You are called in as a consultant to a large retail chain of general stores that target smaller cities. As the company has grown,

Economics and Entrepreneurship

Discussion 1. Managerial Economics

Write 400 words in length.

 You are called in as a consultant to a large retail chain of general stores that target smaller cities. As the company has grown, the CEO has noticed that newly opened stores are not meeting sales projections. You learn that the company uses “development” agents to find new store locations and negotiate leases with property owners. The company rewards these agents with generous stock options if they open 50 new stores in a single year. Although agents are supposed to open new stores only if the sales potential is at least $1 million per year, this outcome is not happening. Newly opened stores earn just half that amount.

Use the problem-solving framework to identify the problem and suggest a solution.

Share your key intakes. Please take the time to review the following informative video regarding The Problem Solving Model: https://www.youtube.com/watch?v=CDk_BD1LXiI

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