Store #34 of CDA Hardware Associates Has Had Below Average

question 185

Essay

Store #34 of CDA Hardware Associates has had below average sales over the past few years. As head of franchise operations, you are concerned with the continued low sales volume. The store manager wants you to diagnose the problem and recommend possible causes. Use the MARS model of individual behaviour and performance to provide four different types of reasons why employees at Store #34 might be performing below average. Provide one example for each type of explanation.

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Definitions:

Gross Sales

The total sales revenue from goods or services before any deductions for returns or discounts.

Direct Expense

Expenses that can be directly attributed to the production of specific goods or services, such as materials and labor.

Sales Salaries

Compensation paid to employees directly involved in the sales function of a business, typically comprising both base salary and commissions.

Administrative Expense

Expenses related to the general operation of a business, including salaries of executive personnel, accounting and legal services, and insurance.