Case: Filene's Basement: Inside a Fired Customer's Relationship

Should Filene’s Basement have fired Norma? Why or why not?

Yes. In Filene's basement, Norma should have been sacked. As things began to change inside the firm,
this was the best option made by management. More attention was placed on planning future
expansions and the substantial growth they were experiencing. The deficits she incurred as a result of
her multiple returns and complaints, which added to the higher cost of service, were tremendously
costly. Norma was the type of person who would not easily budge since she believed what she was
doing was legal and acceptable. Her allegiance seemed meaningless, considering that the store would
continue attract customers with or without her, despite the fact that she generated the same amount of
money.

The first reason was because of the store's location, the second because of its fame and reputation as a
Boston landmark, and the third because the discounts were too good to pass up. At first, Filene's
basement tried to terminate her using a unilateral tactic. She used the withdrawal mechanism to
accomplish this because she was not invited to join the Insiders club at the Newton shop. She was also
denied any more discounts, and her suggestions to the CFO were dismissed. She received a heavy
punishment as a result. However, in order to avoid a PR disaster like the one that occurred, the way the
news was presented to Norma should have been modified.

Given that Norma's behaviour was encouraged by her coworkers rather than management, an extensive
and detailed email should have been provided along with the termination letter. Furthermore, any
gesture that would have eased her transition from being dismissed might have been made. As a result,
the company's image would not be affected while they got what they needed.

Submitted by-

Akula Padma Priya, PGP12101, SEC B