Root Cause$/$Basic Underlying Issues

Explain $($list from most to least severe$)$ Who is involved? What is their role and responsibility in creating or resolving this issue? Impact on costs, quality, customer service, or innovation?

$1.$ High staff turnover

$2.$ standards$3.$

$4.$ Rapid expansion and growth

Maintaining high customer service

$1.$ Managing a larger workforce

Analysis of Case Data

Alternatives

$/$

Options to Resolve Root Problems The Jax Group is a privately held Canadian company that has been active in fashion footwear and accessories since

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Under the leadership of its founder

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owner JaxTopher, who is still actively involved in the organization, it has become the country

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s major player in its industry. The Group owes its reputation as a retailer to its ability to research and develop new concepts and create its own products.

Jax Shoes started by setting up footwear concessions within a Manitoba clothing chain. It then expanded rapidly, opening four stores elsewhere in Canada. By

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it had some

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stores to its credit and had launched its diversification and market segmentation program by acquiring stores operating under the Brees banner. Twenty

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five years later, the Group now has a total of

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stores in North America, Europe and

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other countries, operating under such names as Jax, Orion, Jupiter, Pluto, Thorn, Blaze and Jax Accessories. What

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s more, each banner supports a particular cause, for instance contributing to the fight against AIDs or breast cancer or participating in various other charitable initiatives. The company

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s commitment to community causes helps make both its human resources and its clientele more aware of important social issues. Moreover, the Jax Group has built up a client base that includes all age brackets. While the Jax and Orion, Jupiter banners appeal mainly to

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to

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year

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olds

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primarily middle

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class youth and students

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Thorn and Pluto target families and an older age group.

The company

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s non

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unionized work

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force is made up of part

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time

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and full

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time

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personnel

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$$The Group employs

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people in all, including about

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at its head office in Winnipeg. The head office team mainly focuses on product design and the analysis of fashion trends and marketing techniques. In addition, itis responsible for the design and development of the Group

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s stores worldwide, using material from local suppliers.

Furthermore, in Winnipeg, the company

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s distribution centre is staffed by a team of

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people who are in charge of receiving and checking products made around the globe and oversee orders and their delivery to the Group

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s stores all across North America. The company

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s operational structure is supported by leading

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edge technology to ensure this strategic supply management.

Each store is staffed by a manager, an assistant manager, salespeople, cashiers and a merchandising clerk. Because of its high staff turnover, the Group tries to recruit people who are interested in customer service and fashion. In addition to base pay, the company offers a generous incentive program for its full

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time workforce. Part

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time personnel can also earn good commissions when they reach their sales targets. Thanks to this approach, Jax Group has been able to keep its workforce highly motivated, reward its efforts and carry on its high standard of customer service.

Challenges

Having achieved such robust growth over the last five years, the Group now faces a substantial organizational challenge. In

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it plans to open

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stores in the United States. In the meantime, it continues to expand globally, particularly through developing its network of franchises and licenses, marketing new concepts and expanding its e

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commerce sites. In fact, the company expects to achieve $

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billion in sales by the year

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end and aims to double its size within the next five years. Two goals implicit in this inter

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national expansion are to achieve a workforce of

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and to maintain the high standard of customer service. It also hopes to reach these objectives without increasing its current management team.

To meet this challenge, Jax is counting on its strong entrepreneurial culture, which has proven so effective thus far: rapid turnaround, significant flexibility and the ability to adapt to market changes and needs. For example, it now takes only four to eight weeks to disseminate and implement a new market strategy organization

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wide. The Group

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s status as a privately held company gives it considerable freedom of action in this respect. Because it hasn

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t had to worry about shareholder returns, it has been able to concentrate on consumer needs rather than on the exponential grow