Be sure to download and read the HBS cases before you begin your analysis.
Work with one or two partners.
Problem. Management needs to know what controllable “people” factors are driving store sales and profits. If management or crew tenure, management or crew skill, or service quality is driving performance, programs to increase tenure, skill or quality will be created.
A number of uncontrollable factors probably influence store sales and profits, in addition to “people” influences. While these cannot be changed by management, at least in the short term, managers are aware that those influences cannot be ignored.
There has been some grumbling from managers of stores not located in residential neighborhoods, as well as from managers of stores not open 24 hours, since sales or profit potential may be more limited in those stores. Data are in Case 12 Store24.xlsx.
Your assignment. Identify the drivers of store sales and profits and quantify the influence of each.
Deliverables. Present your results in a memo to management.
Content.
Explain Variations in Store Performance
Identify the more powerful drivers among the controllable factors, so that resources can be directed to programs which could improve those driver levels.
Compare their expected influences on sales and profits
Quantify the potential performance limitations facing managers of stores located in residential neighborhoods or stores not open 24 hours. (Be sure to account for other differences which may work with store location or hours to drive performance differences.)
How much would increasing crew tenure by 1.38 months be worth?
How much would management tenure, management skill, crew skill, or service quality need to be increased by produce a comparable improvement in store