Typically, a corrective action plan refers to a document that explicitly describes how exactly a particular situation can be altered so as t better accomplish the desired goals of the company ( Okes , 2019). More precisely, a corrective action plan is an immediate response to a problematic situation t a company. Subject to the strategic plan that my team developed, a hypothetical problem arose, which called for an immediate action plan so as to silicate a long-term remedy to the identified problem. This paper, therefore, seeks to develop a comprehensive corrective action plan for a hypothetical problem that cropped up as a result of the strategic plan that was earlier developed by my team.
To begin with, every company is profit oriented and the most prominent way of a company to enlarge its profitability index is to have an increased sales margin. The main challenge is the failure of the sales team to meet the set target within the strategic plan. Based on the developed strategic plan, it was set that the company was to increase the sales margin by 30%, within the 3 year period, a 10% increase annually. The sales year date is only $ 500, which is 32% below the set target. However, following the last year’s evidence-based audit for sales, it falls below the set target. This means that the company made fewer sales and that the profit expectations keep on deteriorating. This places the company at high financial risk. The root cause of declining sales has been established to be poor promotion and marketing strategies.
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The sale manager together with his team is solely responsible stakeholders for the failure. They should, therefore, adopt some of the measurable solutions in order to improve and curb the problem. Among the actions to improve the organization sales and meet the set budget by the end of the year include first, reviewing the individual performance of the salespersons by assessing their met targets. Secondly, it is imperative for the sales manager to launch an employee training program to all salespersons that offer accessories to clients so as to enhance the performance of individual salespeople. The third solution is to fire the underperforming employees, particularly the salespeople and replace them with a new team of talented individuals. Finally, implying the use of technology in sales promotion, for instance by developing a company sales website, where clients can interact and place their orders directly. On this standpoint, it is stated that salespeople below quota year up to date are needed to boost their sales to hit the set quota, within a period of 3 months or risk losing their jobs.
The sales manager, together with sales supervisors will be accountable to ensure that the above actions are implemented within 3 months. Monitoring and evaluation is an integral activity that will ensure that plans are implemented in a consistent manner and that the desirable plans are being achieved. The sales manager, in particular, will monitor the implementation process by setting targets and key performance indicators on a monthly basis and provides a documented report.
The chosen strategy for monitoring the progress is by the use of a balanced scorecard to track the sales progress. The card will be used to record the set targets against which the actual performance will be measured. Data will be collected, which will be used to document the sales report in a period of three months. Among the long-term strategic recommendation are first, it is recommended that every salesperson should understand the company goals and how their input contributes to the success of the set goals. According to Raj (2016), strategic plan must be well communicated for good comprehension by every employee. It is also recommended that the strategic plan is reviewed on an annual basis to align it to the environmental or technological changes that might have occurred.
References
Okes, D. (2019). Root cause analysis: The core of problem solving and corrective action . ASQ Quality Press.
Raj, A. (2016). A review on corrective action and preventive action (CAPA). African Journal of Pharmacy and Pharmacology , 10 (1), 1-6.
