What can be done to influence the relationship


Questions:

Question 1

"Executive Pay" Please respond to the following:

• Some evidence suggests that there is a direct and positive relationship between a firm's size and its top-level managers' compensation. Explain what inducement you think that relationship provides to upper-level executives.

• Recommend what can be done to influence the relationship so that it serves shareholders' interests.

Question 2

"Dr Pepper Snapple Group 2011: Fighting to Prosper in a Highly Competitive Market" Please respond to the following:

• The case study outlines six specific strategies that the firm has chosen to support its strategic direction. Determine which strategy is most likely to benefit the firm. Explain your rationale.

• Briefly outline at least one other strategy the firm could take to support its strategic direction. Illustrate why this new strategy would be successful.

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Microeconomics: What can be done to influence the relationship
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