year in order to keep itself afloat. The risk of going under is apparent if this issue is not resolved in a timely manner.
ARISE’s second critical issue, which can assist the first issue of bringing up the bottom line, is that there an excessive amount of employee turnover. Chambers has allowed a three month period in which Thompson must figure out a solution to the employee turnover issue. This problem is especially important because it concerns ARISE’s overall business strategy. ARISE’s business strategy of differentiation through customer service requires having a strong and consistent workforce. Without the support of its employees, ARISE will crumble.
There are also costs to cycling through a workforce. The hiring process and training of new staff are costly business
References: Betty Cohen. Aging & Work. Boston College. (April 30, 2013), Schedule Flexibility in the Workplace. George Milkovich, Jerry Newman, & Barry Gerhart. (2014), Compensation eleventh edition The McGraw-Hill Companies, Inc. Jane Reynolds. (2013), MGMT 411 slides.