Promontory, Inc.

Harvard Business School Brief Case 9-917-535

Courseware 9-917-537

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Created 4/27/2017
Exhibit 1 Promontory, Inc. 2015 Income Statement (in $000s)
Net Sales $ 5,460
Cost of Sales
Materials (Saleable products and components) 2,009
Direct Labor 1,691
Variable Production Expense (Customization) 240
Fixed Production Expense (Customization Equipment and Facilities)
330
Total 4,270
Gross Profit 1,190
Selling and Administrative Expenses 982
Net Profit $ 208
Exhibit 2 Target Industries with > $100,000 Account Revenue Potential

Industry No. of Accounts No. of Accounts Purchase Decision Maker

(Potential) (Sold*)

Digital: Consumer Web, E-commerce 50+ 5 Creative Director, Advertising Manager

Digital: Software, B2B Web 50+ 4 Advertising Manager, Product Manager
Construction 25 6 Purchasing Agent
Clothing/Sports Manufacturing, Real Estate, Retail 25 9 Product Managers, Advertising Managers, Others
Financial Services 20 1 Advertising Manager
Premium Hotel/Resort 15 2 Public Relations Director, Advertising Manager
Energy 15 5 Purchasing Agent
Advertising 10 6 Account Executives, Creative Directors, Art Directors
Mining 4 3 Purchasing Agent

* Some of these accounts are currently < $100,000.

 Exhibit 3 Promontory, Inc. Revenues by Account Size, Industry Segment and Salesperson

Accounts Worth $10,000 - $100,000 Accounts Over $100,000

Salesperson (Total Revenues in $000s/No. Accounts) (Total Revenues in $000s/No. Accounts)

2014 Nr. 2015 Nr. 2014 Nr. 2015 Nr.

Brett Ricard (CEO) E-commerce $ - - $ - - $ 201 1 $ 201 1
Software - - - - 1,100 2 1,188 2
Subtotal $ - - $ - - $ 1,301 3 $ 1,389 3

Sam Burns (Exec VP) Clothing/Sports Retail $ 40 1 $ 40 1 $ - - $ - -

Construction $ 35 1 $ 30 1 $ 840 2 $ 940 2
Financial Services $ - - $ - - $ 101 1 $ 101 1
Mining $ - - $ - - $ 334 3 $ 300 3
Premium Hotel/Resort $ - - $ - - $ 216 2 $ 267 2
Real Estate $ 61 1 $ 143 3 $ - - $ - -
Subtotal $ 136 $ 3 $ 213 $ 5 $ 1,491 8 $ 1,608 8

Dawn Heller Clothing/Sports Manufacturing $ 226 3 $ 226 3 $ - - $ - -

Construction 15 1 15 3 - - - -
Energy (Oil and Gas) 384 4 384 4 105 1 105 1
Premium Hotel/Resort 30 1 100 1 - - - -
Subtotal $ 655 9 $ 725 11 $ 105 1 $ 105 1

Jim Border Advertising Agencies $ 390 4 $ 390 4 $ - - $ - -

Clothing/Sports Retail 246 3 295 3 - - - -
Consumer Web 112 2 117 2 - - - -
Subtotal $ 748 9 $ 802 9 - $ - - $ - -

Paula Mackie Advertising Agencies $ - - $ 194 2 $ - - $ - -

B2B Web - - 198 2 - - - -
Consumer Web - - 60 1 - - - -

E-commerce - - 166 2 - - - -
Subtotal $ - - $ 618 7 $ - - $ - -

Lou Emmon* Construction $ 70 2 $ - - $ - - $ - -

Real Estate 82 2 - - - - - -
Subtotal $ 152 4 $ - - $ - - $ - -

Total Revenues and Clients $ 1,691 25 $ 2,358 32 $ 2,897 12 $ 3,102 12

% of Total 37% 43% 63% 57%

* Dismissed, accounts reassigned to Burns and Heller.

Exhibit 4 Salesperson Profiles

Name Age Years of Background Sales

Promotional Volume
Products Industry ($000s)
Experience

2014 2015
Brett Ricard 42 20 Part-time sales and administrative $ 1,301 $ 1,389
experience in father’s firm – 18 years
MBA ’05 – Stanford
Founded and sold branding agency

Sam Burns 50 25 Sales 1,627 1,821

Dawn Heller 35 10 Expediting and Production – 5 years 760 830

Sales – 3 years (1 year at competitor)

Jim Borden 33 6 Graphic Design – 2 years 748 802

Creative Director – 2 years
Sales – 2 years

Paula Mackie 27 4 Part-time sales and administrative - 618

experience in uncle’s firm – 3 years
MBA ’13 – University of Colorado
Account executive in social media
marketing agency
Sales – 1 year

Lou Emmon * Real estate broker $ 152 $ -

Sales – 1 year

* Dismissed in December 2015, accounts reassigned to Burns and Heller.