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Anthony Warbrick owns three upscale hair salons: Hair Suite I, II, and III. Each of the salons has a manager and 10 stylists who rent space in the salons as independent contractors and who pay a fee of 10% of each week's revenue to the salon as rent. In exchange they get to use the facility and utilities but must bring their own equipment.
Required:
Problem 1: Which manager's style do you think is most effective? Why?
Problem 2: How do you think the stylists will react to the managers of salons I and II? What can they do to indicate their displeasure, assuming they are displeased?
Problem 3: In Hair Suite III, if the stylists did not want to share their stations with another party, how else could they find a way to increase revenues?
Problem 4: Refer again to the action that the manager of Hair Suite I has chosen. How does this relate to the concept of stretch targets?
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