Because this salesperson did not have any action after Lauren said that that’s a little more than she wanted to spend. That action means the salesperson did not want to make business with Lauren. 2. What did the salesperson do wrong in this case? In this case, the salesperson‘s mistakes are the non-response action and inactive attitude.
The asset turnover will increase when their profit margin increases, the high profit margin is because they are currently expanding . 2. To a certain extent, the high level of popularity was from their effective market analysis. In 2012 superstyles spent 20% of their profits on marketing. Compared to the industry average superstyles spends 50% more on marketing, however I think it is very useful as they are expanding and don’t have the brand image and reputation yet.
This would explain the difference in gross profit and sales revenue. 2. The economy seems to be a concern as; people are not flocking to the best of the best any longer and may be searching for alternative products. In tough times even a strong market share can erode with the search for comparable products at a lessor price. It appears that this very issue may be vexing Elite.
To encourage the employees to come up with innovative ideas, a quarterly price by way of a $25.00 gift card will be given to the employee with the best idea. Another concept that has worked for many other companies is sharing the financial risks of marketing with other companies. Displaying control over the supply chain aspect of the operations by having inventory management restrictions and continuous reviews of contracts will also have a positive impact on the bottom line. Lastly, establishing a culture of financial stewardship will reflect in a cross departmental approach to cost savings as opposed to holding just the purchasing
The referral program seems to be successful in the markets in where it is used. Employees know what it takes to be successful at Tanglewood and they recruit those that they think will be successful too. The cost is the lowest per 1 year survival rate at just under
They have shown this by closing a few stores in a higher-crime-rate area because they were losing money, by only offering a very limited amount of health-conscience and organic products because they are high margin items and by declining to donate to the local food bank because of worries over lost revenues. Company Q is not displaying an obligation to its stakeholders; particularly the customers, community and employees by not maximizing a positive impact through ethical and philanthropic actions. In order for Company Q is improve their reputation they need to take on a socioeconomic approach to social responsibility. This approach focuses not only on profits but on the benefit of the business to society. Company Q can improve their social responsibility in three areas; customer satisfaction, community outreach and employee trust.
This action demonstrates a lack of interest to aid the less fortunate in the community, as well as failing to increase their customer base. The less fortunate members of society also have to shop for groceries, and they most certainly have a choice where to make their purchases. While Company Q management is making the decision to throw the food away, this results in revenue loss to the company. Shareholders are not likely to invest in a company which prefers to lose revenue rather than contributing to society,
One of the biggest issues would be incentives and commissions. Sales representatives would lose some of their commission if they were to take in Company A’s leads whereas Company B, being the originator of the leads, would have a potential for higher commissions. This may cause sales personnel to steal leads from Company A and convert them to Company B leads. This activity would also have to be closely monitored. As for the customer service representatives, they do not get any incentives because they are paid on salary and do the same work as the sales department.
MGMT 4020 June 24, 2013 Homework Assignment #2 Competition is very high in the North American wholesale club industry. Every wholesale club wants to sell top-quality products at prices less than others in order to attract draw customers. And they all want to display low prices on pallets or inexpensive shelving, therefore, they have very low costs for store decor and fixtures, have comparatively low labor costs, and spent minimally on advertising and customer service. Five Forces Analysis 1. Bargaining Power of Buyers is moderate.
There is no training program for them that state any reasons why the culture of the company relies on customer satisfaction. So in this case some employees may feel resentment for having to put so much effort into making their customer happy. For instance, some Nordstrom employees may feel that it is too difficult to meet the needs of some of their customers. Employees are expected to go out of their way, even to work long hours or beyond their hours to meet their customers’ needs, but they do not get compensated for any overtime. The environment for this employee could be very stressful and cause them to not want to put much effort into sales.