Mcgregor Store Essay

1223 Words Aug 14th, 2011 5 Pages
McGregor’s Ltd. Department Store
A report
Executive Summary

The McGregor Ltd. Department Store as founded in 1871 and since then it has acquired the image of being old fashioned and traditional. The President of the Store wants to change the image of the Store and to achieve higher efficiency and profitability by creating more business sense in the policies of the Store. Mr. McGregor has devised a new discount scheme for employees confirming with the current practices in other stores. Mr. President wants to communicate the new scheme without creating any resentment in the senior staff and to simultaneously implement the same without delay. The options available to Mr. President are either to call for the meeting of the executives or
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Secondly, the staff will not feel that anything has been imposed upon them without taking them into confidence. Soliciting opinion of each member of the staff on the new discount scheme, would be something cumbersome and more time-consuming, resulting in the implementation to be delayed. Therefore, calling the meeting and announcing the scheme is the best option.

2. This new scheme has been devised to create better business sense and to increase the profit margins. The current scheme does not take into account performance and discriminates on the basis of grades of the staff, while the new scheme would be helpful in creating parity, uniformity and ensuring better involvement of all employees, specially of the lower grades. With the current scheme the growth rate in net sales over the previous year is 7.5%, the new scheme is expected to maintain this much at least, even if we apprehend the fall in the total bill of the managerial staff, because contribution of the Employees’ total bill is 0.87% of the net sales. Further, the sales from the lower grade employees would also increase, due to increase in discount for them. The new scheme would be able to boost the morale of the sales people, and more new customers may be attracted. Even the low- profit- margin goods would not yield losses because

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