Allied Novelty Company

In contrast to the fourth district, Kerri Ross’ company appears to be seeing an increase in the cost of sales, according to the compilation that links sales values to Allied Novelty Company. In comparison to the amount she documented for her value of sales, the amount in the data is noticeably higher. All five of the districts where she conducts business can clearly see the sales growth that has occurred so quickly. The report indicates that she has accrued sales for this year totaling $16,400 in the first region and $19,000 in the second. These amounts are high in relation the one for the previous year where she only managed to raise $15,000 and $18,500 respectively for the same districts. This information shows that she got an increase of $1,400 and $500 respectively for districts one and two. Also, in districts three, four and five, she managed to accrue sales values of $20,900, $27,500 and $16,800 respectively in this year. However, in her previous year, she only made accruals of $20,500, $28,750 and $16,400 in their respective orders. This shows that in the third and fifth districts, the sales values increase of $400 in both.

2.

There is a drastic decrease in the value of her sales of $350 in the fourth district. This is in comparison the values of sales in her current and previous year. In a year earlier, her sales value was $27,850 while the value is currently $27,500 which is an apparent decrease of $350. The number of salespeople is relatively higher in district four which has a record of a negative trend in its sales value. The cost of transport, meals, telephone, entertainment and training are also high in the fourth district compared to other districts. The inventory record for district four is also very high compared to the rest of the districts.

3.

The main reason for setting up Businesses is to incur profits. The profits can only be calculated after the value of expenses, and other unpaid debts are fully settled. This includes the principal amount that the owner of the Business had initially invested in it. In case there is n ay inventory, its value needs to be determined and excluded from the amount incurred after the transaction of all business operations. This is because the sum for the stock is also part of the principal that the owner uses to set up the business. In this circumstance, Kerri Ross needs to find a way of cutting down on the expenses of her business. She needs to reduce the cost used for transport, lodging, meals, entertainment, training, and telephone. Also, the number of salespeople needs to be reduced if the workload isn’t that great.

Justification

Expenses eat in on profit, and as I had mentioned initially, the main aim is to increase profits. In order to achieve this, a method should be put in place to ensure all the aspects of the business that are considered expenses. Also, the employees may be many, but if they just sit around all day, there is no need keeping them around yet, in the end, they will all need to be paid for work they did not do. This is the same scenario with the salespeople in the districts. If just a handful of them can complete the tasks, then it is worth reducing the number to the handful.

Case 9.2 Technology Solutions Inc.

1.

Kim states that it is important to have a sales force that performs far better than their competitors, there might be something that their competitors might be doing that they are not. Since Benchmarking is the practice of comparing key metrics of the business, Gage can use benchmarking to learn about the tricks that their colleagues’ sales people are pulling so that they can also improvise their own. In order to beat people at their game, it is quite imperative to partake in what they do in a better way than they do. Notably, people are bound to make mistakes, and there might be some that Gage’s sale people are making and their continued occurrence will cost the Technology Solutions Company its title and market prowess. When Gage conducts a benchmark to their fellow competitors, he may either not a lot or just a few things that could do with his force. In turn, he may update the team of the mistakes they have been making and suggest better improvement strategies. Also, Gage may inculcate the new ideas to the people in the sales force. This might result in a boost in the sales value and maintenance of the title that Kim Martin is obsessed with upholding.

2.

SWOT

The above type of benchmarking is one that the management of companies use to compare the strengths, weaknesses, opportunities and threats of their businesses to those of their competitors. This type of benchmarking is important since it ensures the comparison includes key factors of the firm. The main issues that often affect the performance of the business either fall in the category of the internal or the external environment of the enterprise. The best and quickest way to fix these problems is to take a keen examination of both environmental factors and find solutions to them. According to the different but relative benchmarking methods, SWOT benchmarking seems to solve problems affecting both environments. Gage can then use the findings of the SWOT to better the operations in the sales force that are not working or giving the output regarding sales that would be promising to the management.

3.

Technology Solutions executive leaders can dispatch a team of experts to learn more about better sales practices in other companies that do relatively better compared to them. When the team gets back, a training program can be put in place to teach the members of the sales force new sales methods. This can, in turn, increase the sales value and also boost the value of the profits that accrue to the company. The company may also create awareness about its products, how to use them and the places to buy them. This is because some of the people might not know of the existence of the company or its products and an awareness program will be very helpful in fixing the issue. Also, some of the people might not know how to use the products, and the program might help solve it. Generally, to promote sales, a program such as an advertisement that covers a broad audience over a short duration may be the best option to consider as in Gage’s situation. He needs to use means that would outshine the competitors.