Anda di halaman 1dari 2

Areas of Consideration (SWOT Analysis) A. Strengths G.E. Appliance had approximately 45% market share in the appliance industry.

G.E. Appliance was one of the most advanced firms in the consumer goods industry in terms of sales budgeting. G.E. applies a sales incentive/bonus plan that improves staff morale and production output. Feedbacks on employee performance were given continuously along with yearly formal salary reviews. G.E Weekly sales reports from all regions are fed into the central computer, which can be accessed by the sales manager to check on reasonableness of his allocation. As basis for judgment in adjusting figures for allocation, historical allocations were also used. Former sales manager Ken Philipps, as well as the regional sales manager, Anthony Foyt, assisted Barr.

B. Weaknesses Bulk sales are sold to contract customers, which in turn lowers profit margin on sales in those territories. G.E. s sales training program is limited to only product knowledge missing out training the new sales force for sales techniques. he quota allocation process dismisses differing situations in certain territories as well as difficulties in attaining increased budgeted percentage. Barr was new to the job despite previous experience with sales budgets. Ken Block, one of the company s top salesman resigned, effective at the end of the year. Regional salesman Rizzuto (Territory 9961) had no control over buying decisions concerning two large national accounts. Fluctuations on several accounts are present from year to year, leaving quotas hard to estimate. The general economic outlook of Canada was poor.

C. Opportunities A possible increase in sales brought by increased personnel production through high morale may further increase G.E. s market share. Constant human relations such as updates on employee performance limit the risk of dismissal and several employee relations problems, thus minimal loss of sales. Reasonable approximates of sales were secured with the use of both current weekly sales reports and historical figures resulting into correct budget allocation. The promotion of Barr as district manager may prove to be a fresh, new, positive start with the help of persons with keen knowledge of the job.

Different positive sales strategy may be applied on the territory Block vacated, depending on the incoming replacement, opening possibilities of sales increase. The inappropriate budget percentage increase in some territories may very well prove to be a goal for the employees, despite the difficulties, all because of the promised sales incentive.

D. Threats Disparities on sales allocation between current figures and historical data may result in numerous personnel disagreements, specifically on areas with previously low estimates. Succeeding employees to fill up slots of resigned managers would have limited knowledge about sales techniques, in turn, limiting sales output. Several employees may react to unjust allocation on sales quota due to the difficulty of attaining it. Barr, even with his aides, can possibly stumble on the job because of his inexperience. With the resignation of Block, his proven difficult territory would have to have a new top salesman, a good one too, resulting in a reshuffle or managers accompanying a possible downfall in several territories. Rizzuto may lose potential sales if rumors that one of the national accounts would delist its purchase of G.E appliances, were true. A continuing poor general economic outlook of Canada would surely prove disastrous for the company.