OPERATION S RESEARCH EVENT MERCHANDISING BUYING AND ...

BUYING AND MERCHANDISING

OPERATION S RESEARCH EVENT

AMERICAN SIGNATURE FT URNITURE

Gahanna Lincoln DECA Gahanna Lincoln High School

140 South Hamilton Road Gahanna, Ohio 43230 Carissa Strauss Leah Poister

April 25,2010

l.

I TABLE OF CONTENTS

I. EXECUTIVE SUM1VIARY

1

II. INTRODUCTION

2

A. Description of the Business

2

B. Description of the Community

3

C. Description of Objectives for the Current Employee- Training Program

6

III. RESEARCH METHODS USED IN THE STUDY

7

A. Rationale and Description of Research Methodologies Selected to

7

Conduct the Research Study

B. Process of Conducting the Selected Research Method(s)

9

1V. FINDINGS AND CONCLUSIONS OF THE STUDY

10

A. Description of the Existing Employee-Training Program

10

B. Description of the Structure of the Current Employees

12

C. Effectiveness of the Current Employee-Training Program

12

D. Conclusions Based on the Findings

14

V. PROPOSED STRATEGIC PLAN

i8

A. Goals/Objectives and Rationale

i8

B. Proposed Activities and Timelines

19

C. Proposed Budget

26

VI. BIBLIOGRAPHY

27

VII. APPENDIX

28

I I. EXECUTIVE SUMMARY

Client: American Signature Furniture fTiitvshAeeommwDenaurnbihcaloiagnmne-mGeSrefiagunnnrtnvapiitlsuolhreseiintRiFgoounacrsdon.lliloteuccrateitoiionsnsa. iTpnrhCievoaclthueamlyinbouwwsa,nsOeidhnirtoreotcaduiulrcrceehndatilbnyytephmaaprteldoneytssiSg4cn3hso,futmtlelantnismutefeiancatsSustrooecrsei,astaeinnsd2asn0ed0ll2s.

Problem: American management team. productivity.

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for

its

Hypothesis: A well designed cross training plan will benefit the company and its management staff.

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Findings and Conclusions of the Study ? General Manager believes each manager would benefit from understanding the business as a whole ? Assistant managers would like to be more knowledgeable of various management duties ? Assistant managers have minimal management background ? Current initial training process is very short and consists mostly of on-the-job training ? Assistant managers enjoy work environment, but believe it could be improved ? Need for improvement of skills to advance within the company

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Cross Trammg Managers

Benefits

Increased profitability, productivity, internal advancement opportunity! Reduce costs, turnover/ Better customer service

Reconunendations

After conducting our own research developed a cross training plan for research and proposals will benefit

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Objectives

?Improve ability for business to run efficiently ?Enhance skills, knowledge, and abilities of management team ?Reduce management turnover rate

1 ?Enhance opportunity for advancement

Activities

1

Budget

?Monthly rotation process led by two training coordinators ?Utiuize current manuals, online tools, and videos

?Supervised on-the-job training

?Total cost for 3 month duration: $21,120 ?$22 an hour per training consultant (8 hour day 5 days a week)

?Matrices of tasks for positions

?Our recommendations and

`3 month timeline

budget have been validated by

?Evaluated on each task mction the General Manager of

based on timeline

American Signature Furniture.

-- J_ --

1

I I ii. INTRODUCTION

A. DESCRIPTION OF THE BUSINESS

American Signature Furniture is a privately owned retail chain that designs and manufactures

high quality home furnishings. American Signature's target market includes adults ages 25-55 with

average to above average incomes who have home furnishing needs.

At American Signature, unique styles and affordable prices combine to create what has become one of the most respected names in the furniture industry.

The American Signature Furniture concept was introduced by

Products/Services

?i eq bedrc

?1

?

parent Schottenstein Stores in 2002, in an effort to expand the

company's higher-end offerings. The company operates 20-plus stores

featuring home furnishing collections, such as Casa Moda and the

newer Euro Manor line. In addition to selling, American Signature

designs and manufactures its own pieces and operates its own

warehouses and distribution centers. The company also operates

sister chains Value City Furniture and Rooms Today.

Under the American Signature title, 125 retail stores are in

? .J

operation in 19 states, with a total of 6,00o associates who work in

.1

?

stores, factories, distribution centers, and the corporate office. Major

competitors in the home furnishing market include Ashley Furniture,

Thomasville, Kittles, and Ethan Allen.

This project is being conducted for the American Signature Furniture branch located on

Dublin-Granville Road in Columbus, Ohio. This site employs 43 full time associates, with five

management positions, including a General Manager, Operations, Merchandising, Warehouse I

(recently resigned), and Customer Support.

2

The General Manager of this store believes his managers are well trained in their designated areas, but when needed in other departments, they are unable to manage due to a lack of training and education in the various areas of the store. He provided our research team with the following research problem.

Research

problem:

American

Signature

currently

lacks

an

effective

------..-...---.

training program

fOr

thern

managers and it is negatively affecting customer service. We were asked to develop a cross

training program for the management team of American Signature Furniture.

B. DESCRIPTION OF THE COMMUNITY

Economic:

Having one of the most diversified economies in the nation, Columbus's greatest strength is its multifaceted corporate world. Although the recession has greatly impacted many cities, Columbus has been able to weather the economic crisis because of its diverse market that includes: state government agencies, several universities, banks, insurance agencies, and data processing firms as some of its largest employers. The city is also home to national companies, such as Nationwide Insurance, American Electric Power, and The Limited Brands. Because of the positive economic climate, Columbus is the second fastest growing metropolis in the Midwest.

Geographic:

As previously mentioned, Columbus is a very business-oriented community. American

Signature resides in Dublin, right inside the outer belt of Columbus. Located near the Sawmill exit off

of Interstate 270, the area is surrounded by

Dub Village

corporate buildings and shopping centers. This

Slopping Center

Norlhwest Square

.

