Written analysis Assignment Example | Topics and Well Written Essays - 500 words

Written analysis - Assignment Example For example, Bob Marley’s expected sales are: CU400 is the bonus he earned, according to Exhibit 1. Similar is the case with other workers who got a bonus. Jimi Hendrix, on the other hand, earned no bonus as he failed to meet his target of 41250 units, let alone an excess. Figure 1 exhibits a mighty 9% increase in sales in month 25 (rollout). Till month 47, sales have mainly seen increases, including crossing the peak of 10%. Cost of goods sold as a percentage of sales have seen more declines after month 25. However, they have remained around 63% and have not shown drastic reductions. Wages as a percentage of sales, though, went up by 2% immediately and have not reduced much since. It is evident that Ladbrecks has not seen a considerable deduction in costs. However, it is an incentive plan. By definition, it adds to wages rather than deduct. Cost of goods sold does not cover wages of sales-force (Moore, 2014). Here, they would increase expenses by 2%. However, initial costs must be borne when implementing a change. In the long-run, changes get subtle and rise in sales should be considered. Employees will be satisfied, will provide better customer services and will be motivated to increase sales. The plan should be kept, but changes should be made to effect the motivation of employees who are not meeting their targeted sales. If pay does not motivate them, some other initiative should be adopted targeted to them to ensure further rise in sales. This would decrease the difference in wages/sales percentage and would not impact expenses

FRESHFRUIT INC. CASE Study Example | Topics and Well Written Essays - 750 words

FRESHFRUIT INC. - Case Study Example r to achieve the setout objective include increasing or reducing promotion expenditure, reduction of the selling price, increasing advertising expenditure and increasing the selling price. Each of the various marketing tools has a direct effect on the gross profit earned in 2013 and market share that will be attained in 2013. Consequently, the management has to undertake a combination of two marketing tools among the various marketing tools level to achieve the 2013 objectives optimally. Owing to the gross profit levels the various marketing tools are able to generate for the organization, the management should consider focusing on undertaking a marketing combination that is capable of attaining the 39% gross profit level of sales revenue and market share of at least 14.2% or closer to that range. This is because any combination of the marketing tool will not be able to achieve a gross profit worth $1,200,000 and market share worth 15% through average computation. Owing to the diverse effect of each level of the various marketing tools available for the management of Fresh-Fruit Incorporation in achieving the setout goals, the optimal combination that should be considered is increase promotion expenditure by 10% and increase in selling price by 3%. This is because the combination of the two selected marketing tools has high potential of enabling the organization to attain results that are close to the operation objectives in 2013 financial year (Quiry & Vernimmen, 2011). An increase in promotion expenditure by 10% according to the simulation developed by the management of the corporation indicates that the firm will be able attain a market share of 14.47% and gross profit increment up to 35.22%. Similarly, an increase in selling price will see the gross profit percentage rising to 37.6% and market share of 14.81%. If the two marketing strategies are combined, they will achieve the highest positioning towards attaining the 2013 financial year compared to other