Review each scenario below and answer the questions in your post. Part A: Divers

Question

Review each scenario below and answer the questions in your post.

Part A: Diversified Industry Supply recently announced a new performance incentive program for the upcoming year. The program provides significant monetary bonuses to each of the company’s 12 regional sales organizations based on the percentage which their individual region’s actual sales revenues exceed budgeted revenues for the year. As the sales manager for the Southwest Region, Katy Cook is highly competitive and determined to win the incentive for her region. Although the Southwest Region has potential for exceptional growth in the coming year, Katy and her sales team are considering a plan to better assure the region will win the incentive bonus. This plan would establish a sales budget for the next year which understates forecasted sales in a way that will make the region’s year-end sales revenues look significantly better than budgeted and provide her team with a better chance of winning the competition.

What do you think Katy should do? Why?

Part B: Faith Distributors is a leading wholesaler of religious themed gift items and books. Committed to their faith-based business principles, the company does not allow alcoholic beverages to be used in any of its business activities. This includes marketing conferences and trade shows and even extends to its sales personnel entertaining customers. Royce Richards, sales manager for the Western Region, is discussing the success of sale-person Tim Johnson in gaining a significant opening order from a major buying group along with commitments for the coming year. During their discussion, Tim mentions that, as the result of dinner meetings with the group’s regional buyers where they ordered beers and cocktails with their dinner, he is personally out just over $800 because of the company’s policy. Tim asks Royce if he could add extra mileage—over and beyond what he actually travels—to his next month’s expense report that would add up to what he is out of pocket for the unreimbursed drinks.

What do you think Royce should do? Why?

Explanation / Answer

PART A

Katy Cook being the sales manager of the southwest region which is considered as potential growth region. Since the company has announced the revised bonuses and there is high probability that Katy and his team can win due to high demand in their region. I would suggest that Katy should do the proper planning on the revised numbers which she would expect from her team and she should call immediate connect with her team members for detailed discussion. She should also take ideas from her team members for increasing sales numbers. They should also prepare an effective roadmap as per revised targets on weekly, monthly and quaterly basis. Katy should also fix review of her team performance on frequent intervals.

Katy and her team should focus on aquiring new clients and they should also do the proper marketing of their products ensuring an increase in market penetration of their products. They should also plan regular visits to their existing clients and strengthen their relationship with them in order to earn trust which will definately result in incresing orders and keep them ahead of competitors.  

PART B

Royce should definately allow the reiumbursement of drink expenses beared by Tim for their buyers dinner meeting. As mentioned Faith distributors do not allow alcoholic beverages to be used in any business activites, it can be a good practise followed by the company but royce should consider some exceptions when their is a client requirement as offerings drinks with dinner meeting cannot be treated as unethical if situation is demanding the same in case of clients meet. But, yes royce should definately tell Tim to follow the company ethics upto the extent till the client requirement is not compromised like in this case Tim could have also tried by offering some soft frinks for clients informing the policy of the company.  

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