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.
TQL can put a single sales supervisor into place and divide teams and appoint team leaders immediately. Due to the lack of managerial experience among the account executives the Executive Sales Managers may wish to hold the sales supervisor position until a manager can be placed and properly trained. During this time, non-montary methods of rewards should be discussed for the team leaders duties. TQL should start low and move up with rewards based on performance as a team leader. Some may currently act as an unofficial team leader and may not expect significant reimbursement and TQL should take advantage of these persons.
To map out the most effective routes when creating territories, the fourth step encompasses the use of comprehensive software packages along with feedback from the sales team. Sales and customer analysis are also providing valuable information in this step. Finally, after the manager considers differences in abilities among salespeople and their effectiveness with different customers, the salesperson should be assigned to the territory where he or she can contribute the most to the company 's success. Ultimately, it is the responsibility of the salesperson to maintain and adjust his or her schedule to produce more effectively (Talley Jr., 1961,
the huge compensation plans with incentives led to the financial crisis. Mr. Thompson develops a solid
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.
1. How was Lincoln able to grow and prosper for so long in such a difficult commodity industry that forced out other giants such as General Electric, Westinghouse and BOC? What is the source of Lincoln’s outstanding and enduring success?
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
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.
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 first incentive plan this author will discuss is “stock option”. “Stock Options” according to Dessler (2011) is normally the type incentive received by executive and sometime lower lever employees of a company. When employees have stock option it give them the right to procure a...
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
The ceiling of $399,000 in borrowing ability placed on the company by the Suburban National Bank is consistently insufficient to meet their growing needs. Sales have increased from $2,921,000 in 1993 to $4,519,000 in 1995. This is an increase of 54%. In addition Clarkson has demonstrated an ability to stay within Suburban's $400,000 limit only by relying heavily on trade credit.
Arrow Electronics is a distributor of electronic parts, including semiconductors and passive components. It was founded in 1935 and has reached number one position among electronics distributors by 1992. Arrow’s North American operations were headquartered in Melville, N.Y. Sales and marketing functions were divided among five operating groups. This case study focuses on the largest of Arrow’s groups, Arrow/Schweber (A/S).
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.
Life as we know it today is primarily the result of the innovation of modern marvels from the most pivotal company of the 19th century. General Electric,GE, happens to be one of the most innovated companies of all times, with groundbreaking advances in science and technology. GE scientists and the world’s brightest, are focused on finding solutions to the world’s toughest problems in energy, the medical field, transportation, finance, and in everyday home life. GE has over 304,000 employees worldwide and has founded 67,588 patents. That is even more patents than the US government. GE’s number one commitment centers itself on Eco imagination by reducing its environmental foot print, and therefore striving towards economic growth.
Sales force management tools such as quotas, targets and sales reports are mainly used by management for a number of reasons. These include monitoring of sales force performance and determining suitable target markets for their sales force. Technology is also an aspect in sales management that has revolutionized sale and management in organizations. The incorporation of new technology has made work much easier for both employees and the management.