Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Grace Myer is the founder and CEO of Myer Sisters Apparel, a retailer of high-end women's business apparel. Earlier this year Grace opened her

image text in transcribedimage text in transcribed

Grace Myer is the founder and CEO of Myer Sisters Apparel, a retailer of high-end women's business apparel. Earlier this year Grace opened her fifth retail store in Sydney's Eastern Suburbs. While Grace has been pleased with the new store's progress, she is concerned about the growing number of customer complaints and the low sales per square metre compared to some of her better-known competitors, such as Davie Laurie and HighChair Nine. When Grace had only one store that she individually owned and operated, she was able to control most of the details of the business. While she worked with a few employees, she always knew what they were doing. As the number of stores and the size of the stores increased, the number of employees also grew. When Grace was running the one store, she rarely heard a customer complaint, and her sales per square metre were $10,000, compared to $8,000 today. This concerns Grace greatly as her expansion plans for Myer Sisters had to slow down because the stores were not producing the returns that she expected. The store managers are also complaining to Grace because of the high training costs of bringing on new employees. The turnover rate seemed to be very high and Grace could not understand why. She is paying sales staff an average fixed salary of $70,000 per annum and store managers an average fixed salary of $130,000 per annum, which is one of the highest salaries in the industry 7 yet they are leaving to work elsewhere. The customers are also complaining about the lack of helpfulness of the sales staff. Even after extensive employee retraining, Grace is still hearing many complaints.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Human Resource Management

Authors: John Bernardin

6th Edition

978-0078029165, 0078029163

More Books

Students also viewed these Accounting questions

Question

1. Show that 00 n 2: k X X --- I-x k=n for Ixl Answered: 1 week ago

Answered: 1 week ago