Executive Summary
Takamatsu Sports Enterprise is a sporting company that has recently experienced a considerably large loss in net profit. Mr. Takamatsu has begun to look into the problem of the company and believes that Ms. Ota is the problem in the loss of sales. Although Mr. Takamatsu thinks that Ms. Ota is the problem, it really is Mr. Fujita. He has inefficient training and sales.
If Mr. Takamatsu gets Mr. Fujita the appropriate training, he can increase his sales, and that would relate to increasing the profit in Takamatsu’s Sports Enterprise.
Key Issue
Who is the most profitable sales representative? The lease? Are Mr Takamatsu’s concerns about Ms. Ota’s performance valid? The key issue in this case is the new profit loss of Takamatsu’s Sports Enterprise. The company had a net profit loss of $90,871. Looking at Exhibit A, Ms. Yoko Ota is the most profitable sales representative with the contribution of $26,525 to the profit. Mr. Fujita generated the lowest profit contribution of $15,096.
Therefore, Mr. Takamatsu’s concerns about Ms. Ota’s performance are invalid. He only based his assumptions on the number of sales calls made and Ms. Ota excelled at those as well. She only made 35 sales calls. Out of those 35 sales calls 30, 87% placed an order, where Chimura had 66% and Fujita only 50%. Ms. Ota also sold the highest number of Matsui, the most important product. Lastly, compared to Chimura and Fujita, she had the most efficient operating expense ratio at 84%.
The Essay on Profit and Loss
A profit and loss account is something businesses use to show them their revenue, costs and profits for that certain year, therefore showing the total amount of profit that the business has made that year, it is extremely important for the business, in particular for the accounts department who will refer to the profit and loss account a lot. This is because it clearly lays out what the business ...
A huge advantage for Ms. Ota is the fact that she sells the highest number of Matsui. This is the most expensive racquet and she did a total of $288,970. in sales. Mr Fujita again had the least amount of sales in the Matsui with $207,900. This is $81,070 less.
Plan
Based on your analysis, what recommendation(s) can you give to Mr. Takamatsu to return his company to profitability? Based on the analysis, the recommendations our group would give to Mr. Takamatsu to return his company to profitability would be to motivate his sales representatives. The reason our team chose to motivate is because this will further improve their performances.
My having the best sales representatives be acknowledged, in this case Ms Ota, it can boost morale and self-esteem. While there has been an issue of gender stereotyping, that males are better at sales, this clearly isn’t true. But, by making Ms. Ota’s number available and known to all sales representatives, this could threaten them and hurt their self-esteem. All in all, motivating the sales reps can result in them trying harder to get publically acknowledged.
Outcomes
If Mr. Fujita is trained in effectively, his closing rate can increase to 65%, increasing his monthly sales from 20 to 26. While Mr. Fujita is receiving better training, he can learn how to sell the Matsui and increase the sales of the company. Ms. Ota should get some recognition for her great sales, and this should motivate other employees.
