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Sales Management

Case Study Assignment 4 (5 marks)

LO S2.3 Illustrate the importance of sales organization designs and sales force deployment

LO S2.2 Analyze the process of acquiring sales talents through recruitment and selection and evaluation of their performance.

Caselet 1– Troy Wells, Sales manager for Trident Manufacturing, is reviewing the year-end sales reports for each of his salespeople. Trident offers salespeople a significant annual bonus based on a combination of (a) the percentage of their individual sales revenue over budget and (b) the annual gross profit percentage for each salesperson. In looking through the reports, Troy has noticed an unusually high spike in December gross profit percentages on the report for Cari Ellington.

This anomaly corresponds with information Troy has received about several of Cari’s customers calling in about their volume discounts not being reflected on recent invoices resulting in over-priced purchases.

Those missing discounts could be the cause for the sudden increase in Cari’s gross margin numbers. The accounting department has made the corrections and re-invoiced the customers.

However, Troy is curious about the discounts being left off so close to year end meaning that any corrections impact next year’s revenue and gross profit numbers and not the year under review. Cari has sold for Trident for 5 years and does not make this kind of mistake.

Troy is concerned that Cari might have purposefully not entered the sales discounts in order to inflate her gross profit and qualify for a larger bonus.

After going through the Case let suggest giving reason what should Troy do? (1.5 marks)

Terminate Cari’s employment for attempting to pad her gross profit performance. This type of performance cannot be tolerated.

Based on Cari’s excellent record over five years with the company, assume this was just a mistake and not do anything at this time.

After all, accounting has corrected the invoices for the customers and those revised invoices will also correct Cari’s initially overstated gross profit numbers. Everything is taken care of.

Meet with Cari and discuss the customer calls concerning the missing discounts on several sales invoices. Ask for Cari’s explanation of what might have happened and what could be done to prevent the errors going forward.

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Caselet 2- You have been Jeri Snider’s sales manager for more than seven years. During that time, Jeri has exhibited consistent dedication to the company, her sales team, and her customers.

Her behavior has been beyond reproach and for the previous two years, Jeri has received the Salesperson of the Year Award for the company.

Besides being an outstanding performer for the company, she is a genuinely nice person with a winning personality.

Looking over Jeri’s latest expense report, you noticed that she had meal expenses for herself and a customer last Thursday.

However, you remember making a phone call to that same customer on the very same day to follow up with some information he had requested and being informed that he was out of town for the week.

Your company has very strict policies regarding business expenses.

After going through the Case let What should you do?(1.5 marks)

Assume Jeri just made a simple mistake by recording the wrong date and let it go no follow up action is required.

Notify Jeri and the company’s accounting department that the specific meal expense is not reimbursable.

Discuss the situation with Jeri and ask for clarification.

Caselet 3: Rashid Amir Is going to complete his Master’s in Engineering from a leading university in Dammam.

Since he is interested to work for oil companies in Saudi Arabia, he is considering many oil companies for future employment and also preparing hard for the recruitment process.

Rashid Amir is in constant touch with his cousin brother, Rahil who is living in New York and working with Aramco overseas company in USA.

Rahil always motivates his cousin brother Rashid Amir to understand well about the working conditions, salary as well as employee benefits offered by the companies before he appears for Recruitment interview.

He added that knowledge about these elements will help him in choosing the best companies to work for.

He also told Rashid Amir to visit the websites of the companies to know about the recruitment process and benefit offered to the applicants.

Rashid Amir is elated since he received the Interview call from Saudi Aramco, Dhahran office to appear for an interview next month.

Help Rashid in knowing the working conditions, compensation elements and facilities provided to the employees by visiting the website of Saudi Aramco.

Ques 1. List any four competitive compensation package elements provided by Aramco to its employees.(1 mark)