Mcgregor's Ltd. Deparment Store

Cus highly value the personal service

Many young ppl thought the store catered to older ppl, although it is up-to-date and sell teenage fashions

Promotion to attract young ppl ( not successful

Worried abt over reliance on middle-aged and elderly clientele

Area need to update ( personnel policies

Labelled as old-fashioned ( cannot recruit younger salespeople although high salary

← Young and dynamic sales and managerial staff to attract younger cus

← Employees discount program

Before, discount based on employee position

Discount on the upper end scale ate into profit-margin ( damage the profitability of the low-profit-margin department

Other end of scale ( not fair, some are left out (cleaners)

New policy ( more generous for most employees ( encourage spending on high-profit-margin products (clothes) ( greater vol of sales

← Same treatment : vary according to the goods, not status

10%,15% and 20%

← Low-profits goods sell in realistic prices

← High-profits sell faster

Past, executives and buyer ( greater purchasing power and discount

Younger sales ( welcome

Resistance on executives and buyers

Allen Lee ( young buyer

← Attract young salesforce to attract young cus

← Resistance worth the savings?

← Greater responsibility have greater discount

← If stressed the 19000 savings, executives ask why come from them? Even the company is doing well

← Savings as primary, y not cut costs?

Q1)

He should consider using two-sided to tell the management staffs who are executives and buyers since they have the greatest resistance to the new discount policy. He should let them know he has put the greatest effort in concerning their (executives and buyers) interest.

Given, since, therefore? He should make recommendation to the staff, explain the rationale behind in detail with acknowledging them (executives and buyers) his concern over their reactions, and ask for support to implement the new policy.

Q2)

Old policy is unfair and not...