Tanglewood has a strong position in the general nondurable retail industry, which currently has annual sales of more than $4 trillion. With a growth rate of return of 13.1% and over $7 million in operating revenue, Tanglewood has great growth potential and is very competitive. Even while competing with major online competition and global competition. Tanglewood has the opportunity to expand their store in the global market, this would be a major expansion and would help Tanglewood outperform the competition. Tanglewood has remained quite small due to the low number of stores, but it can become the global leader of the non-durable goods sector if global expansion becomes a reality. Competitive Response and StrategyAs Tanglewood's mission puts into place this IT system will create unity and optimize how Tanglewood regional managers manage their region and maintain Tanglewood's original ideals within each region. There is also cause for concern about the balance between potential customers in an area and the number of employees in the region. This ratio should remain consistent within the Tangle wood. For example, if the region has between 3,000,000 and 4,000,000 potential customers, the number of employees should range from 4,500 to 4,900 employees. Consistency will help managers manage their regions the same way. It also wouldn't be Tanglewood's way to let go of mid-level managers, especially if they are contributing to the organization's success. So the implementation of flattening the hierarchy should be slow, allowing mid-level managers to move up or adapt to the new system of things where there would be more department managers and no shift managers. This is all aimed at creating a more centralized company due to the rapid growth of
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