Financial Modelling

Assignment Question
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.

Profit Sharing

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.