Table of Contents
OVERVIEW 3
BACKGROUND 4
ARCK SYSTEMS 4
ARCK SYSTEMS’ MERGER WITH LUX SOFTWARE, INC. 4
DIFFERENCES IN SALES MANAGEMENT 5
THE CRITICAL ISSUE 6
ANALYSIS 6
Overview
This paper will discuss the history and background of Arck Systems and its merger with Lux Software. I will then examine, discuss, and analyze the nuances of the merger and the resulting issues that arose with different compensation packages for each company’s sales team. In my analysis, I will address the intended and unintended consequences of incentive compensation plans. Finally, I will offer my recommendations to Arck Systems. Background
Arck Systems
Arck Systems was a medium-sized manufacturer of network computers used by many
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Differences in Sales Compensation
It wasn’t until Mynor began to review the compensation plan for Lux salespeople that he realized that he may have more of challenge managing the Lux sales team. The Lux Sales compensation package was vastly different than the Arck’s. Lux’s compensation package included accelerators, which increased the percentage commission a salesperson could earn based upon quarterly sales. A salesperson could potentially earn 24% commission. Arck’s compensation package included a standard 9% base commission paid after the quota was met. There was also a $50,000 bonus if the $6 million sales cap is reached.
The Critical Issue
The critical issue facing Arck Systems is attempting to figure out how to best manage the Lux sales team. While reviewing the plan, Mynor noticed that “top guns” at Lux make 30 times more than the average salesperson. Whereas the best sellers at Arck make only 4 or 5 times more than the average salesperson. He understands that the sales approach differs from Arck because it requires a more personable approach, rather than a technical one. If he decides to change the compensation plan, he needs to be able to anticipate how the sales people react. And predicting or anticipating reactions is a near impossible task.
When a law enforcement officer or other public employee is accused of potentially criminal conduct, they may face three different kinds of interviews or interrogations. If an officer is interviewed as a criminal suspect, they have the absolute right to decline to answer any questions, or to insist that they have a lawyer of their choosing to attend the interview. The first is type is during a criminal investigation; the second is during a disciplinary investigation and finally during the course of civil litigation where there has been damages. During a criminal interview, there is no professional, ethical or moral duty to participate especially without the assistance of an attorney to represent the officer under investigation. It has come to a surprise that many experienced officers will waive their right to silence and give the investigators an audio recorded statement. Some of the inexperienced criminals do not make incriminating statements. The motive for cooperation is to avoid unfavorable publicity.
carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).
One of the important aspects of business management is having a proper compensation system. Compensation ensures that the staff of the company obtains the results of their efforts. Compensation is a cost to the enterprise and, therefore, a proper remuneration model must demonstrate its ability to produce returns. Also, since compensation is what the employees get in exchange for their services, the type used must be one that will motivate the employees (Belcourt & McBey, 2015). Henderson printing company is a mid-level company. Therefore, it requires a very critical remuneration system that will help it to survive. This memo explores the compensation models that Henderson printing operates as well as suggests the necessary changes.
Over the last 77 years, Morgan Stanley has been at the forefront of the financial industry. This is from the firm focusing on creating customizable investment products that are sold to retail and institutional clients. ("Company History," 2012) However, a problem is that many competitors are entering a period of flat growth that is at the top of S Curve. This is when a company will grow so big that it becomes difficult to continue increasing profit margins. (Nunes, 2011, pp. 1 5) In the case of Morgan Stanley, the recent financial crisis has made it more difficult for the firm to improve earnings. As a result, a new strategy must be developed that will motivate the sales force to do more. To determine the most effective approach requires examining six features of a total rewards program, the specific behaviors that will be targeted, assessing the value proposition and how to attract registered representatives.
b.What are the amounts and timing of the acquisition investment’s free cash flow from 2013 through 2022?
Kim, W. Chan, and Renée Mauborgne. "Blue Ocean Strategy." Davidhenard.com. Harvard Business Review. Web. 22 Oct 2013. .
Wilkerson’s competitors have cut prices on their pumps, in order to maintain market share, Wilkerson also cut the price of their pumps. This dropped Wilkerson’s GM by about 15%. At the same time, Wilkerson was able to increase the price of their flow controllers by 10% without a drop in demand.
The following are the factors that created an opportunity for Bob Reiss and TV Guide game:
1. Why are Houston Fearless 76, Inc. (HF76) managers unhappy with the company’s existing sales incentive plan? Are weaknesses in this plan a major cause of the company’s performance problems?
a. How was the Hoosier Burger project identified and selected? What focus will the new system have?
Apex, a chemical manufacturer, has the option of commercializing one of its compounds due to resource scarcity. Apex needs to examine both choices and take into consideration the analysis of market size and trend, value proposition, market knowledge and share, and forecasted revenue for each of the compound before it decides which compound to commercialize.
Part of Fiserv’s business-unit director’s compensation was in relation to the bi-yearly feedbacks of their client’s and this identifies their willing intent to improve and provide better for their products and for the clients. (Mote, Dave n.d.)
One major problem was the resignation of one of the company’s top salesmen who had the most difficult territory (9963), effective at the end of the year. If he shifts one of the more experiences salesmen into that area, it would disrupt service in an additional territory, which was undesirable because it took several months for a salesman to build up a good rapport with customers. This decision would affect the
Stryker is a global medical device manufacturing company. The Instruments Division is located in Kalamazoo, Michigan. It was founded by Dr. Homer Stryker, an orthopedic surgeon. Dr. Stryker discovered that certain medical devices were not meeting his patient’s needs. Because of this, Dr. Stryker decided to invent new ones. The devices he invented were successful, and the interest in Dr. Stryker’s products began to grow. As a result, in 1941 he decided to start a company to produce them.
Jacobson first consulted Dan Gunther who was in charge of the Boston Division. Jacobson consulted Gunther due to his fifteen-year experience with the company. He figured he would have the best insight to the sales were stagnant because of his wisdom and experience. Jacobson found out that the flat sales of the Boston branch was due to the irrational/unreasonable demands of their client. Then he contacted the Philadelphia branch. Carol Klein, the key account manager, told Jacobson that the reason of her flat sales was due to personal reasons that were going on in her life. She was having issues juggling her stressful job and taking care of her family as well. Although this is a valid excuse of something that many people struggle with, it should not be negatively affected her work performance. The next sales representative that Jacobson consulted was Mike Wagner in Washington DC. Wagner claimed that he is having a hard time on finding information regarding the present condition of the competition in the market, making it harder for him to compete with the others. This is not only Wagner’s fault for not doing the research, but also upper management’s fault for not informing the employee’s of how to compete with