GROUP C -8 Submitted By: Group No. C-8 Rishabh Nagori 12P163 Siddharth Bharadwaj 12P170 Vikas Jain 12P178 Satish Kumar 12P230 Vikash Singh 12P239

Case Background  District Sales Representative for Consumer Food Wholesalers Inc  Covered 50 supermarkets to check on promotion. ordering and inventory of CFW  Strong believer in profit incentive and free enterprise  Into politics behind the Republicans’ campaign  Himself worked on straight commissions  Poor Management led to over-order and clogging of lines  Slack in checking the shelves and putting out additional supplies  This affected store’s profitability . turnover.

What Billie Did & Its Outcome Actions • Private arrangement with selected store men • Mail a quarterly cheque for keeping an eye on CFW lines • Amounted to one-fifth of Billie’s own commission Outcomes • The Store man was better remunerated and were motivated to work better • Inefficient selling pressure on store virtually eliminated • Head store men worked harder. handled CFW lines efficiently • CFW’s sales in Billie’s territory increased significantly • CFW named Billie as ‘Representative of the Year’ • Received a handsome dinner service and featured in the house magazine .

The Genesis of Problem  Some chain complained about head store men being ‘paid off’ by Mr. deal fairly with customers and suppliers. National Sales Manager decided to remove Billie. if he was paying off customer employees The Companies Creed ‘To conduct operations ethically. advertise fairly. and maintain our organization as an outstanding example of the American free enterprise system’ . Daniels of CFW  Fred Harper. cooperate with managements in the betterment of industry as a whole. fulfill commitments.

Billie’s Argument  Voluntary given bonus from own commission as an added incentive to efficiency  Has increased turnover for them and the company  No store man is under obligation of any kind – do it out of own interest  If any objection it can be stopped there and then  New Scheme : Put green stamps on cartons so that they are opened first  Tries to indirectly blame Fred for non – involvement and hence for his free enterprise decisions .

Fred Dilemma & Options  Can’t fire Billie as he candidly acknowledge his scheme  But Billie’s actions are against company's policies  Billie has performed well and has good repo within and outside the company • Set an example and send a message that company takes these things seriously • Sales in Billie’s Region might get effected Fire Billie Retain Billie & End Schemes • Retaining Billie will save loss of sale to some extent • Find other legitimate schemes to increase sales Retain & Transfer Billie • Transfer Billie to some other locality to avoid issues with some stores • Can affect sales in Billie’s territory but will save company ethics and reputation .

Recommendations Retain Billie & End Schemes Retaining Billie and asking him to do away with such schemes. will help in retaining a good sales man Can use schemes recommended by him to increase sales Send out strict guidelines to the employees once again about following ethical standards Ask Billie to clear out the matter with all the outlets and sales man he was working with about the changed scenario and company policies .


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