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Case Analysis
Stubberfield Appliances
Introduction:
Stubblefield appliances is contemplating over the decision of redeployment of Sales Personnel to
newly designed territory. The plan is to reassign territories to sales people for 12 months. 15
sales representatives are to be withdrawn from Northern European Operations and an additional
17 people are being drawn from the southern region. During this 12 month period, new sales
representatives will be hired and trained. At the 8 month end of their training they would be
deployed to the field to join the current sales representatives. One year after the deployment the
new sales representatives will take over the territory and the representatives will be sent back to
their respective territories.
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Stubberfield Appliances
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Stubberfield Appliances
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Stubberfield Appliances
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Poland
Ukraine
1800
1200
12900
11700
50%
100%
25%
25%
20%
100%
20%
1680
3360
840
840
672
3360
672
12
12
42
Belarus
East Germany
Estonia
Latvia
Lithuania
Poland
Ukraine
Total
Ukraine
Poland
Lithuania
Latvia
Estonia
East Germany
Belarus
233,000
120,727
25,174
25,400
18,370
41,767
80,200
51,500,000
38,600,000
3,700,000
2,500,000
1,500,000
16,300,000
10,300,000
221.03
319.73
146.98
98.43
81.65
390.26
128.43
S
alesRep Required/T
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3360
Lithuania
300
33600
Latvia
300
Avgphone selling
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2700
Estonia
East Germany
600
1200
Belarus
TerritoryCo
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Stubberfield Appliances
Stubberfield Appliances
One of the major benefits is that the representatives are trained and therefore the sales
will start right away without any delays. The representatives have the product related
products.
The current employees will be exposed to new consumers and this will add to their
experience.
Problems:
-
The firm will have to bear costs for two types of work force for one territory.
The sales reps once settled in this territory will be dissatisfied if they are replaced.
The sales people will lose contacts and accounts in their current territories when they go
back.
Since it is a new territory the sales people will need time to settle down.
Q4. Compensation
-
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Stubberfield Appliances
efforts. This will include bonuses since these sales reps are not even entitled to vocations.
This scenario demands extra care to keep these sales reps motivated.
Q5. Recommendation
-
Our recommendation is that the relocated force be adjusted in the new territory. These
people 27 people are extra and they are their efforts does not bring in any extra income,
Therefore they should be kept in the new territory where their efforts will be fruitful for
the company. After a year they could be sent back to their respective territories if they
wish, but mainly on the basis of their performance indexes. These people can be rotated
to enhance shared learning among the sales force team. After one year once the key
accounts are established these people can be shifted to the key accounts.
We need a total of 48 people for this new territory. Extra people from other territories can
also be accommodated here to reduce the cost of extra hiring.
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