In havard case 'stepsmart fitness'
I don't know how to use exhibit1~7(statistical data)
the question is
- Which of your districts salespeople are underperforming? Should anyone be terminated or placed on probation?
Commercial Sales History
StepSmart U.S. Commercial Sales History
U.S. Region District
| 2009 | $ 149,628,483 | $ 58,886,424 | $ 8,369,119 |
| 2010 | $ 164,292,075 | $ 66,188,341 | $ 8,954,958 |
| 2011 | $ 184,500,000 | $ 73,800,000 | $ 9,483,300 |
If you compare the New England districts year-over-year growth to company and regional sales growth, youll notice it falls well short of expectations.
District Buying Power Potential
| Sales Rep | Territory | Buying Power | Actual % of 2011 Sales |
| Ellis | Boston suburbs | 1.27 | 1.08% |
| Barrow | CT | 1.8 | 1.08% |
| Hammond | City of Boston | 0.8 | 0.82% |
| Foster | NH | 0.97 | 0.77% |
| Gibbons | Eastern MA and RI | 0.63 | 0.72% |
| Concetta | VT and Western MA | 1.08 | 0.46% |
| Avery ME 0.94 0.36% |
| TOTAL | 7.49 | 5.29% |
Exhibit 1 StepSmart U.S. Sales - Commercial Sales Division U.S. 2011 Sales GM Percent U.S. 2011 Gross Margin U.S. 2012 Forecasted Sales U.S. 1st Half 2012 Forecasted Sales U.S.Ist Half 2012 Actual Sales New England District 2011 Sales Product Line Product Cardio Strength Technology Small Exercise Equipment $ $ S 84,870,000 46,125,000 35,055,000 41% 31% 38% $ 34,796,700 $ 14,298,750 S 13,320,900 S 96,751,800 S 50,737,500 $ 40,313,250 $ 43,538,310 $ 24,354,000 $ 20,156,625 $ 43,449,600 $ 22,450,000 $ 21,984,300 $ $ $ 3,009,051 2,581,354 2.211,506 $ 18,450,000 $184,500,000 32% 37% 55,904,000 $ 68,320,350 $ 19,557,000 $207,359,550 $7,822,800 S 95,871,735 $ 9,905,269 S 97,789,169 $ 1,681,389 $ 9,483,300 Total Exhibit 2 StepSmart Commercial Sales Force - Organizational Chart Senior VP of National Commercial Sales Regional VP Regional VP Regional VP Regional VP Regional VP (Southeast) (West) (Southwest) (Central) (Northeast) District Directors (3) District Directors (3) District Directors (3) District Directors (3) District Directors (3) Salespeople Salespeople (27) Salespeople (21) Salespeople (18) Salespeople (25) L (24) Exhibit 3 Commercial Sales by Individual - New England District 2011 Product Ellis Barrow Hammond Foster Gibbons Concetta Cardio $ 716,937 $ 409,679 $ 531,065 $ 469,423 $398,299 $ 324,329 Strength $ 418,214 $ 580,378 $ 379,332 $ 412,524 $ 411,575 $ 213,374 Technology $617,363 $ 204,839 $ 348,985 S 398,299 $318,639 $ 170,699 Small Exercise Equipment $ 238,979 $ 512,098 $ 257,946 $ 142,250 $ 199,149 $ 145,094 Avery $ 159,319 $ 165,958 $ 152,681 Total $ 3,009,051 $ 2,581,354 $ 2.211,506 $ 185,873 $ 1.681,389 Total $1.991,493 $1,706,994 $1,517,328 $1,422,495 $1,327,662 853,497 $ 663,831 $ 9,483,300 Exhibit 4 Individual Sales Performance - New England District 2011 2012 0 of Active District Accounts 20% 18% 16% 215 2012 Calls per year 830 1,370 1,400 % of District 21% 18% 16% 15% 14% 9% 7% Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery TOTAL 275 230 $ $ $ $ $ 2012 Sales 1.991,493 1,706,994 1,517,328 1,422,495 1,327,662 853,497 663,831 9,483,300 2013 District H1 Sales $ 896,172 $ 819,357 $ 728,317 $ 568,998 $ 597.448 $ 460,888 $ 385,022 $ 4,456,203 13 230 902 140 13% 10% 9% 955 820 S 210 304 1.604 1,158 7,435 $ * Active accounts placed orders within the past year Exhibit 5 Individual Compensation and Expenses - New England District 2011 Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery Total Salary $ 93,753 $ 57,630 $ 54,808 $ 48,807 $ 48,600 $ 32,960 $ 30,274 $ 366,832 Commissions $ 76,707 $ 55,370 $ 50,592 $ 46,893 $ 32,400 $ 31,040 $ 27,946 $ 320,948 Total Compensation $ 170,460 $ 113,000 $ 105,400 $ 95,700 $ 81,000 $ 64,000 $ 58,220 $ 687,780 Expenses $ 14,800 $ 23,900 $ 17,918 $ 27,753 $ 10,500 $ 31,700 $ 29,400 $ 155,971 Total Compensation and Expenses $ 185,260 $ 168,586 $ 135,290 $ 123,453 $ 91,500 $ 95,700 $ 87,620 $ 887,409 Exhibit 6 Description of Assigned Territories for the New England District # of Potential Accts Commercial Buying Power Index Estimated Regional Population (000) Land Area Salesperson State Area Covered Ellis Barrow Hammond Foster Gibbons Concetta Avery Total Boston Suburbs: MA Northern/Westem/Southwestem CT Entire state MA City of Boston & South Shore NH Entire state MA/RI Eastem MA/Rhode Island MA/VT Westem Part MA, Entire State of VT ME Entire state 475 1.27 1.80 0.8 0.97 0.63 1.08 0.94 3,720 2,995 4,703 1,320 1,662 1,217 599 16,216 1,700 5,543 200 9,350 2,817 12,212 35,385 67,207 560 3,271 7.49 Average per sales person 4 671. 