Research findings analysis and interpretation - Free Essay Example

Sample details Pages: 6 Words: 1930 Downloads: 2 Date added: 2017/06/26 Category Logistics Essay Type Dissertation Level High school Did you like this example? CHAPTER FOUR RESEARCH FINDINGS: ANALYSIS AND INTERPRETATION 4.1 INTRODUCTION This chapter attempts to analyse questionnaire findings regarding customer satisfaction with the two land transport companies involved in the present study: a publicly-owned company (referred to as Company A) and a privately-owned company (referred to as Company B). Satisfaction rates of customers of both companies are also compared against each other in Chapter Five to illustrate which company provides more satisfactory services to its customers. Seventy questionnaires were distributed to the passengers of Company A and sixty to the passengers of Company B. Don’t waste time! Our writers will create an original "Research findings analysis and interpretation" essay for you Create order Fifty questionnaires were completed by passengers of each company and returned to the researcher. This gives response rates of 71.4% and 83.3%, respectively. These return rates are acceptable response rates. Passengers who declined to participates either they claimed that they were not interested in the survey, whereas some other claimed they did not have the time to complete the questionnaire. 4.2 FACTORS MOTIVATING CUSTOMERS TO DEAL WITH THE COMPANY A Responses to the factors that have motivated the customers of this company are presented in Table 4.1 and illustrated in Figures 4.1 to 4.3. Factors motivating customers are divided into three groups: Reliability and Customer Service (RCS) factors (eight factors), Convenience and Accessibility (CA) factors (nine factors) and On-Board Services (OBS) (five factors). Responses to the eighteen statements are illustrated in Table 4.1. To facilitate data analysis, responses to the Strongly Agree and Agree groups were combined and presented in Figures 4.1 to 4.3 as SA/A. Similarly, for the Disagree and Strongly Disagree groups were combined as DA/SDA. The No View responses (NV) were left as it is. Table 4.1 indicates that between 4% and 20.0% of responding passengers declined to express their views. This indicates their indifference to the questionnaire items. Table 4.1. Reasons for choosing to travel with Company A Variables SA A NV DA SDA CA Convenient reservation and ticketing 76.0 16.0 8.0 0.0 0.0 CA Prompt and accurate reservation and ticketing 44.0 40.0 16.0 0.0 0.0 CA Good checking-in service 44.0 44.0 12.0 0.0 0.0 CA Frequent journey programme 40.0 40.0 20.0 0.0 0.0 CA Convenient journey schedule 36.0 48.0 12.0 4.0 0.0 CA Seat allocation 28.0 56.0 16.0 0.0 0.0 RCS Courtesy of employees 28.0 56.0 16.0 0.0 0.0 RCS Employees willingness to help passengers 36.0 48.0 16.0 0.0 0.0 RCS Employees knowledge to answer passengers questions 40.0 48.0 8.0 4.0 0.0 RCS Passengers are given personal attention 44.0 40.0 8.0 4.0 4.0 RCS Neat appearance of employees 40.0 44.0 16.0 0.0 0.0 RCS Safety of Driving 44.0 44.0 8.0 0.0 4.0 RCS Sincere interest in solving problems 36.0 44.0 16.0 4.0 0.0 RCS On-time performance 36.0 48.0 16.0 0.0 0.0 OBS Seat comfort 40.0 40.0 12.0 8.0 0.0 OBS Meal service 48.0 32.0 8.0 12.0 0.0 OBS On-Board entertainment services 40.0 44.0 4.0 4.0 8.0 OBS Up-to-date coach and on-board facility 40.0 44.0 4.0 4.0 8.0 CA = Convenience and Accessibility RCS = Reliability and Customer Service OBS = On-Board Services 4.2.1 SATISFACTION WITH CONVENIENCE AND ACCESSIBILITY FACTORS Passengers (thereafter referred to as respondents) were asked to express their agreement or disagreement with the six items relating to convenience and accessibility factors: Convenient reservation and ticketing (Item No. 1), Prompt and accurate reservation and ticketing (Item No. 2), Good checking-in service ((Item No. 3), Frequent journey programme (Item No. 4), Convenient journey schedule (Item No. 5), and Seat allocation (Item No. 6) (see Table 4.1, Figure 4.1). Patterns of their responses are analysed below. It is noted in Table 4.1 and Figure 4.1 that 92.0% of the respondents were satisfied (strongly agreed/agreed, SA/A) with the reservation and ticketing procedures undertaken by the company (Item No. 1). Only a small minority of respondents showed their indifference to this item, whereas none of them disagreed with it. The majority of the respondents (88.0%) were satisfied (SA/A) with check in service (Item No. 3) (Table 4.1, Figure 4.1), and a minority (12.0%) did not ex press their views, but none of the respondents were dissatisfied with this service. In terms of prompt and accurate reservation and ticketing (Item No. 2), convenient journey schedule (Item No. 5), and seat allocation (Item No. 6) (Table 4.1, Figure 4.1), 84.0% of the respondents were satisfied with these three items, and only 4.0% of the respondents were dissatisfied with convenient journey schedule (Item No. 5). 4.2.2 SATISFACTION WITH RELIABILITY AND CUSTOMER SERVICE FACTORS Respondents were asked to indicate their rate of satisfaction/dissatisfaction with eight items concerning reliability and customer service factors. The majority of respondents (88% of the sample) indicated that they were satisfied with employees knowledge to answer passengers questions (Item No. 9), and with safety of driving (Item No. 12). Only 4.0% of the respondents were dissatisfied with these services and 8.0% of them indicated their indifference. With regard to courtesy of employees (Item No. 7), employees willingness to help passengers (Item No. 8), passengers are given personal attention (Item No. 10), Neat appearance of employees (Item No. 11) and on-time performance (Item No. 14), the majority of respondents were satisfied (SA/A) with these items. However, between 8.0% and 16.0% of the respondents expressed their indifference to these items, and only 4.0% to 8.0% of them were dissatisfied with some of these items, as indicated in Table 4.1 and Figure 4.2. With regar d to the item: sincere interest in solving problems (Item No. 13), 80.0% of the respondents were satisfied with it, and 16.0% of them expressed their indifference, whereas only 40.0% of them disagreed with it. 4.2.3 SATISFACTION WITH ON-BOARD SERVICE FACTORS Respondents were asked to indicate their rate of satisfaction/dissatisfaction with four items concerning on-board service factors. Table 4.2 and Figure 4.4 clearly show that 84.0% of the respondents were satisfied with on-board entertainment service (Item No. 17) and up-to-date coach and on-board facilities. However, 12.0% of them were dissatisfied and 4.0% expressed their indifference. Figure 4.3 also illustrates that 80.0% of the respondents were satisfied with the seat comfort (Item No. 15) and meal service (Item No. 16). However, 8.0% and 12.0% of the respondents were dissatisfied with Items No. 14 and 15, respectively, and 12.0% and 8.0% of them expressed their indifference with these two items, respectively. It can be noted that more respondents were dissatisfied with these four services than with the other items in other two dimensions. 