Abstract
The newly appointed district sales manager, Larry Barr, faces the problem of allocating sales quotas among his various sales representatives. This decision will affect everyone's earnings including his own. This problem is compounded by the fact that different territories have, for a variety of reasons, different potentials. In addition, the territory that is known to be the toughest will soon require a new sales rep.
Company History/Background
Canadian Appliance Manufacturing Co. Ltd (CAMCO) was created in 1998 under the joint ownership of Canadian General Electric Ltd. and General Steel Wares Ltd. (G.S.W.). CAMCO purchased the production facilities of Westinghouse Canada Ltd. under which the brand name White-Westinghouse was created. Appliances manufactured by CAMCO in the former Westinghouse plant were branded Hotpoint. G.E., G.S.W., and Hotpoint major appliance plants became divisions of CAMCO. These divisions were operated independently, had their own separate management staff and competed for sales although they were all ultimately accountable to CAMCO.
Larry Barr has recently been promoted to the district sales manager position for G.E. Appliances. One of his more important duties was the allocation of his district sales quota among his five salesmen. He received his 2002 quota in October 2001 at which time his immediate task was to determine an equitable allocation of that quota. This was important because the company’s incentive pay plan was based on the salesmen’s attainment of quota and a portion of his remuneration was based on the degree to which his sales force met their quotas.
The five territories were:
Territory Destination/Sales Person Description
9961 Greater Vancouver Hudson's Bay, Firestone, Kmart, McDonald
Garth Rizzuto Supply, plus seven independent dealers
9962 Interior All customers from Quesnel to Nelson,
Dan Seguin including contract sales (50 Customers)
9963 Coastal Eatons, Woodwards, plus Vancouver Island
Ken Block north of Duncan and upper Fraser Valley
(east of Clearbrook) (20 customers)
9964 Independent and Northern All independents in lower mainland and
Fred Speck South Vancouver Island, plus northern
B.C. and Yujon (30 customers)
9967 Contract Contract sales Vancouver, Victoria All contract
Jim Wiste sales outside 9962 (50-60 customers)
The sales incentive plan was a critical part of G.E.’s sales force plan. Each salesman had a portion of his earnings dependent on his performance with respect to quota as well as Barr being awarded a bonus based on the sales performance of his district.
Theresa Campana, CEO of the Buckeye Group, is a manufacturer’s agent for three companies that sells different types of software. As a sales agent for Accto Co., Saleco Inc., and Invo Inc., the Buckeye Group is responsible for calling business customers to sell accounting software, sales management software, as well as inventory management software out of Columbus, Ohio. With regards to logistics, according to the case, the Buckeye Group has sold $550,000 of total software, with Campana earning a 10 percent commission from Accto and Saleco, as well as a 7 percent commission from Invo per her dollar value of her final sales. Evidently, Campana’s initial ease of making sales come from her high knowledge of the products, background in business,
In the assigned case of Dick Spencer, we look into the personal and professional life of Dick Spencer, who performed sales and managerial roles. We will analyze the factors that contributed to his success in sales and tribulations as a manager. A variety of factors contributed to Dick Spencer’s success and tribulations. We will thoroughly analyze each factor, examine each issue, and provide a recommendation. Specifically, we will examine the issue with the Siding Department.
General Electric Corporation is a multi-billion dollar conglomerate founded in 1892. The company was founded in Schenectady, New York to capitalize on the patents of Thomas Edison and the use of electric power through generation and distribution. Now a blue chip publicly traded company that has branched out beyond its core into arenas such as aircraft engineering, television, and home appliances to name a few. Over the years the corporation has been through different management models that have brought innovation in many forms that have allowed them to be envied by companies around the world. Despite great success since its conception, like many companies who can withstand the test of times, it’s natural for them to become self-absorbed, which can have a negative impact on the company structure as a whole. Coming across someone like Jack Welch who can think out of the box and in a manner that doesn’t strain the resources of the company but expands the thinking of the company as a collective unit is needed to continue the legacy of innovation in all aspects of business.
