Introduction RKO Warner Video Inc. is a company that specializes in distributing video and audio products to consumers in most parts of the world (Orsina 16). This company was established by Michael Landes after gaining enough experience working in the production and supply houses that sold cassettes, tapes and other visual and audio products to consumers (Bongcore 12). This company is managed by Steve Berns and Ken Molnar as the president and vice president of operations respectively. This essay is an analysis of a case study of RKO Warner Video Company and the effectiveness of its incentive compensation plan. It had adopted a quarterly incentive package for consumers and employees to ensure it boosts its sales and promotes its image in both local and international markets (Rejda 70). It expanded its operations between 1979 and 1989 by opening additional outlets and recruiting workers to manage the high clientele during peak seasons like December and Easter Holidays. Most of these stores were located in New York City and supplied PVCs (prerecorded videocassettes). The first and largest retail outlet store is the Broadway Store located in Manhattan and depicts the image of other outlets. This is the largest retail outlet in the world that supplies (selling and renting) prerecorded videocassettes (Markson 44). This company managed to achieve its targets and expand its operations by developing incentives that ensured its operations remained relevant to the investor, workers and consumers. The following are some of the approaches used to develop these incentives. Chain’s Strategy Molnar and Berns had excellent knowledge regarding various issues that are necessary in transforming the image of this company. Their experience, skills and unity played significant roles in ensuring that their plans yielded fruits (Cichelli 22). This made them happy with the results of all financial calendars and thus motivated them to develop additional plans that will ensure this company continues to make profits and at the same time satisfy employees and consumers. It is important to explain that these two brilliant managers did not focus their attention to the objectives of the company only but also the satisfaction of employees and clients on the company’s environment and products respectively (Shimmer 2). This means that Berns and Molnar took a broad view in developing their plans to ensure that all stakeholders are happy with their roles in ensuring the company achieves its targets. First, they ensured that the stores had a huge inventory of prerecorded videocassettes that would satisfy the interests of all consumers (Shernoff 19). This means that they were never to run out of stock since these managers ensured there were enough stocks in all stores. Most stores fail to satisfy the demand of their consumers since these products are usually seasonal and their demand is determined by trends and fashions. This means that a videocassette can be on demand for a whole week, month or years and fail to maintain its hold the following period (Brummell 12). In addition, this demand is usually overwhelming and requires stores to stock these products to ensure all clients get what they need. This is a major incentive tha