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| |Due to my strong background in it, I have chosen to describe a hypothetical retail |…
When you hear the words low prices it is hard not to think of Wal-Mart. The company that revolutionized discount shopping. But what happens behind the scenes? How is it that the world’s largest retail chain can offer so many deals? In the last 20 years the anti-Walmart campaign seems to continuously be on the minds of many. Sebastian Mallaby and Karen Olsson share radically different views on the ethics of the Wal-Mart Corporation. In “Up Against Wal-Mart” we are forced to believe that Wal mart is a vicious company that shows no remorse when firing employees and cutting their benefits. The author produces factual information and eyewitness accounts pointing to these horrible deeds that the large corporation run by money hungry businessmen have cheated many employees out of proper wages, proper benefits and even their jobs. While Sebastian Mallaby depicts Wal-Mart like the average American company. In his article “Progressive Wal-Mart. Really.” He states that while Wal-Mart is responsible for many questionable deeds, they are merely doing what they have to in order to survive.…
The retail industry is rapidly changing due to technology advancements and consumer demand. Consumers have shifted to ecommerce spending rather than with brick and mortar stores. Nordstrom, a leader in the retail industry, is facing growth issues in retaining consumers under this transition. Despite this major shift in ecommerce spending, Nordstrom has been able to tap into the market by offering a seamless online shopping experience, similar to the experience customers receive in store. Bloomingdales and Macy’s, Nordstrom competitors, are also facing these issues but are less successful in adaptation. The overall trend will force expansion in their online presence, to mitigate the risk of market share loss. Amazon,…
From the case study and the e-Activity, determine two (2) key reasons why people value the customer service that Nordstrom provides. Examine Nordstrom’s current corporate social responsibility activities, and suggest one (1) additional action that the company could take to further strengthen its corporate social responsibility efforts.…
This is an important area of study because of how relevant shopping and customer-employee interactions are to our everyday lives as citizens and consumers. Additionally, the study is useful to scholars of sociology, as well as audiences interested in the sociological theory of how retail employees might act in given circumstances. The study found that when different perspectives came into conflict, the first priority of Macy’s employees was to maintain the company’s culture of professionalism, politeness and civility. I speculate that this is because the cost of a “performance breakdown” is particularly severe in culture, but less so with respect to politics or…
We're glad to have you with our Company. Our number one goal is to provide outstanding customer service. Set both your personal and professional goals high. We have great confidence in your ability to achieve them. Nordstrom Rules: Rule #1: Use best judgment in all situations. There will be no additional rules. Always think: How will it affect my customer? If I was the customer’s, how would I feel? Do what’s right for the customer – and you have done what’s right for the organization. This is what you find in the Employee handbook for the store.…
Nordstrom is a classic case of how complicated and counterproductive the business becomes if a system is not properly designed or implemented. Nordstrom’s intentions were very good when they launched their customized piece rate compensation technique called “Sales Per Hour (SPH)” for the first time in the retail industry. Their plan was to motivate all the sale employees to think and act outside the box and earn tremendous customer satisfaction thus augmenting the sales. Their intentions were good but they haven’t really anticipated the problems that they faced due to this idea, thus failed to create a system which was fool-proof and awarding for the employees. For example, the SPH system was set such that the employee with higher SPH gets compensation more than the one with lesser SPH. But it doesn’t account for the quality of work done in order to create that particular sale. What if a customer worked more hours to generate lesser dollar amount to satisfy the customer? Does that mean that the sales clerk deserves less money than someone who does a less intense work to create more SPH?…
The system created several unintended consequences, including employees feeling pressured to under report hours worked and in some cases to steal sales credit from their colleagues. Our primary recommendation is for Nordstrom to overhaul their employee compensation system to a model oriented around more intrinsic factors, by rewarding employees based on overall store profitability, department profitability, and customer feedback, in addition to removing the distinction between non-selling and selling hours. The intent would be for Nordstrom to enhance its reputation as an industry-leading customer service retailer, yet fostering a more collaborative employee culture. We also recommend supplementing the overhaul in the compensation system with an education reimbursement program that rewards high-performing employees and, at the same time, creates significant goodwill for the…
