Let's Go Travel Trailer

2610 Words Nov 15th, 2014 11 Pages
Assignment 4: Letsgo Travel Trailer

Coachman industries, a direct Letsgo competitor has reduced its material cost by more than 60% and labor cost by 78% by using creative engineering and high accuracy analysis. On the other hand, the Letsgo Travel Trailer Company is experiencing challenges with quality, cash flow and a performance review and reward system. This is happening due to lack of integrative planning across different functions. Each functional unit is trying to maximize their own performance, which in turn is hampering the overall performance. The current appraisal and reward system is increasing this isolated and non-cooperative working of the different functional units.

▪ The sales department to improve their sales
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The analysis of the table-1 reveals that future sales have been projected to grow at the rate of 20% per annum. The validity and reasonableness of there projections is questionable. There seems to be a very remote possibility of meeting their projections given the current scenario of the Letsgo. The points are raised about the validity and reasonableness of the projections:

1. In the last five years the growth in sales for the company has been around 10% per annum, except for the 1997, the growth was 18.78%. In the case, nothing is mentioned that company has made any drastic changes in its strategy to grow faster. In such a scenario, projected a consistent growth of 20% per annum for the next 5 years is too optimistic.

2. Although the case mentions that retiree sector is likely to grow very fast, but case does not show any market research or robust data analytics done to support the fact that this sector will embrace Letsgo product.

a. Are the projections based on any solid market

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