Case Study: Mcgregor's Ltd.

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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 by attracting young customers and selling special goods like glassware, clothes and accessories it should led to a significantly greater volume of sales, and he believes a greater reliance on special sales would be necessary to speed up turnover.

Step 2: Answer the Questions
With consideration of the situational analysis, we would like to give the answer to following questions. 1) Do you agree the new policy proposed by McGregor? Why or why not? Agree or disagree, it all derives from fairness and simplicity from my point of view. For this question, the opinion is vary and defers on the merits of the plan for those employees at different level such as Executives, Buyers and Sales staff. Benefits To those people who it may agree:

First is fair: The new policy proposed by McGregor brought McGregor’s more in line with other department stores (Exhibit 3 in the case). It abolished the hierarchical structure. Every employee would receive exactly the same treatment: the discount would vary according to the goods purchased, not the status of the purchaser. The new policy (as it was more generous for most employees) would encourage spending on high-profit-margin goods such as clothes and accessories. Therefore, it might win more...
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