Wednesday, March 7, 2012

Case Study: Losing the Largest Account

This situation is not uncommon to face travel agency. As the service industry, business contacts depends on the web, service, and shared the agency and the client the ability to deliver business objectives. This is an account of losses, the Travel Mother agency in the future as soon as the danger was.

Debate

Any owner of a key account deficit of the business acumen. An agency of the state so that only the existence of such traumatic events, but can actually experience the benefits of being part of a successful business owner.

The first step is to describe and understand the situation. Three tools to help understand the impact of loss:

1 - Sales volume by a list of accounts. The relative value of each account to determine the business percentage is calculated.

This is especially the corporate account for 26% of Mother's agency business. The trading loss of $ 6 million dollars a year more than 8 million in gross sales from the Mother agency reduced.

2 - Business a. Using this period, sales reports, market analysis, business, vacation, and group sales as the market is classified by type. To identify, how much impact the sales of each category will be lost.

Account the total sales made up 26%; account, in fact, all commercial sales (46%) represents the half-closed, all group sales (36%) on the third one, but only 6% vacation sales. Subtracting from this account sales last year represented a business combination. Prior to the agency lost the argument into account the commercial agency. Commercial accounts, 32% to 56% of sales, including Mother's vacation was. Losses with an account, vacation travel, the travel agency business, half (43%) are close.

3 - Operating Budget. When you understand the impact of lost business, you are able to examine the internal effects. The best gauge of the operating budget.

The operating budget includes expenses for the series of operating time. The actual cost to the agency may be drawn from the statement of income for the year to date. Percentages for each category by dividing total cost by the amount of each class must be achieved. The operating budget shows that the travel agency is reasonably good. 14.4% of net income before tax commission, and when the agency goal of 2% of total sales, gross sales are still on the 1.3% earnings tax has been provided.

Corporate account deficit, however, dramatically affect the profitability of the agency. Loss of $ 240,495 in cash receipts in the account. Agency for the past will not be able to run the same level; many agencies do not adjust quickly to such operational changes.

Next Steps:

These accounts, business mix and a list of the operating budget attached to the description provided by the state, it was time to plan. Before that, however, the agency stakeholders must decide two fundamental questions: What kind of travel agency they want to be, and what they want to grow or cut.

Article Source :- http://dianedoe14876.typepad.com/blog/2012/03/case-study-losing-the-largest-account.html


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