Case 4: Takamatsu Case Analysis (25 points)
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.
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%.
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.
Develop a profitability analysis by salesperson based on the example in the textbook. (Hurricane Cycle)
Profitability Analysis by...
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