Management and Organizational Studies 4471A/B Lecture Notes - Lecture 2: Net Present Value, Office Depot, Sensitivity Analysis
7 Feb 2018
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Document Summary
Office solutions cater to commercial customers 15-200 employees. Big box stores are competitors three big box stores, two possibly merging (staples, office. Depot) which have leveraged economies of scale to target enterprise clients: competition includes e-commerce (amazon), other small retailers (35-40% of market, . 2 billion market. Opportunities to seek enterprise clients, as well as others with size of market. Bob, cindy owners, bob has power to change the compensation structure. Employee acceptance of wage structure current environment is positive, need to keep it. Alignment of compensation system with organizational goals. Define results desired results are retention, penetration, acquisition. Measuring performance current incentive system bases performance on gross profit, revenue from 3 product lines, measuring new accounts/leads/progression in vital performance spreadsheet. Setting performance targets based on last years results from management (top-down), targeted growth rate, buy-in/commitment from salespeople by meeting individually: evaluation annual performance review, monthly meetings with all salespeople.
