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Nordstrom-Strategic Management
- 1. Dissension in the Ranks? Mariana P.Monteiro | Joana R.Santos | João Ildefonso
- 4. Competitive Advantage- Nordstrom vs. Competitors Nordstrom Inc. Stock price ( 1988-2000) vs. Macy’s Inc. Stock price ( 1992-1999) Norstrom Inc. 1990 stock price $5,2175 Norstrom Inc. 1992 stock price $10,375 Macy’s Inc. 1992 stock price $6,6875 Source: http://www.google.com/finance Norstrom Inc. 1990 stock price $10,438 Background Comission system Competitive Advantage Comp. pratices Pros & Cons Legal Implications
- 5. Competitive Advantage-Current situation Source: http://retailsails.com/monthly-sales-summary Nordstrom’s annual sales Macy’s annual sales Background Comission system Competitive Advantage Comp. pratices Pros & Cons Legal Implications
- 9. Sales Force Management - Pros & Cons Background Comission system Competitive Advantage Comp. pratices Pros & Cons Legal Implications
- 10. Sales Force Management - Pros & Cons Freedom to make decisions ( decision-making responsibility) Objectiveness of the sales clerks’ contribution for the company “ Customer service All-stars” Opportunities for rapid advancement Pros Background Comission system Competitive Advantage Comp. pratices Pros & Cons Legal Implications
- 11. Extra selling hours affect SPH negatively Equal emphasis to service, profitability and mini-managerial autonomy “ Sharking”: stealing credit for sales made by other staff Working off the clock. Violating state and federal fair labor standard laws. Sales Force Management - Pros & Cons Cons Preverse incentive Disloyal competition “ sharking” Contraditory pressure “ Selling/Non-selling” work time Background Comission system Competitive Advantage Comp. pratices Pros & Cons Legal Implications
- 13. Dissension in the Ranks? Mariana P.Monteiro | Joana R.Santos | João Ildefonso THANK YOU!
Editor's Notes
- Outstanding salespeople: the envy of the industry in terms of their quality and productivity Superior customer service - “Nordies”; Extraordinary services drive to another stores for desired items;home-deliver purchases;call for arriving merchandise;assemble complete outfits;thank you notes Decentralized system; Managers basically ran the shop and were responsible for goals achievements/failures; Employee motivation system; High salary; Promotion possibilities (promoting only from within); Extremely strong customer loyalty; Availability of product Excellence of the service provided
- Outstanding salespeople: the envy of the industry in terms of their quality and productivity Superior customer service - “Nordies”; Extraordinary services drive to another stores for desired items;home-deliver purchases;call for arriving merchandise;assemble complete outfits;thank you notes Decentralized system; Managers basically ran the shop and were responsible for goals achievements/failures; Employee motivation system; High salary; Promotion possibilities (promoting only from within); Extremely strong customer loyalty; Availability of product Excellence of the service provided
- Outstanding salespeople: the envy of the industry in terms of their quality and productivity Superior customer service - “Nordies”; Extraordinary services drive to another stores for desired items;home-deliver purchases;call for arriving merchandise;assemble complete outfits;thank you notes Decentralized system; Managers basically ran the shop and were responsible for goals achievements/failures; Employee motivation system; High salary; Promotion possibilities (promoting only from within); Extremely strong customer loyalty; Availability of product Excellence of the service provided
- Better working hours: when the store is more crowded
- Better working hours: when the store is more crowded
- Contradictory pressure: Por um lado ha incentivo a vender muito mas por outro querem que tenhas um serviço muito personalizado ( ir levara acasa) e atencioso Disloyal competition: Even though team work is encouraged, there is peer pressure that sometimes result in undisired behaviour such as sharking: stealing credit for sales made by other staff ( exemplo da xavala) Preverse incentive to violate state and federal fair labor standard laws. Working off the clock Pros Group recognition: All stars Decentralization: freedom to make their own decision; “ your own business” Promotion policy : only within the company
- Contradictory pressure: Por um lado ha incentivo a vender muito mas por outro querem que tenhas um serviço muito personalizado ( ir levara acasa) e atencioso Disloyal competition: Even though team work is encouraged, there is peer pressure that sometimes result in undisired behaviour such as sharking: stealing credit for sales made by other staff ( exemplo da xavala) Preverse incentive to violate state and federal fair labor standard laws. Working off the clock Pros Group recognition: All stars Decentralization: freedom to make their own decision; “ your own business” Promotion policy : only within the company
- For instance, if a person has a substandard SPH, they can get a bad shift, are scheduled for less hours, or even be terminated. So in order to maintain the tradition and their competitive advantage of superior customer service, sales people would have to write thank you notes, deliver purchases, and even help change a flat tire on their own time. If they booked those hours, their SPH would go down because they weren’t actively selling anything and would most likely be penalized for it in the end. But there really wasn’t a clear definition as to what was “selling time” and “non-sell” time. The employees struggled with this because they weren’t exactly sure how the types of activities they did would impact their SPH. Nordstrom intended the SPH to be an incentive and a way to reward top sellers through commission, but they were really using it as a tool to force employees to work off the clock as to not impact their SPH and would punish them if they booked all the hours they worked.