...incentive plan to increase accuracy of forecast and slow the increase of commission and ultimately to make the salesperson care about the selling expense. The new incentive plan is introduced in order to tackles these three problems by providing commissions on product gross margins, promising an extra bonus on accuracy of the sales forecasts, and offering a bonus on the achievement of MBO targets. However, the new incentive plan brings some new problems. There are four downsides of this plan. Firstly, no commission will be paid until gross margins exceed 70% of the forecast. It is totally unfair to sales representatives taking care of the low gross margin products. Secondly, in order to receive the extra bonus, sales persons of low gross margin products will be inclined to move this year’s sales to next year or vice versa. Others associated with products whose gross margin exceed 70% tend to ignore the accuracy of the forecast due to the little amount of bonus based on 5% of their salary other than commission. Thirdly, the cost of implementing this plan could be insurmountable. When the sales staffs meet the 70% requirements, the commission could be punishingly high to the company. The biggest issue of this incentive plan lies in its percentage-oriented nature. Gross margin equals gross profit divided by sales. It neglects period costs such as selling and administrative expenses....
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...Dyadic Leadership Approach Amanda B. Donner LDR/531 August 27, 2012 Dennis Gribenas, PhD Dyadic Leadership Approach The dyadic leadership approach is one in which the linear relationship between a leader and one other individual that is to be led, is studied. The definition of the leader in terms of this approach is discussed with regard to how the leader is able to affect the desired behavior in the one that he is leading with regard to accomplishing specific tasks (Yukl, Chapter 1: Introduction: The Nature of Leadership, 2010). According to Yukl (2010) the dyadic leadership approach usually focuses on the “leadership behavior as the source of influence, and on changes in the attitudes, motivation, and behavior of an individual subordinate as the influence process” (Chapter 1: Introduction: The Nature of Leadership, 2010). Strengths of the Dyadic Approach The dyadic leadership approach assumes that the relationship between the leader and the subordinate is singular in nature and is a relationship that evolves over time from a basic or casual relationship to that of a mutual trust in order to accomplished mutual goals (Yukl, Chapter 1: Introduction: The Nature of Leadership, 2010). In this way the leader has a direct influence over the behavior and attitude of a singular subordinate without outside interference. The dyadic leadership approach can also be used to study a group dynamic but in a limited way assuming that all of the subordinates have similar job descriptions...
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...Introduction Competition is very prevalent between companies. One thing that separates a good company from a great company would be the compensation package. A good company would have the average benefits such as healthcare. According to an article titled Why Do Companies Pay For College, “Instead, tuition assistance appears to select better quality employees who stay on the job longer, at least in part to keep making use of that benefit” (Capalli, 2004, p.213). A great company would have tuition reimbursement, on-site wellness center and discounts for the employees. Without a compensation package it can make the employee’s job more stressful, especially for a sales job. If sales representatives just work for commission; then what is there is no drive to stay with that company. Evaluate whether or not the compensation system at Collegiate Promotions is effective. A good compensation system can mean the difference between retention and turnover. The text defines a compensation package as “the mix of rewards employees receive from the organization” (Brown & Stewart, 2010, p.444). A compensation package can range from tuition assistance to having an on-site gym. The only reward that the employees of Collegiate Promotion receive is commission from the products they sell. According to the case study Collegiate Promotions, “The sales representative receives a commission of half the amount charged over the whole sale price” (Brown & Stewart, 2010, p...
