Puente Hills

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Puente Hill Toyota Puente Hills Toyota (PHT) is a large Toyota dealership which is owned by the corporation Hitchcock Automotive Services. PHT is situated in city of industry, California, about 25 miles east of Los Angeles. PHT offers a wide variety of new and used cars (this is unique in the industry). Furthermore they offer Toyota incentives, service specials, and Toyota parts savings. The annual profits of PHT totaled about $1.8, with annual sales of $ 85 million. PHT had a total of 145 employees. The employees are very valuable to PHT due they are the ones who have to advise the customer, sell the vehicles and repair them. But it is hard to keep them al motivated. As said by Howard Hakes; "It's people who give us our biggest…show more content…
At this moment some of the salesman are fraudulent with the customer surveys. For this reason the survey should be done by an independent company. This doesn't only give the management more useful management information, but provides them also with a good performance measure. Thereby could this independent company also randomly pick some customers who are willing to make a second survey. This survey is focused on the as we call it 'aftercare'. In this way the follow-up actions of the salesman and the service advisors can be monitored CSI Rating Change in bonus 1 | -11 % | 2 | -9 % | 3 | -7 % | 4 | -5 % | 5 | -3 % | 6 | -1 % | 7 | +1 % | 8 | +3 % | 9 | +5 % | 10 | +7 % | Sales department In the sales department it is all about one thing, sales of vehicles. For the employees of this department two things are important, profit made on a sold car and customer satisfaction (already described). We can make a distinction between five different bonus plans. First the Salesmen and the assistant sales manager they earn respectively 20% and 7% of the gross profit of every deal. It is good that this measure focus on gross profit and not on how many cars sold. Due this reason there is no behavioral displacement, there are no side effects that will deliver extra indirect costs. When they for example should give a fixed bonus for each car sold, sales man will do everything to sell a vehicle and lower the prices in the

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