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400
HARVARD BUSINESS REPORTS
To enable him to make more accurate judgments on conditions in the sales territories, it was necess'ary that the general sales manager be furnished with additional figures for cancellations, classified according to the reasons for the cancellations. Thus he could evaluate correctly the work of the exchange managers and the conditions of business in the different exchange districts. The general sales manager requested the statistician to supply such information.
In preparing to give the general sales manager this information the statistician first analyzed all recent cancellations. From this analysis he worked out a tentative list of reasons for cancellations, as shown in Exhibit 3.
After submitting his classification to other executives for criticism the statistician collected information showing the volume of cancellations, by reasons, for several weeks. Total cancellations for the entire United States, by reasons, for five different weeks, are shown in Exhibit 4. Subsequently, similar reports of cancellations, classified by reasons and by exchanges, were placed on the desk of the general sales manager every week.
With these figures before him the general sales manager was in position to make a careful analysis of the territory served by each exchange. The information kept him informed of business conditions in each territory. It also enabled him to check the efficiency of the exchange managers. Combining this information and that received in other reports with his personal judgment of
Exhibit 4
Approved Cancellations (United States Only) by Reasons, as Compiled by FBO Productions, Incorporated
Weeks Ending
November 4, i927
November 11, 1927
February 3, 1928
February 10, 1928
March 2, 1928
Reason No. 1 . 2. 3 4
' 5' 6.
Totals .
$17,533-51
4,785.00
477-5Q
9,027.50
15,605.00
224.00
$47,652.51
$10,929.03 8,087.92
2,288.45 12,994.90
3,014-75
2,421.75
$13,194.79 8, 150.60 200.75 1 ,677.00 1,905.00 1,121.50 27.50
$39,730-8Oj$26,277.i4
$15,224.24
4,268.66
683.00
21,496.73
8,088.00
2,920. 20
664.50
$53,345-33
Si5,i5i
7,499
362
16,168
3,865
1,788
237
$45,073