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...Kwame Jarvis Glengarry, GlenRoss 4/2/09 The unethical activities that John Williamson engages in are announcing that he is willing to sell the prime leads but demands cash in advance for them. Another unethical activity is when James Lingk comes back to tells Ricky Roma that he and his wife had changed their mind, Levene lies to them by saying that he already deposited the check. One thing that was done that can be considered an unethical deed is offering an incentive the top salesman getting a Cadillac and the second best getting a set of steak knives. Then saying the rest of the salesmen will be fired due to lack of performance. The employees also engage in unethical activities. Some of them are when Shelley Levene tries to charm, threaten, and bribe John Williamson for the prime leads. Another is when Dave Moss and George Aaronow felt some type of way about Mitch and Murray, the big bosses, decided that they should stage a burglary and steal all the prime leads and sell them to another real estate agency. Moss and engaged in unethical activities by intimidating Aaronow into doing it when Aaronow decided he wanted no part of it. Ricky Roma used his dishonesty lack of morals to get things done since he was the most successful salesman in the office. The employees support each other’s unethical behavior because they are all the same. All of them lie and are deceitful and since all of them are basically the similar, it is kind of hard for them to pick it up. ...
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...career backgrounds that include sales experience with large, national firms. Less management time Independent sales representatives are usually more experienced than in-house representatives and need less management and direction. If you hire them, you will be less likely to need to hire a sales manager, and they will probably take much less of your time than in-house representatives. Sales expenses rise and fall with your sales This is a big plus for a growing business that doesn't have lots of cash in its early days, and also helps during downturns. Disadvantages No control You can't control an independent representative. They will only push those products they feel have the best chance of selling and making them money. They will tend to put their best effort into selling the best products from their most established lines. No commitment As a new manufacturer you are an easy target for the "first time out of the bag syndrome." The representative will be looking to place orders for your product very...
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...organizations in the society. The technological environment consists of those forces that affect the technology and which can create new products, new markets, and new marketing opportunities. Microenvironment Elements close to a company that impact the company's ability to serve its customers. There are six components of the microenvironment: the company's internal environment, composed of the management personnel and including the finance, purchasing, manufacturing, research and development, and marketing departments; the company's suppliers, who provide the goods and services necessary for the production of the company's products; the marketing intermediaries, composed of all the individuals or companies who help in the promotion, selling, and distribution of the company's products; the customers,...
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...Job Analysis and Selection Since InterClean, Inc., has acquired EnviroTech I would like to make sure everyone is heading toward the company’s mission and goals. To do that I will need to do a job analysis, workforce planning, and then I will be selecting a group of employees who will embrace our company’s new strategy, and they will become the new sales team. Job Analysis “The term job analysis describes the process of obtaining information about jobs” (Cascio, 2006, p. 158). The job analysis to determine the essential characteristics of a job in order to produce job specification. A job specification is a written statement of the essential characteristics of a job including necessary qualifications, duties, responsibilities, and degree of authority of the job holder. Another part needed is a summary of the task requirements that is called a job description. According to Cascio, “it usually includes information about the tasks, to be done on the job as-well-as the personal characteristics (education, experience, specialized training, and personality) necessary to do the tasks” (p. 158). Three key elements that are included in a job analysis are: 1. Knowledge - body of information necessary for task performance 2. Skills - level of proficiency needed for task performance 3. Abilities - capabilities necessary to perform the job I will be doing the job analysis with some help and guidance from human resources. By me doing this, it will give me...
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...developed by Phil Knight in the early 1960’s. He was inspired by the Japanese lower-cost and high-quality products. Since it’s creation, the company is based on innovative design, quality and durability. NIKE focuses on Design, Marketing and Distribution: the company comes up new products before the competitors, creates demand and makes sure that they sell the most innovative products. NIKE has spent a large amount of money on promoting their brand so the costumers want to by the symbol and they are willing to pay a higher price regardless of the actual value of the product. NIKE runs various campaigns to stay in touch with their customers. Position Paper For my position paper I wanted to discuss in particular the advertising and the selling strategies of NIKE. The article praises, (by giving many stats and percentages) the ability that NIKE has to get close with the customers and with their communities with successful campaigns and with well planned advertising. Personally I agree with the article, the decision making of the NIKE’s advertising is a perfect example of what a successful company should look like. In the modern world there is a lot of brands competing with each other to get more customers, and NIKE, in regard of sportswear in one of the top companies in the world. The majority of NIKE’s customers are athletes so by promoting in their ads a need of dominance, prominence, affiliation and...