Nordstrom was a firm hailed as a model example of success and profitability in the merchandise retail industry with superb financial performance, excellent workforce morale, and fierce customer loyalty. However, a failure to adapt and revise Nordstrom’s business model, most notably its sophisticated system of compensation (Sales-per-hour incentive), culminated in a financial and public relations dilemma in the years of 1989 and 1990, where stock prices plummeted, legal litigations mounted, and negative publicity ensued. We will attempt to examine in this case the reasons why Nordstrom’s existing system of SPH compensation and current methodology of management lead to its crisis in 1989 and 1990, address its failing, and suggest some clauses that could be implemented to alleviate and overhaul Nordstrom’s compensatory system. It is our desire to return Nordstrom to its prestige and status, and revitalize Nordstrom’s role as the dominant retail firm in the industry.…
Former Nordstrom employees accuse them of using unfair labor and discriminatory practices to intimidate employees and force them to perform tasks like stocking and picking up merchandise during non-working hours . Nordstrom employees receive little formal training when hired or promoted to new positions, but they are expected to perform their duties consistent with the “Nordstrom Way” which is customer service above and beyond the call of duty. Training is informally provided through on-the-job communication, which increases the opportunity for miscommunication. This communication can be deliberate due to peer competition and pressures to succeed from managers, or lack of knowledge by co-workers and managers from whom they are encouraged to seek training.…
Tickton Flexible Products Ltd, a compounder of polyurethane and rubber materials, has recently acquired Samuel Jones Ltd, a manufacturer of sport shoes. The merging was not an easy case and it went rather bumpy. Elimination of employees and staff position changes were not easily welcomed by Jone’s employees. They were not happy with their position, they were not happy to have to report to lower-level managers, there was conflict among sales administration office and accounts office, and among the industrial sales engineers and the consumer sales representatives, and all these events caused cliques and internal divisions. In addition, Romano Pitesti, the Sales Representative from Samuel Jones Ltd, had caused such a disturbance and unrest to the Tickton employees with his individualistic behavior, that the Consumer Products Sales manager, David Courtney, was asked by the Marketing Director, Jack Simpson, to talk to him and solve this problem.…
However, as I read on, I started to ask what really makes a good system in the workplace. As stated in class, a valid system is one that provides avenues for success. There is no doubt that Nordstrom’s practices violated certain law at face-value, but were they really doing their employees a disservice? Looking at each complaint, if you take away the fact that employees were paid hourly, they were treated very similarly to salespeople on salary. Management may have laid out uncommon and ill-communicated requirements and guidelines, but the benefits for following learning and following their system were higher wages than the rest of the industry. That seemed to motivate a lot of people, especially at the end of the article describing the pro-Nordstrom rallies and the dissolution of the union.…
Sandra Parrett, the owner of a marketing research company, has been appointed by Jack Rumstad to help him identify the reasons involved in the west-side store’s struggles. There are four objectives in this study to help solve the management problem.…
Since nationalization the department store has weathered major changes, fluctuating between an iconic and deteriorated status. Throughout the 20th century, the sixty-some stores became centers for inexpensive goods with quality. The stores lost some of their…
For my research, I chose to compare Nordstrom and Walmart since they seem to be catering to different spectrums of class dynamic. I decide to do my research over the weekend where majority of individuals have days off work. I also did not want my choice of clothing to affect the outcome of my observation and interactions among those in the store. Therefore, I wore a dressy blouse with black pants to fit the model of their clientele in Norstrom and comfortable clothes such as; a red tee shirt and blue jeans when I visited Walmart. With this said, at first I was not sure about what product I wanted to focus on until I got to Nordstrom located at the Arden Fair Mall in Sacramento. It was approximately 4:40 when I arrived and as I walked into the store I notices to my left a beautifully structured and organized shoe section. That is when I decided to focus my research on shoes, but specifically high heels.…