Loblaws has more than 1,000 stores from coast to coast, more than 140,000 employees, and total revenues of close to $30 billion. Penny and David Chapman run the family-owned Chapman’s Ice Cream in Markdale, Ontario, which employs local people and supplies Loblaws with ice cream.
a. How do you think Loblaws coordinates its activities? Is it likely to use mainly a command system or also to use incentive systems? Why or why not?
b. How do you think Penny and David Chapman coordinate the activities of Chapman’s Ice Cream? Are they likely to use mainly a command system or also to use incentive systems? Why?
c. Describe, compare, and contrast the principal–agent problems faced by Loblaws and Chapman’s Ice Cream. How might these firms cope with their principal–agent problems?
201:
Market shares of chocolate makers are
a. Calculate the Herfindahl-Hirschman Index.
b. What is the structure of the chocolate industry?