Vetements Ltee Mini Case
Name of Case: Vetements Ltee Date Due: November 6, 2012
Problem Statement
Who has to make recommendation/decision: Vetements Ltee Executives
Has to do what: Adjust the incentive systems for both store managers and sales employees.
Why: The sales employees began to engage in activities that had an adverse effect on inventory management, employee cooperation, and customer relations.
When: Immediately
To Whom do they make recommendation: To the store managers of Vetements Ltee retail stores.
Analysis
A. Issues and Symptoms (cause and effects)
OB issue: Expectancy Theory
Evidence: motivated to stay by door to get to customers first because of more commissions.
OB issue: Equity Theory
Evidence: Sales reps believe some reps are getting better locations to sell in or are “wasting time” doing inventory.
OB issue: Organizational Behavior Modification
Evidence: Employees are not working inventory management as much as they should (lack of punishment)
B. External Analysis
1) Brief industry analysis
Vêtements Ltée is a chain of men 's retail clothing stores located throughout the province of Quebec. Two years ago, the company introduced new incentive systems for both store managers and sales employees. However, the sales employees began to engage in activities that had an adverse effect on inventory management, employee cooperation, and customer relations. The store managers have tried, with limited success, to correct these problems.
2) STEP analysis: Social- employee morale in down- customer service is lacking | Technological- new inventory system (assist in ordering) | Economic- old system putting employees in financial strain. | Political (& Environmental) |
C: Internal Analysis
1) SWOT Analysis Strengths- has a automated inventory system | Weaknesses * Poor communication of staff * Hostility among staff * Loss of sales because of lack of inventory on shelf | Opportunities-
Problem Statement
Who has to make recommendation/decision: Vetements Ltee Executives
Has to do what: Adjust the incentive systems for both store managers and sales employees.
Why: The sales employees began to engage in activities that had an adverse effect on inventory management, employee cooperation, and customer relations.
When: Immediately
To Whom do they make recommendation: To the store managers of Vetements Ltee retail stores.
Analysis
A. Issues and Symptoms (cause and effects)
OB issue: Expectancy Theory
Evidence: motivated to stay by door to get to customers first because of more commissions.
OB issue: Equity Theory
Evidence: Sales reps believe some reps are getting better locations to sell in or are “wasting time” doing inventory.
OB issue: Organizational Behavior Modification
Evidence: Employees are not working inventory management as much as they should (lack of punishment)
B. External Analysis
1) Brief industry analysis
Vêtements Ltée is a chain of men 's retail clothing stores located throughout the province of Quebec. Two years ago, the company introduced new incentive systems for both store managers and sales employees. However, the sales employees began to engage in activities that had an adverse effect on inventory management, employee cooperation, and customer relations. The store managers have tried, with limited success, to correct these problems.
2) STEP analysis: Social- employee morale in down- customer service is lacking | Technological- new inventory system (assist in ordering) | Economic- old system putting employees in financial strain. | Political (& Environmental) |
C: Internal Analysis
1) SWOT Analysis Strengths- has a automated inventory system | Weaknesses * Poor communication of staff * Hostility among staff * Loss of sales because of lack of inventory on shelf | Opportunities-