5C Analysis

Company:
• A HVAC company started in United kingdom and is one of the largest manufacturer of HVAC
• Three product lines: RAC, LCR and ICR
• Revenue: US$2.5 Billion and globalized in 80 countries
• Generally known for Innovation, high quality and high price
• China Division: Three regions, Beijing, Shanghai, Guangzhou having three RSMs each
• ICR Division: Premium brand and caters high end industries and most energy efficient

Customer:
• RAC - Residentials in Europe, Middle east and Africa
• ICR – Manufacturing industries in Pharma, textile, electronics, petrochemical, oil & refinery and Food &
Beverages
• LCR – Offices, workshops, shops, malls, OEMS and Distributers

Collaborators:
• Regional sales managers, Senior sales manager, and Sales engineers
• Existing customers, referrals and customers reaching by digital marketing
• Purchase departments and Bidding Evaluation Committees of companies
5C Analysis
Competitor:
• Local Chinese players – caters to low end markets and prices 60% lower than Worldwide equipment
• JVs – prices between local and worldwide Equipment, i.e. 20 to 30% less than Worldwide Equipment
• Other international players – Prices 10% lower than Worldwide Equipment
• Opticool – A U.S. chiller manufacturer

Context:
• Chillers treated as cost centers by textile mills, price sensitive and not quality driven firms, and firms
preferring chillers sold by JVs
• Central govt initiatives to upgrade Chinese textile industry – 2000 mills in total looking to upgrade their
old looms to air jet looms
• Firms adopting bidding process while giving orders and WE staff is not much confident in this bidding
processes
• Great potential in textile market, but WE has less experienced sales persons in that market.
Problem Statement and Alternatives

Problem statement Alternatives

Find ways to meet the Beijing Office’s annual • Upskill the sales team in bidding and
sales target of $18.32 Million. tendering skills
• Not to do anything

• With respect to Li Weimin’s personal relation • Lay-off Weimin

with Edward Yu, decide Weimin’s future at • Move Weimin to another role/domain
the Beijing office also keeping in mind the • Don’t do anything
sales team’s morale.
Evaluation: Find ways to meet the Beijing Office’s annual sales
target of $18.32 Million.
Option: Upskill the sales team in bidding and tendering skills
• Currently upskilling of sales team is required as mostly the companies are following bidding criteria for
sales orders.
• Company has already lost Handan Project with two chiller units each worth US Dollar 219500 because of
less knowledge in Bidding process.
• Currently company do not have anyone in sales team that has a prior knowledge of bidding processes.

Option: Do nothing
• WE is a high priced company compared to its competitors, and it can only get few of the sales target by
their negotiation skills that does not follow bidding process
• WE sales team does not know how to put price in a bid and will continue to put without discount price and
will continue to loose bids.
Analysing Li Weimin’s Capability
Professional Competencies Li Weimin Other Sales Engineers

Customer’s needs and effect on cost of ICR products Good understanding Good understanding

Professional Tender creation & decision on bidding Not very capable Not very capable
price
Connections and experience in Textile Industry Highly Experienced No

Customer Relationship skills Not skilled Not skilled

Presentation Skills Not skilled Skilled

Empathetic No Yes

Need to conquer Yes Yes

Strength Weakness

Textile industry is booming right now and Li Weimin
holds the expertise in it
There will be a loss of $3.5 Million at Guangzhou office
if Li Weimin has been fired
Since the performance of Li Weimin is not in comparison
to the other sales engineers, its quiet de-motivating for
others
Because of his poor performance, moving him to other
role/domain doesn’t make any sense
Recommendation
To meet annual sales target
• Provide tailored offers for textile customer
• Provide specials offers to them because of their price sensitivity
• Monitor and improve holistic sales performance and aim to improve productivity
• Train sales engineers for efficient tendering and bidding
• Monitor the sales engineer’s productivity
• Weimin probation period would be extended and he must be given on field sales training by
combining him with a good sales engineer.
• The textile industry is booming and as he is an expert in textile industry and giving training will
improve him.
• Wang must try to improve the morale of the employees under him by motivating and by providing
a way for overcoming these problems.
• Improving the recruitment criteria by including rounds of creating a professional bidding
document.