4.3 FACTORS MOTIVATING CUSTOMERS TO DEAL WITH THE COMPANY B Responses to the factors that have motivated the customers of this company are presented in Table 4.21 and illustrated in Figures 4.4 to 4.4. Table 4.1 indicates that between 20% and 40.0% of the responding passengers declined to express their views. This indicates their indifference to the questionnaire items. 4.2.1 SATISFACTION WITH CONVENIENCE AND ACCESSIBILITY FACTORS Data presented in Table 4.2 and illustrated in Figure 4.4 show that 76.0% of the respondents were satisfied (strongly agreed/agreed, SA/A) with the reservation and ticketing procedures undertaken by the company (Item No. 1). However, the remaining 24.0% of the respondents expressed their indifference to this item, whereas none of them disagreed with it. Around two-thirds of the respondents (68.0%) were satisfied (SA/A) with prompt and accurate reservation and ticketing, whereas the remaining 32.0% of the respondents did not express their views, and none of the respondents were dissatisfied with this service (Table 4.2, Figure 4.4). With regard to the remaining four items (good checking-in service, Item No. 3; Frequent journey programme, Item No. 4; Convenient journey schedule, Item No. 5; seat allocation, Item No. 6), 60.0% of the respondents were satisfied with these services. The remaining 40.0% of the respondents either expressed their indifference to these items, or were dissatisfied with them (Table 4.2, Figure 4.4). Table 4.2. Reasons for choosing to travel with Company A Variables SA A NV DA SDA CA Convenient reservation and ticketing 36.0 40.0 24.0 0.0 0.0 CA Prompt and accurate reservation and ticketing 28.0 40.0 32.0 0.0 0.0 CA Good checking-in service 20.0 40.0 40.0 0.0 0.0 CA Frequent journey programme 16.0 44.0 32.0 8.0 0.0 CA Convenient journey schedule 20.0 40.0 32.0 4.0 4.0 CA Seat allocation 24.0 36.0 28.0 4.0 8.0 RCS Courtesy of employees 16.0 46.0 30.0 4.0 4.0 RCS Employees willingness to help passengers 20.0 42.0 26.0 8.0 4.0 RCS Employees knowledge to answer passengers questions 16.0 42.0 32.0 4.0 6.0 RCS Passengers are given personal attention 18.0 34.0 38.0 6.0 4.0 RCS Neat appearance of employees 20.0 44.0 20.0 8.0 8.0 RCS Safety of Driving 10.0 42.0 24.0 12.0 12.0 RCS Sincere interest in solving problems 12.0 40.0 32.0 12.0 4.0 RCS On-time performance 16.0 30.0 36.0 12.0 8.0 OBS Seat comfort 20.0 28.0 32.0 16.0 4.0 OBS Meal service 16.0 12.0 40.0 20.0 12.0 OBS On-Board entertainment services 12.0 24.0 44.0 12.0 8.0 OBS Up-to-date coach and on-board facility 16.0 44.0 24.0 4.0 12.0 CA = Convenience and Accessibility RCS = Reliability and Customer Service OBS = On-Board Services 4.3.2 SATISFACTION WITH RELIABILITY AND CUSTOMER SERVICE FACTORS Respondents were asked to indicate their rate of satisfaction/dissatisfaction with eight items concerning reliability and customer service factors. About two-thirds of the respondents (64.0% of the sample) indicated that they were satisfied with employees neat appearance (Item No. 11) (Table 4.2, Figure 4.5). One-fifth (20.0%) and 16.0% of the respondents expressed their indifference or dissatisfaction with this item. Most respondents (62.0% of the sample) were satisfied with the courtesy of the employees and employees willingness to help passengers. However, many of them either expressed their indifference, or were dissatisfied with these services. Less than three-fifths (58.0%) of the were satisfied with employees knowledge to answer passengers questions (Item No. 9), and 32.0% of them expressed their indifference and 10.0% of them were dissatisfied. Around half of the respondents (52.0% of the sample) were satisfied with passengers are given personal attention (item no. 10), safety of driving (item no. 13), and sincere interest in solving problems (item no. 14). The remaining half either expressed their indifference or, to a lesser extent, was dissatisfied with these items. However, only 46.0% of the respondents were satisfied with on time performance (Item No. 14), and the remaining 54.0% of them either expressed their indifference or were dissatisfied with this item. 4.3.3 SATISFACTION WITH ON-BOARD SERVICE FACTORS Respondents were asked to indicate their rate of satisfaction/dissatisfaction with the four items relating to onboard service factors (Item No. 18) (Table 4.2, Figure 4.6). Figure 4.6 indicated that about two-thirds of the respondents (68.0% of the respondents) were satisfied with up-to-date coaches and on-board facilities, whereas the remaining respondents either did not express their views (16.0% of the sample) or were dissatisfied with this item. Data presented in Table 4.2 and Figure 4.6 clearly indicate that less than half of the respondents were satisfied with seat comfort (Item No. 15) (48.0%), meal service (Item No. 16) (38.0%), and on-board entertainment services (item No. 17) (44.0%). The remaining respondents (62.0% to 52.0% of the sample) either did not express their view or were dissatisfied with these items. On the whole, it can be said that more respondents either showed their indifference to these three items (30.0% to 36.0% of the sample) or were dissatisfied with them (20.0% to 32.0% of the sample). 4.3 DEMOGRAPHIC CHARACTERISTICS OF RESPONDENTS The demographic characteristics of the respondents from both companies, Company A, and Company B are analysed and compared in this section. Figure 4.7 clearly demonstrates that the majority of respondents of both companies (88.0%) were young between 21 and 50 year old. This is not surprising given that these ages represent people who are more active and more mobile than in other age groups. Forty-six respondents (92.0% of the sample) of Company A were Libyan nationals and the remaining four (8.0% of the sample) were Arab nationals. As for Company B, all fifty passengers were Libyan nationals. In terms of gender, thirty (60.0% of the sample) of Company A respondents were males, and the remaining twenty (40.0% of the sample) were females. As for Company B, twenty-six respondents (52.0% of the sample) were males and the remaining twenty-four (48.0% of the sample) were females. It can be argued that females represented a high proportion of the total number of respondents. As r egards their income, Figure 4.8 clearly demonstrates that the majority of respondents of Company A (72.0% of the sample) and Company B (88.0% of the sample) were on the high salary scale of between Libyan Dinars (LD) 201 and over LD350. People with these high salaries, in the Libyan context, are those who can afford to travel more than lower paid people. With regard to their occupation, the majority of respondents of both companies