* Step 1: Situational Analysis 1. 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. 2. …showed first 75 words of 1386 total…

…showed last 75 words of 1386 total…gt;<Tab/>78,326<Tab/>60,467 Savings in Discount = $17,859 In Actual, the spending by the senior executives will go down because of a reduction in the discount rate and the spending by the sales people will go up because of an increase in discount. These effects can be assumed to cancel each other. * Exhibit 2 Savings in Discount = $17,859 Current Year Net Earnings = $3,726,939 Savings in Discount as a percentage of Net Earnings = 0.5%