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Chemgrow Case Study.Doc
ChemGrow Inc Case Study analysis:
1. What decisions would you make with regard to which is the most productive region, who is the most outstanding salesperson, and who are the most valuable customers?
The major issue for Mr. John Kee is to decide on the various incentives that include 1. The special bonus plan for the most productive region? 2. A 10-day vacation for the best sales person? 3. A list of the most valuable customers?
As per the various exhibits we can decide on the best productive region, sales person and customer.
The sales representative and there average percentage is shown in exhibit 6.3 ans also lets us know the overall contribution of the best sales representatives. According to the exhibit 6.2 the gross margin of each product is given, the decision on the best sales representative can be calculated comparing the average of the sales representatives with gross margin for each product. The best salesperson is by far Dow even though his contribution is limited to one product. Since the gross margin of Ammonia is way higher than the rest, contribution of Dow has exceeded the rest and is the best sales figure among all the sales representatives. The next best sales representative would be Thums contributing again heavily on ammonia and a small amount on Phosphates.
Based on Exhibit 6.4, 6.5, 6.6 and 6.7 we can decide on the best region and customer. The exhibit shows us the various sales figures and customer figures. The best region can be calculated based on the sale figures for the various quarters compared with the past data. The best production region is by far the central region who have done exceedingly well in the past and in 2000. The total sales in 2000 for central region were 170793 and have exceeded the other regions.
The best customer can be calculated based on the past sales and the sales in 2000. According to the exhibits the best customer is RGC from the central region who have always been a valuable customer with Chemgrow,

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