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2014 Business Practice Contest for Students from School of Business English 2014 Business Practice Contest for Students from School of Business English Project Report Team Name: Firework Research Subject: Trusteeship for Personnel Title of Report: Trusteeship for Personnel：to Ensure Enterprise Cultural Continuity 2014 Business Practice Contest for Students from School of Business English Contents I. Project Background ………………. .2 II. Project Analysis ……………………3 III. Project Goal ……………………… 5 IV. Methods of Market Research …… 5 V. Ways of Execution …………………7 Appendix: 1. Questionnaire about the service quality of Carpenter Tan 2. The result of questionnaire about the service quality of Carpenter Tan -1- 2014 Business Practice Contest for Students from School of Business English I. Project Background In the 21st century, people’s concern over the market competition has been increasingly keen. The competition among enterprises has shifted from product to enterprise management and corporate culture, and corporate culture has become the core competitiveness of future enterprises. If an enterprise hopes to achieve long-term development, it must have an unique corporate culture and achieve cultural continuity to promote the enthusiasm of all the employees of the company. In order to achieve cultural continuity, trusteeship for personnel is one of the good choices. Namely franchisees are responsible for offering fund and the headquarters is responsible for offering sellers. Trusteeship franchisee is a kind of modern commerce management model. It has a history over 100 years in western countries. However, it has only ten-year development history in China. Currently, the trusteeship is mainly applied to state-owned enterprises in tangible assets such as funds, goods and so on. And few companies apply it in their business operation. Our project is a case study of Carpenter Tan which adopts operation strategy about combination of franchisee stores and outlet stores. It has established 1098 franchisee stores throughout the country. Carpenter Tan follows the essence of the traditional Chinese handicrafts and sticks to the high quality which aims at “finest wood craftsmanship”. Through over ten-year development, Carpenter Tan has become a professional company integrating carding supplies and ornaments. On April 19th, 2006, it was granted “Annual Prize of Most Potential in 2005” by China Chain Store and Franchise Association. Carpenter Tan pays attention to the lineage of the corporation culture. It has a lead over other same type of companies in China because of its outstanding service and brand. Carpenter Tan insists on the enterprise’s core culture of “honesty, work, -2- 2014 Business Practice Contest for Students from School of Business English happiness”, the management culture of “employees are family” and the service culture of “customers are family”. II. Project Analysis Nowadays, more and more big companies have franchisees, just like Carpenter Tan. However, at the same time, there is a phenomenon that there are huge organizational culture differences between the headquarters and franchisees. So we propose our project about trusteeship for personnel to make the headquarters deliver its corporate culture to franchisees well. In order to have a better understanding about Carpenter Tan, we will use “SWOT” to analyze it in detail. Strength: Carpenter Tan models its excellent brand image with unique enterprise culture and high-quality wooden comb. For the product quality, Carpenter Tan insists quality strategy which can be concluded as “finest wood craftsmanship” and “best wooden material”. According to our survey result, about 45.45% of customers choose Carpenter Tan because of its quality. And for the service, Carpenter Tan put the service idea that are “customers are family” in the first place and contribute to model company’s image and brand. In the aspect of operation model, Carpenter Tan is very creative. It combines the franchise shop with outlet store. Weakness: With the development of franchise, the discontinuity of the enterprise culture, especially sellers’ service awareness has become more and more serious. According to our investigation, we found 33.33% of customers think the attitude of sellers is not very good. And 45.45% of customers thought sellers are reluctant when they found something wrong with their combs. Besides, there are several defects in the professional areas of sellers. For -3- 2014 Business Practice Contest for Students from School of Business English example, 27.27% of customers don’t think sellers introduce products elaborately and patiently. And 54.55% of customers don’t think sellers could tailor service to different consumers. In addition, according to investigation, we find three points cause the weakness of Carpenter Tan. First point is recruitment problem. Currently, the hiring and recruitment process is lack of standardized criteria process. Sellers are in the charge of franchisees which lead to the headquarters’ failure of implementing effective management and conveying its enterprise culture. So it causes the phenomenon that there are huge differences in the quality of service between outlet stores and franchisees. Second point is weak cultural atmosphere. Carpenter Tan’s franchisees lack strong cultural atmosphere. Carpenter Tan has good organizational culture, such as “honesty, work, happiness”, but franchisees don’t put it into practice very well. For example, 54.55% of customers thought some sellers’ attitude is bad because they are lack of professional training, which will result in sellers’ failure to understand corporate culture. Third point is the imperfection of compensation system and promotion mechanism. There are little amount of increasing wage and no promotion opportunity, which leads to low employee satisfaction and loyalty. Opportunity: As the development of the Chinese economy, people’s living standard has been improving rapidly. Carpenter Tan combines the comb’s artistry with practical applicability and goes with the tide that people pursuit the fashion and healthy lifestyle. So we suggest it should adopt the new business way which is