Pcl Electronics in China
To: General Manager
From: Consultant
Date: January 30, 2012
Subject: PCL Control Sustainability
Introduction
PCL is a European consumer electronics and healthcare company that has recently entered China. They have a wide variety of televisions, DVD players, PC monitors, audio products and PC peripherals. PCL is able to compete within the consumer electronics market as they have low prices and a large network of distributors. PCL uses innovation to stay ahead of competitors and keep up with the latest technologies. PCL is currently in the growth stage and they need to maintain continuity. PCL organizational objective is to implement controls without having a detrimental effects on relationships with chain retailers and dealers. PCL also needs to ensure they do not loose prominent shelf space within the retail stores. PCL needs to minimize the amount of NFF returns.
Key Problems
Issue one two three
Challenge 1: Sales Team
PCL’s sales team was under immense pressure from the Dealers to meet sales targets, which was set at 132% of previous year’s sales. This was concerning to the sales team in that the prescribed expectations outpaced actual market growth, causing a disconnect in communicating the organization’s goals and providing the correct incentives to reach those goals. While results controls aim to enhance performance by tying rewards directly to the accomplishment of the desired results, problems may arise when the targets are perceived to be unattainable. PCL’s sales team resorted to aggressive sales techniques at the expense of the company’s greater goal of minimizing unnecessary returns and exchanges of demo sets and slow-moving goods.
Results Controls
The sales targets for the sales team act as results controls as well. However, these targets are not considered tight because they are not communicated and internalized effectively. The sales team feels as though the goals are not reasonable since the sales targets are increasing at a rate much
From: Consultant
Date: January 30, 2012
Subject: PCL Control Sustainability
Introduction
PCL is a European consumer electronics and healthcare company that has recently entered China. They have a wide variety of televisions, DVD players, PC monitors, audio products and PC peripherals. PCL is able to compete within the consumer electronics market as they have low prices and a large network of distributors. PCL uses innovation to stay ahead of competitors and keep up with the latest technologies. PCL is currently in the growth stage and they need to maintain continuity. PCL organizational objective is to implement controls without having a detrimental effects on relationships with chain retailers and dealers. PCL also needs to ensure they do not loose prominent shelf space within the retail stores. PCL needs to minimize the amount of NFF returns.
Key Problems
Issue one two three
Challenge 1: Sales Team
PCL’s sales team was under immense pressure from the Dealers to meet sales targets, which was set at 132% of previous year’s sales. This was concerning to the sales team in that the prescribed expectations outpaced actual market growth, causing a disconnect in communicating the organization’s goals and providing the correct incentives to reach those goals. While results controls aim to enhance performance by tying rewards directly to the accomplishment of the desired results, problems may arise when the targets are perceived to be unattainable. PCL’s sales team resorted to aggressive sales techniques at the expense of the company’s greater goal of minimizing unnecessary returns and exchanges of demo sets and slow-moving goods.
Results Controls
The sales targets for the sales team act as results controls as well. However, these targets are not considered tight because they are not communicated and internalized effectively. The sales team feels as though the goals are not reasonable since the sales targets are increasing at a rate much