Question: I need help with this case question, it's from my fundamentals of management class. Case 4.2 Gravity Payments and Dan Price In 2015, Dan Price,


Case 4.2 Gravity Payments and Dan Price In 2015, Dan Price, the founder and CEO of Gravity Payments, announced to his employees that he wat increasing all of their salaries to $70,000 per year (phased in over three years) and decreasing his own anaual $1.1 million salary to $70,000 as well. Though Gravity Paymenes is a small, private credit cand procesing company, Price's decision to do this catapulted Price and Gravity Payments into the limelight, Price captured international headlines as well as the attention of the business world. He became a man. agement celebricy, and his perspectives on management have been celebrated and criticized alike. Dan Price and his older brother Lucas launched Gravity Payments in 2009, building on a process and technology that Dan had begun working with as a high school student, Gravity Payments is a credit card processing company for small and midsized businesses. It was born from an early effort of Price in provide financial relief to a local cafe he patronized and sometimes performed at as a member of a rock band. Through his interactions with the cafe owner. Price learned of the steep fees and erratic service this business faced when it agreed to accepr payment via credit cards. As Price began to understand the payment process and the risks that credir card paymenes presented to this business, his vision for a dif ferent, more streamtined, and less expensive approach began to take form. Price developed a butinea model that provided credit card processing services to small businesses, built on a totally transparen fee structure that lowered credit card processing fees for these businesses by 10-15\%. In exchange for this service, Price earned asmall fee. At the time the Price brothers formally launched this business, Dan Price was a 19-year-old collegs student, studying at Seattle Pacific University, By 2015, the year of the wage restructuring, Gravin Payments served approximately 12,000 small businesses, processed nearly $7 billion in annual credi card transactions, and employed 120 people. For the three years prior to the wage revamp. Price had becn increasing cmployee wages by 20% annually; each time this occurred, Gravity Paymenti profir groweh outpaced the wage increases. Even so, Price wrestled with wages. He pondered whether Gravity Paymenrs could gaarantec excellent service if some of his employecs faced money troublat. Discussion Questions 1. Considering the decision-making styles discussed in this chapter, how would you characterize Dan Price's decision-making style, as presented in the case
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