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National Office Machines - Motivating Japanese Salespeople.
Transcript of National Office Machines - Motivating Japanese Salespeople.
4-4 National Office Machines - Motivating Japanese Salespeople: Straight Salary or Commission?
Part of the agreement was to double the sales force.
Retain current Nippon sales force
This new sales force was to be young, college-trained Japanese nationals.
The Case for Commission
Sales would, in theory, increase
Salespeople would be more motivated to sell products
The younger generation appreciates the merit based pay
Dead-weight is minimized
The Case for Straight Salary
The culture is more accepting of this payment method
The previous systems are still in place
Bonus twice a year, salary, no incentive
No talent required
Bank loans mortgages
Promotion based on seniority
Employment not guaranteed for life
Base pay plus incentives
Be aggressive in sales
Promotion based on performance
What should NABMC offer - incentives or straight salary?
Hybrid method if possible
Begin incentive pay small and slowly add
If incentives are out, how do you motivate salespeople to compete aggressively?
Design a U.S.-type program for motivation and compensation. Point out where difficulties are and how to overcome them.
Discuss the idea that the kind of motivation and aggressiveness in the U.S. market is not necessary in the Japanese market.
Development some principles of motivation that could be applied to an international marketer in other countries.
Same base pay & company support
Employees receive at least half of their bonus, other half is commission based
Recognition for top sellers
Commission based pay
Competitive drive could harm relationships
Change comes with time.
National Office Machines (NOM) (NCR)
• CEO: Bill Nuti
• Location: Dayton, Ohio
• United States, western Europe, Mideast, Far east
• Nippon Cash Machines (NCM)
• CEO: Chau Lin
• Tokyo, Japan
• Japanese trading companies
Nippon/American Business Machines Corporation (NABMC)
Old-line cash register manufacturing company
Japan sales: $9 Billion yen; 15% loss from last year
Only produces cash registers
Needs managerial leadership
Sales force of 21 people
High competition: Fourteen companies compete such as IBM, NCR, Unysis, and Sweda
Manufacturers of cash registers, electronic data processing equipment, adding machines, and other small office equipment
Domestics sales: $1.4 Billion
Foreign sales: $700 Million
In the United States, has the most aggressive and successful sales force
Highly competitive industry
National Office Machines