Stepsmart fitness case analysis

Using the financial models of your choice from the quantitative courses you have taken in this program, explain:

The projected financial impact (ROI) of the successful execution of your implementation plan. This should include projections of (Please see attached supporting documents)
Size and potential revenue impact for the organization
How will this impact your company’s portion of the marketshare?
The costs of implementing your plan, including acquisition and sale of assets, hiring and retention, manufacturing, marketing, operations overhead, etc.Running head: FRAMING THE PROBLEM Assignment 1: Framing the Problem Ryan Bradley Jack Welch Management Institute JWI 599: Business Analytics and Capstone Professor Tocci April 21, 2019 1 FRAMING THE PROBLEM 2 Problem Statement In 2011, a new CEO for StepSmart, Mark Wallace, reorganized the company’s sales seeing that the sales team had become complacent and analytics were not being used in the sales strategy (Dolan, Shapiro, & Zalosh, 2017). For these reasons, the vice president of the North East region and the sales director for the New England district were terminated. Sales performance had fallen short of expectations for the third consecutive year in the district. StepSmart Fitness was experiencing a challenge of sales underperformance because of the low productivity of the sales team in the New England district (Dolan, Shapiro, & Zalosh, 2017). It meant that the problem also presented opportunities for growth and to turn things around to generate more sales and increase revenues. Cooper was promoted to the position of district sales director for the region, and it was demanded of him to drive sales and revenue growth, and if the district fell short of the goal, it would be merged with the New York district, and more than half of the team terminated. This problem of sales underperformance mattered for the company because of its direct link with the profitability and sustainability of the company. It was clear that operating in a competitive environment meant that survival in the market had to be supported by a growth in profitability and revenues, which is dependent on the volume of sales made. As evident in Step Smart’s sales data in three years, the company experienced minimal growth in sales and ultimately revenues. Commercial sales for the New England district were $8,369,119 in 2009, $8,954,958 in 2010, and $9,483,300 in 2011, which fell short of expectations as compared to the buying power of the region (Dolan, Shapiro, & Zalosh, 2017). FRAMING THE PROBLEM 3 Variables A change in the organization of sales was a big decision, and the looming termination of over 50 percent of the sales team in the New England district seemed radical. The variables in the sales underperformance included industry fragmentation, which potentially had an impact on marketing efforts, sales training, the use of historical revenue data to make future targets, and enthusiasm. These variables are relevant to the problem because they were identified as the possible reasons for the consecutive failures to meet revenue targets. Cooper noted that to meet the ambitious revenue target for the coming year, he had to win the team’s collective motivation and enthusiasm (Dolan, Shapiro, & Zalosh, 2017). It was also clear to him that he did not prefer the termination of team members but rather the professional guidance of the employees would be recommendable. Stakeholders The stakeholders in this regard included the sales team members, the executive, and the shareholders. The employees were the first group of stakeholders to be affected by the underwhelming sales results for the district. They were also partly responsible for the problem. The reorganization of the sales team, the termination of the regional vice president and director of the New England district, and the looming probation and termination of some employees were direct outcomes of the dismal sales performance.