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Raleigh Case

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Submitted By cherryl1234
Words 5250
Pages 21
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OCTOBER 10, 2011

ROBERT SIMONS MICHAEL MAHONEY

Raleigh & Rosse: Measures to Motivate Exceptional Service
Grasping the iconic “golden horseshoe” door handle, CEO Linda Watkins strode into Raleigh & Rosse’s Palm Springs, California, store and surveyed the sales floor. Ambient lighting was subdued while hidden halogen ceiling lamps artfully spotlighted merchandise and signage. Display cases made from polished exotic woods projected visual warmth and sophistication. A harpist played Mozart crisply in the background. It was just over a week into January 2010, and the store, swept clean of holiday decorations, had bright spring colors on display. Watkins noticed many sales associates engaged with customers, but foot traffic was below expectations for a Saturday afternoon. Her cellphone rang. “Linda, I got your voicemail. Raleigh & Rosse is being sued by its sales associates in a class action lawsuit?” asked Brian Rosse. He could barely contain his anger. Watkins moved to a quiet corner of the sales floor. “Sorry, Brian. R&R was served notice late Friday,” she said. “Looks like it’s a rehash of the ‘working off the clock’ charges that we dealt with last year. Logan [R&R’s general counsel] isn’t too worried about the merits.” “But think about the negative publicity, the damage to our brand and image!” “We’ve already engaged our PR agency to work on communications strategy. This is not great news, Brian, but I’m determined to find a way to manage it. Why don’t we discuss the details and the legal strategy with Logan on Monday,” Watkins said. Rosse calmed down a bit. He asked about last week’s sales numbers.. “Overall, still weak. Miami and Chicago looked good, but most stores are struggling,” explained Watkins. “Less than 60% of our associates met sales-per-hour targets this week.” “As if 2009 wasn’t bad enough,” he groaned. Watkins had to agree.

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