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Macroeconomic impacts on business
Macroeconomic impacts on business
Influence of the economic environment on a business
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Jane’s Attic Background In 2008, Jane Whitler had opened a high-end used furniture retail store in a metropolitan area in the Southwest United States. Her business has been flourishing due to the increasing aging population in the United States. A major part of her market segmentation is snowbirds (people who travel south during winter from colder states). She is able to buy their used furniture at a reasonable price as they move to different houses, or if they move to care facility. The retired market is also her target market for selling her furniture. This is because as the retired people are moving from their homes in the north to their homes in the south permanently, they tend to buy their furniture from her store. By the end of 20ll, Jane was pleased with her sales, as they approached close to $2 million. However, has she looked back her records, she couldn’t figure out how she was still losing money. In 2009, she lost 68,000, in 2010 the loss was $31,000, and in 2011 it was down to $20,000. She determined that 2012 would be profitable, but sales began to plateau. …show more content…
With this realization she has begun thinking of altering the sales force compensation plan. She has asked her accountant, John, to compose some sales statistics that might help her consider different sales compensation. John had also had mentioned to Jane that some of his other retail clients that employ salespeople or other getter versus order takers, tried to have each employee generate at least twice their annual compensation and fringe benefits in gross margin dollars. Thus, if a salesperson had total compensation of $50,000, they would need to generate between $100,000 and $150,000 in gross margin dollars. The data that the accountant developed is as
3. The Garners ' take-home pay is over $4,500 a month. Yet, after all expenses are paid, there is only a $220 surplus each month. Based on the information presented in this case, what expenses, if any, seem out of line and could be reduced to increase the surplus at the end of each month?
Dott “Dorothy” Case was an extremely influential woman in the health care field. She became a doctor, instructor, associate professor, surgeon, and cheifship of surgery. She created her own private practice, became director of public health for the Philadelphia Federation of Women’s Clubs and allied organizations, and created the Dorothy Case-Blechschmidt Cancer Health Clinic of Doctor’s Hospital. In addition to all her accomplishments Dorothy was also a mother, and a wife. She is an exceptional example of the endless limits a woman can reach in the field of health professions.
Theresa Campana, CEO of the Buckeye Group, is a manufacturer’s agent for three companies that sells different types of software. As a sales agent for Accto Co., Saleco Inc., and Invo Inc., the Buckeye Group is responsible for calling business customers to sell accounting software, sales management software, as well as inventory management software out of Columbus, Ohio. With regards to logistics, according to the case, the Buckeye Group has sold $550,000 of total software, with Campana earning a 10 percent commission from Accto and Saleco, as well as a 7 percent commission from Invo per her dollar value of her final sales. Evidently, Campana’s initial ease of making sales come from her high knowledge of the products, background in business,
Marketing analysis: Hafren Baum retails luxury home furniture which makes the demand for it being cyclical. Over the last two years from 1994 to 1995 the net sales for Hafren Baum have fallen by 21.05% and 1.24% respectively. There are number of factors which have caused this change. According to German economic statistics, we can see that the economy slowed down which forced retailers to reduce their prices to keep the old demand. Despite the fact that Hafren Baum constructed 3 more outlets in the expectation of higher sales volume their sales went down by almost 18% which seems to be the result of boom turning to bust in 1993. Later in 1995, the economy started recovering, but the sales for small retailers like Hafren kept declining. The
What possible repercussions will Agnes Whitworth face as a result of her actions? Explain the ‘risk factors’ associated with this particular situation.
The sales director proposed that if the firm were to reduce the price of Item 345 to FF15.00/m, they would be able to increase sales to 175,000 units (or 25% of industry volume). But if they were to keep the price at the current value of FF20.00/m, they would be able to sell not less than 75,000 units (or 11% of industry volume).
Fourth problem- Demographic data on the two stores, Cotati, and Santa Rosa are closely related. A decision needs to be made on which store to purchase, or to purchase both stores. Can Oliver Market make a profit with these stores is the question. Also Steve and Tom need to think about their competitor best and weak strategy and who are entering in the demographic markets as well as which rivals are strong candidates to expand their product offering and enter new product segments where they do not currently have a presence.
Provided that Susan’s organization is new and she has clearly indicated “that cost control will be essential to keep the business going long enough to become well known and develop a stable clientele” (Long, 2014, p. 500), assuming this statement is true, I argue that base pay should be an important component of compensation for the sales staff in conjunction with performance pay.
The main goal when defining the financial perspective was to answer the following question “If we succeed, how will we look to our stakeholders” (BSI 2009, ¶5). Scents & Things is a new business in the area and will need to look closely at the competition in order to increase the company’s market share. The company may have to initiate a way to find a competitor since the original location is in the heart of a small town. Additional areas the company needs to look at is customer satisfaction, asset utilization, Increase net revenues, Minimizing store production costs, Decrease in unit cost, Increase operating cash flow over prior year , And ultimately to achieve financial sustainability. The way to measure the above objectives is to monitor revenue growth, Operating costs, Earnings per share, Return on capital, Return on interest, and number of returned items in a way that will help management to direct the c...
Hays, Scott. "Pros & Cons of Pay for Performance." Workforce 78, Number 2 (February 1997): 68-72
Dunn J. D. and M. Rachel Faruk, Wage and Salary Administration: Total Compensation System, McGrow Hill Book Company, 1971, U.S.A., pp.18.
In advertising its products, the IKEA catalogs played a primary role as they were attractive and easy to use. The efficiency of IKEA products and quality of design were emphasized in the catalogs. Every household in the area surrounding a new store received a copy of the catalog during the busy years of expansion. Although direct mail-order sales usually represented a very small portion of the total sales. The whole IKEA range was not offered by the catalogs. To attract new customers to the stores, they were always a key factor. Throughout the world, IKEA continued to open stores in different locations and attracted various customers. It was interesting to look at a company offering the same basic products at all stores and do well in many different cultures with different tastes. Lastly, the IKEA’s current number of employees in retail and expansion functions is 116,500 as of 2015. Thus, the total sum of employee worldwide in 2015 was 155, 000. Literally, the rate of employee would be increased in terms of business development in the future. (Brammer, Jackson, and Matten,
The newly appointed district sales manager, Larry Barr, faces the problem of allocating sales quotas among his various sales representatives. This decision will affect everyone's earnings including his own. This problem is compounded by the fact that different territories have, for a variety of reasons, different potentials. In addition, the territory that is known to be the toughest will soon require a new sales rep.
During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansion program that had been proposed by the marketing department. Assume that you are an assistant to Leigh Jones, the financial vice president. Your first task is to estimate Harry Davis’s cost of capital. Jones has provided you with the following data, which she believes may be relevant to your task.
Mr. Rankin is the person responsible for the technical implementation of a new customer relationship management software. The company he works for is having great success with initial sales across the country, but when it comes to repeat customers, it seems the numbers are lacking. This software, in theory, should increase the levels of follow-up service nation-wide. At this point, the company employs three hundred and ten people and maintains their low prices, which is how they get their initial business.