What effect does that discount have on your company

Assignment Help Business Management

Reference no: EM131271388

Write an essay answering all of the questions. The essay should be in APA format (i.e. cover page, in-text citations, references page....etc.). You need at least two source (the book counts!), and make sure to provide correct in-text citations when necessary. Essays should be at least two pages in length:

Suppose you are a salesperson at CBI. CBI's sales forecasting system predicts that your quarterly sales will be substantially under quota. You call your best customers to increase sales, but no one n wring to buy more.

Your boss says that it has been a bad quarter for all of the salespeople. It's so bad in fact that the vice president of sales has authorized a 20 percent discount on new orders. The only stipulation 6 that customers must take delivery prior to the end of the quarter so that accounting can book the order. 'Start dialing for dollars,' she says. and get what you can. Be creative.'

Using Cars CRM system, you identify your top customers and present the discount offer to them. The first customer balks at increasing her inventory "I lust don't think we can sell that much' 'Well; you respond, 'how about if we agree to take back any inventory you don't sell next quarter?" (By doing this, you increase your current sales and commission, and you also help your company make its quarterly sales protections The additional product is likely to be returned next quarter, but you think, 'Hey, that's then, and this is now "I

"OK." she says. but I want you to stipulate the return option on the purchase order '

You know that you cannot write that on the purchase order because accounting won't book all of the order if you do. So you tell her that you'll send her an email with that stipulation. She increases her order, and accounting books the Kit amount.

With another customer, you try a second strategy. Instead of offering the discount, you offer the product at full price, but agree to pay a 20 percent credit in the next quarter. That way you can book the full price now. You pitch this offer as follows: "Our marketing department analyzed past sales using our fancy new computer system, and we know that increasing advertising will cause additional sales. So, if you order more product now, next quarter we'll give you 20 percent of the order back to pay for advertising.

In truth, you doubt the customer will spend the money on advertising, instead, they'll just take the credit and sin on a bigger inventory. That will kill your sales to it next quarter, but you'll solve that problem then.

Even with these additional orders, you're still under quota. In desperation, you decide to sell product to a fictitious company that you say is owned by your brother-in-law. You set up a new account, and when accounting calls your brother-in-law for a credit check, he cooperates with your scheme. You then sell $40,000 of product to the fictitious company and shy the product to your brother-in-law's garage. Accounting books the revenue in the quarter, and you have finally made quota. A week into the next quarter, your brother-in-law returns the merchandise.

Meanwhile, unknown to you, CBI's SAP system is scheduling bike assemblies The assembly schedule reflects the sales from your activities (and those of the other sales-people) and finds a sharp increase in product demand Accordingly it generates a schedule that calls for substantial assembly increases and schedules workers for the assemblies The production system, in turn, schedules the material requirements with the inventory application, which increases raw materials purchases to meet the increased production schedule.

DISCUSSION QUESTIONS -

1. Considering the email you write that agrees to take the product back:

a. Is your action ethical according to the categorical imperative (page 20) perspective?

b. Is your action ethical according to the utilitarianism perspective (page 40)?

c. If that email comes to light later; what do you think your boss will say?

2. Regarding your offer of the "advertising" discount:

a. Is your action ethical according to the categorical imperative perspective?

b. Is your action ethical according to the utilitarianism perspective?

c. What effect does that discount have on your company's balance sheet?

3. Regarding your shipping to the fictitious company:

a. Is your action ethical according to the categorical imperative perspective?

b. Is your action ethical according to the utilitarianism perspective?

c. Is your action legal?

4. Describe the effect of your activities on next quarter's inventories.

5. Setting aside ethical and legal issues, would you say the ERP system is more a help or a hindrance in this example?

Reference no: EM131271388

Questions Cloud

Explain current health care delivery structure in your state : Analyze the current health care delivery structure in your state. Compare and contrast the major determinants of healthcare market power.

Distinguish between marketing and corporate sponsorship : Distinguish between marketing sponsorship and corporate sponsorship.- Explain, using examples, why the techniques used at both levels might be similar if not the same.

Important in relation to police accountability : Why is routine supervision so important in relation to police accountability? What impact does organizational culture have upon police accountability? What advantage does close supervision have? What proposed policies may have an impact on agency use..

Based on the system development life cycle model : Have you participated in the creation of a project that failed? Please describe the intent of the project in a few sentences. If you have never participated in a project that failed, please describe the intent of the Healthcare.gov Launch Failure. Wh..

What effect does that discount have on your company : Regarding your offer of the "advertising" discount: Is your action ethical according to the categorical imperative perspective? Is your action ethical according to the utilitarianism perspective? What effect does that discount have on your company's ..

Comment on the notion that sponsorship is changing : Comment on the notion that sponsorship is changing and evolving using examples of instances where this is the case to illustrate.

Establishing and weighing of decision criteria : The process of rational (analytical) decision making involves problem identification, establishing and weighing of decision criteria, generation and evaluation of alternatives, selection of the best alternative, decision implementation and evaluation..

Describe the specific business decision that management made : Explain the specific business decision that management made after computing this value. Analyze how management used the concept of the time value of money principles to make this decision.

Explain objectives behind sponsoring a sporting structure : Sponsorship comes in a number of forms. Explain the objectives behind sponsoring a sporting structure such as a football league.

User Account

All Pages