Sales Management Case Study
University Kuala Lumpur (Business School)
Bachelors in Business Management and Entrepreneurship
Sales Management
ECB 20503
Case Study: The Valley Winery
PREPARED BY:
FARA ASHIKIN BT GHAZALI 62283313167
PREPARED FOR:
DR. MOHD FARID SHAMSUDIN
1) What are the problem facing Pat Waller?
Pat Waller is the one who recently hired as sales manager of the San Francisco region’s chain division. The major problems facing by him are high turnover and continue with sales increase.
According to the case, on average a sales representative had been with the San Francisco division of Valley Winery only for 7 months which contribute to the approximately 100 per cent turnover rate in sale force on the division and also 50 new sales representative are hired each year. Besides that, the turnover problem led to a series of conclusions where the costs of recruiting and training approached $30,000 per year representative. The $30,000 figure does not include opportunity costs associated with lost sales resulting from not having accounts called on and these cost also do not include the time it would take for a new representative to adequately develop rapport with the account. Therefore, training cost issue is in nature the side-effect of the high turnover rate of the sale persons in the division and without the high turnover rate, this problem could be much mitigated though it still concerns the management at the same time.
Waller faces the future problems of declining sales and sagging profits that are likely to occur unless the turnover problem can be resolved. There are other problems that will concern Waller. The case hints at a potential sex discrimination problem. The San Francisco division, like other Valley divisions, has three distinct sales groups. The second group, which calls on hotels, restaurants, resorts, and motels, is predominantly female. Their salary is in the $39,532 to $36,233 range and opportunities for advancement into management are pretty much
Bachelors in Business Management and Entrepreneurship
Sales Management
ECB 20503
Case Study: The Valley Winery
PREPARED BY:
FARA ASHIKIN BT GHAZALI 62283313167
PREPARED FOR:
DR. MOHD FARID SHAMSUDIN
1) What are the problem facing Pat Waller?
Pat Waller is the one who recently hired as sales manager of the San Francisco region’s chain division. The major problems facing by him are high turnover and continue with sales increase.
According to the case, on average a sales representative had been with the San Francisco division of Valley Winery only for 7 months which contribute to the approximately 100 per cent turnover rate in sale force on the division and also 50 new sales representative are hired each year. Besides that, the turnover problem led to a series of conclusions where the costs of recruiting and training approached $30,000 per year representative. The $30,000 figure does not include opportunity costs associated with lost sales resulting from not having accounts called on and these cost also do not include the time it would take for a new representative to adequately develop rapport with the account. Therefore, training cost issue is in nature the side-effect of the high turnover rate of the sale persons in the division and without the high turnover rate, this problem could be much mitigated though it still concerns the management at the same time.
Waller faces the future problems of declining sales and sagging profits that are likely to occur unless the turnover problem can be resolved. There are other problems that will concern Waller. The case hints at a potential sex discrimination problem. The San Francisco division, like other Valley divisions, has three distinct sales groups. The second group, which calls on hotels, restaurants, resorts, and motels, is predominantly female. Their salary is in the $39,532 to $36,233 range and opportunities for advancement into management are pretty much