CASE 1
Zenith computer Terminals, Inc.:
Development of total Business Plan
1. Sales 12,000,000
Less: Expenses
Salary 1,800,000
Production
Computer Terminals 7,200,000
Marketing
Salary 600,000
Direct Marketing 600,000
Administration
Managers Salary 240,000
Clericals 150,000
General Overhead 60,000
Services Department
Salary 320,000
Tools and Equipment 30,000 11,000,000
Net Profit 1,000,000
12,000,000
2. What would be the net profit if Sales?
a. Sales 10,000,000
Less Expense: 11,000,000
Net Loss (1,000,000)
b. Sales 14,000,000
Less Expense 11,000,000
Net Profit 3,000,000
- The Sales Department
The Sales Force must be expanded to meet targeted sales of $ 12,000,000.
Hiring a sales rep normally takes about a month. It is desirable to recruit and hire all the new reps at one time. Training of new reps takes four weeks of the classroom time followed by a month of on-job-coaching in the field. The sales manager must handle the classroom segment but can delegate three of the field training weeks to senior sales reps, as long as he personally handles at least one week of coaching during the new sales reps’ first month in the field.
The Production Department
Two weeks will be needed to recruit and select 10 additional workers for the new production line and another two weeks will be needed to train them on existing equipment. The 1,000 new terminals will be sold during the fourth quarter. They will not be produced and delivered until the first quarter of year.
The Marketing Department
Sales Department will plan and implement a one-week workshop in late September to introduce the new terminal to sales reps. Two months will be needed to select a vendor for this, and about six months’ lead time will required to develop a production model. A sales brochure to accompany this introduction cannot be started until the new product is about one- third finished, and this brochure will require three to four months to write and print.
The Administration Department
This evaluation should take about a month. The entire administrative function must be computerized during the next two years. He has asked the administration manger to do an internal study, with a task force the staff, and to present a report by December 1 of the coming year. Based on Rob’s discussion, he estimates that the task force will need a month for each of the four other departments, a month for interviewing computer vendors, and two months to write a comprehensive report.
The Service Department
This could be alleviated by additional service reps. having the staff sell maintenance contracts to customers. The sales manger anticipates needing about six months to design the program and get it kicked off. The manger is also planning on hiring the new service immediately; about a month will be needed to hire and train them.
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