were managers, employees of a company, or government employees (Figure 4.9). Respondents referring to themselves as professional or students were not represented in Company B sample. Most Company A respondents (60.0% of the sample) have been working for periods of 3 to more than 6 years, and 64.0% of Company B respondents were also working for that period of time. The remaining respondents have been working from less than one year to three years. As for their qualifications, Figure 4.10 indicates that the majority of respondents were highly qualifie d educationally. Most of the respondents of both companies held Diplomas and Bachelors Degrees. In the following chapter, the rate of satisfaction with the eighteen questionnaire items indicated by the respondents of Company A and Company B will be compared and contrasted against each other. Research conclusions will be drawn out and recommendations for both companies and for future research are also outlined in the following chapter. Figure 4.10. Distribution of respondents according to their qualifications.

Influences on Social Mobility in The Kite Runner by Khaled...

The Kite Runner by Khaled Hosseini Amir lives in a nice home in Kabul, Afghanistan, with his father. They have two servants, Ali and his son, Hassan. Ali and Hassan are Hazaras, which is an ethnic minority. Hassan is often teased and harassed by a group of boys, one in particular named Assef, who wishes to get rid of all Hazaras in the future. One day an incident happens between Hassan and Assef that changes Amir’s relationship with Hassan forever, bringing Amir to ultimately cause Ali and Hassan to leave their home. When Afghanistan’s king is overthrown things start to change and take a turn for the worst. Eventually Amir and his father must leave Kabul and the move away to America where many Afghani’s have also fled to. Amir and†¦show more content†¦Never mind that we taught each other to ride a bicycle with no hands, or to build a fully functional homemade camera out of a cardboard box. Never mind that we spent entire winters flying kites, runni ng kites. Never mind that to me, the face of Afghanistan is that of a boy with a thin-boned frame, a shaved head, and low-set ears, a boy with a Chinese doll face perpetually lit by a harelipped smile.Never mind any of those things. Because history isnt easy to overcome. Neither is religion. In the end, I was a Pashtun and he was a Hazara, I was Sunni and he was Shia, and nothing was ever going to change that. Nothing†(Hosseini 25). Therefore ethnicity and religion intertwine. This shows that those are just labels to categorize people, but really mean nothing because we as people are much more equal than people try to make the world out to be. Since Hassan had to live with this label his entire life it kept him from a better life, a better living situation, and it would have eliminated much of the harassment he faced from characters like Assef. Even though ethnicity and race play a major role in The KiteRunner, there is also an obvious distinction in social class. Social clas s is a large group of people who rank closely to each other in terms of wealth, power, and prestige (Henslin 237). There seemed to only be those that were wealthy and those that were poor. Whenever it came to the point of Afghanistan’s government falling apart, those that were wealthy

Death of a Salesman by Arthur Miller Free Essays

Usually suicide is the last measure a human being would take when he or she sees no way out of a situation. Willy Loman, the protagonist of the drama Death of a Salesman by Arthur Miller, appears to be attempting suicide several times before he succeeds at the end of the play. His family does not seem to understand what is driving him into suicide until very late, as there seem to be several reasons. We will write a custom essay sample on Death of a Salesman by Arthur Miller or any similar topic only for you Order Now Behind the word success Willy Loman does not seem to see anything more than material possession. Self-fulfillment is nothing else than earning a lot of money to provide a good standard of living for one’s family. This ironically is Willy’s ideology, even though he is a salesman with a low salary who can barely pay the upcoming installments. Willy’s view of the world is based to a large extent based on two men. His brother Ben, who made a fortune by finding diamonds in the jungle, and an old salesman called David Singleman, the salesman he aspires to become. Willy desperately tries to believe that he is a success, something he always tried to tell his sons. But of course at the age of sixty-three, near retirement, he has to realize that he cannot achieve what he was longing for. He starts going back into his past and seeing his brother Ben, who he thinks has all the answers. His life lies in ruins in front of him and he starts realizing that according to his ideology he is a failure. Materialistic things are everything that count for him is how it seems. Therefore he cannot see what he has in his wife and two sons, who stand behind him by the end of the play. The idea that his life insurance money could help his son to set up his business prevails for him. He had always wanted his sons, especially Biff, the elder one of them, to be successes. At the age of thirty-four, though, Biff has still not settled down, as he wants to be a success in the eyes of his father but on the other hand realizes that he is best at working with his hands. This of course would mean not making much money but would probably give him a feeling of self-fulfillment. By the end of the play Biff realizes exactly this but is not able to make Willy drop his views. These views prevent Willy from doing what he also shows talent in, which is construction working. Only materialistic things are what count in a man’s life. As Willy slowly seems to comprehend how much he failed, according to his narrowed views, a process begins in him, which many of the other characters would describe as confusion. It is much more than that, though, he looses his touch with reality and gives up his will to live. On his long journeys in his car he deliberately tries to crash and at home he connects a plastic attachment to the gas pipe in his cellar in order to suffocate himself. This not only shows that he has given up but also that his family is not enough reason for him to continue his life. This cannot be explained simply by saying he does not love them but it is that he thinks he is unworthy of living with them when he cannot provide them with money. Therefore his line of thinking continues with the idea that in his death he can give them a lot more financial support than he could in his life time. Following his logic this is to say that he is a much better husband and father, dead than alive. In the play there is a rather optimistic part, where the future of the