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...merchant accounts. The Argus Company is driven by the mission of simplifying and easing payment processing through the provision of cost efficient services. They provide remarkable customer services and offer robust support. It offers competitive rates to clients and accept all types of industries that include small, medium and large businesses. Due to the qualities that this company has, an interview with a salesperson in this company was conducted and the responses to the questionnaires provided in the paper. His name is Kevin Hart and serves in the sales representative department of the merchant company. The interviewee was entitled to the sales representative job title at the company and was entitled to debt collection services, selling of credit information, subscription of business publications and the advertisement of other financial services. His duties involve spending most of the time travelling from one locality to another, and this includes interstate locations and countries. The interviewee works at the Argus Merchant Services company at the sales department. The company that he works for provides flexible debit and credit card payments to clients and enables them to shape their business infrastructure. It is ranked as one of the prominent merchant services company in Asia. The interviewee has been at the firm for a period of one month. He has familiarized himself with the company during that time and has undertaken the sales representative duties successfully...
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...the best deals and programs they can and we are supposed to implement on it. If our sales numbers are not up from last year or consistent, we are in the danger of losing that brand and they might go with our competitors. Anytime in the year, the winery can come up with some very special deals for a limited time and we have to make sure we sell it. Most of the times, the managers said that they are not given enough notice and it gets hard to get those programs together and get an urgent meeting scheduled with the sales team. It’s like that you are supposed to leave everything else, and just get on to that job. It was felt amongst everyone that if there is proper planning in place and enough notice is given, we could do a much better job in selling all the program. One of the colleagues felt that certain people could ease the stress by not over reacting too quickly to a situation. They need to think about what they are going to say rather than taking snap decisions. Communication was the other source of stressor. All my colleagues argued back and forth that people within the company don’t communicate well enough and when the goals are not met, they are pissed at each other. They also agreed that they need to email each other more often, in order to keep everyone on the same page with the deal structures and programs. The...
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...What They Didn’t Teach Us in Sales Class – Extra Credit Assignment 1. Should Rick Lester "turn in his keys"? Turning in his keys after only one month on the job (to include one week working alone), would be premature and unwise. Rick must realize that all jobs are challenging even with an abundance of knowledge and experience/expertise. A salesperson’s job is even more challenging given the long hours, hard work and the “calloused’ treatment of salespeople by buyers. Rick must exercise patience, perseverance and determination in order to successfully develop the skills necessary to successfully overcome these challenges which will enable him to become a better provider for his family and a better salesperson to Nabisco. 2. How should Mr. Brown handle this situation? What should he say to Rick? As the Division Sales Manager, one would surmise that this was not Mr. Brown’s first case of a new recruit “quitting before testing the waters.” There must have been valid reasons for making an employment offer to Rick. It is therefore incumbent on Mr. Brown to have a one-on-one meeting with Rick in an effort to understand his reasons for quitting. Having spent his first three weeks of employment with Mr. Brown, he is most likely the only person that Rick probably feels comfortable with or looked up to (more so before his inconsiderate comment). He should offer some encouragement and inspiration – positive reinforcement, focusing on his strengths and the reasons for...
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...Developing Marketing Paper Nicholas Crosby MKT/421 February 8, 2014 Henry Tran Developing Marketing Paper My definition of marketing is the act of buying and selling goods in a market or in a business matter. It will be the functions to transferring goods from the producer to consumer other known as from the seller to the buyer. Marketing is the management process through which goods and services move from concept to the consumer. It includes the coordination of the four elements which involves the four P’s in marketing. The four P’s in marketing are the Product, Price, Place and the Promotional strategy. Thomas (2006) “Marketing is outlines the specific actions you intend to carry out to interest potential customers and clients in your product and/or service and persuade them to buy the product and/or services you offer” para 5. The importance of marketing in an organizational success is that marketing is everything a company does to acquire customers and maintain a relationship with them. Carl (2002) “The ultimate goal of marketing in a organization’s is to match the company's products and services to the people who need and want them, thereby ensure more profitability” para 4. This is very important because in marketing departments in order to gain success you have to try to get the attention of people and target audiences by using slogans, packaging design, endorsements and general social media exposure. Some examples of business that use marketing are for one Chaparral...
