Houston Fearless 76 : The Sales Incentive Plan Modification Proposal

Introduction This report focuses on the gross gross tax function and bonus systems of Houston barefaced 76, Inc. (HF76). First, some background study and strategical objectives of the club exit be provided. Then, analysis will be made on the current gross tax revenue inducing plan and the proposed naked as a blue jay incentive plan along with some recommendations on effectuation of the new plan and other managerial issues. Company background 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 float from companies in banking, healthcare, and celluloid industries to goernment entities. HF76 has different strategic objectives for different products. For products in the emerging and ontogeny markets, sales personnel should identify new customers and new markets. For products in the mature stage, sales pull out should utiliz e the company brand name and preserve sales in the receding market. Even though HF76 has roughly $15 million in sales annually, its profit margin has declined over the years and the counseling 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 unbefitting performance measure and different fee structures for different products.

The anile Sales Incentive System The old sales incentive system uses a combination plan - a nucleotide salary plus commission - to pay salespeople. The base salaries range from $40,000 to $60,000, while the typical commissions e! arned are most 50% of base salary. A bonus system is similarly in place for sales assistants for reaching the overall sales goal. The appraisal 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, decree it on our website: BestEssayCheap.com

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