Renovation Project For Tommy Hilfiger Commerce Essay Example
Introduction
The importance of employee morale and efficient stock list management is crucial for retail businesses, yet they are often overlooked in favor of short-term profits. However, neglecting these aspects can result in unhappy employees and wasted resources, ultimately impacting long-term profitability. At Tommy Hilfiger Store #7866, the challenges of low employee morale and ineffective stock list organization have persisted for several months. To address these problems, a proposed solution is to implement a store redevelopment project that focuses on improving the backroom.
The renovation of the backroom in the shop can enhance its capacity, increase sales staff productivity, and improve employee comfort and safety. The proposal's purpose is to support Tommy Hilfiger's commitment to its employees and the growth of the international fashion brand. Specifically, at Tommy Hilfiger S
...tore # 7866 (TH # 7866), located at the bustling Richmond Centre mall, the shop's success is largely attributed to its strong and enthusiastic staff. Currently, the management and staff at TH # 7866 are working towards converting this location into a flagship store.
As a result of being a larger retail store with more inventory, TH # 7866 is expected to attract mainstream customers in the Vancouver Lower Mainland area and become a top shopping destination. However, problems with the workplace environment at TH # 7866 can hinder its pursuit of flagship status. The neglected workplace environment in TH # 7866 contributes to low employee morale and poor inventory management. Several employee complaints have surfaced, particularly regarding the cleanliness of the break area and efficiency of the backroom. For example, there was recently an extreme incident where a mouse was found in the backroom, close to where employee
typically take their meal breaks.
The text highlights that employees often engage in unsafe actions, such as climbing shelves in the backroom because limited space makes it difficult to use ladders. The proposal aims to identify and address current issues with employee morale and inventory management while emphasizing their potential impact on the company. It also seeks to make management aware of staff concerns regarding the work environment and explore redevelopment as a potential solution for improvement. The scope of the proposal includes addressing problems in the backroom at TH #7866, evaluating employees' reactions to their work environment, and examining the impacts of restructuring and reorganizing the backroom. However, it is important to note that detailed cost analysis is excluded from this study due to challenges in obtaining relevant figures for predicting costs and revenues associated with commercial redevelopment projects, which have variable factors and confidentiality requirements. Additionally, employee interviews may yield biased outcomes due to concerns about anonymity.The appraisal includes the following: an anonymous study involving participants from TH # 7866, two brief interviews conducted with employees from TH # 7866, and a summary of direct observations made in the backroom environment at TH # 7866. Additionally, despite its intended purpose as a space for employees to relax during meal breaks, cleanliness and sanitation issues have created an uncomfortable atmosphere in the break area. Given its small size and shared nature among around 35 employees, it is not uncommon to find used plastic bags, utensils, and containers left on the counter.
The lack of cleanliness in the shared kitchen area may be attributed to insufficient cleaning of the refrigerator, appliances, and cabinets, as well as a
disregard for maintaining this shared space. Leftover food scraps and crumbs are frequently discovered on the counter, microwave, or floor while the garbage cans consistently overflow. These unsanitary conditions have also led to unpleasant odors, resulting in an overall negative experience in the break area.
Unsanitary Restroom
The restroom at TH # 7866 remains dirty and malodorous throughout the day. Restrooms are breeding grounds for bacteria, and many individuals attempt to minimize contact with the toilet and sink by squatting and using excessive paper towels to handle the doorknob and faucets. Consequently, the toilet becomes highly unsanitary, paper towels scatter across the floor, and soap residue is spread all over the sink.
To worsen matters, the role of janitor is left as the personal duty of each employee. Without providing clear incentives or making it part of their job descriptions, employees have little motivation to take on the unpleasant tasks of restroom cleaning and maintenance.
Presence of mice
Furthermore, the unsanitary conditions have also attracted unwanted guests - mice. In a bulletin posted by the U.S. General Services Administration, the Integrated Pest Management program found that "mice can potentially contaminate food or surfaces with Salmonella bacteria," and that "the primary damage caused by mice in most public buildings is disruption of operations" (U.S.)
The sighting of a mouse at TH # 7866 has caused concern among employees regarding the cleanliness of the country and the need for professional janitorial services. Additionally, the storage room at TH # 7866, which houses overstocked inventory, is organized into five aisles of tightly arranged movable shelving units. While this increases storage capacity, it makes it difficult for employees to access the inventory and creates a
lack of walking space. According to a warehouse design and layout guide by The Sims Consulting Group, a storage room design that balances space usage and accessibility for picking inventory is considered ideal (Phillips, 2009).
