Part A: You
were recently promoted to a sales manager position for ABC Company, which
offers customized software for physicians,
dentists, and veterinarians. Unfortunately, you are now the sales manager for
one of your company’s least productive regions. After several weeks on the job,
you become concerned about the high rate of turnover. Three salespeople have
resigned within the last two months. Replacements are needed and there is
little time to hire, train, and deploy them in the field.
Upon further review of the
situation, you discover that two of the salespeople resigned because they felt
the sales organization was structured unfairly. They had been assigned to
geographical areas that were difficult, and their sales quotas were not
You know quite well that
replacing a sales person can be costly. In fact, the cost to the company can be
as high as $300,000 per bad hire because time and money are lost in the process
of recruiting, hiring, training, missed sales, bad relationships, and firing.
Before you begin your search, you want to be certain that you have a well
thought-out organizational plan and that you attract the right people for these
To help you prepare your
hiring plan, answer the following questions.
- Describe two (2) reasons why it is important for firms
to organize their sales activities into a specific structure.
- Describe one (1) disadvantage of the current
structure. Describe one (1) advantage and one (1) disadvantage of a
geographical sales structure.
- Which sales structure do you recommend and why?
Provide two (2) supporting facts.
Realizing that the right people for these positions could come from a variety
of places, you decide to investigate the strengths and weaknesses of hiring
from within the organization, through referrals, and by using advertising
methods. What are your opinions on the following?
are two (2) advantages and two (2) disadvantages of hiring internal candidates
for sales positions?
are two (2) benefits of hiring people referred to the company by friends or
one (1) difference between the kinds of applicants that will come in from a
newspaper ad versus postings on online job boards. Does this difference
indicate anything about future job performance?
Part C: You
have just finished a series of interviews with a person who you feel is an
excellent candidate for one of your firm’s open sales position. She has a 3.4
grade point average and a marketing degree. The candidate has excellent
communication skills, held a part-time sales job throughout college to help pay
for school, and was an officer in the sales fraternity on campus. She will
definitely make a great entry-level salesperson at your company. Your only
concern is that another company will offer her a job before you do! Before the candidate is offered a job, your
company requires that a few of the applicant’s references be checked. During
the process, you discover that your ideal candidate lied on her resume and
application. She was never an officer in the sales fraternity; she was only a
1. Given the difficulty in finding excellent candidates,
would you hire this candidate? Provide two (2) supporting facts to justify your
2. Would your decision change if you also find out this
candidate has several speeding tickets? Why or why not?