Store24 (A): Managing Employee Retention

Harvard Business School Case 602-096

Store24 (B): Service Quality and Employee Skills
Harvard Business School Case 602-098
Courseware 9-608-713

This courseware was prepared solely as the basis for class discussion. Cases are not
intended to serve as endorsements, sources of primary data, or illustrations of effective
or ineffective management. Copyright 2008 President and Fellows of Harvard College.
No part of this product may be reproduced, stored in a retrieval system, used in a
spreadsheet or transmitted in any form or by any meanselectronic, mechanical,
photocopying, recording or otherwisewithout the permission of Harvard Business
School.
store Sales Profit MTenure CTenure Pop Comp Visibility PedCount
1 1060294 265014 0 24.80493 7535 2.797888 3 3
2 1619874 424007 86.22219 6.63655 8630 4.235555 4 3
3 1099921 222735 23.88854 5.026694 9695 4.494666 3 3
4 1053860 210122 0 5.371663 2797 4.253946 4 2
5 1227841 300480 3.87737 6.86653 20335 1.651364 2 5
6 1703140 469050 149.9359 11.35113 16926 3.184613 3 4
7 1809256 476355 62.5308 7.326488 17754 3.3779 2 5
8 1378482 361115 0 56.77208 20824 2.895114 4 3
9 2113089 474725 108.9935 6.061602 26519 2.63763 2 4
10 1080979 278625 31.47899 23.19507 16381 2.270771 4 3
11 1583446 389886 44.81977 2.036961 21550 3.272398 2 5
12 1444714 329020 277.9877 6.63655 11160 4.903895 4 4
13 857843 152513 0.657181 1.577002 14186 4.435671 3 2
14 1171491 261571 87.37226 2.956879 6898 4.233057 4 2
15 1005627 203951 0 8.476386 8684 3.84422 3 4
16 883864 196277 23.65853 4.681725 6872 3.344703 3 3
17 1095695 265584 31.709 3.646817 14477 2.561704 3 4
18 1704826 394039 239.9698 33.77413 3807 3.994713 5 3
19 1127332 261495 3.417343 16.98563 4669 2.753616 2 3
20 1320950 269235 65.06095 5.946612 15377 4.148495 3 2
21 1237518 282584 24.11856 7.211499 14022 4.020201 3 3
22 1433440 367036 18.36822 25.95483 8280 4.46436 4 3
23 1351972 277414 12.38787 3.416838 13797 3.594539 3 4
24 1071307 267354 44.81977 3.416838 9069 3.28059 2 3
25 1282886 282124 0 10.31622 6183 3.51702 3 3
26 898548 211912 0.657181 20.43532 9999 4.178195 3 2
27 985862 230194 50.11008 17.44559 8153 3.719806 3 2
28 1141465 273036 23.88854 16.98563 14673 3.193422 3 4
29 924782 263956 19.51829 23.54004 11350 5.392077 3 2
30 1874873 333607 73.34144 23.42505 1116 3.578323 3 2
31 993597 211885 0 10.77618 2578 3.100689 2 2
32 828918 149033 36.07926 6.63655 9697 4.641468 3 3
33 1369092 292745 51.72017 3.876797 8177 5.309016 3 2
34 1557084 382199 29.17885 19.74538 10923 2.361195 4 4
35 1443230 322624 36.99931 14.80082 14361 3.613021 4 3
36 1016950 219292 41.59958 20.89528 3218 3.929021 3 2
37 1202917 187765 23.1985 1.347023 8870 4.491863 3 3
38 991524 203184 15.60806 1.577002 6557 4.225993 3 2
39 979361 221130 34.69918 5.486653 8896 5.046338 2 4
40 1042664 222913 122.7943 16.75565 2521 11.12788 3 4
41 744211 147327 14.91802 11.92608 9701 4.3646 2 3
42 1273855 264072 2.497289 86.09446 2106 3.231049 3 2
43 1296711 337233 177.5704 5.486653 3495 3.653641 4 3
44 1807740 439781 182.2364 114.1519 20624 3.628561 3 4
45 1602362 410149 47.64565 9.166325 17808 3.472609 5 3
46 1339214 315780 6.177505 5.256673 9285 3.144458 4 3
47 1665657 387853 12.8479 6.63655 23623 2.422707 2 5
48 1243167 284169 31.47899 8.246407 8491 4.848749 3 2
49 983296 195276 55.40039 14.68583 1863 3.713871 4 1
50 935257 251013 12.8479 16.06571 14653 1.751638 3 4
