Enterprise Case Study
...rain station. They have moved into more suburban and even rural areas to provide service to more than just the avid traveler. Enterprise now supplies to people who need a car while they are having theirs repaired, or even to take on vacation. Enterprise’s low rates and special weekend offers are making people re-think their travel plans. Corporate Structure: Enterprise is quite a decentralized operation; with a very small corporate staff. The executive staff encourages each of the branch managers to run their own operation. Innovative Training: Enterprise uses a very creative method to incorporate their new hires into all the facets of their business. New hires are encouraged to converse with people from all areas of the firm. This allows each employee to have a better rounded idea of every step in the business. Customer Relations: Enterprise is extremely concerned with the happiness of all of its customers. They always strive for customer satisfaction, even if that means waiving charges, or driving to pick up a stranded customer. Weaknesses Recruitment: Enterprise is having major difficulty staffing their more than 3000 locations. The majority of their new hires come directly out of college. Unfortunately, most prospective employees don’t see much possibility or prestige in renting cars. Enterprise’s true weakness lies in conveying the message to possible employees that there is potential, possibility and prestige found in a position with Enterprise. Opportunities Long Distance Travel: Enterprise has rates that are low enough to make people consider renting a car for the family vacation or road trip. Instead of driving their own vehicles, customers are renting to avoid putting excessive miles on their vehicles. It is also useful for those who are unsure of the dependableness of their vehicles for long travel. Enterprise could run more offers on family sized vans for extended periods of time. This is a market that with proper marketing strategies could grow substantially. Referrals: Enterprise gets most of its business from people who must replace their cars on the spot due to an accident or break-down. The more Enterprise advertises and markets to individual service stations and towing services, the more customers will be referred to them. Threats Competition: Enterprise has a very safe and stable market right now. None of the other rental car companies have really begun to hack into their customer base. However, it is suspected that they soon will. This is where it will be very necessary to try and obtain as much of the market as possible before there is more competition. Problem/Decision Statement Enterprise is currently faced with the problem of under recruiting. They are left with the dilemma of how to entice more new hires to join their firm. Through market research, they have found that most possible employees turn down Enterprise due to lack of compensation, prestige, hours vs. pay and potential to promotion. Identification of Alternatives a) Increase the amount of recruiting earlier in college. Increase awareness of possibilities with Enterprise. b) Increase starting salaries of new hires as well as decrease the length of the work week. Criteria for Decision 1. Profits---How will Enterprise have to adjust their end cost to the consumer to curb the cost increase of a new campaign? 2. Quality of Work---Will the quality of work by the employees change if their work week is shortened? 3. Demand for Employees---Will this new campaign actually gather new employees? 4. Customer Satisfaction---Will the new hires under the new campaign be able to uphold our customer service standards? Analysis of Alternatives a) Recruit earlier in College Pros: Recruiting earlier could open the opportunity for Enterprise to start training their employees as interns. This would allow recruits to work and learn within the company without having to worry about who is going to pay them the most money. This may also lend itself to allowing the intern to make more than the average new hire. This eliminates the fear of a low paying job by the employee. Being exposed to the company as an intern would allow the employee to see the possibility for promotion and p...