Houston Fearless 76 : The Sales Incentive Plan Modification Proposal

Introduction This report focuses on the gross gross revenue function and bonus systems of Houston barefaced 76, Inc. (HF76). First, some background learning and strategical objectives of the companionship exit be provided. Then, analysis allow be made on the current gross revenue inducement plan and the proposed naked as a jaybird incentive plan along with some recommendations on carrying into action of the new plan and other managerial issues. Company footing Houston Fearless 76, Inc. is a intermediate size manufacturing company that provides designing, manufacturing, marketing, and servicing of high quality micrographic and photographic products. Customers regularise from companies in banking, healthcare, and picture industries to goernment entities. HF76 has different strategic objectives for different products. For products in the emerging and ripening markets, sales personnel should identify new clients and new markets. For products in the mature stage, sales pull out should utilize the company brand name and preserve sales in the respite market. Even though HF76 has roughly $15 million in sales annually, its profit margin has declined over the years and the solicitude is very concerned. The management realizes that the main puzzle of this problem is the couple between company objectives and sales force incentives due to remote performance measure and different fee structures for different products. The senior Sales Incentive System The old sales incentive system uses a combination plan - a stock 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 flexibility by relating incentives to accomplishment of less quantitative objectives, such(prenominal) a s customer satisfaction, as well as sales vo! lume. It also provides salespeople with a more stable... If you want to get a full essay, dedicate it on our website: BestEssayCheap.com

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