What Are the Problems in Step Smart’s New England District?
Essay by Preetham Anantha • March 6, 2018 • Case Study • 337 Words (2 Pages) • 2,488 Views
Essay Preview: What Are the Problems in Step Smart’s New England District?
What are the problems in Step Smart’s New England District? (10 points: This should
contribute to your opening problem definition statement/s of your essay-form written case analysis
assignment. It can be supported by references to any explanatory analyses, tables, or charts that you
choose to provide in the allowed Exhibit pages
Currently the Step smart is undergoing a crisis where the revenue or sales from its New England district is way below the targeted Revenue estimated last year. Under the Reorganizational activities, the new CEO of the Company-Mark Wallace promoted Ben Cooper to District Sales Director and appointed him to manage the underperforming territory of England. According to the new CEO, the underperformance in the district was due to poor sales force management and expected Ben cooper to help in improving the morale and productivity of the sales team at the concerned territory. Also, as per the market research conducted by Wallace by analyzing the demographic, economic and purchasing power, the generated BPI for each territory reflected the purchasing power of 7.49% for New England which indicates that it would be able to generate sales of same percentage of overall U.S sales, but contrary to that the district sales were just 5.29%.The overall sales in the commercial segment for Step Smart increased by 9.8% during the year2009-2010, however for New England the sales growth was just 7% in the year 2009-2010.Moving ahead the sales for the year 2010-2011 the overall sales growth was 12% whereas for New England the growth by 5.8%. However, the Regional growth was at par with the national growth rate in both the years.
Year | National | National %age Growth | Regional | Regional %age Growth | District | District %age Growth |
2009 | 149,628,483 | 9.8000 | 58,886,424 | 12.4000 | 8,369,119 | 7.000008006 |
2010 | 164,292,075 |
| 66,188,341 |
| 8,954,958 |
|
2011 | 184,500,000 | 12.3000 | 73,800,000 | 11.49999968 | 9,483,300 | 5.899994171 |
Based on the data and analysis done, Wallace instructed Cooper to work for 10 weeks on the overhaul of the sales team of New England district and gave a sales target to be achieved from the specified district to be equivalent or greater than BPI of the territory else Cooper will have to terminate 50% of the sales team.
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