Assignment #2 1. No I do not think it is reasonable for to charge Pronto’s sales-force with simultaneously building and holding market share, an alternative would be to focusing on having the independent owners building market share and building the 2 percent to be comparable to the 12 percent, during this time the company-owned ones would continue to build market share and the company could have incentives for the independent owners to try and match or beat the company owned locations. Once the two are comparable the company can re-strategize and move into the holding market share. 2. Pros: The company will not allow for any location to be closed for more than 30 days, this ensures that the company will not be losing out on too much profit and will still stay competitive in the minds of its consumers * Sales will increase for the company as it will be mandatory that all salespeople ensure that a percentage of merchandise is purchased from Pronto’s distributors as well the appearance of the store must be acceptable and meet all of Pronto’s objectives * All sales objectives will be equal between regional sales managers and salespeople, this way there will be no excuse as to why growth between regional and salespeople locations will be different Cons: * Salespeople may disagree with the new rules and try to rebel against them * Having the sales volumes not increase for yearly or for salespeople leaves little room for growth in the company, as the current sales volume objectives aren’t meeting good numbers 3. Due to the fact that the meeting ended on a sour note, Rickles should schedule a new meeting. This would be beneficial because it would allow for both sides of the party to cool down and would allow for Rickles to apologize for the childish behaviour and allow for both parties to work out a new ending that pleases both parties.
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