Andrew Bell and CASE

His Reorganized STUDY

Sales Division
Table of Contents
Key Issues....................................................................................................................................................1
New Competitors.....................................................................................................................................1
New Products..........................................................................................................................................1
Difficulty in recruitment of salesperson...................................................................................................1
Sub-issues....................................................................................................................................................1
Difficulty in Performance Management System......................................................................................1
Maintaining consistency..........................................................................................................................1
Persuading sales representatives............................................................................................................2
Strengthen promotion.............................................................................................................................2
Relevant Theories........................................................................................................................................2
AIDAS theory...........................................................................................................................................2
Right set of circumstances theory...........................................................................................................2
Buying-formula theory............................................................................................................................2
Behavioral equation theory.....................................................................................................................2
Systems Management Theory.................................................................................................................2
Scientific Management Theory................................................................................................................2
Outcome observability from organization theory...................................................................................3
Behavior observability from agency theory.............................................................................................3
Transaction-specific assets (TSA) from transaction cost analysis.............................................................3
Task programmability or environmental task uncertainty.......................................................................3
Possible Solutions........................................................................................................................................3
Implementation Plan...................................................................................................................................4
Timeline for Key Events...........................................................................................................................4
Key Issues
Matel and Grower is founded in 1900s. It is one of the biggest investment banks in the whole
world. It covers all the areas of investments. With the passage of time, the firm is going through
many challenges. The key issues and challenges faced by Andrew Bell are:

New Competitors
The firm is facing new competitors in the market from the past 10 years. This is due to rapid
increase in the resources under management at customer organizations and the sales commission
at brokerage companies is decreasing due to growing production of other sectors. The customers
and their companies are becoming specialized and there is no requirement for such Banks.

New Products
There is less amount of diversification in the products of the Banks, which is the main issue of
the firm. Actually there are many other organizations that give a variety of products to the
customers that M & G is going towards declining. The other reason is that the directors depend
on progressively on the guidance of in-house experts who followed cryptic bonds and their
derivatives.

Difficulty in recruitment of salesperson

The firm finds it difficult to recruit bond salesperson. The people who are motivated and smart
are difficult to find. Salespersons are the ones who invested a large portion of their life in
building relationships with the customers. These relations are very difficult to maintain. These
should be sustained through social interaction.

Sub-issues
Difficulty in Performance Management System
Andrew finds difficulty in the performance management system to maintain its working
efficiently. During the last two years, the senior administration in the New York is influencing
the sales team to provide them with fixed income securities. The management issued multisource
performance system which is very difficult to sustain in the much competitor environment.

Maintaining consistency
It will need to treat some representatives based on how one differs from better people or others.
It can let one’s top merchants use their own strategy instead of having the sales process set up by
the organization. It might be expected that one representative should actually make more calls
than the other, despite their similar levels. Management of this conflict does not occur. Sales
representatives will find that they are being dealt with in an unexpected way and will be
confused.
Persuading sales representatives
It is fundamentally a uniform approach, which can be a difficult exercise. Motivating some
people does not drive others. Some people may need rest instead of reward. Competition within
the team will gradually convince others. Develop a shift plan based on training and rewards to
convince each of one’s colleagues.

Strengthen promotion
It has never been easier for a trading group. This does not mean that one does not need to do this-
promotion and trading arrangements are critical to the success of the organization. The company
should have a standard meeting with the promotion team just like doing with the business team.

Relevant Theories
AIDAS theory
Attention, Interest, Desire, Action and Satisfaction. These are the five traits of this theory. This
theory is applied to the case as these traits should be successfully implemented to the firm. So,
the company should have good sales management system.

Right set of circumstances theory

This theory implies that the salesperson should focus on creating a situation that will lead to
attain the attention and gaining the interest of the customers. The Sales department should use
such theory.

Buying-formula theory
This is the theory which leads to making solutions for the difficulties faced by the buyer. Andrew
and his team should focus on such theory.

Behavioral equation theory

This leads to the behavior of the buyer against buying decisions. This promotes the variety of
choices by the buyer. The salesperson should attract the customers with various ways.

Systems Management Theory

This theory leads to performance management by the salesperson. How he leads and controls all
the systems in the organization.

Scientific Management Theory

This is the theory which leads to the strategy that how business is conducted and how sales
activities are carried out in the competitive market. The salesperson should be motivated by the
job security.
Outcome observability from organization theory
This is the theory which is related to outcome of the revenue in the organization. Due to more
sales, the outcome of the profits would increase.

Behavior observability from agency theory

This is the theory which leads to behavior of sales person. The motivation of these sales persons
by various activities is the key element of this theory.

Transaction-specific assets (TSA) from transaction cost analysis

This theory relates to commission and assets that are transaction specific.

Task programmability or environmental task uncertainty

This is the theory which is based on tasks that are performed by salesperson.

Possible Solutions
Powerful planning: Key trading plans are essential to achieving selling goals of M & G firm.

Productive implementation: Sales executives should wisely initiate new arrangements among
their employees.

Strong Guidance: One should be able to choose the type and sincerity of different trading
training sessions to get the most out of oner agency.

Mandatory inspection: As a project leader, one must consider oner business group
implementation.

Hiring the right salesperson: Hiring an inappropriate individual can harm the business of M & G
firm. As a leader, on must organize the correct procurement process in order to choose the best
capabilities.

Creating an environment that encourages success: Being a project leader means setting the pace
for professional operations.

Recruiting Skilled Salesperson: By employing skilled and talented people, the firm would
increase its sales.

Encounter new competitors: The Company tackle new competitors by increasing their quality as
well as diversity of products.

Solution Advantages Disadvantages

Powerful planning Increased Sales Required skilled persons and
so increased cost for them
Productive implementation Motivating Employees Sometimes lead negatively in
the opposite direction
Strong Guidance
Mandatory inspection
Hiring the right salesperson
Creating an environment that
encourages success
Encounter new competitors
Recruiting Skilled Salesperson Lead to improved sales
Lead to increased sales
Good sales
Lead to increased sales
Good Results in sales
management
Increased Sales
Demotivation and interference
in work
Lead to problems of extensive
and delayed work
Increased cost of recruitment
Nothing
Low prices leads to low
profits
Increased cost of skilled
persons

Implementation Plan
A compelling plan: A key trading plan is critical to completing a trading job. Often, poor
performers are those who cannot guarantee and set goals. To be a super entertainer, one as a
team leader needs to understand the importance of successfully closing a deal. Starting with the
definition of team goals, especially aligned with the overall goals of the organization, this may
be the basis for one’s design.

Efficient implementation: The sales staff made the project leader keenly promotes new
arrangements among colleagues. However, it is not enough for one’s business team to
understand the new arrangement unless one clearly state the purpose of the particular procedure.
Consolidate one’s answers with incredible advantages and some persuasive speeches that free
one from the concerns of one’s business group.

Stable training: One should be able to choose the type and difficulty of different trading training
sessions to take full advantage of the benefits of sales staff. Simply completing the share is by no
means a serious goal set by the team leader. One should guarantee to provide ones sales
representatives with the overall arrangements for auspicious transactions with the latest
equipment and innovations.

Mandatory inspection: As the project leader, one must consider how ones business group is
performing. Because one usually can’t refresh the transaction group regularly or track the
execution regularly, it is difficult to legalize the group directly before management. Effective
project managers can make their teams trade, which speeds up programming, and the program
has the ability to oversee daily trading activities.

Timeline for Key Events

Key Events Date
Establishment of M & G 1900s
Address the growing concern of competitors Mid of 2017
Bond Division 2018
Preparation of Division Market 2019