The Interview With O’reilly In Magnolia

Table of Contents

O’Reilly

AutoZone

Comparison between two items

O’Reilly

O’Reilly’s first business was a Missouri-based part store. Their first year of sales was $700,000. Missouri opened its first branch store in 1964. 1975 saw the first distribution centre open. O’Reilly was founded in 1978 as a duo-market strategy. They began selling in the professional and retail markets. O’Reilly was made a public company in 1993. O’Reilly had 2,333,332 shares worth $17.50 each share. They now have 5,021 locations and are present in 47 states. I was able to interview the manager of O’Reilly Magnolia, AR.

Rachel is the manager at O’Reilly in Magnolia, AR. O’Reilly’s customer service manager, Rachel’s duties include looking up parts and helping customers. She received some corporate training, but most of her training was done online as it was training and skills tests. She manages the Magnolia plant, AR. Rachel also oversees the local Magnolia, AR plant. Some managers are more comfortable with their bosses than they are and therefore do not expect to be as dedicated to their work and as productive as others. The customers and pay bonuses are her favorite aspects of her job (R. Jones personal communication, March 26, 2018,). Rachel’s most important event since she started working for O’Reilly was the change of Magnolia’s store manager. The change in store manager at Magnolia was not well received by the staff. Because they thought this would make the store manager look bad, the employees at the store were less likely to sell. The new district manager visited Magnolia to discuss the reasons sales had declined since the store manager’s arrival. The district manager wanted to ensure that there were no problems with how the employees were managed. This was better than letting them continue to happen (R. Jones personal communication, March 26, 2018). O’Reilly Auto Parts consists of a number of stores. They have a corporate, hub stores, as well as local stores. Each local shop reports to a corporate office. Many departments are available at the main office. The main office has many departments, including credit, collections and customer service. There is a store manager at each store. The local manager and the district manger oversee all stores in each region or district, and they must visit them regularly. The company is divided into many regions and districts. This is to ensure that all stores meet the same standards. This breakdown is beneficial because the regional and local managers are able to establish a personal relationship and trust with each store’s team member. This is where the weakness lies. Each store in a particular district must perform in the same way and achieve the same goals. Even if the store within the district is smaller, this is normal. Magnolia, AR should have the same amount of sales as Shreveport LA. Shreveport is in a more rural area than Magnolia. However, they should still be productive (R. Jones personally communication, March 26, 2018). O’Reilly’s mission is to “O’Reilly Automotive” which means that O’Reilly Automotive will offer its customers (professional installers and jobbers) the best prices and quality along with the best service. O’Reilly will offer a benefits and compensation plan to attract and retain the right people in order to achieve this mission (Company Overview). This mission statement can be used by many companies. This mission statement is important because it outlines how employees will be treated. O’Reilly has neither a code of conduct nor a statement about its values. O’Reilly’s culture can best be described by a hierarchy. O’Reilly uses e-mails and weekly team mails to communicate with each other. These communicate the store’s progress over the previous week. Managers inform employees about this information.

Managers should do this to ensure that employees all work together. O’Reilly has a strong market orientation. AutoZone is its largest competitor. O’Reilly’s role is primarily a male one. This is why many female workers are made to feel insulted and pushed aside by their male counterparts. This is something that every store has to address. Magnolia is a place where female employees stand up for what they believe in and can tell their male counterparts that they can assist them as well. To prevent any unethical behavior, the company has rules. The theft is the most serious ethical problem. While theft can be committed internally, the majority of theft is committed by customers. Each employee must undergo a background check to prevent this from happening. The computers are monitored to ensure that no employees steal time. You can anonymously tip a line to encourage whistleblowers within the company. The corporate tip line relays any suspicious behavior directly to them. An investigation will follow to determine if the behavior is unethical. The community should be aware of O’Reilly’s charitable efforts. It shows that people care about each other and the work of the community as well as the money. Magnolia O’Reilly just donated $2,000 to Southern Arkansas University’s boy’s group and a number of local festivals. (R. Jones’ personal communication, March 26, 2018.) O’Reilly’s difficulty motivating employees is partly due to their low pay and their poor leaders. Sometimes leaders are too lazy or lack a strong work ethic. This behavior is addressed by O’Reilly, which sends managers to company meetings and offers coaching. O’Reilly employees receive excellent fringe benefits, as well as many opportunities for bonuses. They also receive a percentage of all sales (R. Jones personal communication, April 26, 2018).

