PT. A is a company engaged in the electronic home appliances industry, the goods produced include: televisions, refrigerators, washing machines, and so on. The company sells its products to retailers, namely electronic stores, both traditional and modern stores.

In the past year, it has experienced problems in the marketing of its products. The problem experienced is not achieving the desired profit margin or target. According to management, the unachieved margin target was allegedly due to the product's selling price being too low, so that the profit per unit of product obtained by the company was also low.

When management proposed an increase in the selling price to marketing management, the proposal was rejected, on the grounds that if the price was increased, the sales quantity would decrease. Another reason stated by the marketing manager, that there is another brand, namely brand B, which sells at a lower price than us, and even provides a more attractive bonus/promotional program to shop owners, so that currently the sales quantity is very large.

However, according to management, the B brand was on the verge of bankruptcy and was about to be acquired by another company, so they were depleting the inventory by selling cheaply. Management compares our prices with the market leader, and according to him, our prices are still cheaper than the market leader.

Question:

1. As a management auditor for PT A, what will you do in the field work phase?
2. What evidence do you need to obtain, to understand the case, as well as the basis for making recommendations to management?
3. What recommendations would you give to the management of PT A?

Answer rating: 100% (QA)

1 Fieldwork is an essential stage because it provides the information that will help managers m... View the full answer