Question

1) evaluate potential alternative stratigies (be concise)

2) answer additional qhestions for the case studies

Abstract 9 In 2015, Gravity Payments CEO Dan Price took a massive pay cut to raise the minimum wage at his company to $70,000 annually. In the wake of a national discussion of wage equality, he was met with cheers and jeers. The company hoped that the unorthodox move would, through a range of levers, cover the increasing costs of compensation. Did Price make the right move? Would Gravity thrive or even survive? GBusinessGroup

Answer 1

In my views, the CEO of the company took the right decision. If the employees of the company are monetarily satisfied then they will be motivated to perform better and thus the overall performance of the company will increase substantially. Moreover, the company will get projected as a company with positive employer brand. The pay ratio of the company will also enhance effectively, thus promoting synergy of the workplace.

As the workers and employees of the company will be happy, they will perform effectively and the overall profitability of the company would improve. Hence, Gravity would thrive and make profits in the long run.

The potential alternative strategies available to Gravity are:

• Conduct mass-layoffs: This would project the employer brand of the company in negative light.
• Leave the business policies as it is: This will prevail the pay inequality which is quite prevalent in the overall society.
• Increase the base salary of the overall company: This may increase the overall expense of the company and may decrease the overall profits of the company.