Tanglewood Case Study One

INTRODUCTION

Tanglewood is a chain of general retail stores featuring items such as clothing, appliances, electronics, and home decor. The company operates in the moderate price niche, targeting middle- and upper-income customers. Tanglewood’s strategic distinction is an “outdoors” theme, with a large camping and outdoor living section in every store. The store also distinguishes itself by its simple, elegant, and uncluttered design concepts for the store and their in-house products.

It was founded by two best friends in 1975 by Tanner Emerson and Thurston Wood and later renamed their store chain to Tanglewood in 1984. Initially it operated as a single store and as years went by, as the business developed from 1975 to 1984, the business had grown substantially with a strong base of employee participation, customer satisfaction, and profitability. The company grew to other parts of America has today has a total of 243 stores open in the states of Washington, Oregon, Northern California, Idaho, Montana, Wyoming, Colorado, Utah, Nevada, New Mexico, and Arizona.

The company would like to now consolidate its current management strategy. But before doing so, there is a need to study Tanglewood’s current operating environment. There are several area of study and they are:

➢ Competition and Industry

Tanglewood’s Return on Assets (ROA) is at the second position in which it has efficiently managed its assets to revenue. Return on Revenue (ROR) shows that Tanglewood is one of the top after Kohl. An increasing ROR implies that there are fewer expenses incurred for higher net income. The percentage of proceeds obtained from selling the investment of interest (ROI) shows a healthy figure. However, Tanglewood needs to be concerned of direct and close competition of several companies like KoStoreshl’s, Federated Dept and Target.

| |Profit ratios |

|...