Statement: A retail chain needs to decide whether to close underperforming stores. The decision affects hundreds of employees and several communities. Store managers argue their locations will improve, while financial data shows consistent losses. The board is divided on the issue.
What framework should guide this decision?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is to establish clear performance benchmarks and timelines, then evaluate each store against these benchmarks.
Why is this option the most appropriate? It provides a balanced and objective approach. Establishing "clear benchmarks and timelines" also gives store managers a fair opportunity to improve (as they claim), and if they fail to meet those benchmarks within the stipulated time, the board has a solid, evidence-based (data-driven) reason to close them. This protects the interests of both the company and the employees.
The first option: completely ignores the social and human aspect (employees' jobs).
The second option: ignores the ongoing financial losses, which could bankrupt the entire retail chain in the long run.
The fourth option: may be biased, as no store manager would voluntarily close their store.