Employee’s Discounts

Influence : the managerial staff

some adversely, some beneficially.

Most of his 721 employees would receive an improved discount

However, the managerial staff will lose its generous discount due to this reform.

------the success of this reform is depended on the managerial staff’s cooperation.

History of McGregor’s Ltd. Department Store :

1.Focus on personal service

2.Problem: Have trouble recruiting younger salespeople

(1) Have difficulty in attract younger customers; overreliance on middle-aged and elderly clientele.

(2)The firm’s long-term financial performance---need greater efficiency,a more rapid turnover of goods,and greater profitability.

It sold unusual and often more expensive goods

Imports were a major feature of McGregor’s merchandise

(3)Personnel policies

Have trouble recruiting younger salespeople-----solution:crate a less stuffy image and to attract younger staff

One of his top priority is to overhaul the employee’s discount program.

The current employees ’ discount program

Before:

(1)the size of he discount depended on the position of an employee within the firm----the higher the rank,the greater the discount.

(2)salespeople had to verify the percentage of any purchase to be discounted by checking the employee’s ID before deducting the appropriate discount from the full price.-----taking the employee’s time

(3)Discounts at the upper end of the scale were eating into profit margins,and beyond.

(4)Salespeople,maintenance workers,and clerks were not getting a fair shake.----cleaners

New policy

(1)encourage spending on high-profit-margin goods such as clothes and accessories.

(2)Increase the involvement of employees in the store

(3)Increase in the type of merchandise being sold

(4)Lead to a significantly greater volume of sales

The new employees’ discount program

Content:

(1)every employee would receive exactly the same treatment:----the discount would vary according to the goods purchased,instead of the...