I.M.A.G.

E International
 Case Facts
• Manufacturer of office copiers based in France
• Commenced export operations to United States in 1991
• Estimated 6% dollar market share in 2000

• Major strength in smaller models

• L’Image was valued for its speed, definition, high speed output and
PRODUCT
LEADERSHIP elegant styling

• Technological Resources: Advanced Imaging Technology

• Physical Resources: Aggressive sales organization
RESOURCES
• Reputational Resources: Reputation with customers, service quality

• Manufacturing machines that win awards for elegance, simplicity and

CAPABILITIES
functionality

• Advanced Imaging technology

CORE
• Aggressive sales organization
COMPETENCI • Excellent service capability
ES
 PROBLEM STATEMENT
To address I.M.A.G.E International’s Sales budget issues and HR
policies while maintaining a consistency with the company’s
unique mission and background

STRATEGIC ISSUES:
Usage of Quota System for Performance evaluation
Incentive Structure

OPERATIONAL ISSUES:
Difficulties involved in meeting up with the sales budget
Analysis-Incentive structure for the sales force

Sales force Training Performance Evaluation Incentives

• Sales Representative • No Formal performance • Business expenses were
were between 28 and 40 appraisal reimbursed
in age and had • No submission of • Medical. Insurance and
experience in sales force reports retirement benefits
• New hire underwent a • No quotas • Vacations
one-month training • Point based evaluation • Maternity leaves
course held twice a year • Company-leased car
• All sales rep were given
a one-week refresher
course
• A two-day field training
visit

Payment above industry standards

Absence of Formal performance evaluation
 Analysis-Incentive structure for the sales
force

Absence of Quota • Quota system places too much burden on the stronger ones and too little
System challenge on the weaker ones

INCENTIVES/Mora • Palm Springs convention

• Sales contests that has an impact on short term results
le Building • Newsletter

• Assign points in each of the four categories: cumulative sales year-to-date;

percent sales gain over same month last year, percent cumulative sales gain
Point Based Ranking against territory BPI
• Ranked from top to bottom based on fewest points

Incentive structure aims at motivating their sales force which is their Key
resource and thereby sustaining their core competency
Analysis-Incentive structure for the sales
force

Sales Force Expenditure Total no of employees 412

Uniform $1100

District Managers Expenditure Employees Expenditure

Sale of service
contracts $425 Palms Spring Convention 1200000
Sales Contest 200000
Newsletter 60000
Super Bowl 81000
Total 1541000

Expenditure/Employee 3740.291262
 Recommendations

Incentive structure aims at

Improve communication
motivating their sales force
Limiting expenditures on sales between Headquarters and the
which is their Key resource
force can affect their revenues US Business Unit to solve
and thereby sustaining their
operational issues
core competency.

Action Plan:
• Emphasis on incentives/perks for employee motivation to sustain their
core competency and to increase their market share in US
• Improve communication between Headquarters and the US Business Unit
to solve operational issues