Loman family seems rather good. Willy is about to see his boss for a non-traveling position and his sons have the plan to open a sports article retailing business. All of these hopes for a better future get crushed at once and the way to Willy’s suicide is free. In a last vision of Ben, Willy sees a new hope at least for his sons in his life insurance money and therefore his death. Ben encourages him in this unspoken intention Willy takes the last step and drives into the next tree. Willy Loman, husband and father is driven to his suicide by a perverted version of the American dream. His view of success and self-realization has reduced to a materialistic meaning. All he can see is his failure in providing his family with a good financial situation. His real failure, though, is not to see what he has in his family and what else he can give them besides money. How to cite Death of a Salesman by Arthur Miller, Papers Death of a Salesman by Arthur Miller Free Essays â€Å"Death of a Salesman†, by Arthur Miller, is the perfect play for you to revitalize your career, as it contains an outstanding and memorable character that is understandable and somewhat realistic the audience. There are also several themes thoughout the play that the audience can connect to. The play is also heavy in symbolism that relates these themes with the characters. We will write a custom essay sample on Death of a Salesman by Arthur Miller or any similar topic only for you Order Now By bringing all these elements into a masterful performance, you should have newspapers and critics alike marveling at your performance and swaying the public image of yourself from negitive to positive.Mr. Sheen, you will be playing Willy Loman. Willy is a salesman who, at one time in his life, used to be well liked and well known, but is now a troubled and misguided man, as seen in the following text: WILLY. â€Å"†¦ And then all of a sudden I’m goin’ off the road! I’m telling ya, I absolutely forgot I was driving. If I’d’ve gone the other way over the white line I might’ve killed somebody. So I went on again – and five minutes later I’m dreamin again, and I nearly – (He presses two fingers against his eyes. ) I have such thoughts, I have such strange thoughts. 1774) The â€Å"strange thoughts† that Willy continues to have thoughout the play are glimpses into his psychological thought process. To combat his unhappiness in himself and his family, Willy frequently reminiscences the past using soliloquies and illusions, imagining times where he felt content, appreciated, and successful. This will help the audience understand the trials you are undergoing as the play continues to unfold before the audience’s eyes. While it is normal to recall good times in our lives, it is not healthy to focus on them for too long. Willy basically lives in the past, which unables him not to be able to function in the present. The past has already occured, and you need to help the audience realize that there is nothing that you can do to change it. He even goes as far as to having conversations with imaginary people, showing his deteriorating mental health. Willy’s admiration of Dave Singleman’s (asuccess shows his obsession with being well liked: WILLY. And when I saw that, I realized that selling was the greatest career a man could want. Cause what could be more satisfying than to be able to go, at the age of eighty-four, into twenty or thirty different cities, and pick up a phone, and be remembered and loved and helped by so many different people? (1807) Willy wants people remember and love him to substitute his neediness to be loved in a way his family love does not. Willy chooses to ignore the fact that Dave is still working at the age of eighty-four, and is probably experiencing the same frus trations and financial worries Willy does himself. Willy is frustrated with himself and his two sons whom he sees nothing but failure in, and tries to commit suicide several times. His wife, Linda, works to cheer him up, but is unsuccessful in doing so. Willy’s two sons, Biff and Happy, also try to improve Willy’s morale by attempting to win their father’s affection by getting better jobs with better pay. They, too, are unsuccessful, and Willy kills himself at the end of the play. To Willy Loman, the falsity of the American Dream is the dominant theme of Arthur Miller’s â€Å"Death of a Salesman†. In early memories, you possesses a solid family that is happy and secure.However, no matter how much you wants to remember his families past as all-American and blissful, he is unable to rewrite his past. Willy represents the primary victim of this dream. As with most men working in the middle class, Willy struggles to provide financial security for his family and dreams about making himself a huge financial success. The failure of the American dream is present, and makes the audience question his/her commitment to their own false dreams. Another major theme of the play is the lost opportunities that each of the characters face and regret.Willy also regrets the opportunities that have passed by Biff, whom he believes to have the capability to be a great man. This is helped understood by the symbolism throughout the play. Symbolism in this play is very important, as it helps relate the themes to the characters. The seed Willy buys to plant his garden help to symbolize Willy’s desire for a fresh start in life. Willy’s desperate actions to attempt to grow the seeds relates to the unhappiness he goes through realizing his family has not â€Å"grown† into the thriving, nourished family he always dreamed of. Willy states: WILLY. Nothing’s planted.I don’t have a thing in the ground. (1827) Suggesting he is talking about his own sons and their future, his failure in being well known and well liked, and preoccupation with material success. The planting of the seeds can also show Willy’s desire to leave something that is tangible for his family and others to show the worth of his labor. Maybe you could reflect on the legacy you would like to leave as you dive into the role. All these elements help create this play into just what your career need in order to help improve your currently low image where it belongs.Many critics believe your cocaine nd hooker addiction is the suicide of your career, so you would be able to relate to Willy’s situation. You can relate to his unhappiness and character flaws as you have some yourself. Seeing as how you just recently divorced your wife, you could easily mold the tone and emotion needed to play this character. A moderate amount of people can relate to the struggles that Willy has undergone and can relate it to their lives 1. Miller, Arthur. â€Å"Death Of A Salesman. † Literature: An Introduction to Fiction,Poetry,Drama, And Writing. 11th ed. New York: Longman, 2010. 1773-835. Print. How to cite Death of a Salesman by Arthur Miller, Papers

Mary Kay free essay sample

