Barro Stickney, Inc.

Barro Stickney, Inc.Presented by:Ayesha Rana Nabeel AhmadSadia AnwarWaqar Tariq

Introduction:

Manufacturer representative firm

Acts as an agent in particular territories

Working Environment

Sales = $5.5 Millions

Key Players:

John Barro (Co-founder)

Bill Stickney (Co-founder)

J.T Smith (Salesperson)

Elizabeth Lee (Office Manager)

Principals and Territories:No. of PrincipalsEight

Territories:PennsylvaniaNew JerseyDelaware

Problems:

Products being replaced by competitors products

Threat of losing market share

Trusting new hires

Fund Raising

Core ProblemGo/No Go Decision

How can BSI expand its business in CHALLENGING circumstancesJustification:Advantages

To come up to expectation of Oceans and Franklin

Increase in Sales Revenue

Market Development

Disadvantages

Loss of reputation

Damaging work environment

New hire can convert into competitor

Analysis:R.D Ocean 32% Franklin 15%

Butler 3%Knox 5%

SwansonProduct Replacing 14%

1st Year Profit/Cost Analysis:

Profit: 800,000x.05= $40,000

Costs:Commission= 300,000x0.05x0.2 = $3,000Salary= $20,000Supporting Costs= $66,000Incremental Costs= $24,000

Total Costs= $ 113,000

Net Income:$40,000-$ 113,000= ($73,000)2nd Year Profit/Cost Analysis:

Profit: 800,000x.05= $40,000

Costs:Commission= 300,000x0.05x0.2 = $3,000Salary= $20,000Transportation Costs= $2,000Rent & Equipment= $4,000

Net Income:40,000-29,000= $11,000Break-Even Analysis:1st year cost: ($73,000)

Every year income= $11,000

Breakeven= 73,000/11,000 = 6.5 +1 = 7.5 Years

Recommendations:

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