Closing sales office

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If all salespersons in a subsidiary sales office are transferred or discharged by entering a negative number under Salespeople–Transfer that is equal to the total number of active salespeople, then the sales office in that area will be closed.  All salespeople that are discharged will receive severance pay.  Sales executives will be discharged and will receive severance pay.  The sales office will be sold to a real estate developer, thus there will be no more sales in the area.  Any cash balances will be transferred to the parent corporation.  If there is not enough cash to meet all obligations, the parent corporation will supply it by purchasing more stock in the subsidiary—like money down a rat hole.

At the same time that a sales office is closed, you must set the following marketing decision variables to 0 in the area affected.  With no sales office there will be no one available to accommodate further sales in the area.

Price

Advertising

Sales Salary

Sales Commissions

Sales Office Orders

See "Leaving and Entering Market Areas" in Chapter 5 of the Player's Manual.