SettingaTarget

Readthecasebelow, and determinetheannual targetfigures foreachitemfor the Osaka area thatshouldbeachievedby theendofthreeyearsfromnow.Thesetargetfigureswillbeusedtoappraiseperformanceofthemanagers.

Background

Right Decision is a Tokyo-based consulting firm and provides services to middle-sizedcompanies. All the firm's clients arecurrently based in the vicinity of Tokyo, but the firm isnowconsideringexpandingitsbusinessintotheOsakaarea.

At themoment,thereare fourteamsworking forthe Tokyoarea. Theseteams wereformedbased on thechemistry between thepartner, who leads the team andis engagedin mostimportant sales activities, and the team members. They are not basedon industry orgeography.

The Osakaarea hasa potentialmarketof roughlya quarter toathirdofthesizeof theTokyomarket. Three years fromnow, the firm wants to have an office ofabout 10staff andachieveproductivityandprofitabilitycomparabletotheTokyoarea.

	Tokyo Team1	Tokyo Team2	Tokyo Team3	Tokyo Team4
NumberofStaff	10	12	9	6
NumberofBusinessLeads	175	222	119	130
NumberofProposalsSubmitted	113	135	77	65
AverageProposalAmount(millionyen)	14	8	16.5	12.5
NumberofOrdersReceived	25	45	18	20
AverageOrderAmount (millionyen)	11.5	6.6	14.5	11.8
Total AmountofOrders(millionyen)	287.5	297	261	236

Items requiring target-setting (Use the same unit as in the table above.)Numberofbusinessleads

Number of proposals submittedAverage proposal amountNumber of orders received Averageorderamount

Totalamountoforders