51 1027035 237344 3.417343 7.096509 3126 2.447474 2 4
52 1073008 169201 24.11856 3.416838 14859 6.585143 3 3
53 1355684 365018 57.24049 8.246407 6909 3.156869 2 2
54 811190 159792 6.670391 3.876797 3747 3.756011 3 2
55 925744 147672 6.670391 18.3655 10532 6.389294 4 3
56 916197 189235 4.797424 2.726899 13740 4.597269 2 3
57 699306 122180 24.34857 2.956879 3642 2.973376 3 2
58 989760 227601 4.56741 4.106776 8477 3.993874 4 2
59 1334898 303069 13.30792 13.76591 6231 3.301353 3 3
60 1433624 356071 33.51625 6.406571 8845 2.719548 3 4
61 716589 177046 21.81842 13.30595 3014 3.263994 3 1
62 942915 202641 12.15786 6.86653 9820 4.20145 3 4
63 1045264 239036 8.247626 6.86653 7581 4.13658 3 3
64 969509 221157 0 0.887064 17110 2.378613 4 3
65 1349972 301641 150.2317 23.42505 1075 3.21896 3 1
66 879581 146058 115.2039 3.876797 1046 6.56979 2 3
67 1228052 362067 5.257451 3.416838 11552 3.583143 3 3
68 1018195 236339 17.44816 2.26694 9018 3.50481 4 2
69 1574290 375393 44.12973 26.75975 5050 3.949484 3 3
70 1207204 254203 14.91802 3.876797 19809 3.122484 3 4
71 977566 198529 43.89972 38.37372 3265 3.856324 2 1
72 848140 196772 126.4745 27.44969 3151 3.680586 2 1
73 1115450 279193 41.13955 6.406571 6276 4.180132 4 3
74 1782957 518998 171.0972 29.51951 10913 2.31985 3 4
75 1321870 296826 2.267276 8.706366 8966 1.886111 4 4
Res Hours24 CrewSkill MgrSkill ServQual
1 1 3.56 3.15 86.84327
1 1 3.2 3.556667 94.7351
1 1 3.8 4.116667 78.94776
1 1 2.06 4.1 100 265,014
0 1 3.65 3.588889 68.42164 89,404
1 0 3.58 4.605556 94.7351
1 1 3.94 4.1 81.57837
1 1 3.98 3.8 78.94776
1 1 3.22 3.583333 100
1 0 3.54 3.561111 100
1 1 3.43 3.2 100
1 0 3.35 3.238889 100
1 1 4.1 3 76.30609
1 1 2.54 3.89 100
1 1 3.5 3.427778 94.7351
1 0 3.05 4 97.36939
1 1 3.2 3 78.94776
1 1 3.18 3.866667 97.36939
1 1 3.65 3.083333 68.42164
1 1 3.8 3.894444 100
1 1 3.6 3.677778 94.7351
1 1 3.3 3.973333 100
1 1 3.65 3.588889 100
1 0 2.4 4.083333 100
1 1 2.93 3.5 86.84327 Hours24
1 1 3.52 3.1 97.36939 600000
1 1 4.03 3.543333 100
1 0 3.55 2.988889 84.20898 500000
1 1 3.46 3.61 100
1 1 3.52 3.473333 100 400000
1 1 2.86 3.673333 88.9286
1 0 3.28 3.55 73.68654 300000
1 1 3.56 3.088889 96.05408 300
1 1 3.58 3.577778 97.36939 200000
1 1 3.9 3.916667 100 250
1 1 3.5 4.244444 100 100000
1 1 3.38 4.016667 73.68654 200
1 1 3.68 4.494444 100 0
0 0.2 0.4 0.6 0.8 1
1 1 3.9 3.872222 81.57837
150
1 1 3.45 4.194445 78.94776
1 1 3.03 3.672222 81.13993
100
1 1 3.44 3.656667 98.68839
1 1 3.73 3.608233 94.7351
0 1 4.06 4.172222 86.84327 50
1 1 3.58 4.622222 100
1 1 3.4 3.444445 0
80.52612 100000 150000 200000 250000 MTenure
300000 350000 400000 450000 500000
CTenure
1 1 4.23 3.95 99.80105
1 1 3.42 3.872222 97.36939
1 1 3.23 3.576667 81.58205
1 0 4.64 3.016667 76.31715
1 1 3.66 3.15 60.52612
1 1 3.83 3.833333 94.7351
1 1 3.63 3.683333 94.7351
1 1 3.08 3.933333 65.78734
1 1 3.49 3.477778 76.31346
1 0 3.1 3.8 64.35046
1 1 3.35 2.956667 84.21266
1 1 2.93 3.05 57.89552
1 1 3.22 3.233333 100
1 1 3.37 3.344445 57.89552
1 1 3.07 3.126667 73.68654
1 0 3.08 3.3 61.40299
1 1 3.38 3.666667 100
1 1 3.28 3.311111 79.47388
1 1 3.73 3.44 63.15673
1 1 4.03 3.673333 80.26675
1 1 3.37 4.15 97.36939
1 1 2.83 3 81.31677
1 1 3.56 3.94 92.89294
1 0 3.24 3.538889 78.94407
1 1 3.88 3.466667 79.94253
1 1 3.73 3.416667 73.68654
1 1 3.2 4.083333 85.9664
1 0 3.5 4.405556 94.73878
0 1 3.57 3.344445 89.47388
Hours24

