Nascars Case

.................1) The Mary Kay Cosmetics have done great job in aiming towards satisfaction, teamwork, opportunity, recognition and money to its executives, but lacked clearly in formal trainings to the executives

2) The Creative action teams were formed only on temporary basis

3) Over-burdening the staff is an serious issue

4) The sales force was independently chosen by the sales directors and no involvement what so ever by the management of Mary Kay

5) Attrition rate is very high at 70%

6) Most important of all, The cost of running Car programs particularly the VIP car program is effecting Mary Kay Cosmetics very badly

7) Beauty consultants joining the sales force for their own personal interest rather than for doing sales

8) Mary Kay management or the consultants not informing the sales force till the time of signing and joining on the minimum required products to be purchased

1) The tenure of the executive and eligibility basing on long standing performance ha to be considered for the VIP program

Pros: With the current procedure, even newly joined sales executives are attaining the position of directors within short time and gaining the advantages of VIP program but are only there for short period due to lack of experience and also stamina in sales. This is hurting badly on revenues of Mary Kay as the returned cars are sold for low prices in the market. So By making some regulations on the tenure and eligibility for the VIP, the Mary Kay would benefit and also long standing and performing executives would only benefit out of this

Cons: Many newly joining or joined sales executives may not see this as a lucrative option to join or perform

2) Sale of returned cars to the existing executives on bidding or auction

Pros: The sale returns are bad in the market as some models have been discontinued and so Mary Kay can go for a bidding or auction of the returned cars to their employees. This way the employee satisfaction levels will increase as they get cars for less price and also they would sustain for more time in the company

Cons: The Company would not lose much but should not consider the loss if in case

3) Returned Cars can be given to the new executives basing on targets and new car policy to be made more stringent

Pros: Initial targets can be kept for the new sales force and if they attain, the returned cars can be given to them and make them sustain for another year or so rather than providing new cars once they reach the desired targets. This way Mary Kay will not lose much in the return car sales in