0723179601 Exhibit 1 StepSmart U.S. Sales - Commercial Sales Division U.S. 2011 Sales GM Percent U.S. 2011 Gross Margin U.S. 2012 Forecasted Sales U.S. 1st Half 2012 Forecasted Sales U.S.Ist Half 2012 Actual Sales New England District 2011 Sales Product Line Product Cardio Strength Technology Small Exercise Equipment $ $ S 84,870,000 46,125,000 35,055,000 41% 31% 38% $ 34,796,700 $ 14,298,750 S 13,320,900 S 96,751,800 S 50,737,500 $ 40,313,250 $ 43,538,310 $ 24,354,000 $ 20,156,625 $ 43,449,600 $ 22,450,000 $ 21,984,300 $ $ $ 3,009,051 2,581,354 2.211,506 $ 18,450,000 $184,500,000 32% 37% 55,904,000 $ 68,320,350 $ 19,557,000 $207,359,550 $7,822,800 S 95,871,735 $ 9,905,269 S 97,789,169 $ 1,681,389 $ 9,483,300 Total Exhibit 2 StepSmart Commercial Sales Force - Organizational Chart Senior VP of National Commercial Sales Regional VP Regional VP Regional VP Regional VP Regional VP (Southeast) (West) (Southwest) (Central) (Northeast) District Directors (3) District Directors (3) District Directors (3) District Directors (3) District Directors (3) Salespeople Salespeople (27) Salespeople (21) Salespeople (18) Salespeople (25) L (24) Exhibit 3 Commercial Sales by Individual - New England District 2011 Product Ellis Barrow Hammond Foster Gibbons Concetta Cardio $ 716,937 $ 409,679 $ 531,065 $ 469,423 $398,299 $ 324,329 Strength $ 418,214 $ 580,378 $ 379,332 $ 412,524 $ 411,575 $ 213,374 Technology $617,363 $ 204,839 $ 348,985 S 398,299 $318,639 $ 170,699 Small Exercise Equipment $ 238,979 $ 512,098 $ 257,946 $ 142,250 $ 199,149 $ 145,094 Avery $ 159,319 $ 165,958 $ 152,681 Total $ 3,009,051 $ 2,581,354 $ 2.211,506 $ 185,873 $ 1.681,389 Total $1.991,493 $1,706,994 $1,517,328 $1,422,495 $1,327,662 853,497 $ 663,831 $ 9,483,300 Exhibit 4 Individual Sales Performance - New England District 2011 2012 0 of Active District Accounts 20% 18% 16% 215 2012 Calls per year 830 1,370 1,400 % of District 21% 18% 16% 15% 14% 9% 7% Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery TOTAL 275 230 $ $ $ $ $ 2012 Sales 1.991,493 1,706,994 1,517,328 1,422,495 1,327,662 853,497 663,831 9,483,300 2013 District H1 Sales $ 896,172 $ 819,357 $ 728,317 $ 568,998 $ 597.448 $ 460,888 $ 385,022 $ 4,456,203 13 230 902 140 13% 10% 9% 955 820 S 210 304 1.604 1,158 7,435 $ * Active accounts placed orders within the past year Exhibit 5 Individual Compensation and Expenses - New England District 2011 Salesperson Ellis Barrow Hammond Foster Gibbons Concetta Avery Total Salary $ 93,753 $ 57,630 $ 54,808 $ 48,807 $ 48,600 $ 32,960 $ 30,274 $ 366,832 Commissions $ 76,707 $ 55,370 $ 50,592 $ 46,893 $ 32,400 $ 31,040 $ 27,946 $ 320,948 Total Compensation $ 170,460 $ 113,000 $ 105,400 $ 95,700 $ 81,000 $ 64,000 $ 58,220 $ 687,780 Expenses $ 14,800 $ 23,900 $ 17,918 $ 27,753 $ 10,500 $ 31,700 $ 29,400 $ 155,971 Total Compensation and Expenses $ 185,260 $ 168,586 $ 135,290 $ 123,453 $ 91,500 $ 95,700 $ 87,620 $ 887,409 Exhibit 6 Description of Assigned Territories for the New England District # of Potential Accts Commercial Buying Power Index Estimated Regional Population (000) Land Area Salesperson State Area Covered Ellis Barrow Hammond Foster Gibbons Concetta Avery Total Boston Suburbs: MA Northern/Westem/Southwestem CT Entire state MA City of Boston & South Shore NH Entire state MA/RI Eastem MA/Rhode Island MA/VT Westem Part MA, Entire State of VT ME Entire state 475 1.27 1.80 0.8 0.97 0.63 1.08 0.94 3,720 2,995 4,703 1,320 1,662 1,217 599 16,216 1,700 5,543 200 9,350 2,817 12,212 35,385 67,207 560 3,271 7.49 Average per sales person 4 671. 0723179601
