Cathys Clothing case study Essay Example | Topics and Well Written Essays - 500 words

Cathys Clothing case study - Essay Example onus provisions for the Coastal District stores, I will evaluate whether the stores have met their set targets in order to earn the stipulated bonuses (Armstrong, 2007). Evidently, New Haven and Boston have surpassed their benchmarks. For the month of May, New Haven Store has registered sales of $628,000 against the required $570,000 hence automatically qualified for the bonus. Concurrently, for Boston, the 12% of $549,500 (sales) is $ 65,940 (net income goal required for the month). Fortunately, the store the store registered a net income of $110,943. It surpassed the target thus qualified for the bonus. Another financial factor I would consider in evaluating the proposed bonus plans for Boston and New Haven incorporates the overall performance against expenditure. It is evident that the expenditure in advertising for Boston and New Haven stores are$5,300 and $53,000 respectively for the month of May. This contradicts the ultimate net income, which is $110,943 for Boston Stores and $70,992 for New Haven Store. I consider such differences and reward any store that spends strategically and sparingly on their daily business operations. Financially, this indicates some sense of responsibility and obedience for the business (Crosson & Needles, 2010). The managers in the performing stores should get some bonuses besides the stipulated ones. The aspects of cost and revenues are critical in the realms of bonus implementation. Strategic considerations will include customer care and prompt services. I will consider the stores in the realms of their customer attraction endeavors and how they uphold the brand name of Cathy’s Classic Clothes. This will be proportional to the value of sales registered per store. This will affect even the Portland Stores, which is not under the scheme. I consider such factors to be influential in decision-making, fair compensation, and motivation of all store managers (Warren, Reeve & Duchac, 2011). I expect the proposed bonus structures to