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Case Assignment 14Please read the scenario in the below case assignment (1st page uploaded) and answer the questions the case assignment.Chapter 14 – “Analyzing Managerial Decisions: Structuring Compensation Plans”*Chapters 14 is uploaded for your review and will assist you in answering the questions in the case assignment.*When you are answering the questions remember to focus on the economic reasoning behind the problems.  Also use the information in the chapter to suggest economic solutions.  Try to include outside sources along with your text book.**Book Reference: Brickley, J.A., Smith, C.W., & Zimmerman, J.L (2009). Managerial economics and organizational architecture (6th ed.). New York: McGraw-Hill/IrwinAnswer preview………..Why do you think the compensation plans differ at the two firms? In particular, why do you think Kaufmann’s pays commissions to salespeople, while Parkleigh does not? Why does Parkleigh offer employee discounts on purchases, while Kaufmann’s does not?The

re are various reasons why Parkleigh and Kaufmann’s use different strategies to compensate their employees. Parkleigh is a small department store that focuses on upscale, expensive personal accessories. On the other hand, Kaufmann’s is a large retail store chain, with several stores in the Rochester area. The objective of Parkleigh is to provide high-quality customer services as it targets high-end customers. Thus, its sales incentive is to require the employees to conduct themselves with decorum, thereby providing shoppers with a unique experience (Brickley, Smith & Zimmerman, 2009). Therefore, its major goal is to be unique to other retail stores selling similar products. Consequently, employees are not paid commission for the sales they make as the store’s major goal is not to drive sales up. On the other hand, the objective of Kaufmann’s is to make as much sales as possible. For this reason, customer service is a secondary objective………..APA 447 words
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