Groupon started in 2006 as a local Chicago discount service by Mason Andrew. Mason graduated in 2003 with a degree in music from Northwestern University. The company headquartered is located in Chicago, Groupon agrees to “change the way customers spend, shop, and think about discount” (Wheleen). Groupon platform was established on the “tipping Point” concept that was the base of his first company called The Point. Basically, the “Tipping Point” was the designed for the web for advertisements ideas, and causes about any topic, and when a crucial point reaches the number of followers are achieved, a social media would be used to combine all the actions collected. Mason takes advantage of this concept by offering customers a buying power, and permits the merchants to “have both large scale and exposure” (Wheleen). The Point begins by recruiting merchants to propose discounts, and advertise the discounted coupons to the merchant’s website. When the set number of customers takes the deal offered, the “tipping point” would have been reached, and the deal has started. In October 2008 the …show more content…
The choice of MBO procedure is directly related to what it can accomplish: “It links plan with performance” (Wheelen). Since the rising cost of the company is directly related to selling, general and administration cost, (respectly $5.8 million, $196.6 million, $821 million for 2009, 2010 and 2011) I will reduce my sales force while retaining just the one that perform well. MBO will help identify employee’s performance of each particular market, and will help the leadership in its decision making process.
“In 2011, Groupon had to restate its earnings for three months ended March 31, 2011 to correct for error in its presentation of revenue” (Wheelen). As previously reported (unaudited Restatement adjustment As