| Industry: Service > Mastercare
Company Profile
- Mastercare, the repair division of Teljoy, a major retailer of electronics.
- All 200 employees attended the program.
Situation Analysis
- Mastercare was an unprofitable division of Teljoy.
- As Teljoy was essentially subsidizing Mastercare, new management decided that Mastercare branches needed to be turned from cost centers into profit
centers – or shut down.
- As a result of this decision, there was an increased fear of layoffs and a strained
relationship between Mastercare’s and Teljoy’s managers. In addition, staff in
the outlets had a purely ‘budgetary’ approach to business and needed to understand
business and business opportunities if the project was to succeed. Team Business
was selected to achieve this.
Team Business Challenge
- Turning an organization from a cost center to a profit center required a significant
attitudinal and behavioral change.
- There were two profitability strategies that Mastercare could use – either to cut costs
or to identify unrealized opportunity.
- In consultation with Mastercare, Team Business decided that the optimal profitability
and growth strategy lay in the arena of unrealized opportunities and that for these to
be identified and maximized, all staff would have to understand
the nature of business opportunity identification and commitment to profitability improvement.
Mastercare personnel were trained as facilitators to implement
Team Business.
Business Results
- The Team Business implementation resulted in a company-wide realization that
Mastercare was sitting on a massive unrealized opportunity. Without all staff
being involved in this identification, it is highly unlikely that this could have
been achieved.
- Through analyzing their own competencies and the nature of service markets, Mastercare discovered there were other services they could sell
to their existing customers and found new customers for their increased services.
- As a result of the Team Business intervention, Mastercare employees came up
with these ideas themselves. The staff felt empowered, and morale and confidence
improved as a result.
- The holding company, Teljoy, was so impressed with the results achieved that they
approached Team Business to run the program for all of their staff as well.
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