Date: April 3, 2011

Attn: Mr. Donald Penchiala, Staffing Services Director Ms. Marilyn Anchley, Vice President of Human Resources Tanglewood Store Management

Subject: Labor Projects and Planning

In the following report, you find forecast of labor requirements and analysis with strategic suggestions to improve overall recruiting practices at Tanglewood. It has been brought to my attention that past recruiting and promotion practices may have not been up to par or need to be reviewed. After reviewing the information in this report and statistical graphs, I will offer my suggestions how Tanglewood can improve in all these areas to be successful not only in planning, recruiting but also promotions and business practices.

Labor Forecast

Table 1.1 Markov Analysis Information Transition probability matrix | Current year | (1) | (2) | (3) | (4) | (5) | Exit | Previous year | (1) Store associate | 0.43 | 0.06 | 0.00 | 0.00 | 0.00 | 0.51 | (2) Shift leader | 0.00 | 0.54 | 0.16 | 0.00 | 0.00 | 0.30 | (3) Department manager | 0.00 | 0.00 | 0.64 | 0.06 | 0.00 | 0.30 | (4) Assistant store manager | 0.00 | 0.00 | 0.06 | 0.52 | 0.08 | 0.34 | (5) Store manager | 0.00 | 0.00 | 0.00 | 0.00 | 0.66 | 0.34 | Forecast of availabilities | Next year (projected) | (1) | (2) | (3) | (4) | (5) | Exit | | | Current Workforce | | | | | | | Previous year | (1) Store associate | 8,500 | 3655 | 510 | 0 | 0 | 0 | 4335 | (2) Shift leader | 1,200 | 0 | 648 | 192 | 0 | 0 | 360 | (3) Department manager | 850 | 0 | 0 | 544