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IMAGE International Case Solution

Solution Id Length Case Author Case Publisher
787 320 Words (3 Pages) Robert E. Spekman, Derek A. Newton, Alexandra Ranson Darden School of Business : UV0023
This solution includes: A Word File A Word File

The case study of IMAGE International is about budget expenditures regarding the company operations. Image International is an office copier exporter based in France, and most of the company's exporters are based in United States. The case highlights discussion between sales director from France and the assistant budget director from New York office. Reynolds, the sales director, defends some of his policies that are based upon spending too much on boosting sales by giving employees more than their potential, foreign tours and so on. While Berthelin, the budget director, asks him to reduce expenditures to increase company profits.

Following questions are answered in this case study solution:

  1. Part 1: Key issues of the case

  2. Part 2: Required Decisions

  3. Alternatives Available

IMAGE International Case Analysis

Part 2: Required Decisions

The following decisions are to be made through productive negotiations between the stakeholders:

  • The amount of money spending on extra activities such as golf lessons and foreign tours of employees.

  • The method of service contracts given to sales reps.

  • The implication of the quota system in giving contracts to salesmen.

  • Performance-based forecasting and incentives.

Alternatives Available

The two managers have the following options to decide the budget for the upcoming year:

  1. Reducing spending: They can make an estimate of expenditure that is to be done on extra activities such as tours, prizes and so on and then plan the trips and golf lessons accordingly. They should cut short extra expenditure in such a way that the employees do not get demoralized, and the company's profits are not hampered.

  2. Quota system: Depending upon the level of sales and expected profits, they can agree upon a quota system that is acceptable to both the employees.

  3. Performance based incentives: They should offer potential based incentives because it would encourage the sales reps to deliver in a better way.

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