Technical Consumer Products, Inc (TCP) makes and distributes energy-efficient lighting products. Emily Bahr was TCP’s district sales manager in Minnesota, North Dakota, and South Dakota when the company announced the details of a bonus plan. A district sales manager who achieved 100 percent year-over-year sales growth and a 42 percent gross margin would earn 200 percent of his or her base salary as a bonus. Bahr’s base salary was $42,500. Her final sales result for the year showed 113 percent year-over-year sales and a 42% growth margin. She anticipated a bonus of $85,945, but TCP could not afford to pay the bonuses as planned, and Bahr received only $34,229. In response to Bahr’s claim for breach of contract, TCP argued that the bonus plan was too indefinite to be an offer. Issue: Is TCP correct? Explain. [Bahr v. Technical Consumer Products, Inc, 601 Fed.Appx. 359 (6th Cir. 2015)] Decision: Technical Consumer Products cannot, nor could or should any other company succeed with this argument that the bonus plan was too “indefinite.” Legal Reasons: From a legal standing, the company’s position is indefensible. Beginning with the position the company began to take, the company was aware of the salary each employee earned and therefore had to consider what a 200% bonus for each employee would look like before making the offer. Based on this fact alone, Bahr has every right to demand the full 200% bonus and take legal actions where the company fails to pay the full amount of
When Lambert resisted the idea of a full base salary structure, AAA suggested 5% of the salary bonus be based on commission. Lambert countered offered with 10% -- which was dismissed. Past experience indicates property performance tied to salary compensation is successful, so Lambert proposed 5% of the salary bonus be based on commission with the pay structure be revisited after one year to slowly change the salary structure toward the bulk of salary be commissioned, this was agreed on by both parties. The second biggest issue was team management and cross-training. Lambert proposed the local management team be vetted by AAA with training provided by Lambert – this would require annual mandatory training of AAA upper management team to be in attendance. This proposal was meet with irritation by AAA, offended that their management training was considered less than ideal. Additionally, AAA informed Lambert that local law requires AAA to provide training. Lambert elaborated on the management training with expectation of training to be given by AAA to their own middle management team, allowing for free movement of training. AAA would manage their local training with Lambert assistance when needed.
Topnotch Computers, the owner of a computer store, contracted with Repair Guru, the owner of a computer repair business, to allow Repair Guru to own and operate a computer repair service offered within the Topnotch Computers store. Topnotch Computers subsequently terminated the three -year contract with Repair Guru with thirty-five months remaining. Five months thereafter Repair Guru was able to contract with another firm, Best Computer, to provide its computer repair equipment for use by Best in its stores. Repair Guru then filed suit, claiming that it was entitled to conduct the computer repair operations for Topnotch Computers for an additional thirty-five months and that through such operations it would have earned a profit of $150,000. Decision for whom and in what amount and
The plaintiffs pointed out that Campbell had recorded all customer sales on an FOB shipping point basis. In fact, the actual shipping terms for many of Campbell’s sales were FOB destination. PwC was aware of this practice and had decided that since Campbell used the sales cutoff policy consistently, it would not have a material effect on Campbell’s operating results. The judge found this conclusion reasonable and did not pursue the matter any further.
1) What are some of the factors causing the problems in measuring performance in the Southeast Asia sector?
* PBPA - amortization of bonuses because it is just part of the compensation expense
Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.
1. The first step in developing the bonus plan is to validate the measures used in Henson’s BSC. Assume that the four BSC measures are
Assignment: tries to negotiate a change in RR’s offer from product management to business development on the base that the FourCom offer is in business development.
The salary structure is inconsistent with people carrying out identical jobs having pay differences of up to £3,000 pa. This may cause friction within the team. Even when the company promotes an incentive bonus scheme for the production staff, the targets have not been met. And so the bonuses have never been paid. We do not know from the information given whether the targets are unrealistic or the workers do not see the scheme as being worthwhile. The production workers seem to be on a different path to the company’s.
This document represents The i-Fusions Consultant’s Report on BRITA. The company’s current business situation is analysed and various options for action considered. The report aims to identify a clear marketing strategy for Brita in order to address the current issues facing the company the associated falling sales.
4.What are some potential legal implications in the case? What should the utility do to rectify any wrongs in this situation?
As revised, Section 4(b) requires that the Annual Sales Target for the first year of the Initial Term is established at or below one hundred and twenty-five percent (125%) of 2017’s yearly sales and that the Annual Sales Target for the second year of the Initial Term increase to a maximum of one hundred fifty percent (150%) of 2018’s yearly sales. This ameliorates Ms. Simms’ concerns regarding potentially setting too high of a bar for her first year in the Director of Sales and Marketing position with Green Grabs, while also providing Green Grabs with the assurance that Ms. Simms understands that Green Grabs is hiring her to help Green Grabs grow through increasing sales and profits. For that reason, it is appropriate that Green Grabs set a higher bar for her to reach to receive her annual bonus after allowing Ms. Simms to become comfortable in her new role during the first year. Further,
This case was prepared by Professor Stephen E. Barndt of Pacific Lutheran University. This case was edited for 5MBP 9th Edition. Copyright C 1998 and 2000 by Stephen E. Barndt. This case was published in the Business Case [ourn Summer 1998. Vol. 1. No. t. pp. 53-{}9. Reprinted hy permission,
The company that I selected is Johnson & Johnson and the product I will be writing about is Listerine. Listerine was originally marketed by Lambert Pharmacal Company later known as Warner-Lambert. In December 2006, Johnson & Johnson acquisition of Pfizer’s consumer healthcare division is what led to the manufacturing and distribution of Listerine for this company. The inputs put into making Listerine is Raw Materials, design, and the manufacturing process, with these inputs we will analyze them to see how the effect the production and cost of making and selling Listerine.
Our assignment is to create and promote an innovative product. In developing a new product, we started with an idea generation. This is a systematic search for new-product ideas. Companies go through many ideas before they come to find some good ones. We had to do the same thing. We thought of many ideas on our own. It was more of an internal idea source as opposed to going outside of our partnership for ideas. Our first idea was a restaurant with half of it an actual restaurant and the other half an automobile tuner shop. The next idea was a new energy drink that would be less costly and better tasting. Our next idea came up when we were sitting