Haverwood B
Introduction: Haverwood Furniture, a medium-to high-priced manufacturer of wood furniture for bedrooms, living, and dining rooms, has just acquired Lea-Meadows, Inc. Lea-Meadows is a manufacturer of upholstered living and family room furniture. A decision now needs to be made concerning the selling approach. Haverwood has 3 options:
Give the upholstery line of chairs and sofas to the current sales force.
Continue to use Lea-Meadows sales agents.
Merge the sales representatives together.
Current Situation:
Using Haverwood Sales Representatives
Strengths
Current sales force is well-known and respected in the furniture industry.
Salespeople have a high knowledge of Haverwood’s wood furniture.
Lea-Meadows would only require an additional 15% of present salespeople's’ call times.
More control over sales efforts.
Current sales representatives have the Haverwood “look and presentation”
The use of an internal sales force has been company policy for many years.
Weaknesses
Hard for the representatives to gain all the necessary knowledge of upholstered furniture.
More representatives would need to be hired in order to have all territory properly covered.
The difference is commission percentages would not be good for employee morale.
The 15 current sales agents for Lea-Meadows would lose their jobs.
Opportunities
The opportunity to create a cohesive, knowledgeable sales force, that would add to Haverwood’s already stellar reputation among consumers.
There is an opportunity to educate Lea-Meadows and their current clients on Haverwood’s line of quality wood furniture.
To increase distribution. By merging with Lea-Meadows, Haverwood has the opportunity to bring its product lines to new stores and new areas of the country.
Threats
Training current salespeople on the new furniture offerings is very expensive. Haverwood may not get the results they expect.
Learning the new combinations for Lea-Meadows furniture will take representative’s time
Give the upholstery line of chairs and sofas to the current sales force.
Continue to use Lea-Meadows sales agents.
Merge the sales representatives together.
Current Situation:
Using Haverwood Sales Representatives
Strengths
Current sales force is well-known and respected in the furniture industry.
Salespeople have a high knowledge of Haverwood’s wood furniture.
Lea-Meadows would only require an additional 15% of present salespeople's’ call times.
More control over sales efforts.
Current sales representatives have the Haverwood “look and presentation”
The use of an internal sales force has been company policy for many years.
Weaknesses
Hard for the representatives to gain all the necessary knowledge of upholstered furniture.
More representatives would need to be hired in order to have all territory properly covered.
The difference is commission percentages would not be good for employee morale.
The 15 current sales agents for Lea-Meadows would lose their jobs.
Opportunities
The opportunity to create a cohesive, knowledgeable sales force, that would add to Haverwood’s already stellar reputation among consumers.
There is an opportunity to educate Lea-Meadows and their current clients on Haverwood’s line of quality wood furniture.
To increase distribution. By merging with Lea-Meadows, Haverwood has the opportunity to bring its product lines to new stores and new areas of the country.
Threats
Training current salespeople on the new furniture offerings is very expensive. Haverwood may not get the results they expect.
Learning the new combinations for Lea-Meadows furniture will take representative’s time