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Subway Is a Large Chain of Franchise Sandwich Shops

Question 118

Multiple Choice

Subway is a large chain of franchise sandwich shops. Marcia owns three Subway stores in a large city. At the end of the year, she notes that sales rose from two to five percent over last year's sales at Stores 1 and 2 but fell two percent at Store 3. Based on this information, how should Marcia reward (or punish) her store managers?


A) She should give bonuses to the managers of Stores 1 and 2 and put the Store 3 manager on probation.
B) She should ignore the sales data; this is not an appropriate marketing metric.
C) She should give each manager a raise, tied to the store results.
D) She should review at least ten years of sales data about her stores' performance before making a decision.
E) She should seek more information about why the stores had different results before making a decision.

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