Allied Novelty Company markets a broad mix of toys and games to retailers throughout the United...

 

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Allied Novelty Company markets a broad mix of toys and games to retailers throughout the United States. The salesforce is organized into five regions, each comprised of five districts. A national sales execu tive oversees the five regional sales managers. Each regional manager is responsible for the effectiveness of his or her region and is compensated according to the achievements of their region. Kerri Ross is the northern region sales manager for Allied Novelty. The fiscal year just ended, and Kerri has compiled data to help her analyze her region's effectiveness. Although her region has had what she believes to be a very successful year, she wants to analyze each district closely. She hopes to use her analysis to identify and correct problems. Moreover, Sales Cost of goods sold Compensation Transportation Lodging and meals Telephone Entertainment Training District accounts receivable District inventory Number of salespeople Sales quota Sales last year Industry sales District I (5000) 16,400 9,840 1,230 82 34 16 20 160 2,340 4,000 16 16,200 15,000 52,90+ District 2 (S000) 19,000 11,020 1,620 134 60 20 16 190 2,800 7,000 18 she needs to complete her analysis for her upcom- ing meeting with her national sales manager, Greg Rich. Market shares for each district were fairly sizable (30 percent, 32 percent, 34 percent, 31 per- cent, and 28 percent for districts 1 through 5, respectively) at the beginning of the fiscal year. Kerri had expected these to remain relatively stable over the past year. The company had anticipated a sales growth of 2 percent. In addition, selling costs were budgeted at 10 percent of forecasted sales. If Kerri's region did noe increase sales by 2 percent and stay within the sales budget, her performance appraisal, and subsequently her compensation, would suffer. Kerri knew her boss would carefully scrutinize her analysis. She hoped to be able to iden tify any problem areas so that she could develop solutions and implement them in the upcoming year. She was scheduled to meet with Rich in three days. Kerri compiled the following information (shown in the table below). 19,500 18,500 59,376 District 3 ($000) 20,900 12,958 1,470 84 32 24 30 210 2,900 6,400 22 20,500 20,500 61,472 District 4 (5000) 27,500 16,500 2,280 140 82 28 24 250 4,840 10,500 24 28,250 27,850 91,667 District S (8000) 16,800 9,240 1,260 100 42 18 24 220 2,300 5,000 20 16,600 16,400 60,000 Allied Novelty Company 1. Perform sales analysis and Cost analysis for all the sales districts and your provide your results with an interpretation 2. Perform a complete profitability analysis and provide your assessment of problems and good performance. 3. Perform a productivity analysis and provide your assessment of problems and good performance. 4. Present the specific steps to be taken to solve the problems and improve sales effectiveness. Allied Novelty Company markets a broad mix of toys and games to retailers throughout the United States. The salesforce is organized into five regions, each comprised of five districts. A national sales execu tive oversees the five regional sales managers. Each regional manager is responsible for the effectiveness of his or her region and is compensated according to the achievements of their region. Kerri Ross is the northern region sales manager for Allied Novelty. The fiscal year just ended, and Kerri has compiled data to help her analyze her region's effectiveness. Although her region has had what she believes to be a very successful year, she wants to analyze each district closely. She hopes to use her analysis to identify and correct problems. Moreover, Sales Cost of goods sold Compensation Transportation Lodging and meals Telephone Entertainment Training District accounts receivable District inventory Number of salespeople Sales quota Sales last year Industry sales District I (5000) 16,400 9,840 1,230 82 34 16 20 160 2,340 4,000 16 16,200 15,000 52,90+ District 2 (S000) 19,000 11,020 1,620 134 60 20 16 190 2,800 7,000 18 she needs to complete her analysis for her upcom- ing meeting with her national sales manager, Greg Rich. Market shares for each district were fairly sizable (30 percent, 32 percent, 34 percent, 31 per- cent, and 28 percent for districts 1 through 5, respectively) at the beginning of the fiscal year. Kerri had expected these to remain relatively stable over the past year. The company had anticipated a sales growth of 2 percent. In addition, selling costs were budgeted at 10 percent of forecasted sales. If Kerri's region did noe increase sales by 2 percent and stay within the sales budget, her performance appraisal, and subsequently her compensation, would suffer. Kerri knew her boss would carefully scrutinize her analysis. She hoped to be able to iden tify any problem areas so that she could develop solutions and implement them in the upcoming year. She was scheduled to meet with Rich in three days. Kerri compiled the following information (shown in the table below). 19,500 18,500 59,376 District 3 ($000) 20,900 12,958 1,470 84 32 24 30 210 2,900 6,400 22 20,500 20,500 61,472 District 4 (5000) 27,500 16,500 2,280 140 82 28 24 250 4,840 10,500 24 28,250 27,850 91,667 District S (8000) 16,800 9,240 1,260 100 42 18 24 220 2,300 5,000 20 16,600 16,400 60,000 Allied Novelty Company 1. Perform sales analysis and Cost analysis for all the sales districts and your provide your results with an interpretation 2. Perform a complete profitability analysis and provide your assessment of problems and good performance. 3. Perform a productivity analysis and provide your assessment of problems and good performance. 4. Present the specific steps to be taken to solve the problems and improve sales effectiveness.

Answer rating: 100% (QA)

1 Perform sales analysis and Cost analysis for all the sales districts and you provide your results with an interpretation The cost of goods sold for each district was as follows District 1 1470 Distr... View the full answer