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Performance Issues:

Root Cause(s):

1.Products Marketing and targeting

1. Poor market targets are one of the root cause for poor sales in the markets (Dr. M. Dhanabhakyam, & R. Umadevi, 2012). For instance, if your house is heavily infested with cockroaches and rats and I offered you a product that will kill them with immediate effect would you buy the product? Of course yes you would buy. Nonetheless, what if I told you the cost of the product is 20000 dollars? What! That’s too expensive. Many customers would opt to look for another alternative to kill the rats and cockroaches. This is because the price is too high for the product. Price is a very sensitize dynamic in marketing. If the price is too high the customers may end up not buying. Maybe the sales are diminishing in the ABC product line due to high prices.

2. Again, the fact that the design of the widgets was altered and the team did not consider lowing the price can contribute to the diminishing sales of the widgets. This is because the customers may have found another suitable substitute compared to ABC’s widget. When consumers substitute a product, the sales of the substituted items tend to lower (Dr. M. Dhanabhakyam, & R. Umadevi, 2012).

3. Another factor that may be contributing to performance issue on the sales is the wrong market. For instance, when one set up a Rolex watch business in a low-income neighborhood, many will admire the luxury product but as well fail to buy. Therefore, the widgets may be in the wrong market. This means that the consumers will not buy the product when they cannot afford it. At the same time, they will not buy if they cannot see its need. According to (Manzoor, 2011), marketers should not only target the people who need the product but also those who have money to pay for the products.

2Sub-standard goods supplied

1. We are living in an error where people value their health safety. Again, time where counterfeit products are flooded in the market .Therefore, the customers fear scams and they are suspicious of the goods they buy. They have to have a trusted brand. For instance, it is easy for Samsung, Nokia and apple to sell their product because they are trusted brands. As a result, the customers may not have enough trust of ABC products. This is one root cause of the diminishing sales of ABC product line.

2. At the same time, the fact that the company has not joined any relevant body that can enhance its reputation is a root cause for poor sales. Memberships of this organizations are free. Also, utilizing their badges and logos create good reputation to the customers.

3. In addition, another root cause of poor sales is the organization failure to offer guarantees and assurance in the products (Manzoor, 2011). This should happen with the organization, they should be able to give the customers credibility of the products they are selling. The products should perform as promised. This will help to create trust to the customers. In this case the widgets created should work as described by the developers.

Root Causes:

Suggestions for Improvement:

1.Lack of trust from the consumers

1. Trust is a vital element in the sales context. This is because when a customer trusts the brand they are likely to buy it more often. To improve trust to the customers, an organization should ensure they showcase their track records. This is by showing the testimonials, letters of recommendation and endorsements from happy consumers. This materials demonstrates proofs that the products and services offered to the customers were genuine. Thus gaining trust from the customers (Manzoor, 2011).

2. At the same time, getting legal permits, licenses and approvals makes the customers gain trust. It is difficult to convince the customers about the business authenticity when one has no legal requirements.

2.Substitutes

1. The presence of substitutes can be improved as follows. Innovation is the best tool to tackle substitutes (Manzoor, 2011). This is because it will lead to invention of a tool that will be able to provide an alternative. In this context, inventing the best design of the widgets will help the organization cope with the competition that is posed by other widget providing companies.

2. At the same time, if your car uses diesel and then someone is offering petrol, why should you even listen to him. This is the same case with the substitute. If the target customer has a substitute product, they may not need Widget. Consequently, only an equally substitutable product can be used beat the already existing products. In other words, the company can use a product that can act as a widget.

3.incompetent sales people

1. This can be tackled by hiring competent individuals with the required skills in sales.

2. At the same time, this can be improved by conducting seminars and refresher courses to the already existing sales persons (Manzoor, 2011). This will improve their sales skills remarkably.

1.Employee

Team meeting discussions

Evaluating the strategies of creating trust to the customers.

Discussing on how to cope with the legal issues. That is how to get permits, approvals and licenses.

Evaluating different methods that can be used to win customers back.

Explaining the different methodologies on how to utilize the knowledge gained on customer services.

Discussing the various methods that can make the customers satisfied by ABC widgets.

2.Manager

E-mail

Discussing on how to focus on a project that will enable ABC to come up with a system that can be used as a substitute to the competitors’ product.

Evaluating the main strategies to use so to receive recognition from the government as widget suppliers.

Discuss on how to develop an innovative plan to match the competitors.

3.Senior management

E-mail

Evaluating different methodologies to hire competent sales persons

Discussing on the budget to cater for seminars and refresher courses of the sales persons in the organization.

Evaluating on how to ensure the widget designs are back to normal to ensure more sales.

Incorporating the systems that will ensure the company is more profitable.

Discuss on how Initiate programs that will tackle employees turnover.

Ways to Motivate and Incentivize Employees:

1.On teamwork basis

Regular optimistic feedback given within an enjoyable team-oriented context makes remarkable difference in employees’ sense of being valued. Either followed by reward or not, this form of motivation make an excellent morale raising investment in the staff and business. This methodology is mainly effective in strictly goal driven environment like sales and investments banking. In other words, making the working environment enjoyable makes the employees be goal focused (Jensen, McMullen, & Stark, 2007).

2 Financial incentives

In this methodology, the monetary incentives are used as the motivating factors. Here there are direct rewards for certain level of success. Cash bonuses, overall profit-sharing plans are used to reward employees. It’s worth noting that this method has to be supported with ongoing verbal acknowledgement and backing. Nonetheless, this method does not encourage teamwork as it encourages individual success (Jensen, McMullen, & Stark, 2007).

Ways to Develop the Team:

1. creating a team require the following.

The leader should ensure that every team member’s decision counts. This will make employees feel valued by the organization. As a results, they will work towards the goal of the team. Again, making their decision count makes the employees feel as part of the team. This makes them work with believe that they are needed in the team and they have a role to play. Subsequently, they become focused.

2. Additionally, getting all the team members to recognize their roles is a significant step towards team development. (Jensen, McMullen, & Stark, 2007) stipulates that many team members have a brief detail of what their role entails, but they have no in-depth knowledge of it. They further posits that many start working without clear knowledge of what is expected of them. To tackle this, the leader should take time with each individual and clearly spell out the roles to the teammates. Understanding ones role and definitive roadmap to developments are significant to team growth (Jensen, McMullen, & Stark, 2007).