1. What analyses should Kate perform with this data? Perform these analyses.
2. What problems can you identify from your analyses?
3. What solutions do you recommend to solve these problems and improve results in the future?

MAKING SALES MANAGEMENT DECISIONS Case 9.1: Beauty Glow Cosmetics Company Kate knew her boss would carefully scrutinize Background her analysis. She hoped to be able to identify any Beauty Glow Cosmetics Company manufactures problem areas so that she could develop solutions and markets a line of cosmetics products to retail- and implement them in the upcoming year. She was ers throughout the United States. The salesforce is scheduled to meet with Cline in 3 days. organized into five regions, cach comprised of Kate compiled the following information five districts. A national sales manager oversees the (Shown at the bottom of the page.) five regional sales managers. Each regional manager Questions is responsible for the effectiveness of his or her region and is compensated accordingly. 1. What analyses should Kate perform with this data? Perform these analyses. Current Situation 2. What problems can you identify from your Kate Flower is the regional sales manager for the analyses? northern region. The fiscal year just ended, and 3. What solutions do you recommend to solve Kate has compiled data to help her analyze her these problems and improve results in the future? regions'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 Situation: Read Case 9.1. use her analysis to identify and correct problems Characters: Calvin Cline, national ROLE PLAY Moreover, she needs to complete her analysis for sales manager, Kate Flower, regional her upcoming meeting with her national sales man sales manager ager, Calvin Cline Scene: Market shares for each district were fairly sizable Escation-meeting room at Beauty (30 percent, 32 percent, 34 percent, 31 percent, and Glow Cosmetics headquarters. Action-Kate presents her finding 28 percent for districts 1 through 5, respectively) at the beginning of the fiscal year. Kate had expected from analyzing the effectiveness of her salesforce. She makes suggestions these to remain relatively stable over the past year. The company had anticipated a sales growth of for solving the problems she has identified. Calvin responds to her 2 percent. In addition, selling costs were budgeted at 10 percent of sales. If Kate's region did not analysis. He then asks Kate about the increase sales by 2 percent and stay within the sales performance of her salespeople and budget, her performance appraisal, and subse who, if anyone, she thinks the com pany should let go, quently her compensation, would suffer District 1 (5000) District 2 (5000) District 3 (5000) District 5 (5000) $10,450 6,479 735 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 $8,200 4,920 615 41 17 8 10 80 1.170 2,000 8 8,100 7,500 26,452 $9,500 5,510 810 67 30 10 8 95 1,400 3,500 9 9,750 9,250 29,689 16 12 15 105 1,450 3,200 11 10,250 10,250 30,736 District 4 (5000) $13,750 8.250 1.140 70 41 14 12 125 2,420 5,250 12 14.125 13.925 45,834 $8,400 4,620 630 50 21 9 12 110 1.150 2,500 10 3,300 8,200 30,000