The program, which originally awarded the use of compact size Oldsmobile Firenzas to eligible beauty consultants, was modeled after the company’s acclaimed pink Cadillac program, introduced in 1969, for which only director-level consultants were eligible. The pink Buick program, Mary Kay’s third program, was also reserved for sales directors, but was based on less difficult performance criteria than the Cadillac program. Under all three car programs, Mary Kay awarded the use of a new car to eligible beauty consultants who sustained the required sales and recruiting levels for the designated number of months. Winners maintained the use of their cars for two years as long as they continued to meet the required sales volumes on a monthly basis. The company bore all the costs associated with leasing the new General Motors cars from ARI Leasing, insuring the cars, and then selling the used ones as consultants returned them. No The car programs had proven to be very effective motivators, helping company sales through a period of market stagnancy in the mid1980s. Over time, however, the cost of running the programs had escalated substantially. The cost of the VIP program in particular had skyrocketed in the late 1980s, with the number of leased cars approaching 3,000 in early 1989. In addition, there were approximately 1,000 Cadillacs and 1,000 Buicks in force in 1989. The number of car winners as a percentage of the total number of beauty consultants had doubled from 1.25% in 1986 to 2. 5% by yearend 1988. Do Mary Kay’s management now faced the difficult challenge of containing further program cost increases without upsetting the powerful incentive system that was the firm’s primary source of growth and success. In addition to reducing total car program costs (especially VIP costs) as a percentage of sales, management was interested in redirecting the dollars behind other elements of its incentive compensation plan for greater cost effectiveness. Also, management wanted to provide reward and recognition for a range of performance levels that was broad enough to meet the varying career interests of current and prospective beauty consultants. Hilary Weston prepared this case under the supervision of Professor Robert Simons as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. 1 This document is authorized for use only by Hamid Akbari at University of Ontario Institute of Technology until October 2013. Copying or posting is an infringement of copyright. Mary Kay Cosmetics Inc. was an international manufacturer and distributor of premium skin care, hair care, and body care products. Mary Kay products were not available through retail stores. In 1988, its products were sold throughout the United States exclusively by a network of over 175,000 independent (self-employed) women who ranged in status from beauty consultants to national sales directors. (Mary Kay also sold internationally in seven countries. ) This sales force met directly with customers in their homes and offices to demonstrate and sell Mary Kay products. The firm’s 1,436 company employees worked out of its Dallas headquarters and manufacturing facility and its five regional distribution centers. In 1988, the company’s 25th anniversary, Mary Kay Cosmetics achieved record sales of $406 million, up 26% from $326 million in 1987. The original mission of company founder Mary Kay Ash had been to be a â€Å"teachingoriented† organization that provided women with exceptional opportunities for professional achievement, economic success, recognition, personal development, and independence. The organization had remained true  to this goal, but had expanded its mission during the 1980s to include greater emphasis on consumer needs, product innovation, and quality. As revised in 1987, the Mary Kay Mission was â€Å"To achieve preeminence in the manufacturing, distribution and marketing of personal care products by providing personalized service, value, convenience and innovative solutions to consumer needs through our independent sales force. † Company Philosophy The â€Å"Consultant’s Guide† book provided to new beauty consultants stated the firm’s philosophy as follows: tC From the beginning, the Company has grown based upon the same philosophy: every person associated with the Company, from Chairman Emeritus to the newest recruit, lives by the Golden Rule, â€Å"Do unto others as you would have them do unto you† and the priorities of God first, family second, and career third. In describing the company’s commitment to the independent sales force, Chairman Rogers asserted, â€Å"Every aspect of the Mary Kay system is aimed at promoting a successful career for the beauty consultants. It’s through her succeeding that we all succeed. We’re committed to total customer satisfaction; and to the customer, a beauty consultant is Mary Kay. † No A director of sales development explained the relationship between the company and its sales force: There are five things that all consultants seek. We refer to them as STORM: Satisfaction with a task well done (self-worth); Teamwork (a sense of belonging); Opportunity (to succeed); Recognition; and Money. These five needs are being met through various aspects of our business. Do Company Ownership and Structure In 1984, after several years of extraordinary growth, a decline of 14% in sales and 8% in earnings had triggered a sharp drop in the corporation’s share price. In December 1985, in response to both the depressed share price and to their own desire to manage for the long term rather than for quarterly earnings, Chairman Mary Kay and her son, Richard Rogers (president and CEO at the time), led a management leveraged buyout for a price of approximately $315 million. Mary Kay and Richard also wished to avoid the impact that public financial reporting could have on sales force 2 This document is authorized for use only by Hamid Akbari at University of Ontario Institute of Technology until October 2013. Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617. 783. 