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Copy of MGMT 461 - Case 3
Transcript of Copy of MGMT 461 - Case 3
Background Salesforce Results Salesforce Below average turnover rate
Sales reps are focusing on mainstream business only
Sales reps are not focusing on smaller territories and Candym is losing all of that business to competitors with no fight Candym Enterprises was established in 1974
Canadian Wholesaler specializing in producing, importing, and exporting several types of gift ware items.
Located in Markham, Ontario Sales reps are extremely important, they are considered the link between the product and the company but also “the relationship” of the company to the customer.
Candym sales reps also worked for other companies, including competitors Candym Enterprises:
Falling Sales in Territory #61 Solution #3 Problem Territory #61 has a significant number of retail stores which are not being exploited
There is a significant decline in active Accent Import accounts Leonie Lembke
Kristian Calibuso Consisted of a 75 person in house staff
Also a network of 40 independent sales reps managed by Sales manager Bruce Brown
The business was separated into two separate companies: Candym Enterprises and Accent Imports
Companies were managed as one, but carried completely different products. Product lines had strong brand awareness and purchase intentions.
Competitive advantage when it comes to design and innovation.
Advertisements were placed in national and local magazines, such as Chantelaine, House and Home, and the LBCO Magazine. Aline Bruneau would be a strong candidate Hesitant because he's a top selling rep Relationships might not be sustained after Training program might help with account management Solution 1 Pro Con Same decision made previously with positive outcomes Would encourage new relationships Solution 2 There is an open position in a different territory Hanson would be unfamiliar with new retail mix Increased travel time would result in less face-to-face time with customers Pro Con New rep would be on a straight salary and full-time employee of Candym Hanson focuses on #60 Solution 3 Hire additional sales rep for #61 Salary may enhance lack of motivation offered by commission Possible reward outweighs this risk.
New rep to have a fresh start and develop new relationships
Building relationships and establishing new accounts takes time, and providing this employee with a salary would give him/her a stable work environment
Would allow for a drastic increase in sales in territory #60 (for Hanson), providing the company with a sales increase. Pro Con