...Case Discussion: Fe’nix del Sur The Fe’nix del Sur (Fe’nix) case presented information used for making a major business decision. A mass merchandising department store offered a contract to Fe’nix that would have a substantial impact on the firm’s annual growth1. Given the background information on Fe’nix, the market trends, competition, and details about the contract, the company executives in charge of making this final decision should reject the contract. A main reason the national sales manager, Myron Rangard, should reject this contract is because is because of the contractual details. The contract stated that it would buy at 10% below the company’s existing prices; while this may create sales volume, it may not necessarily create gross sales profit due to the lower price. Also, while purchases are estimated to be at $4 million annually, the company’s lack of market research hinders them because the firm is unaware of consumer trends. For example, they do not know if replica sales have increased or decreased in the last 5 years, if replica sales are trending upwards or downwards, or if authentic artifact sales have increased or decreased in the last 5 years. Without this information, the figure of $4 million annually in this contract has no reference point. In addition, Fe’nix would have to triple its replica production to satisfy the contractual obligation. This another aspect of the contract that could take away from profits due to substantial budget increases...
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...Case Study: Fe’nix del Sur, LLC I. Problem Statement If Fe’nix del Sur, LLC accepts the contract they might make a potential profit of $4 million in additional sales and above the annual growth and be able to broaden the firms current position, but it might not be worth it due to the fact of possible loss of current dealers and customers, and the companies authentic-ness. II. Industry Analysis Fe’nix del Sur, LLC competes in the authentic artifact business. They collect authentic artifacts and replicas and sell them to two main groups; artifact collectors and gift buyers. They currently do not have a full line of replicas due to the fact that they are a ‘specialty’ store. II. Organizational Analysis Business: Fe’nix del Sur, LLC is a limited liability company that sources and sells South American and African artifacts. They are one of the most respected sources of artifacts for collectors. New Business: Fe’nix del Sur, LLC has a full line of replicas they sell to gift buyers. They have an extra $4 million due to the addition to the full line of replicas. Distinctive Competency: Fe’nix uses their authentic artifacts to set them apart from places such as department stores that sell all replicas. The relationship Fe’nix del Sur, LLC has between the company and retailers that sell their product is very close. Fe’nix del Sur, LLC only distributes through specialty dealers and some exclusive department stores. If the company accepted the contract...
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...CASE STUDY On Human Resource Management ( Performance Management & appraisal) Group Members Abid Aziz Rusho 102011132 Raziz Sultana 111011106 Submitted To D. R. Arefin Submission Date: 1st july , 2013 Jack Nelson’s Problem: After researching Jack Nelson’s problem application case, here we find some problem that was faced by Jack Nelson, a new membar of the board directors for a local bank at home office. In this case, we have to solve some questions to fix out Jack nelson’s duty to carry out a successcive result for the local bank. * What do you think is causing some of the problems in the bank’s home office and branches? * Since,There is clearly a problem with communication and the effects are seen in the area of employee commitment. Additional contributing factors include the lack of consistency in the policies and procedures of various locations. There is no straight rules to the staffing activities of this Organisation. Clearly the absence of an HR department & the manager in the main office is behind many of all of these problems. * Do you think setting up an HR unit in the main office would help? * Surely, it would. Since there are HR-related...
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...3 Keys to Transforming Your SALES CULTURE By Mike Brooks t some point in a company’s development, it becomes a priority to focus on and possibly change the existing sales culture. This need to change can be driven by many factors, including slumping or declining sales numbers. Alternatively, a change in focus may occur, from a customer-service-orient- ed sales team taking inbound leads to a more direct-selling model in which outbound calling becomes a prior- ity. Or perhaps there is a change in direction, such as a focus on growing new accounts. Sometimes a total transformation is in order, whereby an entirely new sales methodology is required and selling systems, processes, and other key sales drivers are developed and implemented. Regardless of the change, and in spite of the work necessary, one common challenge remains consistent: getting buy-in from your existing sales team to adopt and implement the skills, processes, and procedures needed to make the change successful. THE PROBLEM IS WITH PEOPLE, NOT PROCESSES Changing processes and proce- dures is relatively straightforward; changing the attitudes and actions of experienced sales reps isn’t. Those of you who have been involved in managing or directing a sales team know firsthand the resistance reps exert against changing the way they sell. Even when their current sales skills are ineffective, sales reps are reluctant to try something different. Many sales...
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...| Unit II Case Study | | | Barber, Charles [USA] | Strategic Marketing – MBA 5841 | Dr. Monica Sainz | 2/23/2013 | | Introduction This paper discusses the case stud of Fe’nix Del Sur, LLC provided by Kerin and Peterson (2010) in the text. Fe’nix Del Sur is company that sells a wide variety of South American and African artifacts. The case study illustrated how the competitive environment for the company changed dramatically over a ten year period. This paper will also discuss how ethical and financial implications affect potential courses of action for the company to adjust marketing and business activities. DECIDE Use the DECIDE process to evaluate one of the decisions Fe’nix Del Sur is faced with. In using the DECIDE process provided by Kerin and Peterson (2010), a clearly defined problem statement must be established. In the case of Fe’nix Del Sur, one problem identified was the fact that a lack of supply has forced the company to find new buyers. How can Fe’nix Del Sur regain is position in the market without degrading the company’s brand by compromising ethical standards? Secondly, the decision factors must be enumerated as discussed by Kerin and Peterson (2010). Alternative courses of action include add additional buyers or explore the option of using a mass-merchandise department store chain. The uncertainties related to the courses of action include availability of authentic artifacts and the market’s reaction...
