Daniel Ellis

            From the information provided, Ellis has made the highest sales in both 2011 and 2012. This is to mean that he has been the best sales person with the highest performance. The total basic salary for all the sales people was $384,801 and in order to calculate the pool of dollars for the merit increases. This amount needs to be multiplied by 4.2% which is $16161.64.

            There are several reasons that leaded me to giving the whole amount to Ellis. The main reason is that he has the best performance in terms of sales. It is also evident that he has the highest gross profit margin. This is to mean that he is generating more profits for the organization than all the other sales people. The aspect of expenses incurred is also considered in this decision and it is clear that he has the minimum expenses among all representatives. The pool of merit increases will be to motivate him to do better and also motivate the other representatives to do better in order to receive the pool of merit the next time.

            I believe that the sales people have maximized potential in the territories they are at present. This is because most of them are well familiar with the potential of their geographical location and shifting them to new locations would cause a reduction in the sales. However, they should be given incentives to motivate them to increase their sales and make higher gross profits.

            The meeting was successful because there is increased potential for growth. As recorded that his area is densely populated, it means that if extra effort was added sales and profit would shoot up rapidly. This can also be seen from the increase in sales from 211 to 2012.