Parisian Department Store :: essays research papers

The Parisian Department store in Birmingham, Alabama clearly rents to rethink their gross revenue strategies to maximize profits. The management specific whollyy needs to take a look at whether the new net income program achieves its intended belief of cutting costs while driving sales and how this would affect the fellowship as a whole. The company should look at whether this program would be enough fix the problem, or does Jones need to implement more forceful measures?The first major issue was taking a look at HR issues and other related business issues that Parisian faced onward they implemented the pay adjustments. As the case studies mentions, Parisian sold juicy merchandise, highly personalized service, high commitment to caring for its employees and communities of businesses. Jones?f ending is to raise the performance of the store and restore it to its former reputation as an upscale retailer.ISSUES1. Parisians payroll department expenses in 2003 were 8.6% which wa s higher than those at comparable infant business within SDSG.2. Hourly pay at Parisians was 12.18 and Carson paid an number of 9.54 an hour.3. Selling costs buildup did not work because it only temporarily persistent the issue at hand.A huge issue with Parisian is that their pay system is extremely complicated when it does not have to be. Currently in that respect are three forms of pay base pay only, base convinced(p) commission, and commission only. The cosmetics selling cost is also an issue because cosmetics only lick in 15% of sales, but they spend 22% on payroll sales because of the expertise needed as well as the need to have a body in the bay at all times when you sign the agreement with the vendor. Taking a look at Chart B should this very theory, Parisian shows a net sales of cosmetics of 100 M which is compared to Carson?fs 250M and there pile at Parisian use up paid more an hour (14 versus 12). It does not make sense for a store that brings in a lot less to pay their people more. The case further explains that the high volume salespeople are paid at high commission rates and sometimes that rate can happen selling cost benchmark. The stores with the ?gsacred cows?h were costing them a case have- specifically 14% selling cost. Table C shows that there were definite stores that were not able to have as many employees cover the foot because they had large payroll expenses.