The channel 2 was low cost yet it was not reaping the profits expected since the unit sales for channel 1 were 15000 and for channel 2, 12000. This shows channel 2 was not reaping profits as expected so instead of firing the sales people the ones not performing well were reassigned from channel 1 to channel 2 in year 2.
The sales people for channel 1 rose up to 21 since 6 salespeople from channel 2 were shifted to 1. Channel 1 was more profitable so the strategy was to assign more salespeople there to reap more profits. The salespeople for channel 2 went down to 9 but this arrangement did not benefit much. The sales commission went up from 7% to 8% in year 3, and in year 4 it shot up to 13% but came down to 10% in year 5. This added up to the cost but year 4 shows increase in sales but since year 5 was a low cost strategy the sales commission came down as well. The profits came down compared to year 3 and 4 as well.
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