Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 27

Marks Spencer is a large, established British retailer of apparel, housewares, and food products. The company has a large workforce. As part of the company's benefits package, employees receive a discount of 30 percent off all purchases of apparel.
a. What are the advantages and disadvantages of offering a 30 percent discount off company merchandise
b. What are the advantages and disadvantages of offering a 30 percent discount off apparel, but not housewares and food products Why do you think the company differentiates between apparel and other products