Men's warehouse case analysis
Men’s Wearhouse
Diagnosis:
The Men’s Wearhouse developed rapidly and expanded its business every year since it was established. Once it went to public, the number of stores of Men’s Wearhouse has been increasing gradually through 1991 to 1996. The company’s strategies focus on servant leadership, store operation, training and also put employee at first, which helped the company to be success in such a difficult industry environment and kept the company from consolidation and loss. However, according to the case material, the company spent large amounts of money on training programs, and there was no precise training budget or assessment process. This significant uncertainty and leak may trigger extra expenses which may unnecessary for the company and can be avoided. The company needs to improve its cost control that may affect whether the company could be a success in the fast-changing business market.
Analysis:
According to the financial information, the Men’s Wearhouse’s sales per square foot increased slowly from 1991 to 1996, and even decreased in 1996 compared to 1995. By Porter’s five forces analysis, the threat of new entry and bargaining power of buyers are pretty high and the rivalry among existing firms was intense too. It is very necessary for the company to control its cost and use every dollar more efficiently. Lacking more precise budget and control over training programs may cause too much extra cost. The assessment of every training program is also important. It ensures and measures whether the training achieves the desire effects or not and provides information to managers to make better decisions about training.
Recommendations:
The company needs to create a training budget for the following year at the end of each year according to the forecast of future needs and the feedback of the past year. In order to make the budget more precise, not only do the headquarter controls the overall budget, but also each regional or district manager
Diagnosis:
The Men’s Wearhouse developed rapidly and expanded its business every year since it was established. Once it went to public, the number of stores of Men’s Wearhouse has been increasing gradually through 1991 to 1996. The company’s strategies focus on servant leadership, store operation, training and also put employee at first, which helped the company to be success in such a difficult industry environment and kept the company from consolidation and loss. However, according to the case material, the company spent large amounts of money on training programs, and there was no precise training budget or assessment process. This significant uncertainty and leak may trigger extra expenses which may unnecessary for the company and can be avoided. The company needs to improve its cost control that may affect whether the company could be a success in the fast-changing business market.
Analysis:
According to the financial information, the Men’s Wearhouse’s sales per square foot increased slowly from 1991 to 1996, and even decreased in 1996 compared to 1995. By Porter’s five forces analysis, the threat of new entry and bargaining power of buyers are pretty high and the rivalry among existing firms was intense too. It is very necessary for the company to control its cost and use every dollar more efficiently. Lacking more precise budget and control over training programs may cause too much extra cost. The assessment of every training program is also important. It ensures and measures whether the training achieves the desire effects or not and provides information to managers to make better decisions about training.
Recommendations:
The company needs to create a training budget for the following year at the end of each year according to the forecast of future needs and the feedback of the past year. In order to make the budget more precise, not only do the headquarter controls the overall budget, but also each regional or district manager