Raleigh & Rosse Case Study
Raleigh & Rosse Case Study
HUMAN RESOURCES MANAGEMENT
FALL 2011
1ST SEMESTER, 2ND HALF
Performance Appraisal and Management “Raleigh & Rosse: Measures to Motivate Exceptional Service”
GROUP 2 TD: Ana Vasques #884 Catarina Araújo #974 Isabel Simões #868 Marcelo Fontes #959
Human Resources Management Raleigh and Rosse (R&R) was founded by Michael Raleigh and Conor Rosse in 1911 as a saddler and equestrian shop. Throughout the years, it became a privately held specialty retailer of luxury goods. Considering that luxury retailers unusually discounted prices and could also access the same luxury goods brands, R&R used the costumer’s experience and his relationship with the company as a competitive differentiator. Since the main goal of the company was to satisfy its consumers providing better services, we can identify the R&R pivotal strategic positions, i.e. those which have the potential to lead to high incremental results for the strategy and value of the company1, as the sales associates, that are the employees who worked on the sales floor, who therefore have more contact with costumers. In order to gain competitive advantage and achieve its goals, R&R store managers were in charge of hiring, training, and continually motivating these sales employees. Since the key factor of advantage was costumer relationship, R&R afforded to offer to their sales association a salary substantially higher than the one offered by their competitors. The salary could also increase due to an employee performance improvement. The sales associates’ performance was measured by weekly sales, and the performance of store managers was based on eleven measures including weekly store revenues and customer satisfaction. So, we can conclude that the company adapted different metrics to different employees. During this period we can also refer that the career prospects for the ordinary employees were not very optimist, since we face a family company in which the
HUMAN RESOURCES MANAGEMENT
FALL 2011
1ST SEMESTER, 2ND HALF
Performance Appraisal and Management “Raleigh & Rosse: Measures to Motivate Exceptional Service”
GROUP 2 TD: Ana Vasques #884 Catarina Araújo #974 Isabel Simões #868 Marcelo Fontes #959
Human Resources Management Raleigh and Rosse (R&R) was founded by Michael Raleigh and Conor Rosse in 1911 as a saddler and equestrian shop. Throughout the years, it became a privately held specialty retailer of luxury goods. Considering that luxury retailers unusually discounted prices and could also access the same luxury goods brands, R&R used the costumer’s experience and his relationship with the company as a competitive differentiator. Since the main goal of the company was to satisfy its consumers providing better services, we can identify the R&R pivotal strategic positions, i.e. those which have the potential to lead to high incremental results for the strategy and value of the company1, as the sales associates, that are the employees who worked on the sales floor, who therefore have more contact with costumers. In order to gain competitive advantage and achieve its goals, R&R store managers were in charge of hiring, training, and continually motivating these sales employees. Since the key factor of advantage was costumer relationship, R&R afforded to offer to their sales association a salary substantially higher than the one offered by their competitors. The salary could also increase due to an employee performance improvement. The sales associates’ performance was measured by weekly sales, and the performance of store managers was based on eleven measures including weekly store revenues and customer satisfaction. So, we can conclude that the company adapted different metrics to different employees. During this period we can also refer that the career prospects for the ordinary employees were not very optimist, since we face a family company in which the
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