● organizational structure and design.
Relationship marketing issues:
● managing internal markets
● managing the organization’s climate and culture
● employee turnover
● managing recruitment markets:
● selection of staff
● placing staff/job rotation
● training staff
● managing customer markets
● how employee morale influences customer satisfaction.
This case highlights many of the issues involved in developing a
relationship marketing strategy. In particular, it considers the
importance of culture and values as being critical to organizational
success. Traditionally much debate has surrounded the mystique
and magic of the Nordstrom formula. However, this case goes a
long way towards explaining some of the key factors which have
contributed to Nordstrom’s meteoric rise to success.
Case 5.4: Digital Equipment Corporation: Counting the
real cost of employee turnover
This case was written by Helen Peck, who is a Research Fellow at
Cranfield School of Management.
Abstract
This mini-case documents the full cost of employee turnover for the
Digital Equipment Corporation. The case begins in 1987, when
Digital Equipment Corporation was Britain’s fastest growing com-
puter company. However, due to the booming British economy and
the skills shortage in the M4 corridor, the company was finding it
increasingly difficult to recruit new employees. The case goes on to
discuss how the company decided to try to minimize the need for
further recruitment. It did this by undertaking an in-depth study of
why employees were leaving the company and endeavoured to
track the costs of replacing these employees. The company hoped
The recruitment and internal market domains 333