DBK’s historic growth rate
Please answer this question because it will cover 70% of the grade
DO THE MATH… I will be grading this partially based on whether you attempted any analysis or not. No analysis… max grade is 70%.
1. Discuss DBK’s historic growth rate. How does its growth compare to the industry overall? What are the drivers of top-line growth?
2. Working from Exhibit 1a as well as the information in the case, how much would the average sales representative earn in a year? How does this change as the sales representative remains with the company over time? How does this change as the sales representative transitions to a leader? A manager? A director? To make for a more straightforward discussion of the revenues associated with these positions, the instructor might ask the students to consider specific scenarios: a.) Compare an average first year sales representative with an average fifth year representative. How much does each earn? b.) Compare the commission dollars of a sales representative with $1,000 in monthly sales and no team with those of a Leader with $1,000 in monthly sales and 2 team members. b.) Compare the commission dollars of a sales representative with $1,250 in monthly sales and no team with those of a Manager with $1,250 in monthly sales and 3 level-one team members and 2 level-two team members.
3.Discuss the importance of retention of sales representatives. If the attrition rate had averaged 25% or 30% over the past five years (not unusual for a direct sales model), how would this have impacted the total number of sales representatives? Given that not all sales representatives are equal (experience is a big driver of productivity), how would this impact revenues?
4.Evaluate the potential costs associated with the two options Creevey is considering. Which option would you advise her to take?
Writing styles:Times New Roman
Font size :12