Thursday, May 16, 2019
Case Study Example | Topics and Well Written Essays - 1750 words
Case Study ExampleEvery year Pat Waller needed to recruit gross revenue translators. The turnover of the employees and new enlistings did non increase the gross gross revenue volume. Despite the recruitment of new sales representative employees, the sales volume remained constant. thither was problem in the channel of distribution related to the retention of sales representatives, which was under the control of Valley vintner. When Valley Winery took over the distributor, old sales representative did not stay back and Pat Waller needed to recruit fresh sales representative for that particular(a) distribution channel. With the recruitment of new sales representatives, thither were prices associated with it. It similarly included cost of hiring the employees, consultancy fees for new candidates and raising cost. The recruitment cost had to be incurred by the organization every year and the training cost also increased. The problem perceived by Pat Waller was related to the hi ring process. Pat Waller thought that the hiring process was not detach as it was a lengthy process and was also complicated in nature. This lowered the level of recruitment of potential sales representatives. Cause of the Problems Faced by Pat Waller The cause behind high sales representative turnover was due to multifarious factors. The basic reason for the turnover was inefficient management of sales forces. Pat Waller was not able to manage the sales personnel efficiently which led to huge turnover. gross revenue persons remain in the organization only when they are rewarded appropriately based upon their performance. Most of them accept fiscal reward, but there are also many who accept non-monetary rewards such as reorganization, promotion and otherwise related activities of rewarding system. There was absence of such rewarding system in Valley Winery. There were three groups of sales personnel and they had different kinds of system of pay and incentives. The direct sales pe rsonnel were not rewarded, only 6% commissions were paid on sales. Sales personnel who generated highest sales were also provided the same deftness of commission pay. This is the reason they shifted to another company or another sector. The unethical practice of Valley Winery in the matter of visual merchandise displayed techniques that were not suitable to the sales personnel or they did not accept it. In addition, it was either against their ethics or there was contradiction between the company and sales personnel ethics. The spray technique on competitors merchandise to decrease their sales was unethical practice. The sales representatives necessitate to perform such activities that might not be ethical to that particular sales representative. The recruitment did not assist in increasing the sales volume because there was more turnover and the recruitment had in effect(p) replaced the personnel. There was actually no increase in the workforce capacity and it was not expected t hat there would be huge increase in volumes of sales with the fresh sales representative. The decision of forward integrating was not appropriate as the sales representative did not remain in the company. This also stirred the control related to the distribution channel. These aspects increased the burden of new recruitment and also training them for that particular distribution channel. The cost of hiring and training the employees for sales was more. The hiring cost was part of the budget every year. This increased the cost and to minimize the
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