The larger expenses coming along with high quality and services render salespeople a disadvantage when talking to their clients for business. The standards of performance (SOP) set for extra compensation seem unrealistic, with 75% of salespeople earning no commission in the first half of 1992, and so conceivably, fail to motivate them. This makes the result control less effective as they failed to evoke the desired behaviors – achieving sales targets. Together with other offers by competitors, this resulted in high turnover rate. Profit Sharing - Result controls may serve well with congruence between employees’ and company’s objectives, but employees take for granted the law-required 10% profit sharing of the company’s income and so their motivational effect seems little.
If the company ceases to manufacture some products required by those big customers in order to decrease the inventory and cut off the cost, the company may lose contract with those important customers. Another problem confronting the company is that some medium and small-sized customers complained that there are insufficient products to be shipped. So, the dilemma comes out. The company has big inventory stored, meanwhile some customers always complains about the lack of products. One major reason is that the company always keeps the not-updated information and thus the improper inventory.
Step 1: Identify the problem(s) and uncertainties. What exactly is the problem… Customers (Sears & True Value Hardware) have been complaining about late shipments.Unreliable forecasting for Padreto items (i.e. Bow Rake) | The problem is this … The production department do not know how marketing is coming up with their forecasts.There are usually shortages toward the end of the yearForecasts are done by the month for the following yearForecasts are usually reduced by at least 10 percent or more by Phil due to price of steelProduction feel that the forecasts are overinflated compared to the actual customer demandMarketing’s technique for forecasting is based on actual shipments and not the actual demand.Forecast are done based on a judgmental basis instead of using quantitative methodsCost for the company need to be reduced and inventory levels need to be accurate | This is an important problem because… New sales will not be acquired, it will become hard to retain loyal customers, thus net income will be lower than where it could be. | The key question(s) that needs to be answered to solve this problem is… What method of inventory should be usedWho should do the forecastingHow can Yankee Fork increase profits while decreasing cost while ensuring that the company has the adequate amount of inventoryWhat inventory should Yankee Fork promote and when should it be promotedHow can Yankee Fork become more competitive | Step 2: Obtain information. The following information is needed to answer this question… Interview Phil Stanton (ask him about delivery service use, machinery usage, and the accuracy of the inventory)Interview Ron (ask him about regional sales, promotions and non-adjusted items) Observe the production layoutNeed to find out what promotions are being run and how often and which location are they being run.Yankee Fork need to find
If Carl does nothing, he will lose the new trainees, and he could lose his job, this also will cost the company time and money. The current key problems are that Carl Robins had inadequate training as a recruitment manager. Therefore, he could not fulfill his duties adequately for the company. Another key problem is that there seems to be no human resources department to oversee the hiring process of the new employees. Because of the fact is that when Carl went and check on the status of the trainee’s paperwork, and mandatory drug screening; almost none of them had not been completed.
The UPS’s Christmas Eve Snafu is an example of what could result from poor logistics management. The 107 year old courier company failed to handle the situation with its vast resources. Several factors contributed to this failure of UPS: The last minute holiday sale by the retailers is what the analysts believe that lead to the unexpected glut of packages. Most of the retailers preferred air networks of the company to ground delivery to get gifts to customers on time. The discount sales and one-day delivery promises made by the retailers are just the beginning, from the courier company’s side, it failed to forecast the raise in its shipping volumes for the holiday.
THE PERKINS CASE (we did this a few weeks back) 1) Identify the problem and the opportunities 2) How did they approach the problem? 3) Key learning points summarize. 1) The problem was actually unplanned growth which was not aligned with the business’s dynamics. The facility locations were not optimal in terms of the market they were serving. Coupled with bottlenecks at key locations the result was a dent in both responsiveness (new product categories stymied) and efficiency (poor inventory management).
There is a failure to realise that long term better economic welfare also means general higher standards of living, as people have enough money to buy everything they need and some of what they want, competition is rife so drives quality up and prices down, and the government are able to take in more taxes from firms who are much healthier financially. This mass employment may lead to more jobs, but the workers themselves or the way they’re used is hugely inefficient. Another reason that labour production in the UK is so low is the lack of competition. There is a strong body of evidence that competition enhances productivity. So, with a lack of one there is a lack of the other.
The retailing recession was what the company believed caused this decline in sales. A company’s ability to pay off a short-term loan relies heavily on the company’s sales and profit. If these are declining then there is no way the company would be able to pay off the loan at the original forecasted time. Along with the downturn in sales SureCut Shears did not accurately forecast its financial needs. The company’s proforma statements did not take into account any external factors such as a retail recession taking place.
Firstly, the marketing focuses of the two were different – Southcorp wanted to push products while Rosemount wanted to promote. Then the companies couldn’t agree on what quality and price to set their products at, and of course there were the cost reductions by the CEO. These reductions were choices such as the cutbacks of employees, vineyards, wineries and warehouses. As well, the problems between merged computer systems signified the decline of this once profitable company. Within a year of the company being merged, everything that made the two separate entities work, was making this new company fail, so what went wrong?