0.6 0.8 1 1.2

0re 350000 400000 450000 500000 550000

CTenure
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.84478705
R Square 0.71366516
Adjusted R S 0.66367018
Standard Erro 51848.9547
Observations 75

ANOVA
df SS MS F Significance F
Regression 11 4.2212E+11 3.8375E+10 14.2747384 2.7702E-13
Residual 63 1.6936E+11 2688314105
Total 74 5.9149E+11

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0%
Intercept -141433.917 98201.9799 -1.44023488 0.15475221 -337674.915 54807.0809 -337674.915
MTenure 683.737944 119.449363 5.72408195 3.1089E-07 445.037439 922.438449 445.037439
CTenure 870.091333 400.285443 2.17367718 0.03349523 70.1847026 1669.99796 70.1847026
Pop 3.04479824 1.40898323 2.16098969 0.03450497 0.22916992 5.86042655 0.22916992
Comp -28548.1697 5168.75344 -5.52322141 6.7405E-07 -38877.0992 -18219.2401 -38877.0992
Visibility 7043.55899 8605.53604 0.8184916 0.41616178 -10153.2326 24240.3505 -10153.2326
PedCount 34371.2761 8307.45024 4.13740379 0.00010605 17770.1615 50972.3908 17770.1615
Res 82079.155 36350.1789 2.25801241 0.02741797 9439.1187 154719.191 9439.1187
Hours24 62783.6925 18534.5563 3.38738578 0.00122051 25745.3371 99822.0478 25745.3371
CrewSkill -14136.6671 17094.2618 -0.82698318 0.41136796 -48296.8235 20023.4894 -48296.8235
MgrSkill 45197.4714 16756.4584 2.69731647 0.0089576 11712.3611 78682.5816 11712.3611
ServQual 944.793335 544.761243 1.73432554 0.08775118 -143.825142 2033.41181 -143.825142

more incentive to expensive manager

adjusted r sq incremental r square
only when we think there is assumption that the perfroamcen will diff in diferent stage

manage skill and

Upper 95.0% variance
54807.0809 pay bonus base on different location factors
922.438449
1669.99796
5.86042655
-18219.2401
24240.3505
50972.3908
154719.191
99822.0478
20023.4894
78682.5816
2033.41181