Milford Industries
Harry Oates was promoted to sales manager in order to replace Samuel Golberg that suddenly died. Capital District is located in a region where sales represented a significant weight on total sales of the company. However, according to Capital District data, the previous sales manager and its sales team, weren’t performing as well as supposed. Harry has a tough task to motivate and organize his new team in order to perform at their potential.
Analyzing the Capital District it is possible to identify some problems. Firstly I am going to describe those problems and then, I will give some recommendations.
1. Diagnose the key problems you can find in Milford’s Sales system.
Poor Management by previous district manager: * Low moral; * High turnover, when Milford’s turnover in low; * Lack of control and discipline.
Poor Performance by district salespeople: * Sales were lower than its potential, for instance the district has 5,7% of the potential sales in the nation, according with Sales and Marketing Management Survey of Buying Power, though the district only accomplished 4,8% of Milford’s sales; * Sales Growth also didn’t followed the country or region tendency: from 1980 to 1982 Milford’s sales’ growth was on average 11,1%, the region average growth was 12% and the capital district average was only 6,5%; * Milford’s average sales per salesperson in US was $2,040,000 when the average in district only represented 62% of US average.
After look at the district’s eight salespeople, Oates found four problematic: * Sonny Caplan – The results about his performance were not good enough. He dedicates most of his time to open larger accounts, without much success. Besides that, neglects some routine servicing to existing clients and gives them little attention. * Doug Eaton – He is slowing down because of his age and health conditions. * Tom Furness – Recently he had some personal problems that were affecting his performance.
Analyzing the Capital District it is possible to identify some problems. Firstly I am going to describe those problems and then, I will give some recommendations.
1. Diagnose the key problems you can find in Milford’s Sales system.
Poor Management by previous district manager: * Low moral; * High turnover, when Milford’s turnover in low; * Lack of control and discipline.
Poor Performance by district salespeople: * Sales were lower than its potential, for instance the district has 5,7% of the potential sales in the nation, according with Sales and Marketing Management Survey of Buying Power, though the district only accomplished 4,8% of Milford’s sales; * Sales Growth also didn’t followed the country or region tendency: from 1980 to 1982 Milford’s sales’ growth was on average 11,1%, the region average growth was 12% and the capital district average was only 6,5%; * Milford’s average sales per salesperson in US was $2,040,000 when the average in district only represented 62% of US average.
After look at the district’s eight salespeople, Oates found four problematic: * Sonny Caplan – The results about his performance were not good enough. He dedicates most of his time to open larger accounts, without much success. Besides that, neglects some routine servicing to existing clients and gives them little attention. * Doug Eaton – He is slowing down because of his age and health conditions. * Tom Furness – Recently he had some personal problems that were affecting his performance.