Therefore, it is evident that a high-density layout does not maximize efficiency for employees to retrieve and move inventory from the backroom to the sales floor. As a result, employees either miss sales opportunities due to unavailable overstocked inventory or resort to shortcuts such as reaching or climbing to quickly access inventory.
Working at Height:
In his article titled "Heightened Safety," Roderick Dymott discusses how individuals who work at height often assume they are competent and experienced enough to work safely. However, accident statistics prove this belief wrong (Dymott, 2009). The most common causes of falls in these situations include overreaching, slipping from a ladder, ladder instability, or ladder failure (HSE, 2009).
At TH # 7866, the distance between two adjacent units is so small that employees often waste valuable time trying to find a safe place to set up the ladder. Even when the ladder is properly placed, it may not be tall enough for employees to reach items on the highest shelves.
Inventory Cargos
In addition to existing inventory, new stock shipments are delivered to the storage room on a weekly basis. These shipments frequently consist of over 90 boxes at once, leading to dangerously high stacks of boxes.
Furthermore, employees at TH #7866 are facing frustration and discontentment due to the insufficient walking paths in the backroom. They have to navigate sideways to prevent potential hazards, which raises concerns regarding workplace health and safety. In addition, the management team is worried about the ineffectiveness
of the current inventory system, as it leads to a waste of time and effort that could be better utilized in serving customers. To gather information on employee perspectives about their work environment, an anonymous survey was conducted along with two brief face-to-face interviews.
Survey Results: The opinions of colleagues were gathered through a three-page survey (Appendix A). A sample of 20 shop employees randomly received transcripts of the survey. The surveys were anonymous, and most workers eagerly provided feedback. The survey included questions about employees' attitudes towards various aspects of TH # 7866's working environment, their preferences for cleanliness and sanitation at work, and frequency of using the break area and inventory storage room.
Key Findings: Upon analyzing the survey data, it was discovered that approximately 45% of employees spend around 2 hours per week in the break area. On average, each employee spends approximately 2.4 hours in the break area per week. With a total staff count of 35 members at TH #7866, this amounts to a combined total of 84 hours spent in the break area every week.
It is evident that the break area plays a crucial role in the workplace as it is where employees spend a considerable amount of time. Approximately 50% of respondents, which accounts for 35 staff members, stated that they visit the restroom around 3-4 times per week. This poses challenges in maintaining cleanliness and sanitation standards. Furthermore, 80% of surveyed workers bring food from home to work at least once a week and frequently utilize the refrigerator and microwave for storing and heating their meals.
The kitchen devices are used significantly, despite 90% of respondents agreeing or strongly agreeing
to clean up after themselves when eating at work. However, leftover food on the counter suggests this may not be completely accurate. Overall, employee satisfaction with the adequacy of devices, personal storage space, and seating space was generally low. For seating space, 60% disagreed while for devices and personal storage space, 50% and 40% respectively disagreed with their adequacy. In all these cases, a few employees chose to "Strongly Disagree," but none selected "Strongly Agree."
In fact, the statement that the break country was a comfortable place to be in was disagreed with by 65% of the sample, indicating a pressing need for improvement of the break area. With regards to inventory storage room use, 70% of the sample reported using the storage room 9 or more times per week. However, only 1 out of the 20 surveyed employees reported using the ladder 9 or more times per week. In fact, 85% of employees use the ladder 4 times or less, indicating that working at height without a ladder is a prominent problem. Additionally, most of the surveyed employees do not believe that the inventory storage room has an efficient layout or adequate storage or walking space.
40% of the respondents said that the shelving is difficult to use, while 60% reported difficulty in accessing the inventory. Overall, 70% of the employees surveyed reported feeling safe at work, but 40% expressed dissatisfaction with the backroom at TH #7855. Specifically, 11 out of 20 people strongly agreed that the backroom could be improved, and an equal number agreed that better workplace comfort and safety would enhance their work performance.
Interview on Inventory Management
In
addition to the employee survey, a brief interview was conducted with a part-time stock room staff member at TH #7866. Since this employee primarily deals with products in the stock room, he provided valuable insights about the store's inventory management system. For instance, he suggested that climbing the higher shelves is more convenient and efficient than using ladders to process inventory quickly.
Furthermore, the design of the postponing units does not provide sufficient space for safely placing the ladders, as reported by him. During periods of time with large cargos, he mentioned that there are so many boxes that even his working area becomes overcrowded with inventory, greatly reducing his efficiency.
Interview on Break Area Maintenance
Another interview was conducted with a full-time sales associate as well. As a frequent user of the break area and appliances, she expressed that the counters and floor are constantly messy and dirty. She emphasized that ever since the sighting of a mouse in the backroom, she has felt extremely uncomfortable being in TH # 7866's backroom and would rather eat her lunch and use the restrooms at the mall food court.
