Case Study Answeres
Q1: What are the strengths and weaknesses of the Sharelt program?
a. Did it address the issue of WrapItUp was experiencing?
Yes, it address the issue of WrapItUp was experiencing. The store manager compensation more competitive in which store management compensation would be directly correlated to restaurant profits. The store managers would receive 35% of the store’s incremental profits. The associate managers would receive 15% of profits and the remaining 50% would be paid to WrapItUp cooperate. During the sixth-month trial, both stores increased their profits consistently and with that improvement means that all the managers’ total compensation went up ...view middle of the document...
The result can be seen when the profitability increased as well as their paychecks.
Q2: Why do you think Reyes made the personal visit to the store managers to discuss the program?
Reyes made the personal visit to the store manager to discuss the program is because she want to know close about the background of two store managers that allocated in Santa Monica and Costa Mesa restaurant. She want to reviewed the plan, answered questions, explained why they were selected and offered the teams the opportunity to opt out of the pilot. Reyes also use this approach to know the problem arise from their both restaurant branches and from that, she will give an idea on how to solve it and let the managers to handle it.
Q3: Do you think the behavior of the two co-CEO contributed to WrapItUp’s problem? If so, how?
Yes, I thik the two co-CEO contributed to WrapItUp’s problem because before Martha Reyes take the HR position in their company, the company having relatively high in employee turnover, customer satisfaction was suffering and the revenue growth was flat. Due to the high in employee turnover, the main problem is because of the low compensation given to the employee. After the expansion of their business, the co-CEO struggle to disengage from daily operations and decision making. To maintain a consistent brand image, the also had prohibited individual restaurants from engaging in their own marketing strategies. In particular, all social media were centralized. This situation makes the employee demotivated because they are not involves in the company decision making. Both co-CEO also set up the compensation of their employee consisted of a weekly salary plus a volume adjustment base on the average weekly sales of the restaurant. In...