Houston Fearless 76 : The Sales Incentive Plan Modification Proposal

Introduction This report focuses on the gross gross gross function and bonus systems of Houston barefaced 76, Inc. (HF76). First, some background instruction and strategical objectives of the friendship exit be provided. Then, analysis exit be made on the current gross tax inducing plan and the proposed naked as a blue jay incentive plan along with some recommendations on instruction execution of the new plan and other managerial issues. Company background knowledge Houston Fearless 76, Inc. is a intermediate size manufacturing company that provides designing, manufacturing, marketing, and serving of high quality micrographic and photographic products. Customers identify from companies in banking, healthcare, and image industries to goernment entities. HF76 has different strategic objectives for different products. For products in the emerging and ontogeny markets, sales personnel should identify new customers and new markets. For products in the mature stage, sa les pull out should utilize the company brand name and preserve sales in the box market. Even though HF76 has roughly $15 million in sales annually, its profit margin has declined over the years and the commission is very concerned. The management realizes that the main puzzle of this problem is the twin between company objectives and sales force incentives due to hostile performance measure and different fee structures for different products. The mature Sales Incentive System The old sales incentive system uses a combination plan - a square off salary plus commission - to pay salespeople. The base salaries range from $40,000 to $60,000, while the typical commissions earned are most 50% of base salary. A bonus system is similarly in place for sales assistants for reaching the overall sales goal. The desire of using a combination plan is satisfactory since it provides tractableness by relating incentives to accomplishment of less quantitative objectives, such(prenomin al) as customer satisfaction, as well as sal! es volume. It also provides salespeople with a more stable... If you want to get a full essay, rule it on our website: BestEssayCheap.com

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