Case Study of Store24 (A): Managing Employee Retention
Summary: The top executives of a chain of convenience stores, Store24, are attempting to come up with ways to increase employee tenure at their stores. We need to determine the relationship of employee tenure to store profits before they commit to this. They collected profits, management and crew tenure, and site location factors of 75 stores. Based on the data, we recommend that Store24 researches ways to increase employee tenure, more specifically manager tenure. Holding store location factors constant, manager tenure has the greatest impact on profits of Store24 stores.
Problem and Matching Objectives: In defining the problem, we need to determine whether employee drives
Thus, the rough prediction range for the profit is between -$115170.46 and 115170.46. Considering the mean of the profit is $276313.61, a standard error of $57,585.23 is probably not acceptable. There might be additional variables, such as manager and crew skill, and the service quality of the store, that can explain more of the variation in profit.
According to the result of Model 3 regression analysis, we come to the model equation as follows:
Expected profit= 60731.36 + 842.27(Manager Tenure) + 1003.62(Crew Tenure) + 3.48(Population) - 26708.90(Competitors) + 73146.90(Pedestrian 2) + 101085.25(Pedestrian 3) + 117757.20(Pedestrian 4) + 168799.40(Pedestrian 5) + 88856.49(Resident) + 59846.77*(hours24)
We run a simple calculation that increasing 1 percent of average manager tenure increases profits by $381.52 (0.452964*$842.27) and increasing 1 percent of average crew tenure increases profits by $139.82 (0.139315*$1003.62), holding other variables constant. This further calculation proves that manager tenure has a greater impact on profit