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Scenario 6.1 in 2003, Managers at BabyBlooms Corp., a National Retailer of Retailer

question 15

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Scenario 6.1
In 2003, managers at BabyBlooms Corp., a national retailer of baby products, noticed that sales and profits were slumping.Store managers were instructed not to fill any vacant positions, which saved some money.However, by January, 2004, it was essential that BabyBlooms cut expenses further.The firm decided to offer incentives for top managers if they decided to leave before their tenure out of free will.Expenses still remained high, and in May, the firm asked store managers to reduce staff by laying off 10 percent of its workers (about two workers per store) .When those cuts were still not enough, management called for store closings in some locations.For example, one of the store closing was announced to employees on August 1 and accomplished by December 1.In locations where stores were not closed, managers were ordered to terminate any under-performing employees, identified by low performance appraisal scores in the last two evaluations.
-Refer to Scenario 6.1.Which of the following is a least likely outcome of BabyBlooms's actions?


Definitions:

Cash Sales

Transactions where the purchase of goods or services is paid for with cash at the time of sale.

Sales Forecast

The process of estimating future sales, helping businesses make informed procurement, production, and marketing decisions.

Budgeted Cash

An estimation of cash inflows and outflows for a business over a specific period, used for financial planning purposes.

Collection Pattern

The typical manner or schedule with which a business collects payments from its customers.

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