Read the case notes below and consider the information shown in the appendix.
Use this information to determine the likely consequences of the introduction of a profit sharing scheme.
Then write a report for the Directors of PK Mart which addresses this issue and makes appropriate recommendations.
You have recently been appointed as an analyst within a large retail organisation (PK Mart) that employs approximately 10,000 individuals. PK Mart is a non-specialist retailer selling items such as clothing, electricals and furniture.
The Directors of PK Mart are considering whether the company should introduce a profit sharing scheme for all of its employees. To help with this important decision the Directors want to determine the possible benefits associated with such a scheme.
You have therefore been asked to undertake some quantitative analysis looking at this issue. While you are familiar with various different aspects of statistics and a number of statistical packages you have not undertaken a project of this nature before. Hence you start by conducting a literature search.
This search proves beneficial and you find that there are a number of existing studies which look at the impact of profit sharing, although none specifically in a retail context.
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