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Labor Allocation


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Labor Allocation for Blockbuster
RES/341

January 15, 2002

Abstract
No consideration has been given to the changes in revenue resulting from the rollout of Blockbuster's (Blockbuster) Movie Value Pass (MVP). Since the allocation of labor for all stores is based on revenue, it is important to examine the effects to the revenue stream and invoice comparisons. With an Excel spreadsheet the impact of the new program on revenue, the average invoice total, invoices and the current labor matrix were examined over an eight week span. The issue, data collection and results are discussed.

Labor Allocation for Blockbuster
The Issue
The changes in the video rental industry have been looming for more than a decade. Promises of Video on Demaand (VoD) delivered directly to anyone's home computer (Cook, 2004, par. 6). Also, the increasingly popular NetFlix, DVD by mail, successfully disrupted the market in 1999 (Aaron, 2004, par. 6). As these changes have begun, so have the......

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Approximate Word Count: 697
Approximate Pages: 3 (260 words per double-spaced page)

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