The current operating environment of Tanglewood is as follows:

Competition:
Tanglewoods major competitors are Kohls and Target. The operating revenue of
Tanglewood shows that Tanglewood is a moderately sized organization with strong
growth potential. The Return on Revenue (ROR) figures indicate that Tanglewood in
only second after Kohls in the market. High ROR indicates that Tanglewood incurs
fewer expenses for higher net income. Tanglewood has the highest ROA in the
market which indicates it has managed its assets better than its competitors.
Tanglewood has a moderate ROI. It indicates that it must be concerned about the
competition from Sears, Wal-Mart, Kohls and Target. Though it is in a safe zone it
should try to increase its ROI. Its current competitive strategy is that it tries to
appeal to the middle and upper income group consumers who are looking for
convenience and reasonable prices. It also focuses on stocking quality products,
providing customer service and a more designer appearance than discount stores. It
has developed several proprietary brands of merchandise which are designed to
complement its looks. It also has a country store concept that allows them to
utilize their low cost shipping arrangements to the benefit of customers.
Structure:
It encourages its employees to make suggestions regarding operations. At the top of
the organizational hierarchy is the Store Manager who has three assistant managers
working beneath him/her. The assistant manager for Softlines who is in charge of
clothing and jewellery, the Assistant Manager of Hardlines in charge of sporting
goods ,bath, bedding and home dcor, and the Assistant Manager of Operations and
Human Resource responsible for cashier, security and human resource
management. Overall there are around 215 employees per store. Tanglewood does
not prefer temporary staff.
Employees:
With 1 store manager, 3 assistant managers and 17 department managers
approximately 24 shift leaders and 170 associates there are 215 employees per
store. All employees are members of the core work force.
Organizational culture and values:
The company emphasizes on employee participation and teams. Every employee is
given the space to make their own decisions. The company places importance on
straight talk in areas of business. It provides its employees with information on
the companys share price and overall profitability of each quarter along with other
details of the company activities. Profit sharing encourages employees to think like
managers. Mandatory weekly store meetings give employees the opportunity to
voice their suggestions for in store improvements. Associates who give suggestions

are given financial bonuses. Department managers are also given financial
incentives for successfully developing and implementing new policies and
procedures. All these steps reinforce the participatory management style of the
company.
Every shift is run on a team concept. Senior associates are designated as shift
leaders and the other members are encouraged to provide suggestions. All
members share all tasks. The associates make themselves available to help other
members of the team. Performance evaluation focuses on participation in the team
and interaction with other team members and initiative to improve the department.
The main criteria through which promotions and advancement are made is by
observing leadership and decision making ability of the associates.
Human Resource:
The Human Resource structure at Tanglewood involves both corporate and store
level components. The Staffing Services Director supervises three managers plus an
Equal Employment Opportunity Co coordinator. The Corporate Staffing Services
function performs data analysis and design of staffing policies and programs. Data
regarding recruitment practices methods of interviewing, testing and selecting
employees and employee turnover are sent from individual store to corporate
headquarters. At the headquarters the collected data are analyzed and specific
recommendations are provided to the stores. Each store is responsible for
implementing the recommendations provided by the corporate. The store
operations and Human Resource manager is responsible for overseeing each stores
staffing, training, performance management and equal employment opportunity
practices. With regard to staffing the manager of operations and human resource is
responsible for planning, recruitment and initial screening. Department managers
interview finalists then hiring decisions are made in conjugation with assistant store
managers. Promotion decisions are made within the stores. Regional managers hire
store managers and work with store managers to determine promotions to the
assistant store manager. Overall the corporate staffing function is not so strong as
the role of the corporate HR managers is to primarily act as advisors to the regional
manager because of the participatory philosophy of the stores.