Submitted by: Submitted by jebacjebac
Views: 351
Words: 1482
Pages: 6
Category: Business and Industry
Date Submitted: 11/07/2011 06:11 PM
Executive Summary
Alexander Barrett faces a problem in which direction to take the necessary approach needed to still be competitive in the architectural paint coating markets of DFW and the non-DFW areas. His executives that include VP of Advertising, VP of Operations, VP of Sales and VP of Finance have come up with four possible roads to success.
VP of Advertising proposes the increase of brand advertising by $350,000 to increase a minimum of 30% awareness of our product among do-it-yourselfers. Cutting the price by 20% proposed by the VP of Operations states that in this way only we can compete with or competitors low prices. VP of Sales takes responsibility that he was partially at fault and an additional sales person at $60,000 per year for a non-DFW market would gain more business. Contrary to them VP of Finance believes that staying at status quo will keep Jones Blair Company profitable.
There isn’t a superior alternative for Jones Blair Company at this moment; a perfect mix of two proposed alternatives would best suit the company’s future in the following year and years to come. A strong advertising campaign is necessary to project a company image to masses via television, while distributing bonuses to a current sales force. A total advertising of approximately 5%; an increase of 2% in advertising would represent a 5.53% total increase over current sales. Leaving about $110,000 for bonuses for current field sales representatives for acquiring additional sales.
Problem Definition
How can Mr. Barrett the President of Jones Blair Company retain high quality architectural coating paints with high quality services; continuing to be competitive in DFW and non-DFW markets; while partially increasing advertising funds and sales bonuses.
The four main alternative courses of action arose are: Spend additional $350,000 on corporate advertising, Cut price by 20%, Hire one additional sales person at cost of $60,000 or Do nothing and stay status quo.
VP of...