CASE SEARS, ROEBUCK, AND CO.: THE AUTO CENTER SCANDAL Sears, Roebuck, and Co. be

Question

CASE SEARS, ROEBUCK, AND CO.: THE AUTO CENTER SCANDAL Sears, Roebuck, and Co. began in the late 1800s as a mail-order company that sold farm supplies and other consumer items. Its first retail store opened in the mid-19s Responding to changes in American society, such as the move from farms to facto and the presence of the automobi ries ie in many homes, hundreds of retail stores opened ly it diversified to include real estate (Coldwell Banker), r the years. The company expanded rapidly, and eventual ove er businesses: insurance (Allstate Insurance), securities (Dean Witter Reynolds), and credit cards (Discover). E businesses became its own division, in addition to the included retail stores, appliances, and auto service centers. By t company was reporting revenues and earnings in the billions of dollars. ach of these other that merchandising group he early 1990s, the history of high earnings and its penetration into the U.S. market, ess began to experience serious financial difficulties in the 1980s the Sears retail busin

Explanation / Answer

Answer- 5

Yes, there should be some way to measure the performance but the problem is that company selected a different or I should say, the wrong way to measure the performance. What happened in the case is, employees sold the repairs which was not needed to earn the commission and to complete their quotas, and employees did not do the work properly. They eliminated some of the processes by which made the customers unsatisfied and lose the trust of the consumers. If sales quotas has to be there in the company then there should be proper training of the employees regarding ethics, honesty and high penalties for dishonesty.

The company should have a fixed salary system and may have additional compensation in terms of bonus based on quality and customer satisfaction and referrals. Team based bonus or compensation may also be there to encourage the employees to work in team and if they do so, quality of the work will automatically increase and the company’s culture will also change positively.

Company should make a policy in which employees can talk to the customers about their problems to reduce the psychological gap and customer should be allowed to know and see what the repair is being done and how. In this way customer will be satisfied. An important part of any new reward system will be to make it clear that any future dishonesty will be harshly disciplined, and then following through.

Currently the reward system is like make more sales and you will get the commission but because of more commission mechanics don’t pay much attention to the overall problems and leave some of the processes undone. So company should have a strategy to make new customers and then reward the employees and mechanics according to customer satisfaction and it is very simple that if a customer is happy with the service then he/she will visit again.

Sears should also implement some code/ethics in the heart in the heart of mechanics to guide them, like, "Would I recommend this service if this were my mother's car?"

So, the reward system should be based on consumer satisfaction. Company should ask the customers to fill satisfaction form and if customer is satisfied then the mechanics and employees should be compensated otherwise penalties.

Answer-6

I think everyone in the organization should be disciplined but here MANAGEMENT is at fault because management is the one which encouraged the unethical behavior of the workers through the wrong compensation scheme.

Discipline is to be honest and motivate the workers to be honest with the client. Customers should be given the most priority not the money because if customers are there then you can earn the money in the future but if customers are unsatisfied you won’t be able to make the money ever. Management should clearly state that unethical behavior will be punished in the future and honesty will be rewarded.

Answer-7

Company could provide the discounts and various other offers to the customers.

What company can offer is consumer satisfaction and good job by the workers because if consumer is happy, he/she won't mind to pay some extra money but he/she wants that his work should be done efficiently and effectively so he/she won;t face any problem in the near future. ANd if customer is satisfied, he would come again irrespective of price of the service.

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