7860. Mary Kay Cosmetics: Sales Force Incentives (A) 190-103 op yo rP os t attitudes during a sales and stock price decline. Negative attitudes could easily trigger further sales and recruiting declines. Two years later, in November 1987, Mary Kay assumed the title of chairman emeritus and Rogers, 44, became chairman (retaining his title as CEO). Dick Bartlett, former executive vice president of Marketing, was named president and chief operating officer (COO). Mary Kay management prided itself on its lean internal staff. President Bartlett placed himself at the bottom of the organization, surrounded by staff support functions. Above him were the four operating divisions—Marketing, Sales, RD/Manufacturing, and Distribution—which â€Å"served† the sales force. Bartlett placed Mary Kay’s customer base of 15 to 20 million households at the top of the organizational structure. Bartlett explained the role of his internal organization and how it operated: Our goal is to support the independent sales force of 175,000 beauty consultants, because our sales force is our lifeblood. Our job in supporting the consultants involves a continual effort to update and improve the quality and selection of our products and to refine our facilities and procedures. We also have to anticipate and respond to the consultants’ needs. This all requires creativity and flexibility. tC One of my first challenges as president was to break down departmental fiefdoms. I instituted three types of meetings that bring together managers from different departments. The weekly Sales and Marketing meetings are religiously attended by top management. I never miss those meetings. They’re where the hot topics are raised and discussed. We’ve also created what we call â€Å"CATS†Ã¢â‚¬â€Creative Action Teams. These cross-functional temporary task forces are formed on an ad hoc basis whenever any employees identify a specific problem or opportunity which they think they can take on, especially those affecting quality improvement. The purpose of the CATS is to nurture creativity and keep the organization flexible. We track the progress of all CAT projects at our weekly meetings, and employees are usually recognized for successful completion. The main personal link between the company and the sales force was the group of six regional sales development directors. One of them described his role: Do No The job of the six of us is to bridge the gap between the growing sales organization and the company. We picture ourselves as their voice internally. Each of us covers a geographic region containing 700 to 800 sales directors and 30,000 to 40,000 beauty consultants. We wear a lot of hats—information conduit, administrator, motivator, personal and financial advisor, and so on. Also, there’s an expectation on the part of each consultant that their own personal considerations will be taken into account. Let’s say a woman works all year and misses a director’s goal by $18, we’d destroy her if we didn’t give her a break. We need to be flexible, so we make those kinds of calls. Sales Force Support In addition to personal contact with the field, Mary Kay Cosmetics employed an elaborate set of tools and programs designed to motivate, recognize, and develop its beauty consultants: Communications The company produced a constant flow of written material for the sales force, including a monthly magazine, weekly newsletters, training manuals, and product brochures. It also 3 This document is authorized for use only by Hamid Akbari at University of Ontario Institute of Technology until October 2013. Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617. 783. 7860. 190-103 Mary Kay Cosmetics: Sales Force Incentives (A) op yo rP os t provided video and audiocassettes (for recruiting, training, and motivating), promotional sales aids, and a telephone hot line for advice and answers. Mary Kay also regularly solicited feedback from consultants and customers by conducting surveys and focus groups. The company used this information to improve existing products and packaging and to develop new products and selling tactics. Events Mary Kay sponsored a variety of contests, conferences, and other events for the consultants, which combined all three elements mentioned above—motivation, recognition, and education. The biggest event was the annual seminar, which in 1988 was attended by 25,000 consultants. (The three-day event was divided into four back-to-back identical sessions because of its sheer size. The seminar was open to all consultants and directors; however, registrants paid their own way to attend and participate in the festivities and training sessions. The climax was a gala awards night in which consultants of all levels were honored and rewarded for their achievements before an applauding crowd of thousands. Rewards ranged from ribbons, jewelry, furs, and luxury trips to the crowning of â€Å"queens. † Sale force activities Ongoing support within the beauty consultant networks was another important ingredient in the Mary Kay formula for direct selling. Despite the high level of company support, the vast majority of a consultant’s interaction was with her unit director and the other 30 to 150 consultants in her unit, and not directly with Mary Kay management, which had no formal control over the sales force. 1 tC Because Mary Kay Ash believed that people could be â€Å"praised to success,† the company fostered a sale force culture based on positive reinforcement and recognition. This was achieved through several means. First, the company did no sales force recruiting; the independent consultants personally chose  their own new recruits. This personalized approach increased the likelihood of successful director-consultant relationships. Also, the company provided guidelines to assist the independent sales force in motivating and training its members. For example, the companysuggested Monday unit meetings were the primary forum for the sharing of product information, selling tips, and success stories, as well as group praise. These weekly unit meetings not only served as a support group and training class, but also created peer pressure to succeed. In â€Å"Memo,† the company’s weekly newsletter to directors, and in the Director’s Guide, the company provided directors with many kinds of creative tips and tools for training and developing their units and conducting effective meetings. Do No Recognition and prizes The majority of beauty consultants did not attend the annual seminar or receive cars and other large prizes. All active consultants, however, were motivated to increase their sales and recruiting by a constantly available array of prizes and recognition for incremental progress. Company-sponsored gifts and prizes were offered for achieving sales and recruiting goals and winners’ names were listed in Applause, Mary Kay’s monthly magazine for consultants. In addition, directors, at their own expense and discretion, rewarded their unit members for achieving various milestones. The gifts and prizes handed out by directors to beauty consultants usually took the form of jewelry and other accessories, often with the Mary Kay logo on them, and were usually awarded in front of a group. (Exhibit 3 lists a representative sampling of the type and cost of directors’ gifts to unit members. For example, upon signing up her first recruit, each consultant received a string of imitation pearls and congratulatory applause at her unit’s weekly meeting. At each step in her Mary Kay career, a consultant received additional recognition and status symbols, including â€Å"ladder† pins with varying numbers and types of gems, which indicated her level of 1The signed agreement between an independent beauty consultant and the company stipulated certain basic guidelines that the consultant was required to follow, such as her legal responsibility to represent the company and its products honestly and accurately. Mary Kay Cosmetics, however, had virtually no management control over the independent contractor sales force. 