Question

1. Using the following information provided for the end of the current fiscal year, conduct a sales analysis to evaluate sales organization effectiveness. The company anticipated sales growth is 5%. As part of the evaluation, you should calculate an effectiveness index, sales growth, and market share. As part of your answer, consider the following questions: Which region is most effective? Which region has the smallest market share? Are the sales quota figures reasonable for each region? All numbers in $000 Region 1 Region 2 Region 3 Region 4 Sales $8,100 $9,500 $8,500 $5,000 Sales Quota $8,250 $8,500 $8,150 $7,800 Sales Last Year $7,850 $8,750 $8,000 Industry Sales $23,000 $25,000 $27,000 $21,000 Previous Year Market Share 36% 35% 30% 25% 2. Using the following information, conduct a productivity analysis. As part of this analysis, you should calculate sales per salesperson, expenses per salesperson, calls per salesperson, and proposals per salesperson. Based on your analysis, do you have any concerns? Explain. Sales District District 2 District 3 $15,000,000 $18,000,000 $15,000,000 District 4 $18,000,000 Selling Expenses $1,500,000 $1,800,000 $2,250,000 $2,250,000 Sales Calls 6,750 5,625 6,375 17.500 Proposals 165 135 1 95 203 Number of Salespeople 15 You must start a thread before you can read and reply to other threads

Answer 1

Particulars	Region 1	Region 2	Region 3	Region 4
Sales	8100	9500	8500	5000
Sales Last year	7850	8750	8000	4850
Sales Growth	3.18%	8.57%	6.25%	3.09%
Industry Sales	23000	25000	27000	21000
(current year)
Market Share	35.22%	38.00%	31.48%	23.81%
Sales Effectiveness Index	0.982	1.118	1.043	0.641
(sales/Sales quota)
a) Region 2 is effective due to High market share & High Effectiveness Index
b) Region 4 is Smallest Market Share
c) As Per Sales Effectiveness Index , Region 4 is not effective w.r.t Sales quota
	District 1	District 2	District 3	District 4
Sales (a)	15,000,000	18,000,000	15,000,000	18,000,000
Sales People (b)	15	23	15	23
Sales per Sales person (a/b)	1,000,000	782,609	1,000,000	782,609
Selling Expenses ©	1,500,000	1,800,000	2,250,000	2,250,000
Expenses per Salesperson (c/b)	100,000	78,261	150,000	97,826
Calls   (d)	6,750	5,625	6,375	7,500
Calls per person (d/b)	450	245	425	326
Proposals (e	165	135	195	203
Proposals per person (e/b)	11	6	13	9
a) Sales per Person are high in District 1 & 3
b) Selling Expenses are high in District 3