At nine fifteen there was a sales meeting, sales associates meet to discuss sales calls and sales revenue. Associates talk about different venues to sell to, states commission and also talk about different companies and corporation they sell to or try to sell to. Each sales associate spends about three to four minutes each discussing sales about previous week, commissions ranging from $40.00 to $8000.00.
In asking the consulting firm for assistance, President Paul Willard stated that the main issue within the organization was a “power struggle between people and departments.” This is precisely where the issues in both the sales and production departments are stemming from. After analyzing the situation, several issues can be pointed out in the sales department, the first being the leadership style of sales executive vice-president Ernie Lane, the second being the dramatic shift in the work force, and the third being the lack of motivation and compensation to maintain morale, satisfaction, and productivity. Most importantly, all the problems are
Sharplin, Arthur. (1989). Lincoln Electric Company Harvard Case Study. McNeese State University. Retrieved from http://my.uopeople.org/pluginfile.php/59756/mod_book/chapter/39460/Lincoln_Electric.pdf
Quintana wants to strategically reward the managers of the Musimundo stores for meeting their budgetary goals; however, some managers were completely unable to do this and other managers were guaranteed their sales quota.
Organizational culture is imperative to the success of the organization. The strength and core values of the organization is supported by the organizational culture. This allows for organization to operate in a specific manner that is specific to that organization and can pave the path for success. Company founders are passionate about their vision and mission and they elude that passion into their employees. When that passion and mission is successfully implied to the employees the company strives in it 's path to success. Founders of companies are the continuing influence for the company to succeed. They pour the foundation of organizational culture so that the vision of their passion is directed in the right path. Organizational culture
Whirlpool is one of the top most brands dealing with production of various electronic gadgets. In market, though you find several brands, as you think of quality, you will get some products and if anyone says, Whirlpool is one among them, no one can over-state it. If you are one of the users of Whirlpool, you can stay happy. If you search as Whirlpool Authorised Service Centre in Hyderabad, you will find out lists. Initially you need to identify category of product under Whirlpool. For example, if you are Whirlpool washing machine user or fridge user or etc, you are allowed to contact the whirlpool customer care team. In order to make customers to feel free about contact, they are availing toll-free number. Once you contact them, they will
The strategic planning process is the formulation of the company’s major objectives and execution plans. This process is of particular interest in GE. Strategy formulation is the process of choosing the best methods for a company where customer needs; competitive position and internal capability are the three factors that play the main role in strategic planning. Every manager needs to have at least a simple notion of strategic planning to formulate his strategic plans. Strategic Planning is a wide and complex subject. Strategic Management background is an essential basis of any organization.
Under what conditions might the parties to the alliance discussed in this case dissolve or end the relationship?
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A sales manager has many responsibilities such as spreading product to customers, setting sales areas, goals, and analyzing sales data (“Sales Manager” What’s para. 1). Although a sales manager performs many duties, people in this position will also set a sales goal for the year, and will build a sales outlook on what they will do in the upcoming years (“Sales Manager” Sokanu para. 1).A person in this position will also manage where the goods and products their company will be distributing by giving certain sales area where a salesman will work and sell the product (“Sales Manager” Sokanu para. 2). During work time, a sales manager may be asked to hire and train a new salesman added to his team (“Sales Manager” Sokanu para. 3). Occasionally, a sales manager will interpret sales statistics in a specific area when looking where to assign certain salesman to a sales territory (“Sales Manager” Sokanu pa...
Gome, founded by Huang Guangyu, in 1987 as a little shop selling only imported home appliances in Beijing. In 1996, following the emergence of domestic brands, Gome adjusted its operational structure and shifted its focus to domestically produced, joint-venture brands. From early 1990s, Gome has expended rapidly and established its top position in China’s home appliances market. Gome pursued a retail plus low prices operation strategy from the very beginning. Dealing with manufacturers directly with guaranteed sales volume, centralized purchase and decentralized sales obtained concessions and higher level of rebates from suppliers and hence low costs, which in turn contributed lower retail prices and larger sales volume. Gome has established a positive cycle of capital and goods.