ANSWER-1

1. In this rapidly changing sales environment, there is often a stark disconnect

between what management sees or does and what reps want or need. While sales
productivity is a key revenue driver, higher activity volume doesn't always mean that
key metrics like close rate or average selling price goes up.

2. Sales Performance reviews are personal experiences and the feedback I give
should about the sales executives of Synergy Computers should be able to accurately
reflect the performance of each rep I am reviewing. To simply put a few that can be
used as a starting point when forming my feedback would be under the following
heads:

(a) Performance Output. It shall depend upon the number of calls made by
the executive and suggests the hardwork and perseverance put in by the person.

(b)Quality of Output. Quality of output will depend on the number of

orders/Actual sales in INR.

(c)Skill Utilisation. It will be an assessment of both their performance output

and quality of output on a single scale or as a common yardstick of their skill level
which includes both their ability to make calls and bag orders.

(d) Conversion Factor. It will depend upon the percentage of calls that have
been turned into actual orders and actual sales.

(e) Overall Performance. It would be an assessment of the above mentioned

four yardsticks of performance.

3. Evaluating the sales performance of these executives in an objective format as

given below on a scale of 1 -9 :
Name of No. No. of Actual Perf Quality Conversion Skill Overall
the of orders Sales INR Output of Factor Output Performance
executive calls Output

Sanjay 1550 350 3,50,00,000 8 6 5 (22%) 7 6.5

Mishra Average
Plus

Tapan 1100 280 2,80,00,000 7 5 6 (25%) 6 6.0

Sharma Hi-Average

Supriya 1600 580 5,80,00,000 9 9 8 (36 %) 9 8.75

Ghosh Exceptional
4. Carrying out a subjective assessment of their capabilities, performance and
output in a subjective manner:

Name of the Performance Review

executive

Sanjay is above average in dedication to work and hardwork wherein

he is able to make good number of calls. However, his conversion
rate from calls to number of actual sales has not been good and that
Sanjay Mishra should become his prime area of concern in the next quarter. He
needs to develop reputation and build up rapport with his customers.
Due to his poor conversion rates, he has been assessed as ‘Average’
Plus in his performance otherwise he has the capability, intent and
stamina to be rated as ‘Above Average’.

Tapan is a just about average in his dedication and hardwork when

it comes to making call. Due to his ability of making good
conversions from his calls to actual orders in parlance with other
Tapan Sharma average call makers, he steps up to be ‘Hi-Average’ in his overall
performance. He first needs to focus in increasing his number of
calls, building up a bigger and much stronger customer base and
thereafter shift focus to improving on his conversion rates.

Supriya is an excellent individual when it comes to making calls,

getting actual orders and very high conversion rates. She has been
Supriya Ghosh assessed as ‘Exceptional’ in her overall performance. Since, both her
call making abilities and abilities to get high number of orders are an
advantage, a minor area for her to focus now should be going a step
further and improve her conversion factor to even higher digits.

5. Some Steps that I may take to improve their performance are as follows:

(a) Provide them with clarity of aim of the organisation in terms of

importance of calls, number of orders and conversion factor.
(b) Break their mission into specific goals for the next sales
assignment for each individual as per their capabilities.
(c) Train them to sell to customer needs.
(d) As Senior Sales executive, I should create and maintain
favourable attention to each one of them so as to motivate them.
(e) During the process I should ask them questions, listen to their
concepts and explanations and act accordingly to advise/guide them.
6. The sales profession moves faster than ever today. In the blink of an eye, new
competitors emerge, products similar to yours are released, and before you know it,
it’s a race to the bottom. No matter what industry we are in, what worked well a few
years ago isn’t good enough today. As Senior Sales Executives, one needs to
continuously evolve the process of developing a sales force,
coordinating sales operations, and implementing sales techniques that allow a
business to consistently hit, and even surpass, its sales targets. If your business
brings in any revenue at all, a sales management strategy is an absolute must.
Besides helping our company reach its sales objectives, the sales management
process will allow us to stay in tune with our industry as it grows, and can be the
difference between surviving and flourishing in an increasingly competitive
marketplace.

2. Connect with a senior sales person from two industries – IT industry (such as
TCS, Infosys or any other company) and consumer product industry (such as P&G,
Dabur or any other company). Study and prepare the sales organization structure of
these two companies.
(10 Marks)

ANSWER-2

1. Sales organization structure refers to the design of the sales team. Businesses
may use an inside or outside sales model, geographic or industry territory approach,
product model (split by product line or type), SMB/mid-market/Enterprise split, or some
combination of the above. Sales Structure of an organization can be broadly classified
as:
(a) Geography/territory. Organizing your sales team by geography or
territory allows each salesperson to develop familiarity with a specific
geographic location. They can build rapport with local businesses, get to know
regional competitors, and track target accounts.
(b) Product/service line. f your company sells several different products or
services, it can help to align salespeople to those products and services. Similar
to geographical expertise, it allows your reps to become the expert on a specific
product you sell, thereby better able to communicate its value and use case for
individual clients.
(c) Customer/account size. Organizing your sales org by account size is
another popular structure.
(d) Industry/vertical segment. Different industries will use your
product/service in different ways. The setup made in a vertical reporting and
 command and control chain in an industry for flow of sales is known as vertical
segment.
2. Lets have a look and analyse the Sales Organisation Structure of Cyber giant
‘Apple Inc.’ of the USA. The flowchart of the structure is as given below and shall be
explained subsequently in next paragraph.

3. The functions of various sub-units in the above structure is as follows:

(a) Apple sales International (ASI). Apple Sales International lies

at the apex of Apple’s Sales structure. Its function is to control sales in the
international market while the research and development of the product
being made for sale remains with the Apple Inc. It provides payment to third-
party manufacturer in China for completing their orders to distribution and
retail subsidiaries of Apple and also a large number of customers
worldwide. It collects the revenue of sales from these sub-units/cutomers
and pays Apple Inc. for R&D. It takes the ownership of goods being made
by the third party and hands over it to the buyers. However, physical
delivery of goods remains from the third party directly to the buyer akin to a
dropshipping concept of delivery.
(b) ASI Logistics Branch (Ireland). It is a sub-unit of ASI which looks after
the delegated duty of looking after logistical supply from third party to buyer
and preparing invoices and other documents for the buyer. It is like a staff
secretariat to ASI looking after the documentation and logistics.
 (c) Third Party Manufacturer (China). The third-party manufacturer in
China participates in this structure by fulfilling the orders of Apple Inc.
through ASI. It transfers the ownership of products to ASI while the product
is directly shipped to the buyers worldwide. It deals with ASI Branch
(Ireland) for documentation and issues/instructions on logistical matters.
(d) Subsidiaries. Apple has distribution subsidiaries worldwide who
distribute the Apple products as per demand on a large scale. Apple also
supplies directly to retail subsidiaries , stores, malles etc. through Carrier &
forwarder and maintenance through FSR (Field Service Representatives)

3. Orion Fashions Ltd is a fashion brand in India. They are predominantly in fashion
wear from men and women. The company has 3 plants in India and employs over
800 sales people. However the company has been hit with the economic slowdown
in the country. To make things worse, cheaper imports of fashion wear and e-
commerce has affected store sales. The sales people are left with slimmer pay
cheques and many of them left the company. The sales people also put pressure on
the top management and negotiated a 10% increase in salary for all sales
employees.

a. Do you agree with the Top managements plan to give a flat increase in salary to
all sales people
(5 Marks)

b. What are some of the non-financial tools of motivation that you can use (5
Marks)