Written analysis Assignment Example | Topics and Well Written Essays - 500 words

Written analysis - Assignment Example For example, Bob Marley’s expected sales are: CU400 is the bonus he earned, according to Exhibit 1. Similar is the case with other workers who got a bonus. Jimi Hendrix, on the other hand, earned no bonus as he failed to meet his target of 41250 units, let alone an excess. Figure 1 exhibits a mighty 9% increase in sales in month 25 (rollout). Till month 47, sales have mainly seen increases, including crossing the peak of 10%. Cost of goods sold as a percentage of sales have seen more declines after month 25. However, they have remained around 63% and have not shown drastic reductions. Wages as a percentage of sales, though, went up by 2% immediately and have not reduced much since. It is evident that Ladbrecks has not seen a considerable deduction in costs. However, it is an incentive plan. By definition, it adds to wages rather than deduct. Cost of goods sold does not cover wages of sales-force (Moore, 2014). Here, they would increase expenses by 2%. However, initial costs must be borne when implementing a change. In the long-run, changes get subtle and rise in sales should be considered. Employees will be satisfied, will provide better customer services and will be motivated to increase sales. The plan should be kept, but changes should be made to effect the motivation of employees who are not meeting their targeted sales. If pay does not motivate them, some other initiative should be adopted targeted to them to ensure further rise in sales. This would decrease the difference in wages/sales percentage and would not impact expenses