incentive pay is compensation beyond base wages. Employees earn these dollars by meeting or exceeding set goals. In any type of business, reward systems offer employees the incentive to more effectively and efficiently perform. Whether the rewards are financial, material, recognition based, or just beneficial they are important in helping to motivate employees in performing better and going above and beyond the minimum requirements. Incentive pay rewards employees for achieving defined goals.
In order for the value of Gatorade to remain as that of a premium product, the future strategy should stay focused on keeping pricing on the high side whilst strengthening relationships with its loyal customers. 4.2 Gatorade supply / demand and price elasticity One of the factors that might change the demand for a product is the prices of related goods. Since Gatorade and Powerade are substitutes of each other, when Gatorade increases its price, according to the law of demand it will fall and fewer products are sold. On the other hand if its competitor which is a similar product keeps the pricing constant, will see an increase in sales, consumers switch to it and hence the demand curve for Powerade will move towards the right. Other factors that can change the demand for Gatorade include change in: • Income levels • Natural factors such as earthquakes and hurricanes • Market size • Taste and
The different strategies are; Penetration pricing, Skimming pricing, Competition pricing, Product Line pricing, Package pricing, Psychological pricing, Premium pricing, Optional pricing, Cost Based pricing and Cost Plus pricing. Each strategy has their advantages but also disadvantages. For a company to choose the right strategy they have to take into account their corporate objectives. A company might use more than one pricing strategy for its products it all depends on the objectives. According to Steve Job's vision for Apple was to always create a premier product and charge a premium price.
Fostering diversity in the workplace is about making sure that all viewpoints, backgrounds, races, experiences are valued in the organization. When employees feel more valued within a company, they are more willing to work and make significant contributions to the organization. Consequently, employees will become more productive and creative. For this reason, encouraging diversity in the workplace is believed to drive up
By matching price to demand, hoteliers have a greater opportunity to capture higher profitability business during high demand periods. On the flip side, lower flexible rates during low demand season help generate additional demand that might not have existed before. Although, it is always wise to set a floor price, which should be equal to the lowest “positioning” price that you might be willing to accept for your product. The challenge of having a dynamic structure is that the revenue managers need to be on top of their game to manage demand as it is very easy to lose control of inventory if forecasting is erroneous. Having a revenue management system minimizes these errors; however, the majority of hotels today do not have a revenue management system as it could be expensive or might not have been budgeted.
This deals with a customers’ perception that a product or service they are buying provides them with a higher value than a competitor. Superior quality can be broken down into two kinds of attributes: quality as excellence and quality as reliability. A customers’ perspective of quality as excellence would be that they want a product or service that provides features and a level of service that has no comparison. With regard to quality as excellence, if customers perceive that the products design, features, and functions are better than everyone else, then they would be more likely to buy their product. Higher quality products allow for a higher sense of value provided to the customer.
It results in satisfaction, improvement in performance, motivation and positive perception towards performance bonuses. Fairness and clarity increase employee commitment and satisfaction since employees are given chance to discuss about their work performance. This, in turn, will lead them to perform greater in innovative activities.
Since both the company’s market share so large, the market is very close to a duopoly (other players having a very small impact on the market). Hence we assume this to be a situation of duopoly. The 2 companies sell products which are very close substitutes and are constantly fighting for greater market share. A person may buy a Coke product instead of a Pepsi one, and vice versa. The objective of both is to maximize their profit.
Autonomy is choice on how to perform or do what you have to do in an organization and it leads to a greater job satisfaction. (Amstrong, 2009). Purpose means, reasons behind what the people do and it should be meaningful for the organization. Giving challengers and resources and feedback to employees will increase their productivity continually. As per Pink engaging employees in the activities would give a greatest motivation (Pink, 2012).
The individual with have greater confidence and resilience to deal with any problems that occur along the way. Not only does it have benefits to the individual, but also to the organisation. It allows the organisa-tion to gain a better understanding of the individuals goals, strengths and development needs. It helps managers/supervisors develop their own coaching and management skills (which would be part of their own development plan). Overall, it will increase productivity in the workplace due to clearer objectives and better skills learnt and the organisation can keep track of employee perfor-mance.