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Mens Warehouse Study

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MEN’S WEARHOUSE CASE STUDY GROUP 1

Overview of Case

The case study from the Stanford Graduate School of Business that is subtitled: Success in A Declining Industry is a detailed description of the events that led to Men’s Wearhouse success. Men’s Wearhouse is a specialty retailer for clothing tailored for the businessman of the past and present. Since its first store in 1978, it had developed rapidly into over 1,175 stores nationwide (Hoover, 2012). Men’s Wearhouse developed its own culture, management theories, and practices. In the case study the external environment of this industry was fiercely aggressive with many companies closing due to financial strains. Founder and CEO of Men’s Wearhouse, George Zimmer saw the “untapped human potential” of his employees as the key asset rather than property, plant, and equipment. According to Zimmer, the company’s five stakeholder groups in order are: Employees, Customers, Vendors, Communities, and Shareholders. He believes that if you take care of your employees first, they will in turn take care of your customers, who will then in turn take care of your top-line growth (Nishimura, 1993). Men’s Wearhouse implemented management systems for compensation and staffing, promotion and career development, and communication with employees at all levels. It has been said, “They instituted unusual and groundbreaking workforce management strategies that worked” (Ifante, 2001). This paper will discuss some major issues and solutions needing attention and some things that the firm could do to improve.

Concepts From the Text

• Pay level explains how employees are compensated and is the average amount an organization pays for a particular job (Noe, Hollenbeck, Gerhart, & Wright, 2011 pg 327). At Men’s Wearhouse pay…...

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