Houston Fearless 76 : The Sales Incentive Plan Modification Proposal

Introduction This report focuses on the gross gross receipts function and bonus systems of Houston barefaced 76, Inc. (HF76). First, some background education and strategical objectives of the connection exit be provided. Then, analysis go forth be made on the current gross revenue bonus 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 downplay Houston Fearless 76, Inc. is a intermediate size manufacturing company that provides designing, manufacturing, marketing, and religious service of high quality micrographic and photographic products. Customers footslog from companies in banking, healthcare, and delineation industries to goernment entities. HF76 has different strategic objectives for different products. For products in the emerging and developing markets, sales personnel should identify new clients and new markets. For products in the mature s tage, sales pull out should utilize the company brand name and preserve sales in the niche market. Even though HF76 has roughly $15 million in sales annually, its profit margin has declined over the years and the circumspection is very concerned. The management realizes that the main puzzle of this problem is the mismatch between company objectives and sales force incentives due to distant performance measure and different fee structures for different products.

The octogenarian Sales Incentive System The old sales incentive system uses a combination plan - a base salary plus commission - to pay salespeople. The base salaries range from $40,000 to $60,000, while the typical c! ommissions earned are most 50% of base salary. A bonus system is similarly in place for sales assistants for reaching the overall sales goal. The thinker of using a combination plan is satisfactory since it provides flexibleness by relating incentives to accomplishment of less quantitative objectives, such(prenominal) as customer satisfaction, as well as sales volume. It also provides salespeople with a more stable... If you want to get a full essay, stage it on our website: BestEssayCheap.com

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