The speaker suggested implementing more frequent cleaning processes and adding additional shelves, individual cabinets, and newer appliances in order to enhance the break area. These improvements will improve workplace comfort and safety at TH #7866, leading to higher employee morale, better inventory management, and increased profitability for the business.
Health & Safety
Employee health is a major concern worldwide due to recent cases of diseases and a growing health trend. According to an article from Entrepreneurs.com (Edelhauser, 2007), improving workplace sanitation and cleanliness could potentially cut absenteeism in half.
The Canada Labour Code emphasizes
the importance of creating a healthy and safe work environment for all Canadians, as outlined in the Canada Labour Code (2010). However, despite these efforts, work-related injuries and illnesses continue to cause approximately 1,000 deaths annually in companies and organizations that fall under federal or provincial jurisdiction. It is essential for TH # 7866 to implement proper health and safety measures to avoid costly lawsuits and damage to reputation.
Inventory Management
Graham Burgess, an expert in supply chain logistics, suggests that optimizing warehouse layout can lead to numerous benefits such as increased inventory turnover, reduced operational costs, improved worker productivity, and enhanced workplace safety (Burgess, 2003). By implementing more efficient inventory management systems, warehouse staff can process inventory at a faster pace while sales associates can easily locate requested clothing items. As a result of these improvements, customers will receive their products more quickly.
This leads to increased net income for the company in a shorter amount of time.
Employee Satisfaction & Company Image
According to Muhad Ali, a dirty and unattractive workplace will decrease overall morale and increase employee turnover (Ali, 2007). Creating a comfortable and appealing working environment encourages employees to take pride in their workplace. Higher employee satisfaction results in improved customer service and higher profits.
High employee turnover is costly for Tommy Hilfiger (TH # 7866) as it will lead to increased hiring costs and the risk of losing valuable senior employees. It is crucial for Tommy Hilfiger to have a satisfied and strong team of staff in order to enhance its company image and remain competitive with other fashion retailers.
Recommendation
Despite the fact that commercial redevelopment is a significant
capital investment for TH # 7866, the benefits derived from the redevelopment project can result in higher profitability for the company. Additionally, since Tommy Hilfiger is a high-end fashion retailer with higher prices and profit margins, the cost of a small-scale redevelopment limited to only the backroom is affordable for the company.
The workplace environment at Tommy Hilfiger Store # 7866 has not been ideal. However, a simple redevelopment project can improve the situation with a small budget, flexible schedule, and minimal disruption to day-to-day operations. Making important decisions before starting the redevelopment is crucial for a successful and profitable commercial redevelopment. I suggest making the following changes to the backroom of TH # 7866:
- Inventory Storeroom:
- Increase the number of storage units
- Rearrange the storage units to create more space between them
- Sort and label all shelves and aisles
- Store cargo boxes behind the storage units instead of in the aisles
- Attach sliding ladders to each storage unit
- Break Area & Washroom:
- Repaint to improve the aesthetics of this area
- Increase seating in the break area with cushioned seats
- Add more shelves above the kitchen counter
- Replace old and dirty kitchen appliances with new ones
- Purchase cleaning supplies
- Replace large cabinets with smaller and more space-efficient ones
- Assign each employee to a specific cabinet
- Contact pest control services
- Contact floor cleaners and janitors
In conclusion, the workplace environment at Tommy Hilfiger
Store # 7866 needs improvement, and implementing these changes can greatly enhance it.The staff squad has been negatively impacted by several issues related to cleanliness, comfort, and safety for the past few months. The best solution to this problem is for the company to invest in a backroom redevelopment project.
Revamping the backroom at TH # 7866 is necessary for improving employees' satisfaction, wellness, safety, and efficiency of the stock list system. The current maintenance strategies are ineffective and short-term. By executing a redevelopment, TH # 7866 can focus on long-term business strategy and develop strong relationships with employees and customers. This proposal provides evidence of how the workplace environment can greatly impact a company and its employees. A revamped workplace can result in:
- Better physical health
- Fewer safety hazards
- Higher inventory turnover
- Greater job satisfaction
- Increased employee efficiency
- Lower employee turnover rate
- Improved company image
- Increased company profitability
In conclusion, immediate improvement of the workplace environment is crucial at Tommy Hilfiger Store # 7866.
If the current workplace issues are not resolved immediately, they will escalate into more serious problems. By implementing a simple redevelopment project and implementing appropriate procedures, I am confident that TH # 7866 will soon become a respected, iconic flagship store.
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