Men's Wearhouse Case
Diagnosis: I feel that the single biggest problem at the time of this case for Men’s Wearhouse is their over expansion. This problem is affecting their company performance by reducing the amount of “touching” that employees receive. The long-term impact of this reduction will most likely lead to decreased sales because of the generic employee training that large corporations give their employees.
Analysis: Most of their success is contributed to their employees and they pride themselves on the amount of care they take when training their employees as well. With the increased size of the business it becomes increasingly difficult when training new employees. Previously upper management had close relationships with regional and district managers, who in turn had close relationships with store managers. These close relationships would lead to strong employee training but with the increased expansion they lost the close connections between managers, leading to a less personal training.
Recommendations: Going forward I recommend that Men’s Wearhouse reduce the amount of locations across the United States, or to hold the number at what it is currently at. The only real way to implement this solution is to have a large layoff and shutdown of locations, or to discontinue building new stores. A date would need to be set if the layoffs were the choice and at that point they would need to determine the correct number of locations.
Outcomes: If Men’s Wearhouse can act on my recommendations I expect that they will remain profitable in the long run. They will have more personal relationships throughout the entire organization, which will lead to better trained and more motivated employees. They will have a much more tight knit culture and they will see the low employee turnover rates they were seeing during the 1990’s.
Retrospective: Men’s Wearhouse has since fired it’s founder George Zimmerman because he was having trouble coping with the fact that he was no
Analysis: Most of their success is contributed to their employees and they pride themselves on the amount of care they take when training their employees as well. With the increased size of the business it becomes increasingly difficult when training new employees. Previously upper management had close relationships with regional and district managers, who in turn had close relationships with store managers. These close relationships would lead to strong employee training but with the increased expansion they lost the close connections between managers, leading to a less personal training.
Recommendations: Going forward I recommend that Men’s Wearhouse reduce the amount of locations across the United States, or to hold the number at what it is currently at. The only real way to implement this solution is to have a large layoff and shutdown of locations, or to discontinue building new stores. A date would need to be set if the layoffs were the choice and at that point they would need to determine the correct number of locations.
Outcomes: If Men’s Wearhouse can act on my recommendations I expect that they will remain profitable in the long run. They will have more personal relationships throughout the entire organization, which will lead to better trained and more motivated employees. They will have a much more tight knit culture and they will see the low employee turnover rates they were seeing during the 1990’s.
Retrospective: Men’s Wearhouse has since fired it’s founder George Zimmerman because he was having trouble coping with the fact that he was no