Business Law Case Study – AlphaCo and BetaCo are both
Texas Tech University Business Law Case Study
AlphaCo and BetaCo are both mid-sized pharmaceutical companies that employ over a thousand workers. The highest paid employees at each company are the executives and the senior level researchers.
This year, both companies have a raise pool of $5,000,000 – that is, each can raise the total compensation paid to all of its workers by a total of five million dollars.
AlphaCo uses $3,500,000 of its raise pool to increase pay for executives and researchers. Most of the other workers receive small raises, and some receive no raise at all.
BetaCo uses $3,500,000 of its raise pool to give everyone in the firm an equal 5% raise. Some key employees receive a raise of over 5%.
Remember to answer all three questions in the same provided text box, and write 500-1000 words for the total assignment (about 175-325 words per question).
Questions – Scenario #1
- Which company’s raise pool allocation is more fair? Why?
- Which company will have employees who are, overall, more satisfied? Why?
- Which company is likely to outperform the other over the next year? Why?
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