Product Overview

The case presents a customer’s experience during the purchase of a pair of shoes in an upmarket retail outlet of Bharat Footwear Limited (BFL), in Ahmedabad, wherein he was offered a discount coupon meant for shareholders, at a shared consideration of 60 (buyer) and 40 (agent). The customer needs to decide on the acceptance or otherwise of the deal. Adequate data is provided to discuss this central issue in a business context along with an estimate of the secondary market of discount coupons. The analysis of the case leads to a debate on whether the discount policy should be continued or otherwise. While several sharing arrangements for the discount amount are considered, the key to the situation is not such arrangements but a robust system in dispensing these coupons.

Learning Objectives

Structure and resolve an unstructured context. Identify multiple actors, objectives and their priorities. Explore acceptable vs optimal solution of discount sharing. Structuring a solution by identifying dominant actors and supportive actors. Root cause analysis. Linkages between micro decisions and policy arrangements. Fool Proofing a System.