Men’s Wearhouse Case Study

November 19, 2009

Men’s Wearhouse finds itself facing the problem that every successful company must deal with as it grows—how do you continue to expand your business without losing touch with the things that made your company successful and allowed you to carry out the expansion in the first place? Fortunately for Men’s Wearhouse, the structure of the organization and practices the company has employed are set up in such a way that, by and large, they should translate well to a larger organization. For example, the primary business unit for each area is the individual store. The organization has a well-defined structure for each store, with managers and then certain numbers of sales associates, wardrobe consultants, and other employees. On a store by store basis, there is no reason Men’s Wearhouse cannot continue to employ the practices and procedures that have made the company a success. It’s simply a matter of continuing to provide appropriate training to the managers and other staff.

Likewise, the training programs Men’s Wearhouse has set up such as Suit University, Suit High, and even the locally provided targeted training can continue to be used by the company to teach its managers, wardrobe consultants, and other employees the company’s sales techniques, methods, and traditions. Yes, there will be increased costs to bring new store managers and wardrobe consultants to the on-site training, but the new stores should translate into increased profits for the company, so hopefully those costs will reflect only a minimal dent in these new profits. As the company continues to grow larger with more employees from the new stores joining the organization, it may be advisable to add additional training sessions so that the company can continue to provide useful training without having classes that are so large that the individuals do not get as much out of the experience as they otherwise would. This too will add to the company’s costs, but I think it is a necessary step if Men’s Wearhouse wants to continue to utilize the educational programs that have helped make it so successful.

One thing Men’s Wearhouse will need to change is its district and region structure. Right now district and region managers visit each store in their area on a regular basis. With more expansion within each region and district, this will become more difficult, if not impossible. To solve this problem, Men’s Wearhouse will need to add additional regions and districts and hire more managers to supervise those areas. With more managers, the company will be able to retain its practice of having managers at the district and region level visit each store on a regular basis, so that there is a sense of connection between the managers and the employees at the stores.

While Men’s Wearhouse will need to make some changes as it continues to grow, the company has uniquely positioned itself for future success. The systems and structures the company has put in place are easily adaptable to dealing with a larger corporation, so the company should be able to modify these things to help it cope with the challenges it faces as it continues to grow.

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