The problem in one sentence: BPS failed meeting sales targets and renewals rates because sales departments are not operating efficiently. Let us take a look at the following complications of the selling process and its main causes. 1. Customers complain: Sales support team fails to provide a high quality proposal in a short period of time. Salespeople had to delay presentations by weeks.
The southern division has seen decreasing numbers in sales and having difficulty meeting sales targets. The company is very assertive with increasing revenue and encourages each division to work hard to meet sales goals. The company is publicly traded and failure to meet annual sales goals can cause the stock price to drop, affecting bonuses for senior management. The company will face ethical and legal challenges in how to maximize the last quarter of 2010 to meet sales goals. Frank Campbell, Director of Southern Sales Division, has recognized the decrease in sales and desperately seeking to meet sales goals.
The company makes an effort to limit markups to 14% or less for brand-name products. These narrow-thin margins would be nearly impossible for the company to maintain a profit, which is why membership fees are so critical. Without them, the company would be operating at a loss. The second element is the product selection; Costco has made a strong effort to limit products to those of a high standard of quality and only products that will move quickly. Additionally, Costco limits the product selection to a very limited active selection (staples) of roughly 3,600 items.
This will make Tesco more motivated to achieve their targets and objectives. If Tesco didn’t have a budget within their business, the team wouldn’t have anything to aim for and won’t have any way of knowing how the business is doing. However, if Tesco’s budget is unrealistic or too aspirational then they are likely to give up and not hit the target. Furthermore, if Tesco didn’t have a budget then it’s likely that they’d produce too much stock which most it will be thrown away leading to an increase it waste products and this shows that Tesco is spending way too much money on stock that isn’t needed which is why it’s vital that they create a budget and control their costs. Without a budget, Tesco won’t know how much they spent in
Social Security is an immense problem. But the problem is not the cash outflow of benefits draining the economy; it is political risk, and structural inefficiency. The political risk is that whatever the economic theory, we will not politically be able to continue benefits at planned levels. People who counted on those benefits will thereby be made much worse off, because they will have saved too little on the assumption that the benefits would be there. The structural inefficiency arises because Social Security encourages people to retire as early as possible.
On the flipside, refraining from promoting someone who deserves a promotion can have an even worse effect. The employee will be demoralized, and, in most cases, leave the company, thereby causing the high turnover costs associated with hiring a new employee. In the case of Rob Parson, there may not even be an employee in the labor market who can perform quite like him. In “Saying it like it isn’t: the pros and cons of 360-degree feedback”, Mary Carson discusses the importance of properly preparing and implementing 360o feedback. Goals need to be established in advance of the feedback process, and implementation needs to be properly handled in order for the feedback to be effective.The appropriate range of qualified employees can be altered by using the information obtained from the 360o feedback to assist the employee to align his/her career goals with the firm’s goals.
The demand for more products puts demands on more employees which ultimately puts more demand on the HR department. Along with growth comes changes and that includes job descriptions and titles. Hiring an additional HR staff member was vital to help Paul maintain the growth of the company. Paul should begin to work on a job description and job specifications before he post about the new HR position. The job description will let prospective applicants know exactly what they need to do in this position (Mathis & Jackson, 2011).
2nd part of your question: Entrepreneurs usually must start a business with other people's money. The likelihood of success in the new business endeavor is directly related to the entrepreneur's competence in starting and running a business, understanding of the business, market, and industry; and, ability to adapt as market conditions change. Without that, the business will soon go bankrupt... the employees will be out of a job (maybe even out of a paycheck they are owed); the bank will lose money; the suppliers will lose money, the customers will lose money. Everybody loses. Where are the ethics in this?
Once the sales numbers fell, a crucial part in the company’s supply network, Tanita decided to take its business elsewhere. According to the data, Tanita constituted 60-70 percent of total revenue, which is an absurd amount to have invested in one venture but the withdrawal also created an additional problem. Not only does the withdrawal directly hurt the company’s bottom line, it also created a lower barrier for competition to enter which in turns means more competitors in the market and ultimately the potential loss of Jabwood’s competitive edge. One last problem to consider would be the small management board, lacking of outside influences, and their inability to foresee trouble ahead while only relying on one joint venture to pull in the majority of revenue. Therefore the issue is the unwillingness to change managerial structure.
Currently, the division anticipates that the brand’s cash flow in the coming periods will allow the company to pursue new opportunities in emerging markets. However, the competitive nature of the OTC cold remedy market is causing a concern. The senior management is worried that this competitive activity will lead to a declining market share and profitability for Allround. They have lost one full share point in the last year. The goal is to maintain long-term profitability and market share in an increasingly competitive and changing environment.