Case-A: Aditi Agro Chemicals

It was the hot month of July when Jolly joined as a sales manager at the Chandigarh
headquarters for Aditi Agro Chemicals, a leading chemical products company with sales across
the globe. Jolly’s predecessor, Khanna and his team had achieved 103 percent of the sales target
in the first six months of the year (January-June) and earned a handsome incentive of Rs.
5,00,000. Khanna is now the zonal manager for Northern India. All sales representatives
achieving 100 percent and more got an incentive of Rs. 2,00,000 and 2,50,000 respectively. They
also won a trip to Srilanka with their families as a team incentive for achieving more than 100
percent. Only one team member, Raman, was not given any incentive as his performance was
less than 100 percent. Details of the team performance for the January-June period are as
follows:

Name Territory Annual Target Achievemen % Growth %

Target (in (Jan-June) t (Jan-June) Achievemen (Jan-
Rs.000) (in (in Rs.000) t (Jan-June) June)
Rs.000)
Manpreet Jalandhar 23145 13500 13575 101 12
Raman Ludhiana 25740 15000 14625 97.5 25
Brijmohan Amritsar 20570 12000 12750 106 16
Jayraj Patiala 24425 14250 14400 101 11
Tarun Ambala 19290 11250 11700 104 20
Vinay Chandigarh 20580 12000 12600 105 14
Manjit Bathinda 15430 9000 10200 113 12
Team 149180 87000 89850 103 15

Critically review the sales performance and answer the following Case Questions:

(a) Is there an issue with sales targets for the sales representatives?
(b) Who is the star performer here?
(c) Raman is considering leaving the organization as he feels overburdened and underpaid.
What can the company do to retain him?
(d) What could be the territories of future growth?
(e) Do you want to revise the annual targets? If yes, do suggest revised targets.