.

.

location provides easy access to customers from

-

at

Hilhard, Powell, and other upscale Columbus area ..-.

communities.

-

.

DubiSavmd

.

Shopping Center

American Signature is located in a Dublin Granville Road/Interstate i6i shoppmg center

@2010 Google

H.

Map data @2010 Google

Our American Signature Furniture location.

3

with other prosperous businesses, such as ,`

Staples, HH Gregg, Whole Foods, and

one of its major competitors, Ashley

Furniture. The growing area, higher-income

residents, and substantial number of profitable businesse; provide the

American Signature furniture store with a great geographic location.

Demographic:

The Columbus area in which our target demographic communities are located.

Demographic information for this study was acquired from the U.S. Census Bureau. The

communities of Columbus, Dublin, Hilliard, Upper Arlington, Westerville, and Powell, surround the

Dublin-Granville Road American Signature Furniture location. Currently living in the Columbus area

are 1.3 million households, and the population continues to grow.

Columbus area citizens living and shopping near the American Signature Furniture location enjoy living a comfortable lifestyle with a higher income than the national average. The average Columbus family brings in approximately $73,704; however, the average family in neighboring Dublin, brings in an average of $104,000 each year. This compares to the national average of $50,046. These higher incomes provide more disposable income for upscale families to spend on luxuries, such as American Signature Furniture. With the significant number of households in the area, and constant growth of the area, American Signature has the demographic resources to prosper.

Socioeconomic: The Claritas Market Segment database was used to find socioeconomic information for this

study. We were able to identify different segments of customers in our target area. While investigating, we determined that there are five different types of customers residing in the area.

Home Sweet Home- Residents of Home Sweet Home tend to be upper-middle class, married couples living in mid-sized homes with few children. The adults in the segment, mostly under 55, have graduated college and hold professional, white-collar jobs. With their upper-middle-class incomes and

4

small families, these residents have fashioned comfortable lifestyles, filling their homes with high quality furniture, toys, electronics, and pets.

Movers And Shakers- Residents of Movers and Shakers are America's up-and-coming business class: a wealthy suburban world of dual-income couples who are highly educated and typically between the ages of 35 and 54. Given its high percentage of executives and white-collar professionals, there is a business quality to this segment: members of Movers & Shakers rank number one for owning a small business and having a home office.

Suburban Sprawl- Residents of Suburban Sprawl live a unique American lifestyle: a collection of midscale, older singles and couples living in the heart of suburbia. Typically, these members of the Baby Boom generation graduated from college, hold decent jobs, own older homes and condos, and pursue conservative versions of the American Dream. Some of their favorite activities include jogging on treadmills, playing trivia games, and renting videos.

Young Influentials- Young Influentials were once known as the nation's "yuppies." Today, the segment is a common descriptor for younger, middle-class singles and couples who are preoccupied with balancing work and leisure pursuits. Having recently left college dorms, they now live in apartment complexes surrounded by ball fields, health clubs, and casual-dining restaurants.

Executive Suites- Residents of Executive Suites are upper-middle-class singles and couples typically living just beyond the nation's beitways. Filled with a significant

number of Asian Americans and college graduates--both groups

are represented at more than twice the national average--this

segment is a haven for white-collar professionals drawn to

comfortable homes and apartments within a manageable

commute to downtown jobs, restaurants, and entertainment.

L

Furniture sold at American Signature.

5

C. DESCRIPTION OF OBJECTIVES FOR THE CURRENT EMPLOYEE- TRAINING PROGRAM

Many objectives exist in the current manager training program. The management positions

include the general manager and the operations manager. These individuals oversee the

merchandising manager, warehouse manager, and customer service supervisor. Objectives of training

programs set forth by American Signature are the traits and knowledge that the managers should

implement after completing the training program. Within the corporation's training program, referred

to as American Signature University, the objectives are listed for each management position. The main

objective areas for the current manager training program are: -

Exhibit II.i

Main Objectives

I

1. Management understands American Signature policies and practices. 2. Managers understand the concepts of integrity, empathy, and trust in

the workplace.

3. On-the-floor experience is beneficial and enhances the skills of management. 4. Communication is essential between management and their employees. 5. Managers must be familiar with American Signature's "Best Practices." 6. Customer service is vital to the success of the store.

The chart below provides greater detail of the training objectives for each management position:

Operations Manager ? Assists General Manager with daily operations of the store, including managing the store in the absence of the General Manager ? Manage up to 6 subordinate supervisors ? Recruit, interview, hire, train, and schedule sales associates ? Handle customer and associate concerns

Warehouse Manager ? Responsible for overall direction, coordination, and evaluation of shipping and receiving shipment ? Orientation and training of warehouse associates ? Oversee preparation, assembly, and delivery of merchandise ? Planning evaluating and directing work for warehouse ? Addressing complaints

Exhibit 11.2

Merchandising Manager ? Responsible for overall direction,

General Manager

` coordination, and evaluation of sales floor associates

? Monitor and back up all store functions performed by the Operations and Merchandising Managers

? Recruit and train all associates ? Coordinate development of associates

`

I `

? Assist in daily operations of store ? Directly supervise decorators and housekeeping ? Coordinate all aspects of sales

events ? Responsible for presentation of sales floor

? Supervise all associates in

Customer Service Supervisor

accordance with corporate

? Assists General Manager with

policies

` Human Resource functions

? Establish a diverse,

` . Supervise office staff in

productive, and effective

i performing tasks involving sales,

I workforce

I deliveries, customer service,

cash/credit handlings

` ? Coordinate all financing related to

I customer purchases

? Assist management in calculating

payroll

6

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