Example Of Essay On Raleigh And Rosse Case Study

1. Describe RR’s strategy.
Raleigh and Rosse were formed as a retailer of luxury goods and existed in a market where uniqueness and peculiarity are prized. Therefore, the company main strategy is customer service. Extraordinary customer service is the core value of Raleigh and Rosse E. “In the company literature,” Kevin Raleigh described customer service as “a calling, a vocation to serve our clients at the highest level of devotion”. As a result, the company dedicated time and resources to train and develop their sales associates because most of the customer service occurred at the sales associate level. Some of the services offered by Raleigh and Rosse to improve customer service included driving to the associated store to retrieve goods out-of-stock for customers and home deliveries, and this permeates the company culture
2. Describe RR’s Organizational Architecture.
Raleigh and Rosse embrace a bottom-up decision-making organizational structure. The company acknowledges the essential role employees play in realizing a sustained competitive advantage, and employee voice and participation in organizational decisions is prioritized. The Company adopted an Ownership Culture Program that does not only seek to encourage cultural acceptance and tolerance, but also make employees feel part of the organization. For instance, much autonomy rests with store managers because their decisions matter when it comes to task scheduling and staffing. Moreover, they exercise considerable control over sales associates, and this demonstrates their importance in the company’s strategic success. In terms of performance and rewards, the company based its evaluations on sales per hour. For instance, Sales Per Hour (SPH) was introduced as a rewarding system where employees with sales exceeding their SPH received commissions. The performance evaluation was based on the sales made by an hour and failure to meet target warranted termination.
3. Why do you think the company has been successful?
Today, we live in a global business environment characterized by changing consumer attitudes, tastes, and preferences. Raleigh and Rosse have become very successful over time because of their customer oriented sales strategy. In this strategy, the company seeks to offer exceptional customer service not only to increase purchases, but also to ensure customers are comfortable and satisfied with both products and services offered by sales associates. In order to realize this objective, its segmentation strategy ensures the company offers a variety of products to meet customer needs in diverse markets. Moreover, the provision of exceptional services, such as driving to a nearby store to get out-of-stock products for their customers and offering home deliveries increase customer satisfaction with the services offered by Raleigh and Rosse company. Finally, efficient management also explains the company’s success. RR previously was managed by its family owners who provided a solid background to sustain the company in the marketplace.
4. Why does RR use SPH?
Under family management, the company used a complicated 11 criteria for assessing employee performance. However, increased sales due to efficient management practices prompted the owner of the company to base performance and pay for a new model he names SPH model.
5. Is RR’s Organizational Architecture good or bad?
RR has a poor and inefficient organizational structure because it failed to evaluate employee performance and reward systems effectively. It was easy for employees to compromise on quality service to customers by basing its performance and reward structures on sales, a factor that threatens the company’s customer-oriented strategy to sales. Even though focusing on sales does not correspond to the company’s strategy of exceptional customer service, I believe the time and resources dedicated to hiring and train sales associates, helps to overcome the desire to increase sales at the expense of customer service.