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Various companies in today’s world operate under different competitive environments that fall in the different categories including monopoly, oligopoly or monopolistic structures. They also employ different styles of management (Peter, 2001) as a whole and even in the various departments. This paper will exploit Electronic City Company and in particular, an employee named Philip Topelo who is in the marketing department.
Electronic City Company operates in an oligopoly form of competitive environment with an aspect of pure competition. it is one of the few national chains that sell the range of products that are branded and it has 160 electronic and appliances stores, which are scattered in the Southern Coast and in eastern Coast too. The oligopoly state is also because there are few similar sellers who have a leading domain.
The management style that is used by the company is marketing VP IS management by objectives. Peter Drucker made this form of management popular and it aims at improving the expertise of the employees so that they are clear as they go about their roles and responsibilities in an effective manner (Peter, 2001). It is an appropriate method as shown in the case study as it enhances the goal achievement, the motivation of employees and the clarity of goals.
Fr. Sheldon Gorge though he had been planning to have a silent diner but it was ethical of him to join Philip Tupelo and his group when they came in to the Seafood restaurant.Fr. George had been Phil’s mentor and Philosophy teacher and it was therefore ethical that they should hookup after along time. Phil also reflected on his Ethics as Fr George examined him on why he sells and convinces people to buy on extended warranties while he in his heart knew he would never buy it. As he pondered and suddenly felt uncomfortable about convincing people to buy what he would not buy because they were not knowledgeable.
Phil should become more adept in conducting his sales as he admitted that the target group is the blue color category of people and the old. He further admitted that the young and the professionals did not form a good target group, as they were smart enough to know it was not justified to purchase the extended warranty. He should be more expert to convince even the professionals.
If his prediction accuracy rises, from 80% to 90% it will not increase his incentive pay but it will ensure that he does not get reports of demerit from the supervisor. Increase on the incentive pay does not occur on how much a sales person is able to predict but on how many people they actually convince to purchase the HDTV on warranty extension.
Mariah was amazed at the expertise that Phil had just described to them over dinner and she told him how well he was actually doing at his job. Phil was proud of the recognition and achievement as he beamed. Dr.Smith’s reaction to his story made him think critically on who his target group really was and in this he identified the old grandmas and grandmas. The blue collar types the single mothers and the older males in overalls among others in this category. He also recounted on how the young who could reason more easily were not easy targets. Eventually he also admitted he would not order for the items. Fr.George’s reaction or question on whether it bothered him made him peer into the ethics of what he did.
When Phil goes back to work next week might resign from his position, as Fr.George’s remark made him think what he does is unethical.
In January 2007, Phil got a commission of $360.40 for warranty extensions, which was 10% of the sales he made.
Warranties sold= $ 360.40*100/10=$ 3604.00
The amount of HDTV sales
Warranties extension always is 8% of HDTV sales
HDTV sales =$ 3604.00*100/8=$4500
Different tactics are employed in the various departments of a company and especially the sales and marketing department to increase sales and increase the profit margins. The Electronic City Company for example offers commissions on as an incentive to raise the sales. Management by objectives (Peter, 2001) is also practiced and it raises the motivation of the employees Ethical issues are also observed but like in any other profit making organization the ultimate goal is to make profits.
Peter. D. (2001) Management: task responsibilities,practices.Oxford:Butterworth-Heinemann.