Planning Analysis

TO: Donald Penchiala

DATE: Wednesday, February 27, 2008

SUBJECT: PLANNING ANALYSIS FOR TANGLEWOOD

Table 1.1 Markov Analysis Information

B.

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 51 0 255

(4) Assistant store manager 150 0 0 9 78 12 51

(5) Store manager 50 0 0 0 0 33 17

C.

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

External Environmental Scan

Refers to the process of tracking trends and developments in the outside world. Areas of focus include the economy (inflation rates, unemployment rate, monetary/ fiscal policies, ect.), broadcast media, relevant labor markets, and other applicable data.

Factors in the environment that suggest Tanglewood might have difficulty filling their vacancies in the future include the known fact that retail is considered a fairly undesirable job for recent college graduates. These potential employees do not have the desire to put to put forth the long hours with low pay it would require to move up the hierarchy chain.

Also, in the Pacific Northwest the unemployment rates have been high. This makes it difficult for individuals with low or no KSAO’s to find a job. This weakness however does make it easier for Tanglewood to find new candidates for managerial positions but unfortunately, recent forecasts suggest that expansion in the professional and managerial sectors of the labor market may reduce the number of individuals available for these jobs.

High unemployment rates will also make Tanglewoods internal staffing strategy much more difficult to achieve. Tanglewood relies heavily on its experienced employees and promotes intensively from within. By doing this they hope to obtain their strong corporate culture. If the economy is experiencing high unemployment rates, then there will not be as many employees hired in the lower level jobs. If there is no one in the lower level jobs then its makes it makes it much more difficult to promote employees with experience.

D.

Gap analysis Next year (projected)

(1) (2) (3) (4) (5)

Year end total

(column sum) 3655 1158 736 129 45

External hires needed

(current workforce-total) -4845 -42 -114 -21 -5

Shortages occur in the all 5 job positions for the next year.

Job Position Employees Needed

(1) Store associate 4845

(2) Shift leader 42

(3) Department manager 114

(4) Assistant store manager 21

(5) Store manager 5

E.

Tanglewood has one managerial track that promotes sales associates to be shift leaders, then promotes shift leaders to be department managers, and so on up the managerial hierarchy. This tactic has aloud Tanglewood obtain their strong and effective corporate culture for many years.

If Tanglewood decided to choose this tract and this track only they will need to promote 5 of the assistant store managers to store manager. Take 26 department mangers and promote them to assistant store manager. Promote 140 shift leaders to department manager and promote 182 store associates to shift leader. This would leave a shortage of 5027 store associates which Tanglewood would need to hire externally.

The results of these actions are illustrated in the chart below.

Job position Workforce Employees Needed

(1)Store associate 3473 5027

(2)Shift leader 1200 0

(3)Department manager 850 0

(4)Assistant store manager 150 0

(5)Store manager 50 0

Another factor that Tanglewood needs to be aware of when executing this plan to fill the vacancies is where and how they are going to recruit the 5027 store associates. They need to know if they are going to have open or a targeted recruitment process. If they choose a targeted one they need to focus on areas where the potential applicants either have special qualifications or are in a protected group. Focusing on these two areas will help not only help build an organization capable of effective strategy execution; it will also minimize concerns about Equal Employment Opportunity violations.

Another solution that Tanglewood sometimes uses in combination with the one described above is hiring externally and bringing in