Beauty CompanyEssay Preview: Beauty CompanyReport this essayThe market share has a general decreasing trend, and every district has an increase in sales figure but district 4. In which district 4 has a decline in sales growth, and its perceived to be due to the sales ineffectiveness: 97.35 only. However, district 4 has the highest gross margin out of all; by at least $1500 and it which is perceived to the reason of the decline in their growth rate. As well as district 1 has relatively ROAM figure; and it is believed to be the impact of the poor sale. District 2 has the highest lodging out of all districts, with no significant number of salespeople, which would suggest the managers to look into it; perhaps it is due to the large region which requires the salespeople to travel more often.
It appears that district 1 has too much stock on hand, their asset turnover rate is way too high; which would increase the risk and the cost of storing inventory. Also, district 4 has the highest selling cost, as they have the most number of salespeople out of all five districts. And, they still have the negative sales growth rate. Thus, it is suggested for Beauty Glows to look into the districts environment in order to configure the reasons behind the sales decline. From the analysis, its deemed to be the cost of the price as they have the highest gross margin. Therefore, the potential solution might be to reduce of their COGS. Perhaps district 4 can merge into another district in order to maximize the productivity with less number of salespeople (less salary expenses).
The Solution:
The most effective way to do this is to use the district as your base district. They could be other agencies or a school district that your staff can create and they could also include the other districts. Also, the problem can be prevented by using a different district model that you own. A district by its name could be the same as the one your staff created for the project but without the additional fee.
As part of this solution, the following steps need to be attempted in case your plan could not be implemented within a specific timeframe:
1. In order to solve the real cost of the product, take care of the costs related to maintaining and replacing the product. So, if I bought it one year, I would be saving the money and putting the product out of the hands of employees. However, I am not sure, if I did buy it to create profit, as if I was a new employee to the company you hired, so I am not able to compare my time with the new employee (as if they are not a new employee from this team). If you don’t get their salary and it costs money, then I do the exact same. It is the same for your employees so it’s not the same for yours so if you buy it in order to earn a profit (as i did from it. This was me personally.
2. In another way, you should go for a different model for the base districts; the product management model because the people in each district are not the best fit for your project.
3. I believe a good solution is to take care of the cost of the product; otherwise, with high turnover we can not have long product cycles. But because they are the best fit to your project (and you own your business), and because of the different costs/incentives that exist for other agencies in the district, we can take care of the real cost. Otherwise, we can end up with huge problems that require a different and less expensive model based on your needs. So, you should take care of the costs first. Therefore, using less money could eliminate the problem.
Also, I would like to share my ideas:
First, your team needs to be responsible in your project, so at the end of the day you should be responsible for your development of the product instead of your customer’s. And, you should look at the cost of the product if they need to be paid, because after that, your entire life might be spent in production or testing.
Then, if you use the different revenue and tax structures, there is risk that that company will lose money (and would need to reinvest it for your customers and their future investments) but then the company would gain more money. Therefore, there is opportunity for you to save money and start on a new project instead of the old one. Since your project needs to have some kind of value for your customers that is different from their current needs, you can also take care of them better by adding value from it.