Case study

Giordano Case Study Giordano realizes that its employees are its most valuable asset. This can be seen by using strict criteria for potential employees as well as excellent compensation packages to make employees feel a part of the company. Going higher up the corporate ladder, the same strategy can be seen at the corporate level. Giordano does not place emphasis on top management, and this feels to convey an informal feeling among the company’s employees. That’s not to say that the company’s employees are lazy; they’re not. Management only wants to create an environment where employee participation is encouraged. Just to keep employees on their feet, customer feedback cards are available in each store so that customers can contribute to helping the company to improve efficiency. Lastly, the company’s IT system has helped it to continue to stay one step ahead of its customers by providing products that they want before they know they do. All of these factors have helped to contribute towards Giordano’s competitive advantage in the marketplace by helping it stay ahead of the competition.
2) Giordano’s operations strategy is very consistent with its marketing strategy. The focus of Giordano’s marketing efforts is on two areas, high-quality service and low cost leadership, both of which Giordano are very successful at achieving. The test will come when Giordano is forced to move its marketing strategy away from low cost leadership to a combination of high quality products at considerable prices. If Giordano is able to adjust its operations strategy to take this new market positing into account, then the company has a very good chance of capturing a significant market share.
3) The biggest operations management challenge for Giordano as it expands into new territories is staying true to its principles. Although the company will need to adjust its marketing strategies based on the local culture, the focus still needs to be on excellent customer service along with high quality products. As of right now, Giordano does not allow its foreign subsidiaries to act independent of each other. Control is centralized in one region: Hong Kong. If Giordano is going to increase its market share in new markets, then it will need to rely more upon locals to increase performance and efficiency. There is nothing wrong with monitoring each foreign subsidiary from Hong Kong, but there needs to be some freedom given to subsidiaries so that they can become a force in their local market.
4) For Giordano’s operations strategy in the future, I would recommend that the company expands its product lines to cater for local tastes. This is highly controversial because its goes against everything that Giordano has done, and successfully, in the past, but new markets mean that Giordano may have to move away from its previously successful operations strategy by listening to local preferences.