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...According to (Kerin & Peterson, 2010; 2007; 2004; 2001; 1998) “One of the decisions Fe’nix Del Sur is faced with is distributing its products exclusively through specialty dealers. Fe’nix Del Sur cannot control the fake artifacts that are turning up in the market. Even though they have added three new buyers they are still faced with knock off artifacts. The chain then decided to add exclusives to the product line. By doing this Fe’nix would buy 10 percent below the company’s existing prices. The company made the decisions to triple its replicas and potentially add four million in additional sales over and above annual growth. The four analytical categories are nature of the industry, the organization, a plan of action, and potential outcomes. Fe’nix Del Sur sold artifacts and was competing with a market that sold replicas of their artifacts for a cheaper price. Fe’nix Del Sur plans to contract with a mass merchandise department to carry complete line of Fe’nix products. By doing so Fe’nix will have the opportunity to potentially add four million dollars in additional sales. Fe’nix Del Sur market is to specialty dealers. “This current market is segmented for selected interior designers and decorators, firm sponsored showings, and a few exclusive department stores” (Kerin & Peterson, 2010; 2007; 2004; 2001; 1998). The possible target is its sole suppliers to its clients. Fe’nix distinctive competency would be the department store chains. References Kerin, R. A., & Peterson...
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...jewelry and pottery. • HQ is in Phoenix, Arizona but has offices in LA, Miami and Boston. • Started as a trading post near Tucson, AZ in 1900’s – Established itself selling Indian artifacts. o Through the years, Fe’nix expanded the product line to include Columbian artifacts (from Peru and Venezuela), and tribal artifacts from Africa. o Reputable authentication process gives brand equity. • 2001 – Fe’nix started selling replica artifacts. o Replicas would be indistinguishable from real thing – Collectors could tell the difference. o People in Central America, South America, Africa and southwest U.S. are now creating the replicas. o Replicas are a small portion of sales – Only got into the business because clients want it. o People who purchase are looking for gifts and decorative items. • Gross Sales - $25M o Increasing 20% per year for the past decade. o Myron Rangard – Firm’s national sales manager – attributes increase in sales to popularity of the product line and the expanded distribution of SA and African artifacts. Product lines were featured in Christmas catalogs of department stores. • Distribution – Through specialty dealers (including interior designers and decorators), firm sponsored showings, and a few department stores. o Often, Fe’nix is the sole supplier to many customers. • African artifacts are not easy to get – Political reasons make supply limited. o Must search harder for artifacts and competition is increasing (tenfold). o Governments...
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...Fe’nix Del Sur a Company with its headquarters in Phoenix, Arizona is in the business of acquiring a wide variety of artifacts from Southern America and Africa and selling them to their customers. Also, it sourced Hopi and Navajo-authentic jewelry and pottery from Southern India. Originally stationed in Tucson Arizona in the early 1900s. The company has presence in Los Angeles, Miami, and Boston. Fe’nix Del Sur, takes pride in stocking high quality, reputable and authentic jewelry and pottery. As time progressed, the firm’s sales scope increased warranting it to encompass products from the Colombia, Peru and burial artifacts from the continent of Africa. As a diversification strategy, the firm added to their growing product lines replicas of authentic artifacts. Essentially Africa fertility gods and masks were made by craftspeople who were so dexterous that it took the ingenuity of a seasonal purchaser to distinguish the real items from the replicated ones. However, this accounted for an insignificant proceed to their entire sells. The decision by the firm to delve into replicas was the behest of their clients desirous of varieties. The replicas became favorite among gift buyers and persons in search of decorative items. The firm used three medium to push and market their products namely selected interior designers and decorators firm-sponsored showings, and a few exclusive department stores. The South American and African artifacts, contributed to the firm’s gross of about...
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...buyers buy in this industry? In countries with serious turmoil and regulations on the export of artifacts, “knock offs” must be considered and offered for sale. The organization – What is it offering for the market? In this case both real artifacts and high quality, high end replicas to consumers. The factors that led to using replicas have driven up demand. A plan of action – What actions are available to the organization? Trying harder to work with supply countries to secure a dependable supply or offering high quality replicas. Potential outcomes – How will the course of action affect the buyer? In this case it meant more sales to new customers as well as meeting the demand from current customers. #3 The main market for Fe’nix Del Sur is the collector/decorator both amateur and professional. They offer their products thought specialty dealers, product showings and a limited number of department stores. The...
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