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Doreen is the CEO of Car Destination Inc., a super-dealership that sells new cars, SUVs, and pickup trucksfrom five different manufacturers, and also has a largeused-car lot. Car Destination has been profitable overthe years, even eking out a profit during two differentbusiness recessions. Yet Doreen has the nagging thoughtthat Destination is slipping a little behind the times.In talking with an outside advisor, Doreen said, “Thevehicle-sales business is changing more rapidly than weare changing. Fewer consumers are influenced as muchas they were in the past by the sales representative. In-stead, they ferret out information on the Internet on whatthey think the price of a vehicle should be. Also, theyshop online to find the lowest possible price for whatthey want. When they arrive at the dealership, they evenknow what accessories and features they want, so theyare less influenced by what our reps have to say. Anotherproblem is that a greater number of customers who docome to the dealership to purchase a car or truck don’twant to haggle with the rep.”Based on these concerns, plus some discussions witha few automobile executives, Doreen decides to changethe business model at Destination. The new businessmodel she wants to introduce to her management staffand to sales representatives requires that sales represen-tatives no longer work on commission. They will nowbe salaried associates who try to satisfy the needs of cus-tomers. Furthermore, Destination will now offer fixedsticker prices on all new and used vehicles. No morenegotiating with customers about price. Doreen calls ameeting for the following Monday morning with all ofher managers and two of the senior sales representativesto discuss the new business model. She labels the newmodel “The no-hassle Destination.”Doreen describes the new business model, using aPowerPoint presentation to support her talk. She speaksfor 15 minutes without accepting comments or questions,but she does notice a few grimaces and anxious expres-sions on the faces of the Destination staff. Doreen finallysays, “Okay gang, I’ve talked enough for now. Let meknow what you think of our new business model.”Tony, a veteran sales representative, speaks first:“Doreen, it’s good to know that our CEO is up-to-dateon the automotive sales business. But Saturn tried whatyou are talking about. The company lost tons of money,and finally was eliminated by GM. The sales reps dideverything but hug and kiss the customers who droveoff the lot with a new Saturn.” (The people present laughnervously.)Melody, the used-car sales manager, offered her opin-ion: “Doreen, with due respect to the wisdom of ourCEO, ‘The no-hassle Destination’ may not work here.Maybe we could act like CarMax sales associates—wehire a bunch of good-looking sales reps, dress them inkhakis and polo shirts, and teach them to keep a smileon their faces all the time. But when our clientele comesto Destination to purchase a used car, they like to nego-tiate. I love the look on the face of a customer who hasjust been given a discount. Buying a used car or truck isa sport. It’s not like purchasing a six-pack of beer.” (Thegroup laughs loudly at the beer analogy.)Sam, the new-vehicle sales manager, said with a con-cerned expression, “Doreen, I think the business modelyou propose probably works well in some situations.But we should think this through quite carefully. Ourbest reps are making a ton of money. If you put them ona fixed and modest salary, our stars would leave for thecompetition. A fixed salary is probably okay for the Car-Max associate, but I think experienced pros much prefercommission sales.”Kaleb, the director of finance, offered a suggestion:“Doreen, I say let us wait a bit before introducing thismodel. We need to study the potential impact of the newbusiness model on our profitability. We are a consis-tently profitable super-dealership. A key factor is thatthe salaries we pay sales reps are quite low because theyearn so much on commission. This helps lower our fixedcosts. We could wind up with a handful of sales associ-ates who produce very little in relation to their salaryand benefits.”Feeling frustrated, Doreen said, “Let’s break for nowand return to this discussion tomorrow morning. Youfolks don’t seem ready quite yet to shift to ‘The no-hassle Destination.’” As she gathered her notes, Doreenthought, “For the new model to work well, I will have tochange some of these negative attitudes.” Case Questions 1. How strong does the resistance to the new businessmodel at Destination appear to be? 2. What advice can you offer Doreen for overcomingthe resistance to change? 3. What is your opinion of the potential effectivenessof “The no-hassle Destination” business model?Explain your reasoning. (for each question write 100-150 wrods)