Material Detail

For this exercise, which is based on a recent media release, you will review Sports Direct (a major UK sports retailer) and the impact of its attractive staff bonus on sales and profitability. But while profits are up, your task is to identify any concerns that they need to manage?   

In July 2012, Sports Direct released details of a highly effective staff bonus scheme, which was helped the firm generate record profits. The very attractive bonus scheme introduced by Sports Direct is predicted (by the firm) to enable 2,000 of its 18,000 employees to each earn about £15,000 next month and a likely £36,000 next summer. According to Sports Direct chief executive Dave Forsey had been a “game-changer” and motivated staff to work harder.

These discussion questions encourage students to think about these issues.

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