Case study(Tanglewood department stores) - Essay Example

5 Work Cited Page…………………………………………………………… 6 Company Profile Tanglewood was founded in 1975 by Tanner Emerson and Thurston Wood. The company operates in the retail industry specializing in clothing, appliances, home decor, and electronics. The stores have an outdoor theme that differentiates Tanglewood from the competition. The company’s mission statement is to be the best department store for consumers seeking quality, durability, and value for all aspects of their active lives.

The firm has operating revenues of $7.2 billion while employing nearly 53,000 employees across 243 stores. The company’s target customer is middle to high income customers. Issues and problems Tanglewood was developed by its founders as a family type store where people could come in and find all their shopping needs. The concept helped attract a lot of customers. The store prides itself in offering the best customer service possible. Another part of the working environment that the owners have always been proud of is having a high level of employee involvement.

This attribute was a good idea at first, but as the company has grown it has let to administrative problems. It is important in large organizations for the employees to understand the managerial hierarchy. Stores need manages to be accountable to the operating and strategic decisions that occur at the enterprise. During the 1990’s Tanglewood experienced a lot of growth in terms of total store capacity. The firm grew from a 10 store operation to the current 243 stores it operates today. The problem with the growth the firm achieved was that the company did not build its own stores.

It was easier for the firm to acquire other existing stores. The strategy that the firm implemented had lots of short term advantages, but it also led to long term consequences. The firm did not have a unified identity due to the fact that there was a blend of many different corporate cultures. The executive managerial staff of the firm did a poor job developing a single corporate culture for the employees to follow. An organizational culture is a system of shared actions, values, and beliefs that develops within an organization that guides the behavior of its members (Schermerhorn & Hunt & Osborn, p.262). A problem the company faced as it grew was that the owners of the firm took an active managerial role without taking on the responsibility of the day to day operations.

The owners emphasized more on the strategic side of management. Another inherent problem the company faced was the westward expansion of major competitors such as Target and Kohl’s. The firm had been able to avoid excessive direct competition in the past, but now based on the new market structure the firm has to compete with the major players in the retail industry. The company needs a new administrative strategy to better manage its human resources. Alternative Solutions The employees of a company are its most value asset.

Due to the importance of human capital Tanglewood needs immediate help dealing with the staff. An alternative solution is for the company to bring a temporary project manager to oversee the operation. The project manager would