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.
Your response should
be four (4) double-spaced pages