What type of competitive environment does Electronic City face? Why do you say so?

Answer) The competitive environment for the Electronic City can be termed as oligopoly because there are only a few major retailers for the brand. There is handful number of organisations that are engaged with each other in intense competition and capturing market share is their primary aim. If one firm takes some strategic decision then decisions of other firms will also be influenced in terms of marketing strategies and pricing etc. because each firm is aware of the moves other firm is taking or is about to take.

1.      What can you say about the management style of the VP of Marketing in the case? Is it appropriate? Why, or why not?

Answer) The management style of marketing VP seems to be very remarkable in this case as Lateral thinking techniques were applied by him as an attempt to increase the sales of the company that eventually grew the profit on HDTVs. This is so much demoralizing for any firm because the margins’ competition is very intense on HDTV’s. The decision of marketing VP was very timely as he did not lay high thrust on the per se strategy and took appropriate decision to minimise the gap established through a Warranty Extension Contract.

2.      Define any ethical issues that you perceive in the scenario.

Answer) One of the ethical issues perceived in the scenario of marketing strategy is that the salespersons were forced to make the sales under every condition. It shows that customers in the web of marketing are treated as baits. In other words, a strict list of guidelines regarding script is ethical issue perceived in the scenario. The salespersons should not have been forced by marketing VP with stringent conditions. The bar for warranty sales also seemed to be very much ambitious that caused high pressure for salespersons.

4.      Should Phil become more adept at predicting which of his customers will likely buy the warranty - say he goes from 80% accuracy to 90% accuracy - will this impact his incentive pay? Explain your answer.

Answer) Acute customers’ observation of Phil is believed to be extraordinary, so yes, this will impact the incentive pay of Phil because it makes him able to recognise the targeted customers that need more attention. This can be one of the most useful skills for Phil as it has taught him trade tricks much earlier than his expectations.

5.      How do the comments/reactions of each of these people shape Phil's thinking regarding his job? a. Maria b. Dr Smith c. Fr. George

Answer) a. Maria: remarks by Maria was quite short, however inspiring to explain his story to many people as it could have been one of the very first times for him getting such comments about the job. It would have been inspiring for Phil to write a book on his success.

b. Dr Smith: slight ‘turn of the event’ was given by Dr Smith to Phil as the problem of selling the HDTV’s were pointed out by him to Youngsters as well as Professionals. Well, this would have been helpful for Phil to think about latest strategies and convince youngsters and professionals for buying HDTVs.

c. Fr George: response of Father George seemed to be something else that is above the arguments of achievements and job of Phil but about the HDTV. An intrinsic paradox was found by Father George in the situation.

6.      What will Phil do when he returns to work next week? Why do you think so?

Answer) It seems like Phil will be more motivated next week when he will return to work. He will be motivated in the sense that he will try his best to learn from his past mistakes and to keep his successful strategies intact. He will look for more new ways to convince professionals and youngsters to buy HDTV’s, and he will adopt more positive attitude to enhance his success ration in this job.

Part II (You should show work to support your numeric answers.)

1.      What is the dollar amount of warranty extensions that Phil sold in January 2013?

Answer) The warranty sales’ dollar amount was ten times the commission Phil earned, i.e.

= 10 (360.40) =  $3,604

2.      Estimate the dollar amount of HDTV sales that he generated in the same month, assuming that he was able to sell warranty extensions in roughly 55% of eligible transactions?

Answer)

The total warranty = 8% of the total TV sales

$3,604 Phil earned was 8% of the total dollar sales.

X/8%= 3,604

360,400/8= $45,050 of total TV sales by Phil for 55% of the transactions.

If 55% of the sales is $45,050 that is made by Phil, $36,859 is the remaining 45%

Total sale = $45,050+ $36,859

= $81,909.