Business Strategy - End of Chapter Problem Suppose you have been a shift manager at a restaurant for several years. Over your time there, the owner has put you in charge of payroll and scheduling for all shifts, not just your own. You feel like you are not being paid for the extra responsibility and sit down with the owner to discuss a raise. Your boss has said on several occasions that you are saving him $15,000 a year because he does not have to hire a contractor to do payroll and scheduling. You are currently making $25,000 a year, and you would accept a minimum raise of $5,000 a year. Assume your boss is being completely honest and that he does not have any other alternatives. a. Move the points on line A to the range of possible outcomes (in terms of your final salary) you should expect. b. Now suppose that in anticipation of your salary renegotiation, you applied for a manager's position at the competition across the street, where you would be perfectly happy to work. They offered you a starting salary of $38,000. Move the points on line B to the new range of possible outcomes in terms of your final salary) you should now expect from talking with the owner. A B Salary 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 Salary (thousand dollars) Business Strategy - End of Chapter Problem Suppose you have been a shift manager at a restaurant for several years. Over your time there, the owner has put you in charge of payroll and scheduling for all shifts, not just your own. You feel like you are not being paid for the extra responsibility and sit down with the owner to discuss a raise. Your boss has said on several occasions that you are saving him $15,000 a year because he does not have to hire a contractor to do payroll and scheduling. You are currently making $25,000 a year, and you would accept a minimum raise of $5,000 a year. Assume your boss is being completely honest and that he does not have any other alternatives. a. Move the points on line A to the range of possible outcomes (in terms of your final salary) you should expect. b. Now suppose that in anticipation of your salary renegotiation, you applied for a manager's position at the competition across the street, where you would be perfectly happy to work. They offered you a starting salary of $38,000. Move the points on line B to the new range of possible outcomes in terms of your final salary) you should now expect from talking with the owner. A B Salary 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 Salary (thousand dollars)