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...Case Study 1 Week 1 Professor Eckert Shield Financial Problem Statement Doug bloom recently was promoted from sales rep to sales manager in a new territory for a struggling branch. This position is risky since the old sales manager was fired since he was unable to produce higher sales numbers. Doug’s mission is to implement a new First Plus program through his sales force. The issue, is that most reps are used to catering to their smaller accounts, which is opposite of the First Plus program. Doug is struggling to get everyone on board with this new program since it lacks good compensation incentives, but has to find a way to convince his reps this good idea since he is being pressured from corporate. Furthering the issue, are many upset employees with these changes including the top performing rep, Tiffany Williams, who will most likely resign soon. Summary of the Facts Doug will reach success when he is able to convince the reps that the First Plus program is beneficial to all. The First Plus program is aimed towards acquiring large accounts, which require more time due to all the moving parts with larger companies, and are also more difficult to sell. The current way Doug’s branch operates is mostly from smaller accounts, which have faster closing times since a smaller company usually requires a decision by one person and the financial side of things are easier to see. Shield Financial is pushing for this new program since competitors have already rolled out a similar...
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...Assignment #3: Case Problem "Julia's Food Booth" Complete the "Julia's Food Booth" case problem on page 109 of the text. Address each of the issues A - D according the instructions given. (A) Formulate and solve an L.P. model for this case. See Excel worksheet. (B) Evaluate the prospect of borrowing money before the first game. I would suggest that Julia consider borrowing money before the first game to open up her food booth. According to the first constraint, she is subject to a $1,500 budget with a potential to make a profit of $2,250 if she were to sell all her pizza and hot dogs. This result yields a profit of $750 or 50%. Even if no sales were made, the potential is high, considering the opportunity. Plus, I am sure that a small initial investment is not detrimental to her personal funds, to where if things did not go as planned, she could recover the funds. (C) Evaluate the prospect of paying a friend $100/game to assist. I would suggest that Julia consult a friend for $100/game to assist in her food booth. After running a break-even analysis (see Excel), holding all things constant, where she only sells pizza and hot dogs, she would have to sell 67 slices of pizza and 48 hotdogs to break-even after paying her friend $100. This does not seem too farfetched, considering her maximum sales, given these constraints, is 1,250 slices of pizza and 1,250 hot dogs, only about 5% and 4% of maximum sales, respectively. On top of that, Julia may need the help to meet...
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...Indian Distributors Ltd. Prof. Ramesh Behl Indian Distributors Ltd. was originally started as a small trader who used to import goods from third world countries and sell these in India. Slowly, it expanded its business to an ‘Importing House’. It was established about fifty years back and, over the years, has built up a substantial nation-wide selling and distribution organization within India. Its headquarters is in Mumbai, but it has warehouses and Regional Sales Offices in Delhi, Kolkata, Chennai, Jaipur, Lucknow and Amritsar. Over and above the Regional Sales Officers, it also has Regional Sales Centres in all the major towns of all States of India. Although the business started purely as an importing business, it has created a strong selling and distribution network on the basis of imported product range. The existence of a strong distribution and selling network enabled them to take on distributorships of a wide range of Indian manufacturers. Today, they sell about 50% of indigenous manufactured products, while 50% products continue to be imported from other countries. The imported items of course involve license formalities, and a separate license section has been established (adjacent to the Delhi Regional Sales Office) to deal with these matters. License Section job is also to liaison with customs department and other agencies. Indian Distributors Ltd. markets several range of machines and other household consumable products. The machines range includes-...
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