R&R Case

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A Case analysis on Raleigh & Roose case with a good friend Jewel Kristian Taino of De La Salle University taking MBA. Background and facts: Raleigh and Rosse (R&R) is a luxury goods brand that started in New York since 1903. R&R have a total of 38 retailers internationally as of 2007. R&R is also known for its good customer service and customer relations; this is mainly due to its corporate “ownership culture” which started in R&R in 1992-1994. In relation, R&R employees are well of compared to the industry standards. However, economic downturn has hit R&R hard compared to other brands by 2008. One major cause is the lawsuits lost by R&R to past employees and also the investigations and settlement done by state labor department due to its practices. Also in 2007, Linda Watkins was hired as CEO and as one of the first officer in R&R that is not family related. R&R currently have a lawsuit due to its performance management system, the Sales per Hour (SPH). Case Problem: What can Watkins do to the current performance management system as part of the corporate culture, in order to prevent another lawsuit and recover from the current economic downturn? Facts & Considerations: • R&R Ownership Culture The Ownership Culture is the core culture and success of R&R to its famed customer service where the employees especially the sales person are given accountability to its customers. • The Sales per Hour (SPH) Program The SPH is the main driving force of the Ownership Culture where incentive programs are part of its reward system. Alternative Courses of Actions: Alternative 1: Status Quo or Continue with the Current HRM Process Watkins will continue with its current process, culture and performance management system. Pros: R&R will maintain its harmonious operations and will recover once the recession is
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