The Men's Wearhouse Analysis

Case #1 The Men's WearHouse Analysis

The Men's WearHouse, as I can see, have been doing a great job from a managerial perspective in this declining industry.

First, the Men’s Wearhouse is a good example of the profit-service chain. George Zimmer, founder and CEO of the company, puts employees first, customers second. "The people you manage and work with are Your customers as well as Clients of the Store" as defined in company's training materials. To Mr. Zimmer, the company’s success is contingent upon happy, motivated salespeople who sell with a consultative style. Furthermore, the company recognized the importance of feedback; clear communication upon management to the staff that dissent was welcomed and had an open-door policy for all employees. These behaviors are demonstration of servant leadership and upper management’s commitment to growing the company and its people by listening and responding to needs.

Training and the communication of company values were also being prioritized at the Men’s Wearhouse. Annually, Suit University held events for training, inspiration and sharing of company values. Moreover, regional managers emphasized the value of day-to-day training by going to each store once per week. While there, they studied by examples and took an active role in helping customers.

To emphasize the right behaviors, upper management carefully considered its compensation plan. First, they paid more than competitors; not so substantial, but enough for their employees to notice, which is high than the average salary of a typical small store. They also incentivized their sales people by paying commission. However, to avoid “sharking” or the stealing of customers by staff, a team environment was established. Wardrobe consultants could be fired if they were showing this activity.