barro stickney, inc
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Barro Stickney, Inc.
Barro Stickney, Inc.Presented by:Ayesha Rana Nabeel AhmadSadia AnwarWaqar Tariq
Introduction:
Manufacturer representative firm
Acts as an agent in particular territories
Working Environment
Sales = $5.5 Millions
Key Players:
John Barro (Co-founder)
Bill Stickney (Co-founder)
J.T Smith (Salesperson)
Elizabeth Lee (Office Manager)
Principals and Territories:No. of PrincipalsEight
Territories:PennsylvaniaNew JerseyDelaware
Problems:
Products being replaced by competitors products
Threat of losing market share
Trusting new hires
Fund Raising
Core ProblemGo/No Go Decision
How can BSI expand its business in CHALLENGING circumstancesJustification:Advantages
To come up to expectation of Oceans and Franklin
Increase in Sales Revenue
Market Development
Disadvantages
Loss of reputation
Damaging work environment
New hire can convert into competitor
Analysis:R.D Ocean 32% Franklin 15%
Butler 3%Knox 5%
SwansonProduct Replacing 14%
1st Year Profit/Cost Analysis:
Profit: 800,000x.05= $40,000
Costs:Commission= 300,000x0.05x0.2 = $3,000Salary= $20,000Supporting Costs= $66,000Incremental Costs= $24,000
Total Costs= $ 113,000
Net Income:$40,000-$ 113,000= ($73,000)2nd Year Profit/Cost Analysis:
Profit: 800,000x.05= $40,000
Costs:Commission= 300,000x0.05x0.2 = $3,000Salary= $20,000Transportation Costs= $2,000Rent & Equipment= $4,000
Net Income:40,000-29,000= $11,000Break-Even Analysis:1st year cost: ($73,000)
Every year income= $11,000
Breakeven= 73,000/11,000 = 6.5 +1 = 7.5 Years
Recommendations:
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