called trusteeship -4- 2014 Business Practice Contest for Students from School of Business English in the following work to solve the problems we mentioned above. Specifically, the franchisees pay money for renting stores and decoration, then the headquarters dispatch sellers to every store and entirely take charge of running franchisee stores. Moreover, in order to ensure that they are in the control of it, the headquarters will pay salary for sellers. What’s more, in the end of a year the headquarters will give franchisees bonus according to certain percentage. III. Project Goal Our project about trusteeship for personnel has four significant goals which mainly aim at combining culture and sellers. First, through trusteeship for personal, Carpenter Tan can not only implement efficient internal personnel management but also can build a sense of community and loyalty among sellers. Second, force sellers who are plunged into work and put the customer first to improve service quality, which can also improve customer satisfaction and loyalty. Third, through trusteeship for personal, Carpenter Tan can shape a better cultural atmosphere and ensure enterprise cultural continuity. Last, shape better corporate image and create a positive emotional association in the market for products, service and the service provider, which makes Carpenter Tan more competitive in the market. IV. Methods of Marketing Research To further understand the organizational culture of Carpenter Tan, we made detailed and widely investigations. For one thing, we deeply communicated with -5- 2014 Business Practice Contest for Students from School of Business English workers and consumers, interviewed the regional managers in Chongqing and chatted with a sales director in Jiangsu through the telephone. For another thing, we experienced the chain stores, production base personally. The specific methods as follows: A. Questionnaire survey We set up nine questions about service of Carpenter Tan’s franchisee stores. And we totally received 132 questionnaires. On the Internet, we got 60 questionnaires. And in order to guarantee the facticity of our questionnaires, we also granted 72 questionnaires personally in Guanyin Bridge. Most targeted people are young customers and middle and upper-income groups. We chose the coffee house like Starbucks and Pizza Hut, KFC and other restaurants to carry out our survey. B. Literature method We explored different literature approaches to gather information such as Internet and library. We mainly collected and sorted out the related materials about Carpenter Tan, especially its culture and its franchisee operation. C. Interviewing method Through the mailbox of the mayor in Chongqing, we have good fortune to get an opportunity to interview Carpenter Tan’s Marketing Director Mr. Zhu and Chongqing regional manager Mr. Liu on the phone. Before the interview, we did a summary aimed at the problems will be used in the interview. In order to guarantee the significance of the call, we recorded the call and asked a person to take notes when interviewing. They give us much useful information about Carpenter Tan mainly in marketing strategy and human resource management. Meanwhile, when we do questionnaire survey, we also interview some -6- 2014 Business Practice Contest for Students from School of Business English enthusiastic people about their impression on sellers’ service and so on, which makes us have a deeper understanding of brand image on Carpenter Tan. D. Field research Three of our members took a visit to Carpenter Tan’s manufacturing base in Wanzhou and interviewed some workers. Miss Wang who was very friendly acted as their guide. She introduced development history and management system and answered questions about the Carpenter Tan’s production innovation and brand building. Although they cannot visit the production shop for protecting business secrets, they had a visit to its production exhibition hall and get some valuable information about product producing. At the same time, other five members played a role as customers to experience the service of franchisee store in Shapingba, Guanying Bridge and Nanping which makes us understand the Carpenter Tan’s service personally. V. Ways of Execution Taking Chongqing as an example, the headquarters of Carpenter Tan in Jiangsu detaches professional persons to HR branches in Chongqing to be responsible for related affairs, such as unified recruitment, unified training and unified management. We use “5p” model of human resource management to analyze concrete implements of trusteeship for personnel. “5p” model of human resource management includes Perception, Pick, Placement, Professional and Preservation. It makes Carpenter Tan carry out trusteeship for personnel effectively. Perception is the base, Pick is the guide. Placement is the core. Professional is -7- 2014 Business Practice Contest for Students from School of Business English the motive force and Preservation is the purpose. Perception: With the help of scientific talent assessment technology, recognize talents who meet the requirement of the enterprise. Carpenter Tan must have a good knowledge about its organizational framework, to establish records of functional department, understand what kind of employees is needed in different positions. Carpenter Tan must use its quality, such as honesty, diligence, optimism as the core measurement of perception. Pick: Carpenter Tan must establish strict selecting criteria, pay close attention to comprehensive quality, and pick talents who are honest, diligent and optimistic. What’s the most important is picking sellers who recognize Carpenter Tan’s culture, particularly service culture. Placement: Placement is the core. The success of an enterprise is closely associated with reasonable employment mechanism. Enterprises do not lack talents and the key is to motivate employees’ excellent quality and potential. Although every employee has their own characteristic, personality, they must inherit enterprise culture’s DNA. That is to say, corporate core culture “honesty, work, happiness”, service culture “consumers are family”. Employee must have a good command of the tenet of the company and