Jim Black Case

2757 Words Apr 2nd, 2015 12 Pages
Synopsis
Noram Canada Ltd. sells compressed gases through sales representatives who are supervised by an area supervisor. With the recession hitting hard, sales representatives cannot afford to lose their customers to other compressed gas suppliers who are eager to grab new clients.
Jim a sales representative of Norman Canada has been having a difficult time. Customers knowing the market is in their favour demand for discounts and shorter delivery times. Jim, has had to have expedited delivery to meet a deadline and offer discounts which reduce his commission. Expedited deliveries delays the shipments of other clients and discounts are not smiled upon by Noram management except in cases of huge orders.
Jim is currently worried about a
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Clients who might want to reduce expenditure due to the financial strain if the economy will cut back on quantity bought. With the reduction in quantity ordered, the sales representative will have to get a bigger customer base to make up for the gap in orders. Knowing that there is a scramble for their money, clients realize the market is in their favour and put more pressure on the sales representatives by asking for discounts and express deliveries. Jim who is a sales representative is currently on the receiving end of the recession. He has to risk his commission by offering discounts to keep the clients happy and has to go the extra mile to ensure that orders are delivered as at the dates the client wants.
Recession can be triggered by various economic agents but a very common cause of recession is the crash in stock market prices. When stock prices crash, investors lose confidence and are less likely to invest making it harder for companies to get capital for production expansion. Also, interest rates tend to go up making it harder to secure loans. With reduction in production and sales, companies usually lay of staff or sell off the company as a whole in order not to go bankrupt. With the present recession, the parent company of Noram is taking selling the company as its option.
Although recessions tend to improve