Case Study: Mcgregor's Ltd. Essay

1437 WordsMar 27, 20116 Pages
Group Discussion - McGregor’s Ltd. Department Store Step 1: Situational Analysis I. McGregor's department from its inception has laid a great emphasis on personal service of its clients. James McGregor, the current president doesn't want to destroy its old-world charm, which differentiates it from the other departmental stores. But at the same time he is worried that with an old-fashioned image, he will not be able to attract young customers and eventually would lead to over reliance on the middle aged and elderly clientele, which had serious implications for the store’s future. II. This year for McGregor’s Ltd, the revenue from sales is increased by 7.5% which is greater than the retail average of 4.9%. McGregor believes that…show more content…
Second is simpler: The new system should made sense as it was simpler. Salespeople would no longer have to figure out one of six discount possibilities. They would deal with only one or two at most, since all the goods in one department would tend to be sold at the same discount. And it also made financial sense. Low-profit-margin goods would be sold at realistic prices, and high-profit-margin ones would sell faster. Store’s future strategy: This store was said out-dated and catered to old people. Although the store had tried some promotions to attract younger customers, McGregor felt they had not been entirely successful. So they need to be catered to younger people as well. Cost Saving: Approx. $20kUSD savings could be stressed is one of the benefits. Arguments To those people who it may disagree: No doubt, some of the younger staff welcomed change and modernization in the store. On the issue of fairness, for example, many senior executives thought the current system was fair: those employees with the greatest responsibilities enjoyed the greatest discounts. For those older people, the higher the rank, the greater the discount, they had many claims of the benefits of the new plan. Linking discount to margin market, if you just hold this opinion they might have rejected fairness argument. The reason is: Senior Executives have more responsibility and they have good reason to enjoy more benefits. And also compared
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