MKTG 220 final paper

MKTG 220 final paper - Forrest Powell established a...

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Forrest Powell established a business that he was very passionate about, and was very knowledgeable of. Both of these things are very important when starting up a business, and then expanding it. However, knowledge and passion aren’t the only things that matter. A business can never be successful if the sales staff is not doing their job to move merchandise out the door. According to the case study, Forrest had a very diverse sales staff. All of which used the job and salary provided by him in a different way. Some people depended on their salary from Forrest’s Bike World as their only source of income, and some did not. Some of the employees had families, and others were single. All of these scenarios could have an impact on the way the sales staff worked depending on the pay plan each was receiving from Mr. Powell. Mr. Forrest Powell and Adam did a fairly decent job of assessing the situation revolving around the compensation plan of his employees. The two of them sat down together and evaluated what each person was doing, and how their sales experience related to their selling abilities. They also decided what Mr. Powell’s goals were as a business owner. These goals were: 1. Increase sales revenues relative to quota 2. Increase customer satisfaction and customer loyalty 3. Increase sales for certain product lines 4. Take advantage of bike knowledge of the sales staff 5. Encourage bicycle riding in local events All of these goals are very reasonable for a business owner to have. Especially
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when he is as passionate about his business as Mr. Powell. Mr. Powell realized that by having his employees on a straight salary plan, he was benefiting them. He realized that many of his employees were dependant on that salary every week to feed their families. However, By being on a salary plan, his employees were not selling to the best of their ability. Some of them, when they reached their sales quota, gave up. They did not worry about helping the business be successful and grow, they just wanted to make sure they reached their quota. This is a common problem when people are on straight salary compensation plan. Some more information may have been helpful when given this case. In order to determine what is going wrong with the business, some helpful info would be how much he is spending on operations. If he is spending too much on operations, this could explain his loss. Another piece of info would be to know how busy he tended to get at any given point in time. The case states that he has one manager and two to three sales people on the floor at any given time. My question would be: “Do you need one manager and two to three sales people in the store at a time?” I would suggest trying to have one manager and one sales person on the floor. This would help
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MKTG 220 final paper - Forrest Powell established a...

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