Supersonic Essay

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TOPIC: Supersonic Stereo Inc. This case talks about the Supersonic Stereo Inc, a leading stereo devices producer, which recently showing signs of stress in the Atlanta area region. Since their beginning in 1962 Supersonic overall has experienced an incredible growth centered on their popularity for top quality stereo devices. Supersonic is very particular about the dealers they select to do business with and although costs are competitive some dealers select to discount. The company’s major concern is that their sales are stagnant and their profits are down. Furthermore, Dealers are reinforced by Supersonics national advertising campaigns, which is created on 5% of revenue. Although this quantity is somewhat more than what other stereo companies spend Supersonic feels this is necessary to maintain their position in the industry. Supersonic uses a compensation plan for its sales staff in order to motivate them. They use a commission plan centered on 6% of total gross margin, which is used to prevent workers from cutting costs. Moreover they base the territory allotment based on seniority. These sales staff are provided with additional settlement for their travel expenses, which is centered on the quantity of revenue calls that are made. At the moment the company has four key players, Charlie Lyons, Paul Sands, Diane Gallo, and Kathy Parks. In this case, the supersonic sales staff feels under paid however the management is of the view that they staff is being over paid and have been slacking. The staff has put forward a request to increase their salries, however as the company feels that the staff is under worked and is reluctant to increase their salaries, atleast not until the performance has improved in the region. Sales manager, Bob Basler, is now faced with two solutions for this dilemma either to raise the quotas or reduce the compensations

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