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Hanover-Bates Chemical Corporation - Case Study Example

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The company, Hanover-Bates Sales Chemical Corporation has presence in seven districts. In the year 2000, four out of seven districts were…
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Hanover-Bates Chemical Corporation
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Case Study: Hanover-Bates Chemical Corporation of the of the Case Study: Hanover-Bates Chemical Corporation Performance of the Northeast District vs. Other Hanover-Bates Sales Districts
The current status of northeast sales district is the worst as compared to other districts as it lacks in profit performance for the company. The company, Hanover-Bates Sales Chemical Corporation has presence in seven districts. In the year 2000, four out of seven districts were unable to meet their set sales target including the northeast district. However, northeast central district did a profitable business with high margin as compared to other districts. The northeast district’s performance was the worst as it performance 15 % low than the gross profit quota set for it. District 1, 2 and 7 performances got little profits as they surpassed their gross profit quote a little (Spiro, et. al, 2008).
The performance of northeast district as compared to other districts is constantly low. Other districts performed better than the set target or a little low, while northeast district performed very low. The sale of the northeast district is high, but profits are low if it is accessed in comparison with northeast central (Spiro, et. al, 2008). So, in totality, northeast district is continuously performing low as compared with other districts.
Weak Spots in the Northeast District’s Performance
Jim Sprague is quite less experienced as the new sales manager of the northeast district. However, the company’s management has trust in his skills. Hank Carver, an experienced and appreciative sales representative is interested to quit his job. The northeast district has poor performance and is unable to meet the gross profit quote. The district is not capable take benefit of potential future accounts. Their sales representative pay expenses are higher as compared to other districts. The sales representatives of northeast district have elevated own selling operating expenses. Northeast district is short of paying attention to major and medium ranged accounts (Spiro, et. al, 2008).
Management’s Role in Improving the Areas of Poor Performance in the Northeast District
Management’s role in improving poor performance in the northeast district is very crucial. The management should support Jim in his task by appointing supporting experienced assistant. There should be a biyearly analysis of the district in comparison with other districts. There should be incentives for outclass performers to motivate sales reps. The management should be revise its standards for the poor performing districts.
Role of Jim Sprague in Improving Management of His Sales Reps
Jim Sprague should install a monitoring system for the evaluation of expenses related to sales representatives (Spiro, et. al, 2008). He should conduct meetings to inform the sales reps about their elevated salaries in comparison to the sales reps of other districts and should make sure that the rate of productivity should also be higher. Jim should revise the account call frequency guidelines as per the requirements of northeast district. Jim should evaluate the performance of other districts and methodologies to gain profits. Jim should transform A and B accounts into active accounts as they are supposed to be most profitable accounts for the company.
Spiro, R. L., Rich, G. A., & Stanton, W. J. (2008). Management of a sales force. (12th ed.). New York: McGraw-Hill/Irwin. Read More
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