Marketing Plan For First Transit Business Development Team Operates Under A Sales Incentive Policy

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First Transit is an operating division of FirstGroup plc, a publicly traded firm on the London Stock Exchange. Revenue growth is an important financial measure as it has a direct impact on shareholder value. Therefore, the Board of Directors adopted a five-year plan that establishes annual revenue growth goals for First Transit of around 8%. For a firm with annual revenues of $1.4B, this requires a dedicated business development team that is motivated to retain current customers and win new business. The First Transit business development team operates under a Sales Incentive Policy that provides bonus payments upon execution of new business and renewal contracts. This paper will assess the incentive policy and offer support for it as…show more content…
In addition, there is a cap for a single contract to prevent a large payment that could diminish the team’s drive to continue working for contract wins. For renewal procurements, the challenges found in new business proposals are largely known and already in place. Success is largely dependent upon the client relationship cultivated by the operations team and the quality of the current service. Therefore, bonuses for contract renewals are based on the first year revenue only. The purpose of the policy is to establish a Reward Systems that places a direct relationship between an individual’s performance and personal compensation. Winning new contracts and retaining current work through a competitive procurement process is critical to the financial success of the company. The policy also adds intrinsic value to the employee as he or she earns a feeling of achievement and recognition when receiving the bonus check. Stakeholders and situational factors are taken into consideration and influence the policy. The policy is designed to motivate the team to win new business contracts that generate revenue growth. The FirstGroup CEO and Board have established this as a key goal and business objective that must be achieved. Situational factors are also considered. Common industry practice is to pay commissions to business development personnel. The incentive policy places a direct link between performance (contract wins) and
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