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WrapItUp Case Study

Updated on March 9, 2016

This is an example used for the WrapItUp organization for many graduate study programs.


Summarize the potential strengths and weaknesses of the SharIt program? Did it address the issues WrapItUp was experiencing?

The SharIt program has some strengths and weaknesses towards moving the WrapItUp organization towards their goals of becoming more profitable. Some strengths of the program are the tying of the performance of the managers to the actual performance of the organization. Profit sharing on a quarterly basis makes the work and compensation seem more meaningful as the time period they are based on is drastically shortened. Another thing strengthening the organization is addressing the compensation issue that has been the top concern for exiting managers overall increasing the turnover rate. It is also strengthening the organization by have the managers striving for higher profits and not just settling for the minimum performance level needed to get to a certain compensation band.

Unfortunately the SharIt program also increases the workload for the managers and could increase the turnover if the managers felt they were not being compensated enough for their time sacrificed from their personal lives. Another weakness for the organization would be that there is too much autonomy and the brand and quality are not consistent between different store locations.

The SharIt program does address the issues that WrapItUp is experiencing and as long as the recruiting of the managers is designed to get individuals who can make this new system succeed, the organization should continue with the SharIt program make adjustments as needed.

Review the financial results achieved by the two pilot stores. What do the customer service scores reveal about the benefits and drawbacks of each approach?

The Santa Monica store was able to really increase business in terms of total revenue and as expected the expenses were a little higher than before the program, but the increase in revenue was more than the expenses in the labor. This store was also able to improve their customer survey results in almost all of the categories.

The Costa Mesa store was able to drastically decrease their expenses but their sales suffered as a result. This store manager was so focused on cutting costs and increasing the profit for the particular store that the quality of the food and experience suffered in most categories on the customer satisfaction survey. In this case this store was so focused on increasing profit that it took away from one of the goals of the organization of providing a quality experience that would want to make a customer recommend them and return for business.

What should Reyes recommend? Should WrapItUp roll out the SharIt plan as is, make modifications, or abandon it for something else? Justify your answer.

Reyes should continue with the SharIt plan with minor modifications. The new plan makes the performance of the managers more relative to the performance of the store and because of this the profits and compensation for both parties could drastically increase. However, the recruiting has to be done in such a way that the organization is putting in people who are going to be able to make the commitment which very important in making this whole program a success. With the wrong people inserted in this plan there is no amount of planning and teamwork that is going to make it succeed. A modification to the plan to decrease the overall turnover in the organization is to extend some to the profit sharing to the crew. When the crew is on board with the plan they will be making the company more effective by decreasing the amount of work a manager has to do and could build a stronger and more educated workforce as the compensation is increased and more competitive.


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