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Business, 12.03.2021 16:00 annethelusma25

Year 43 Top management has instructed all regional managers about some new innovative equipment that has been developed and will be replacing some old product starting two years from this month. Life expectancy of this equipment should be the same as previous stocks (five to eight years). Because of inaccurate forecasting, inventory levels will not be depleted by the time the new equipment comes on line because at the start of November of next year (12 months away) the company will be promoting the new models. As a result, management has approved a bonus plan that will certainly entice your sales people to push the old product. By the time you announce the new bonus plan your sales staff will have already heard the news. In the first week of the plan reports to you show abnormally high amounts of product being sold. Upon investigating the situation you find that most of the sales people are overselling their clients to beat the clock on the bonus plan and any leaks concerning the new products. You know that this will come back to haunt you with angry customers especially if they find out that your sales staff knew about the new equipment and the phasing out of the old. You:.

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