Chern’s Company History and Organization

CHERN’S COMPANY HISTORY AND ORGANIZATION

Siblings Ryan and Ann Chern founded Chern’s, an upscale shoe and handbag store, 20 years ago after the two of them each graduated with their MBAs. The pair had planned to launch their own company for years, and refined their business model after each spent a great deal of time learning about the retail industry by working in different retail organizations. The product mix and high-quality products Chern’s sells made it rapidly successful, and the company developed a loyal following. The firm quickly expanded its product line and became a full-scale clothing retailer 15 years ago. Ryan and Ann have turned their basic idea of providing customers with the best service, selection, quality, and value into a thriving business. The two are now co-presidents of Chern’s: Ryan serves as the company’s chief executive officer; Ann serves as the company’s chief operating officer. Twelve years ago, Chern’s began pursuing an aggressive growth strategy. Currently the company has 140 stores in28 states on the East Coast and in the Midwest. Chern’s employs an average of 19,000 full- and part-time employees. Providing superior customer service has been the company’s main business strategy and has successfully differentiated it from its competitors. Although the company’s products are expensive, the high product quality and excellent customer service have made the company successful. Because customers’ tastes can differ from one store to the next, the company tries to be as decentralized as possible. Therefore, it gives its store managers a considerable amount of discretion in terms of how they run their stores. Likewise, each manager runs his or her own department as a small business and is rewarded according to the department’s and the store’s overall success. Because customer service lies at the heart of the company’s business strategy, it is a core part of the corporate culture