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Carrington Furniture Essay

1580 words - 6 pages

Executive SummaryRecently, Carrington Furniture has acquired an upholstery company, Lea Meadows, Inc. With the merger, the company faces a problem: what sales technique to utilize for the future of Lea Meadows. The company is faced with the choice of the current sales agents or implementing a dedicated sales force similar to the one in place at Carrington. With the current constraints, the company needs to decide which way to sell Lea Meadow's upholstery products in a way to ensure that the company will continue to demonstrate a 7% growth, without affecting the current sales of either company.Carrington Furniture can either impose no changes within Lea Meadows, allowing the company to continue to utilize sales agents or they can change the company's sales techniques. If they choose to change the sales techniques, they can either absorb the upholstery company's accounts and use the current sales force or hire a new sales force to operate only within Lea Meadows.We have chosen to replace the sales agents of Lea Meadows with a new sales force similar to Carrington Furniture This will allow us cut sales costs, while focusing on pushing the product independently of the case goods. While this may increase competition from the sales agents, it enhances the control and brand image of the company ("Carrington Furniture") for future growth.Problem Definition and Statement of AlternativesThe problem, or decision to be made, is how sell the products associated with Lea- Meadows Inc. More specifically, how can we minimize selling costs, either through a dedicated sales force or sales agents, in order to maintain a 7% growth rate of Lea- Meadows, Inc. subject to the constraints that it (1) does not damage sales of Carrington Furniture, Inc. and (2) does not damage the sales of Lea-Meadows.Decision ObjectivesThe decision objective is to implement a plan for sales representatives for Lea-Meadows Inc. that minimizes selling costs for Carrington Furniture, Inc.Success MeasuresThe question that must be asked in order to measure the success of the objective is, "what strategy must Carrington Furniture implement to achieve the objective?" In order to answer this question, the company must ascertain the use of Sales Agents or a dedicated sales force in order to reduce the total amount of revenue paid for sales and maintaining a 7% expected growth rateDecision ConstraintsThe constraints include creating a sales strategy that does not damage the sales of Carrington Furniture, Inc, while creating a sales strategy that does not damage the sales of Lea- Meadows, Inc. Other constraints include conflicts with the buyer due to relation with agent versus brand loyalty and terminating Mr. Moorman.Alternative Courses of ActionThere are some factors that affect which alternative is chosen. These include the number of competitors in the furniture market, the number of competitors in the upholstery market, a change in the consumer spending habits concerning upholstery goods, a...

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