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PART VIII
COMPREHENSIVE CASES
Learning Objectives
The student assumes the role of a "consultant" working within one organization (ZCT) to help
implement the objective-setting process at the corporate level. The student is challenged first to establish
I assign the case and have the student's write up and turn in answers to the three questions at the
Questions At End Of Case
1. Develop a new budget based on how the ideal profit and loss statement should look if it
reflects the president's bottom-line objective for ZCT. Justify your expenses for each of the
five budgeted expense areas.
Here's how the "ideal" profit and loss statement should look if it reflects the president's
bottom-line objective for Zenith Computer Terminals, Inc.:
SALES $12,000,000
Less Expenses:
Sales $1,800,000
Production 6,850,000
Justification For Establishing Budget Objectives:
* Production--Last year's expense ($6,000,000) is increased by cost of new production line
* Marketing--This budget goal is arrived at by starting with $600,000 base, adding "new product"
$50,000, bringing next year's goal down to $450,000.
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2. What would be the net profit if sales:
A. Remained the same, at $10 million, and budgeted expenses increased to the projected levels?
SALES $10,000,000
Less Expenses:
Sales $1,800,000
Production 6,850,000
SALES $14,000,000
Less Expenses:
Sales $1,800,000
Production 6,850,000
3. Determine the four most important objectives for each department. Be specific by detailing
what should be done and the time frame for reaching the objection.
A. Sales Department
$1,800,000.
2. Four objectives:
a. Hire four new sales reps (2) by January 31.
four weeks of field training.
c. Increase sales 10% by spending 96 coaching days in field (four days per year per sales
last week of September.
B. Production Department
$6,850,000.
2. Four objectives:
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b. Run four production lines on second eight-hour shift (2) for three weeks (3) during first
C. Marketing Department
2. Four objectives:
a. Implement a monthly direct mail program (2) capable of producing 8,640 inquiries
during year (about 360 per sales rep.) NOTE: For (2), allow full credit if within 10%.
introduction (4) last week of September.
D. Administrative Department
1. Major objective: Cut back overhead costs from $500,000 to $450,000 and continue to
2. Four objectives:
acceptable dates for (2), (3), and (4).
a. Train staff to take up workload of terminated employees during these three periods, (2)
b. Evaluate Joe Wallace (2) by January 31, or sooner, and make decision to replace or
retrain.
E. Service Department
1. Major objective: To handle all service calls efficiently within specified budget of $400,000.
2. Four objectives:
a. Hire and train three new service reps (2) by January 31.
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b. Satisfactorily handle 6,800 projected service calls (2) within 24 hours.
c. Design a new maintenance contract program (2) by June 30.
d. Implement new maintenance contract program during last six months of year with
objective of (2) eliminating approximately 1,110 service calls. NOTE: 7,400 + 1,480
3. Write up your recommendations to the president in a memorandum format.
Assign this question if you want to require students to write up a report and turn in to you.
Case 2: Wallis Oce Products: Defining New Sales Roles
Overview
The sales executive, like John Stevens, who faces what seems to be an
unreasonably high sales quota, cannot simply do more of the same.1 Often the
moves through the growth cycle. For a brand new business, there is no retention
selling because there has been no selling at all. For a mature business, there may
runs the risk that it will not attract and retain the salespeople it needs to meet
management's growth objectives. To see how the sales resources may be
3. Use the /ve W's—who, what, where, when, and why—to determine if these
sales processes require different sales roles.
sales process.
5. Formulate and implement new sales roles to /ll the gaps.
The sales executive who takes these /ve steps is now in a position to take
advantage of the company's sales
1 Adapted from Jerome A. Colletti and Mary S. Fiss with Wally Wood, Compensating New Sales Roles (New
York: The Alexander Group, Inc.), 62-72. I recommend that you read this excellent book to better understand the
new sales roles recommended by the authors.
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growth opportunities.
Question 1: Formalize the sales strategy and quantify the sales
opportunities that exist.
The breadth and depth of WOP's product line and the size of the geographic
market that John's organization must cover requires a clear sales strategy, one
that de/nes the sales opportunities in the context of this type of business. WOP
John and his managers should estimate the additional business they could
get from selling additional storage and processing services and value-added
services to their current accounts. The first is user penetration selling, selling
They can also sell something to a customer or a prospect they have not
previously bought. In WOP's situation, there are actually two types of new concept
selling opportunities. First is the opportunity to sell SARS 1000 to customers that
Question 2: Map out the sales process associated with the di*erent
products/services and the roles of current sales and service personnel in
the process.
Too often managers assume the sales process associated with retaining and
expanding business is the same with all customers. Of course this is not the case.
running, the service representative is the WOP employee most likely to identify
opportunities to sell value-added services
Through careful examination of accounts where WOP had successfully sold
its new products and services, John and his sta5 learned that the sales process
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sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or
posted on a website, in whole or part
account executive and service representative throughout the process, and a
with WOP.
Question 3: Use the five W's to determine if the sales process requires
di*erent sales roles.
Using the /ve W's, John and his sales sta5 determined answers to each of
the /ve questions for WOP's three product categories. For example, the basis for
accessibility.
Question 4: Determine the gaps that exist between the current sales
process and the desired sales process.
As a result of their analysis, John and his salespeople began to see some
gaps between how they were selling and the opportunities to sell more. They
Account executives may not have the skills and experience necessary to sell
SARS 1000 products and services to the identified buyers, senior executives.
Account executives may be stretched too thin across the number of selling
activities and opportunities.
Question 5: Formulate and implement new sales roles.
focus on new account core product sales, with a secondary emphasis on selling
SARS 1000. This will allow the account executives to spend less time on postsale
service and SARS 1000.
Account Manager. An account manager would focus on developing
(account penetration).
SARS 1000 specialist. A SARS 1000 specialist position should be created
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account manager).
SARS system support specialist. The SARS system support specialist
Service representative. The service representative position should focus
on servicing only core product customers. The service representative's new
expanding low penetration accounts.
SARS installation manager. An installation manager position should be
created that will allow one group of technical experts to install both SARS 1000
successful they had been. WOP had changed, customers had changed, and it was
time for new sales roles.
Case 3: United Cosmetics, Inc.: Creating a Stang Program
Question for Discussion:
recruitment program?
Al Kantak's goal is to develop a 5-year plan with goals for each year. At the end
of the 5 years, Al wants to have accomplished everything Sparky asked of him.
First, Al evaluated the entire situation and then developed and implemented a
coordinated program consisting of:
hired. At these schools, key faculty was found and a friendship developed so
that faculty would recommend students. Such recommendations reduce
campus recruitment time and increase the quality of people interviewed.
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managers in hiring people.
C. Train all managers in interviewing so everyone is using the same methods.
D. Develop recruiting tools consisting of:
1. A brochure
2. Recruiting posters to send to schools in advance of our campus visits.
information on the job and company.
4. A recruiting video. A permanent copy goes to a school's placement center
E. Develop a summer internship program.
Epsilon and the American Marketing Association.
I. Have sales personnel make presentations to classes and student
J. Participate in career fairs.
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