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Enterprise Rent-a-Car Case

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Case Study MEMO to: | Audrey Redford, BECO 4310--002 | from: | Lauren Estrada | date: | February 13, 2015 | RE: | Enterprise Rent-A-car | | | There is an industry motto that states, “there are two types of car rental companies. Those who lose money and Enterprise”. Enterprise Rent-A-Car was started in 1957 in St. Louis, Missouri by Jack Taylor. Taylor founded the company offices in neighborhoods, and not at airports, because he believed that the Americans would welcome local option for rental cars when their vehicles were repaired. In 2010, the company had more than 6,000 rental locations in the United States and 850,000 fleet vehicles in operation. Enterprise Holdings (including Enterprise, National and Alamo brands) account for almost half of the car rental market and was more than twice as Hertz, the number two competitor. The competitive advantage of the company was the result of the combination of its practices in hiring, training, compensation, organization, customer service, IT and fleet management, among others. In the seemingly flawless company this case presents, the only thing that struck me as a problem was that they have relatively high turnover considering they put so much time, effort, and funds into training their employees. Of the entrants in their training program, 25 percent of new hires left within the first six months, and an additional 25 percent left within two years- that's just about 45 percent of their new hires gone. Based on how well Enterprise performs in all of its departments, I would like to suggest that they focus on their employee compensation to lower their turnover rates. There are a couple of ways to go about this- either Enterprise can start to "overpay" their new hires so that their extensive training seems to be worth it and so that the new hires won't leave so quickly, or Enterprise can make a credible

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