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Read the attached and answer the following questions.
1. Why are Houston Fearless 76, Inc. (HF76) managers unhappy with the company?s existing sales incentive plan? Are weaknesses in this plan a major cause of the company?s performance problems?
2. Evaluate the new incentive plan being contemplated. What modifications would you make to the proposed new plan, if any? How would you address the unresolved issues?
3. Are there any significant impediments to the successful implementation of the new incentive plan? If so, which?
4. Would you make any changes to the system providing bonuses to sales assistants? If so, what?
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