hanover-bates chemical corporation
DESCRIPTION
CASE ANALYSISTRANSCRIPT
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HANOVER-BATES CHEMICAL CORPORATION
Introduction
Qualitative Facts
Quantitative Facts
Accounts and Call Frequency
$20,000 or more in yearly SalesTwo calls per month$11,000 to $19,999 in yearly salesOne call per monthLess than $11,000 in yearly SalesOne call every two months
Problems
Performance Index 93% 3rd highest in sales but worst in profitsPerformance Index 84%
Growth in profits were rendered by almost equal increase in expenses with increase in sales.
Core Problem
Exhibit Analysis
Income Statement Analysis
Sales performance (Per Rep)
Gross Profitability Comparison
Sales Expense Concentration
Ratio Analysis Account Penetration Ratio
DistrictABCNortheast0.590.550.49North Central0.700.640.44
Loss Account RatioThis ratio indicates how well salesperson maintains active accountsDistrictABCNortheast0.410.450.51North Central0.300.360.56
Sales per Account RatioThis ratio indicates salesperson success per account averagely.
DistrictABCNortheast25896120073882North Central26821140274486
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