McGregor's Case

After the deep consideration, I have made the decision of implementing the new policy on employees' discount. The reason is specified as bellow.

As you all know, McGregor's department store had a reputation for being old-fashioned. I worried about overreliance on a middle-aged and elderly clientele and firm's long-term financial performance. Although our store is doing well now, it is better to prevent trouble than to wait until it came up. Young and dynamic sales would attract younger customers. Despite the competitive wages paid by the store, I decided to update the personnel policies to attract younger staff. The first thing we should do is to change the employees' discount program.

The current employees' discount program wastes employees' time, and the system made no business sense. The new employees' discount program is simple and makes financial sense. The new policy would increase the involvement of employees in the store and in the type of merchandise being sold and, if the incentives were sufficient, it should lead to a significantly greater volume of sales.

The new discount program abolished the hierarchical structure. Every employee would receive the same treatment and the company would save some money. The discount would vary according to the goods purchased, not the status of the purchaser. It is fair to every employee. Instead of six tiers, the new program had only three. A 10 percent discount would be given on low margin goods, such as large electrical appliances, calculators, typewriters, cameras, film, and food. A 15 percent discount would be given on books, records, stationery, household goods, clocks, toys, china, linens, sporting goods, small electrical appliances, and furnishings. Finally, 20 percent would be given for clothing, fabrics, cosmetics, costume jewelry, purses, belts, and scarves.

I hope you will agree with me and support the new discount policy. The discount program will be the place to start for our company.