AutoZone

AutoZone was founded in Arkansas in 1979. Auto Shack was the original name. The initial sales on their opening day were $300. AutoZone’s commercial program, which provides credit and delivery to professionals technicians, was launched in 1996. Bridges and Spitler’s are two examples of Magnolia stores that can benefit from this service. AutoZone expanded into Mexico in 1998. AutoZone has grown to be a larger company since then. AutoZone now employs over 65,000 people. AutoZone was able to grow beyond a CEO, store manager and chairman. They now have a chairperson, regional manager/district manager, store manager, assistant manger, and CEO. I interviewed April, the manager of the Magnolia AutoZone Store. April is the AutoZone Magnolia Store Manager. Since April joined AutoZone in Magnolia, AR 12 years ago. She has responsibility for managing the store, opening and closing it, as well inventory and customer service management. While she received some training before she was appointed store manager, it wasn’t as extensive as she would have needed if she had been an employee. April needed to be well versed in parts. She had to take a few quizzes and attend some manager training classes. Managers are usually promoted from within because they have a good knowledge of parts. April is the Magnolia AutoZone Manager (A. Colvin – personal communication, April 2, 2018,). April enjoys AutoZone’s culture as they are always trying to solve customers’ problems. Her only wish is that they were able hire more workers during busy seasons like tax season. (A. Colvin, personal communication April 2, 2018). The theft is the most significant change she has seen since joining AutoZone. An employee stole parts from her store to make them cheaper before she became manager. He was caught after a while, but he was eventually caught and arrested. They were forced to increase their inventory taking frequency after the incident. A. Colvin, personal communication. April 2, 2018. AutoZone is a company with local branches. Memphis, Tennessee hosts the corporate headquarters. The main office is responsible for payroll, benefits as well as customer service, store support and customer service. Local stores have DCs that deliver freight and return all recalls, cores and damaged products. There are professional and do-it yourself departments at local stores.

Management can be divided into three categories: regional, district, and store assistant managers. The assistant manager is not available at AutoZone Magnolia, AR. There is no assistant manager so the commercial manager takes over. This is done so customers feel like they are in a small store when they visit the shops. Because many customers return customers, this is where the strength of a store is broken down. It is a weakness that the regional and district managers do not meet with commercial customers. A further weakness is that higher-ranking managers do not communicate with their employees and they may not get the entire message. AutoZone has no mission statement. All employees should know the pledge. AutoZoners never forget their customers! We are experts in our products and parts. Our stores are beautiful! We offer the best merchandise and the lowest prices.” (Our pledge and values). This unique mission statement has been omitted by the company. It contains statements that pertain to the industry, however it does not address the company. This pledge seems powerful and is extremely important. AutoZone has a set of values. AutoZone believes that every employee should put customers first. This is very important because it shows that AutoZone cares deeply about customers and team members. AutoZone is a company with a strong culture. Its culture is highly market-driven. It maintains the company’s culture and values through training, and by posting them in all stores for employees to view. It is crucial to have the right people in the right positions and that they are hired correctly. The first day employees are hired, training starts and they learn the company culture. Company culture requires the use of procedures and rules. The company is also market-driven, which I think describes it. AutoZone has a wide range of products and services. There are programs that keep it diverse. The corporate office has to deal with globalization, so members of local stores don’t know much. The theft is the biggest ethical problem facing AutoZone Magnolia, Arkansas. To reduce unethical behavior, the company relies on procedures and rules more. Trustworthy people are a hallmark of the company. All employees are subject to background checks during the hiring process. They monitor all sales activity and other daily activities. AutoZone is committed to charitable events. AutoZones in their local area donate almost every time they are asked. AutoZone employees have a lot of work and low salaries. This is their biggest motivator. The promotion and raises of employees are incentives. All full-time employees are entitled to vacation time and other benefits (A. Colvin personal communication, April 2, 2018,).

Comparison of

In their background, the companies have a lot in common. Both have been auto parts stores for years and have both do-it yourself parts and retail markets. Both stores can also deliver parts to professional markets. O’Reilly stores are only in 47 states while AutoZone stores can be found worldwide. O’Reilly doesn’t believe they’re ready to move into international markets. Both companies have a history that is representative of the auto industry (Our History and Timeline). In terms of organization structure, AutoZone is similar to O’Reilly. Each has a regional, district, or store manager and an assistant manager. O’Reilly’s organizational structure is very different to AutoZone’s. It’s the way they communicate with each other. O’Reilly communicates with many people within the company. AutoZone follows a hierarchy of command. This causes messages to be interpreted differently by people. This may be because regional and district managers feel that they have the right to speak to all employees. Any messages sent to the store manager may be misinterpreted or not communicated to the employee. AutoZone’s organizational structure is unique. O’Reilly’s is a typical example of a store selling auto parts. Through their mission statements or pledges, the companies have the same values and culture.

Both companies are driven by their employees and customers. The theft is another commonality between the two companies. There is a significant difference in the way they approach diversity. O’Reilly seems more diverse than AutoZone. Because the majority of people are still unfamiliar with the concept of women in the automotive parts industry, I think the diversity problem could be common. AutoZone’s policies are identical to O’Reilly’s in how they promote their employees from within. Their monitoring of their employees is where the differences lie. O’Reilly, on the other hand, monitors employees by looking at sales. AutoZone does this by monitoring employees’ access to specific websites from store computers. O’Reilly and AutoZone both need cameras installed in their stores as theft seems like a huge problem. AutoZone’s front doors have sensors that sound when a customer attempts to steal. Inventory checks are the only method to see if employees are stealing. O’Reilly does not have cameras or sensors. Employees at O’Reilly are responsible for finding customers who have stolen items. Employees who steal from the company are not caught until inventory runs out, which is only once a calendar year.