Case Study Of Sofa King

Decent Essays
After conducting research for Sofa King on how to revitalize declining business and make the store profitable again, Sofa King stands to benefit by making some significant chances in the near future. These plans include turning to a form of incentive-based pay for sales representatives, addressing our restructuring our product development department and a purchase of our prospective Asian plant to help deal with slumping prices.
In order to change the slumping business at Sofa King, three changes need to be made. The first change is changing sales personnel from a standard base salary to more incentive-based pay. The second change is by addressing our product development problem that stems from Dez Potts, our head of product development.
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Potts. In order to address this problem, I will tell him that we are losing productive designers due to his tyrannical methods. As a result, he will be given an ultimatum as it is hard to attract designers with his reputation. If he does not scale back on firing designers and being tyrannical towards them, he will be fired and replaced. This is essential for an appropriate culture as it allows designers to feel less confined and able to be more creative without losing confidence or being punished for failures which will inevitably happen at one point or another.
• Asian plant- This will be the most unpopular move. We will obviously keep employees who have stayed the longest. For those who will be let go, we will offer them a severance package for their work and state that if sales are brought up, there is a good chance they will be brought back.
• Ownership- I will be meeting with ownership in order to address the direction should go in so that all are on the same page. Another reason would be to address why my predecessor was fired for similar actions so that certain steps will be avoided in order to ensure that this doesn’t happen again. Still, ownership and I must be on the same page with the long-term big picture of this
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