What is the process and consequences of sprouts program of Arrow Electronic?

Ans.
Arrow Electronics is the worlds largest distributor of Electronic components. They distribute
their product throughout the world. The CEO of Arrow Electronic has introduced the
Sprouts program in the company. Sprouts provides creative opportunities for young children
at a pivotal time in their development to work with professional artists and teachers in a fun,
noncompetitive environment that allows them to discover themselves through the arts.
When the Arrow Electronics was rapidly growing in the industry, they were needed a large
number of people for their sales work. The Arrow Electronics were needed 300 more
salesperson per year and the management was also required to make change in sales force
and sales strategy.
The process of Sprouts program is to go to college campuses and conduct interview and
choose the best ones then make an offer to hire, train and send them to the sales field. The
objective of the Sprouts program is to train the newly graduates the modern technique of
sales. The company was teaching them the classic sales skills which will boost their sales
because it is not just selling products to the customer but it is the solution of the customers
problem. It also helps to build the relationship between the sales person and the customer.
The sales person is taught how to manage the territory, manage the cold calls, overcome
objections and close the sales.

2. What was Arrow electronics sales strategy? Does Arrow electronics was facing any
problem?
Ans.

Arrow electronics is a broad line distributor of semiconductor & electronics components to

OEMs. It began as a radio-equipment retailer in 1935 and became the second largest
distributor in the US by 1980.In the mid 1980 Arrow was trying to grow its sales force and
hiring sales person was a major focus of the GMs.
In the meantime, Arrow was using relationship-based selling. Their sales were strongly tied
to individual FSR’s relationship with the suppliers. Their sales depended on the relationship
how their sales person maintain. It was very challenging for the company because the
company has 300 people with no formal sales trainings. And the sales force used a lot of
travel and entertainment which was a big fact of the product sales of the company
Reviewing the passage, the Arrow electronics was facing problems in the sales of their
products.
1. Retain Challenges: They haven’t paid enough attention to keep their employee to
themselves. It can be because of retraining the employees. As we know after hiring an
employee retaining them is very important
2. Lack of customer loyalty: The company was facing lack of loyal customer because
the sales of the product depended on the relationship of the seller and the customer
but the employee were not staying in the company for a long time so if an employee
goes then the customer also goes. So, the company were not able to create loyal
customers
3. Lack of company loyalty: Arrow Electronics had loyalty issues with its employees.
The loyalty problems were created because of retains the employee. As a result, the
employee was not comfortable to mention the company name in their social life.
Rather than mentioning the position with the company, they mention only the position
with the industry.