Executive Summary

Jess Westerly wanted to implement a new plan that would change the sales force
of their business from small companies to larger companies. This model was
designed to increase their revenue. The board of this company must decide if
they are going stick with there original strategy or approve Westerly's new plan.
We suggest keeping a small company focus but apply it to the addition of some
large companies to help gain revenue, yet maintain the culture of the company.
External Analysis
PoliticalRegulation level within this industry is not very high
EconomicalSplit global sales into three geographical regions: Europe/Middle East/Africa,
Americas, and Asia-Pacific.
SocialThe decision of who they market too. Large vs. Small Companies.
LegalThey understood legal implications
TechnologicalMaking sure they had the best possible products to offer towards their clients.

Internal Analysis
Shared ValuesSolution orientated and relationship driven.
StructureRegional Sales Director (RSD) has a lot of authority but acts as a mentor.
SystemsSales were split into three geographical regions.
StyleSmall company friendliness and deep pride in superior software engineering
StaffIntensive Employee training
SkillsBackground in computer technology.
StrategyCurrent strategy was to target small/mid-size firms.
Task
DecisionJess Westerly wants to increase the revenue of Kauflauf GmbH by moving their
sales forces focus from smaller companies to larger.

Alternatives
1. Rule out working with small companies and strictly focus on business with
large scale companies (Her proposition)
Alternatives Continued

2. Stick to small companies as main marketing focus (Disregard her proposition)

Alternatives Continued
Jess Westerly Case
Haley Menzies, Ryan Johnson, Frankie Vergos, Kevin Cross
Recommendations
Problems:
More competition among other large companies
Hurts employee moral
Loses small-company friendliness and culture
Moves focus out of the underserved lower-market
Lose uniqueness among competitors
High risk
Opportunities:
Optimizes revenue
Company Growth
Gains large company resources
Networking
High reward
Large companies create the most revenue for Kauflauf which is important for
their business.
Kauflauf can displace major competitors by reaching out to large companies.
Customer training and support services would benefit from the large customer
business.
This strategy goes against the culture of the company.
These companies can grow into larger clients by adding branches
Example from the reading; adding different branches: asia, global, etc.
It is easier to reach the decision makers in the company (client)
Workers at Kauflauf are happier working with smaller companies according to the
reading.
3. Keep small company focus but apply it to the addition of some large
companies. (Combination)
Satisfaction from sales force will still be mostly there which is important from a
company happiness standpoint.
The addition of larger companies will increase revenue slowly - the overall goal of
the change.
Small scale companies have the opportunity to transform into larger customers
which keeps the intimate relationship goal yet brings the big revenue desires.
It will allow for a potential increase in revenue.
Expand their market
By them keeping their smaller companies in additional to growing, it will help
them stay true to their original strategic plan and goals
Option 3: Combination

Allows for a potential increase in revenue

Expand their market
By them keeping in their smaller companies in addition to growing, it will
help them to stay true to their original strategic plan and goals.