4 This document is authorized for use only by Hamid Akbari at University of Ontario Institute of Technology until October 2013. Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617. 783. 7860. Mary Kay Cosmetics: Sales Force Incentives (A) 190-103 op yo rP os t achievement. (See Exhibit 4 for the hierarchy of nonfinancial sales force incentives. Senior Vice President of Sales Bart Bartolacci described the role of recognition as an incentive: As Mary Kay herself would say, â€Å"A $5 ribbon plus $20 worth of recognition is worth more than a $25 prize. † In other words, give them a check, but give it to them on stage. Then they will really respond. I would never take away the recognition element. It would be like putting my head on a chopping block. Some of the women really don’t need the money at all, but the recognition is addictive. In fact, the top people in our sales organization motivate their units through recognition, not expensive prizes. Financial incentives The financial incentives, however, were also considered an indispensable ingredient in the firm’s direct selling strategy. According to management, the power and appeal of Mary Kay’s incentive system were rooted in the carefully designed combination of compensation, advancement opportunity, prize incentives, and recognition. According to the Mary Kay Marketing Plan (i. e. , the incentive compensation and advancement plan), a consultant’s income was determined by a very clear and objective method, based on her selling and recruiting activity. No organizational constraints limited the pace at which a consultant could advance her status and increase her income. In 1988, the highest paid sales director earned over $400,000 and roughly 90 others had six-figure incomes. The company, via its beauty consultants, aggressively advertised the Marketing Plan’s objectivity and unlimited earning potential to attract new recruits. The specific components of the plan were based on the following premise, as explained by Sales Group Executive Vice President Barbara Beasley: tC There are three things we want beauty consultants to do: order products, sell products to customers, and recruit new consultants. Recruiting is really the big source of growth because sales per consultant can rise only so much. That puts a limit on both company growth and consultants’ earning potential. Moreover, because approximately 70% of consultants drop out each year, we need new recruits just to maintain sales. We currently recruit about 10,000 consultants per month and lose 7,000 per month. I know that turnover rate sounds high. But, in fact, our rate is the lowest in the direct-selling industry, and lower than most retailers’ sales staff turnover. No But a good director must sell as well as recruit. Her best source of new recruits is her customer base. Also, her role as leader, teacher, and motivator involves setting an example for her unit members. We also need the sales directors to stay on top of customers’ needs and their reactions to new products because the directors are our strongest tie to the marketplace. Do Although all consultants fell into one of two general categories, nondirectors and directors, there were multiple titles within each group. The financial success of the more senior consultants and of directors depended heavily on their ability to recruit new consultants and on the ongoing performance of their recruits. Exhibit 5 summarizes the compensation for all levels as described below. An entry-level beauty consultant’s income was the difference between the retail value of the products she sold and the wholesale price (usually 50% of suggested retail) at which she bought 5 This document is authorized for use only by Hamid Akbari at University of Ontario Institute of Technology until October 2013. Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617. 783. 7860. 190-103 Mary Kay Cosmetics: Sales Force Incentives (A) op yo rP os t products from Mary Kay. A nondirector consultant also received a 4% to 12% commission2 on the sales of all her personal recruits. Once she had at least five recruits, her title became Team Leader and she could try to qualify for the use of a VIP car. In order to win the use of a VIP car (a red Pontiac Grand Am) and keep it for the entire awarded period of 24 months, a consultant had to reach and maintain three types of targets over that period: (1) team monthly production volume (i. e., wholesale value of all her recruits’ orders); (2) personal monthly wholesale production; and (3) number of active recruits. Each VIP consultant was given a fixed â€Å"allowance† she could draw on to make up for shortages in particular months, so that she would not have to relinquish her car because of one or two bad months. The allowance could be increased (and thereby â€Å"banked†) by performance above the minimum requirements in any given month. Once a consultant became a sales director (the qualifications were again tied to personal and team production and number of recruits), several additional avenues of income opened up to her. In addition to receiving an 8% to 12% commission on her personal recruits’ wholesale orders, she received a 9% to 13% commission on the production of the entire unit she directed, which included her recruits’ recruits. In addition, she received a sliding-scale monthly bonus of $400 to $2,500 if her unit’s total monthly production exceeded $4,000. Thus, if a director’s unit achieved the $4,000 threshold, the compensation system rewarded her doubly for the unit’s performance. Finally, a director also received a $100 to $400 bonus for each month in which her unit of consultants recruited at least three new active consultants. As soon as one of a director’s unit members became a director herself, the former became a senior sales director. In addition to the sources of director compensation, senior directors also received a 4% commission on the monthly production of all their â€Å"offspring† units. If they had eight or more offspring units, the commission increased to 5%. tC A national sales director—the highest position in the Mary Kay independent sales force—did not directly work with nondirector beauty consultants. Her compensation was based on the wholesale production of both her first-line and second-line offspring units. She received a commission of 5% to 8% and 2%, respectively, for the two tiers of units. History of the VIP Car Program No Between 1983 and 1989, Mary Kay’s car programs increased from a base of 1,100 cars on the road to over 5,000 cars. Most of this increase was due to the VIP program, which was introduced in 1984. By mid-1989, VIP cars in force numbered 3,000. The number of VIP car winners had grown rapidly despite increases in program qualification requirements in 1986, 1988, and 1989. Increased VIP participation was accompanied by several external cost trends: The costs to Mary Kay of leasing the cars had increased with interest rates. Automobile insurance premiums had escalated faster than both inflation and prices of Mary Kay products. Do †¢ †¢ General Motors discontinued the Oldsmobile Firenza, reducing the resale value of the one- and two-year-old cars. 2Commissions were based on wholesale orders and the percentage level depended on the number of recruits a consultant had. 6 This document is authorized for use only by Hamid Akbari at University of Ontario Institute of Technology until October 2013. Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617. 783. 7860. Mary Kay Cosmetics: Sales Force Incentives (A) 190-103 The Current Challenge op yo rP os t All of these trends had contributed in driving up the cost of the VIP program. The cost increase was further magnified by the decline in car â€Å"tenure†: an increasing proportion of the consultants who had qualified for VIP cars were unable to maintain the required sales and recruiting levels for the 24month period. As a result, Mary Kay often was forced to reclaim cars that were substantially less than two years old. The newer a car when Mary Kay reclaimed it from a consultant, the greater the disparity between the car’s unamortized book value and the (much lower) resale price that Mary Kay received for it. In short, the company absorbed larger losses on cars that were in service for shorter periods of time. Mary Kay’s top management was seeking a broad solution to the rising costs—and corresponding diminishing returns—of its incentive plan, the VIP car program in particular. According to Richard Wiser, vice president of Financial Planning and Analysis: Over the last several years, we’ve watched the cost of the car programs and of commissions creep up relative to sales. [See Exhibits 6 and 7. ] Car expenses in particular have really jumped up since 1985. In the past, we’ve always gone for incremental cost savings. We took a  negative approach: we simply raised the program qualification requirements when we wanted to reduce the cost of the program. Now, we want to be more creative. We have Finance, Marketing, and Sales all working together to identify innovations that would save money for us but, at the same time, keep the sales force morale up and boost the effectiveness of the incentives. tC We haven’t been getting a bang for our buck from all VIP consultants. Unless they are trying to qualify for directorship, many feel no motivation to increase their sales and recruiting efforts above the level needed to maintain the use of their cars. We’re not tapping their full potential because we’re not rewarding them for achieving it. President Dick Bartlett continued: No Richard is right. In fact, those VIP consultants who really do want additional income and recognition may rush into directorship prematurely. They may qualify before they have a large, strong team base and sufficient experience. That’s bad for everyone. The consultant must fight a frustrating uphill battle to retain her director status. And from our perspective, her unit’s size and performance may deteriorate. A weak director hurts unit morale and development. The problem trickles down: when a weak or negligent consultant loses a customer, it’s a lost sale for Mary Kay. Customers can’t buy our products in retail stores and the customer is not likely to seek out another consultant. Do Bartlett and his management team summarized the objectives of the Marketing Plan modifications they sought: †¢ To improve profit margins by reducing overall beauty consultant compensation (particularly the costs associated with the car programs) as a percent of sales—a ratio that had been escalating yearly. †¢ To enhance the beauty consultants’ career path with more distinct milestones and forms of reward. Bartlett was particularly concerned about two issues that had adversely affected many top-performing VIPs: 7 This document is authorized for use only by Hamid Akbari at University of Ontario Institute of Technology until October 2013. Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617. 783. 7860. 190-103 Mary Kay Cosmetics: Sales Force Incentives (A) op yo rP os t 1. Many had worked extra hard to achieve director status but were ill-prepared for the extra demands of continuing director-level performance. Many had stagnated at a â€Å"maintenance† sales level simply to retain their VIP cars. †¢ To make cost reductions elsewhere in the Marketing Plan while preserving sales force morale and motivation. †¢ To minimize the cost to the firm of maintaining low-performing consultants, i. e. , those with very few recruits and no indication of ambitious growth goals. At the conclusion of their interview with the casewriters, the managers reemphasized the extreme sensitivity of beauty consultants’ actions to changes in the Marketing Plan. They cited an example: in 1984, an announced increase in VIP qualification criteria resulted in an enormous â€Å"rush† for VIP status before the effective date of the program change. As a result, the number of VIP car winners temporarily increased dramatically, rather than tapering off as intended. (Refer to Exhibit 6. ) Moreover, many of those consultants who had rushed to obtain cars had relatively low tenure with Mary Kay. So, they did not have the experience and team strength to maintain their VIP status. As a result, they had to forfeit their cars prematurely, which was demoralizing for them and costly for the firm. Do No tC In general, any change in the Marketing Plan that was not well-received by the sales force of over 175,000 beauty consultants could be disastrous to the company: not only would sales drop off in the near term, but the sales force attrition rate could increase and the recruiting rate decrease over the long term. Aware of this danger, management had scheduled the first â€Å"Mary Kay Summit Meeting† and invited all national sales directors (the top of the independent sales organization) to be involved in designing changes in the Marketing Plan. Management wanted to bring to the Summit Meeting their own draft plan as a starting point for discussions with the national sales directors. 8 This document is authorized for use only by Hamid Akbari at University of Ontario Institute of Technology until October 2013. Copying or posting is an infringement of copyright. [emailprotected] harvard. edu or 617. 783. 7860. Mary Kay Cosmetics: Sales Force Incentives (A) op yo rP os t Mary Kay Organizational Structure Do No tC Exhibit 1 190-103 9 This document is authorized for use only by Hamid Akbari at University of Ontario Institute of Technology until October 2013.