The Good Jobs Strategy - MIT Sloan School of Managementmitsloan.mit.edu/uploadedFiles/Alumni/Content/Events/2014-2015... · The Good Jobs Strategy Operate with slack Invest in Cross-train
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©Zeynep Ton 2014
Phantom stockouts: 25-30% in CPG, 60% at a specialty retailer
Promotion compliance: 50%
Vicious cycle
Low sales
& profits
Low labor
budgets
Low
quantity &
quality of
labor
Poor operational
execution
Operate with
slack
EMPLOYEES Ability to succeed Time off
INVESTORS Higher sales Fewer errors Improvement Better hiring
CUSTOMERS Low prices Good service
Mercadona in 2009
• Reduced product variety
• Lots of other changes
– Produce presentation €175million/yr
– Water and milk cartons €2 million/yr
– Cereal and nut packaging: €900,000/yr
– ……
• Cut prices by 10% (€720 less per
household)
©Zeynep Ton 2014
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