Tupelo’s Dilemma, Case Study Example

This is an example of pure competition because in the situation discussed, it seems like all stores have equal opportunity to outcompete similar vendors.

The management style of the VP of marketing is not appropriate because salespeople gain incentive for effective marketing, but the VP does not allow them to add their own strategies to the marketing.

This is ethically problematic because it appears that employees are blocked from being able to achieve their full commission potential, meaning that they are not able to earn the amount of funds that they were promised.

Changing his prediction would not alter his incentive pay. Since he is expected to approach each customer about the warranty, his understanding of the situation will not impact efficacy; whether or not a customer will accept is in part due to chance.

1. This thinking positively reinforces Phil’s perception that he is completing his job effectively.
2. Dr. Smith’s comments are likely to convince Phil that he is cheating customers by persuading them to purchase the warranty.
3. Father George is making Phil think about the ethical nature of his job, and it is likely that he is beginning to question his position.

It is likely that Phil will discuss the ethical nature of the need to upsell in this manner to his manager.

$360.40 was the amount made in the first month, although the name of the month was not indicated.

Assuming that 10% of profit was made, the total profit was $3604

Sales should increase to a total of $739,128,000. This is $28,428,000 more in sales. Since there are 160 stores, this is $177,65 in profit per store before providing employees with the incentive and $159,907.5 after reimbursing the employees at a 10% commission.