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 schooling and strategical objectives of the phoner exit be provided. Then, analysis exit be made on the current gross taxation incentive plan and the proposed naked as a jaybird incentive plan along with some recommendations on slaying of the new plan and other managerial issues. Company flat coat Houston Fearless 76, Inc. is a intermediate size manufacturing company that provides designing, manufacturing, marketing, and work of high quality micrographic and photographic products. Customers twine from companies in banking, healthcare, and pic industries to goernment entities. HF76 has different strategic objectives for different products. For products in the emerging and suppuration markets, sales personnel should identify new guests and new markets. For products in the mature stage, sales pull out should utilize the com pany brand name and preserve sales in the recess 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 twin between company objectives and sales force incentives due to impertinent performance measure and different fee structures for different products.

The antiquated Sales Incentive System The old sales incentive system uses a combination plan - a calm salary plus commission - to pay salespeople. The base salaries range from $40,000 to $60,000, while th e typical commissions earned are most 50% o! f base salary. A bonus system is similarly in place for sales assistants for reaching the overall sales goal. The belief of using a combination plan is satisfactory since it provides flexibility 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, modulate it on our website: OrderCustomPaper.com

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