bring into correspondence with corporate culture in principle of action and the way of work. Carpenter Tan must establish its core culture “work, happiness”, overcome sluggishness, improve enthusiasm from senior leader to worker in the service aspect and transform cultural idea into standardized and professional behavior. Let employees be happy to work hard and provide satisfactory service. Professional: Professional is impetus. Carpenter Tan must put talent training into its company strategy. Training program must run through the whole process of -8- 2014 Business Practice Contest for Students from School of Business English career development. Carpenter Tan needs to insist the idea of “people first” to improve employee’ comprehensive quality and establish a training organization which can motive employee’s energy to the full scope. First, Carpenter Tan must shape value system, in other words, the training of corporate culture, which is the first thing that employee have to know. Carpenter Tan can launch newspapers and periodicals to spread its culture top-down or train by employees themselves. They can also create cultural atmosphere by telling stories, case study about Carpenter Tan and so on, to understand the company’s philosophy and reach common sense. Second, Carpenter Tan have to train employee in basic service skill on a monthly basis at regular meeting, such as smiling service training, behavior and manners training and dressing training. Carpenter Tan’s culture is reflected in every aspects of service. The concept of “consumers are family” is built in its service system through employee’s smiling service, thus, improving service quality. Preservation: Preservation is purpose. If enterprise wants to achieve maximum of customer satisfaction, it must gain maximum of employee satisfaction. Carpenter Tan is supposed to insist its corporate culture “Employees are family”, showing understanding for employees, caring about employees, such as birthday blessing. Meanwhile, establish scientific promotion mechanism, payment system, such as bonus, allowance and so on to encourage employees and improve the satisfaction and loyalty of employees towards company. Making sellers work with happiness in deed. Service brand is the key of chain-store operation. Carpenter Tan’s using trusteeship for personnel can guarantee effective management with continuity of corporate culture, especially service culture, cultivate high-quality front-line sellers who can inherit the culture of Carpenter Tan, and ensure the quality of franchisee -9- 2014 Business Practice Contest for Students from School of Business English services. It will increase customer satisfaction, brand loyalty and have an outstanding brand image of Carpenter Tan. Nowadays, the business of enterprise is the business of culture. The culture can be an unique way to unite employees and gain better economic and social benefits. Carpenter Tan must through trusteeship for personnel to ensure cultural continuity which mainly includes core culture, service culture and management culture. - 10 - 2014 Business Practice Contest for Students from School of Business English Questionnaire about the service quality of Carpenter Tan 1. Why do you choose Carpenter Tan? A. Band B. Beauty C. Quality D. Service 2. How about the attitude of sellers? A. Very good B. Good C. Not bad D. Bad 3. What about the attitude of sellers when you find there is something wrong A .Good, patient and active B. Reluctant. C. Bad and refuse to compensate 4. Do sellers keep high service awareness all the time? A. Yes B. No 5. What do you think cause the bad attitude of sellers? A. They are in bad mood. B. They lack professional training. C. They lack the good service consciousness. D. The specification in the stores is not qualified. 6. Do sellers introduce products elaborately and patiently? A. Yes A. Yes B. No B, No 7. Can sellers tailor service to different customers? 8.What kind of services do you want to receive? A. Sellers are enthusiastic and follow you all the time. B. Don’t bother you C. Sellers are on call when you need them. D. The attitude of sellers is always good 9. Will you choose Carpenter Tan again? A.Of course yes B.Not sure C. Of course not with your comb? - 11 - 2014 Business Practice Contest for Students from School of Business English The result of questionnaire about the service quality of Carpenter Tan 1. Why do you choose Carpenter Tan? Option Brand Beauty Quality Service Total number Sum up 40 24 60 8 132 Percentage 30.3% 18.18% 45.45% 6.06% 2. How about the attitude of sellers? Option Very good Good Not bad Bad Total number Sum up 8 72 44 8 132 Percentage 6.06% 54.55% 33.33% 6.06% 3. What about the attitude of sellers when you find there is something wrong with your comb? Option Good, patient and active Sum up 56 Percentage 42.42% - 12 - 2014 Business Practice Contest for Students from School of Business English reluctant Bad and refuse to compensate Total number 60 16 132 45.45% 12.12% 4. Do sellers keep high service awareness all the time? Option Yes No Total number Sum up 76 56 132 Percentage 57.58% 42.42% 5. What do you think cause the bad attitude of sellers? Option They are in bad mood. They lack professional training. They lack the good service Sum up 18 54 57 3 132 Percentage 6.06% 54.55% 33.33% 6.06% consciousness. The specification in the stores is not qualified. Total number 6. Do sellers introduce products elaborately and patiently? option Yes No Total number Sum up 96 36 132 Percentage 72.73% 27.27% - 13 - 2014 Business Practice Contest for Students from School of Business English 7. Can sellers tailor service to different customers? Option Yes No Total number Sum up 60 72 132 Percentage 45.45% 54.55% 8. What kind of services do you want to receive? Option Sellers are enthusiastic and follow you all the time. Don’t bother you Sum up Percentage 6.06% 30 66 54.55% Sellers are on call when you need them. 105 33.33% The attitude of sellers is always good 72 6.06% Total number 132 9.Will you choose Carpenter Tan again? Option Of course yes Not sure Of course not Total number Sum up 56 60 16 132 Percentage 42.42% 45.45% 12.12% - 14 - 

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