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Essay / Tanglewood Case Study - 755
Tanglewood has a strong position within the non-durable goods retail industry, which currently has annual sales of over $4 trillion. With an increasing rate of return of 13.1% and over 7 million in operating revenue, Tanglewood has great growth potential and is very competitive. Even while competing with the big online competition and global competition. Tanglewood has the opportunity to expand its store to the global market, which would be a major expansion and help Tanglewood leapfrog the competition. Tanglewood has remained rather small due to its low number of stores, but can become the global leader in the non-sustainable industry if global expansion becomes a reality. Competitive Response and Strategy While respecting Tanglewood's mission statement, the implementation of this IT system will create unity and streamline the way Tanglewood Regional Directors manage their region and retain the original ideals of Tanglewood in each region . There is also reason to be concerned about the balance between the number of potential customers in an area and the number of employees in the region. This ratio should remain consistent in Tangle wood. For example, if the region has a number of potential customers between 3,000,000 and 4,000,000, then the number of employees should vary between 4,500 and 4,900 employees. Consistency will help managers manage their regions in the same way. Additionally, it would not be the Tanglewood way to let mid-level managers go, especially if they contribute to the success of the organization. The implementation of flattening the hierarchy should therefore be slow, allowing middle managers to progress or adapt to the new system of things where there would be more department heads and no team leaders. All this in an effort to create a more centralized business due to the rapid growth of the sector.