New discount policy – the key to improve current performance
Desiring to improve the old-fashioned image as well as the current financial performance of the department store, McGregor has come up with a new discount program applied to all of the employees. With various changes, McGregor hopes that the new scheme will help attract younger sales force and clients as well as raise sales volume and profitability. Modifications should be made to implement the new policy
Modernize and simplify the old discount program
Eliminate hierarchical structure of the old discount program, treating employees more fairly regardless of their number of years working for the company
Reduce the discount rate in general
Reduce the discount possibilities from 6 to only 2 possibilities
Give higher discount rate on high-profit-margin goods
Improve the managerial outcome of the store
Reduce the number of supervisors and secretaries
Abolish the cleaning shift at night and remain only the shift in early morning

Benefits of the new discount program
Modernize co. structure
Negative:
+ Face resistance from old executives and buyers
Worthwhile because
Positive:
+ Improve the involvement of employees by enhancing fairness among employees.
+ Conform to practices in other stores, create new image
+ Appeal younger employees and customers
Improve efficiency
Simpler, time saving
Saving costs
Negative:
+ Question raised among executives and buyers: Why sacrifice employees’ benefits when the store is making money
Positive:
+ Increase sales volume,