GROUP A: Amy Gandhi, Jazimar Bailey, Stephen Miller Robert Sopko
You’re a salesperson Company’s sales forecasting predicts you and others will be under their sales quota. V. P. notices situation and is offering a 20% discount on new orders but delivery must take place during this quarter so accounting can book it. You decide to use the customer management system to gain sales from top customers
You: offer the woman the discount Woman says she doesn’t think they can sell that much You: tell her she can return whatever is unsold (this way you make commission and reach quota) Woman says she wants to stipulate the return option on the order You: know you cant do that because then it won’t count so you tell her you’ll email it to her. Woman agrees and increases her order
You: offer products at full price and offer 20% credit the next quarter( this way you book full price now) Even after these additional orders, your still under quota You make up a fictitious company owned by your brother in- law and have a $40, 000 order and have it delivered to his garage and he’ll return it next quarter.
The company’s MRP II system is scheduling production. You and others created an increase in demand so the company increases production and workers so more raw materials are needed.
It is not ethical to write an e-mail agreeing to take the product back because that salesperson does not have the authority to make decisions about taking back inventory that is not sold. Also the salesperson goes out of the to not put the stipulation on the purchases order because accounting will not allow it. If finds out about this later he or she will probably be very angry with the sales person. ~Jazimar
- no - it will mess up the balance sheet for next quarter because they are paying the full price now, and 20% in the next quarter, which leaves them starting off behind already. ~Robert
Its not ethical because the company must increase production and costs to get the products delivered and then they’ll be returned so they company loses money. With other customers, there a chance that even if a return policy they may keep the extra inventory but when the company is fake that’s not even an option. It is not illegal but unethical because of the problems it will cause. The company’s back up deptmt should require legal documents to prove it’s a real business. • ~Amy
As a manager, knowing that your quarterly sales will be substantially under quota, there is so much pressure to get your company back on schedule There are two impacts occurring: 1. with the first customer, you are looking into the future, which pretty much impacts how he looks in the present day With the second customer, you offer to buy the product at the full price so that you can raise the quota by the next quarter. In reality, these are not really helping the company at all § ~stephen
How do these activates impact the next quarters inventories? With both, you are not really helping to increase the quota of your company
If I were the COO of this company and I knew of the strategies that my sales people were using i would tell manufacturing to ignore the sales increase. However, if I did not know what my sales people were up to there would be no reason to ignore the increase in sales. ~Jazimar
- I wouldn’t just call the top people, maybe some from the lower end discount is offered now, not next time - tell them to keep the product for later ~Robert
My opinion in this matter is that in order to secure the companies quota and raise it, I will buy all the material and inventories which in my own experience as a sale manager would help increase the production and help to rise up the quota If I was that manager, I would be proactive in reaching a higher goal than being reactive in this situation ~Stephen
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