Sales Management (BUS 309)

Case A-5
Hanover-Bates

Student names: (type here)

Note: I do not have data in electronic format for Exhibits 5-1 through 5-4 or for Exhibit 5-7. For calculations on
these exhibits, I suggest you simply make a copy and write calculations on the paper copy. Data for Exhibits
5-5 and 5-6 is provided on page 2 of this Word file.

DISCUSSION QUESTIONS

1. Based on Exhibits 5-1, 2, 3 & 4, evaluate the performance of James Sprague’s district. Include in your
discussion a comparison with the performance of the north-central district.
(30%)
(type your answer here)

2. How is the northeast district doing compared to the north-central district based on Exhibits 5-5 and 5-6?
(40%)
(type your answer here)

3. What should management do to improve areas of poor performance in the northeast district?
(30%)
(type your answer here)

Exhibit 5-1 (partial)

Overall
company 1999 2000
Sales 43,960 47,780
2 2
COGS 7,224 9,126
1 1
GP 6,736 8,654

Admin 5,850 6,212

Sell exp 4,548 4,798

Op profits 6,338 7,644

Exhibit 5-2
Gross Gross
# Sales Sales Profit Profit
District reps Quota Actual Quota Actual
7 7 3, 3,
1 7 ,661 ,812 104 178
7 7 3, 3,
2 6 ,500 ,480 000 058
7 6 2, 2,
3 6 ,300 ,812 920 478
6 6 2, 2,
4 6 ,740 ,636 696 590
6 6 2, 2,
5 5 ,719 ,420 640 372
6 6 2, 2,
6 5 ,240 ,410 504 358
5 6 2, 2,
7 5 ,440 ,210 176 620
47, 47, 19,0 18,6
600 780 40 54

Exhibits 5-5 and 5-6

Sales figures and profit figures are in thousands.

Northeast Sales figures and profit figures are in thousands

Account Potential Active
category Sales Profits accounts accounts Calls
A $ 1,830 $ 712 90 53 1,297
B $ 3,362 $ 1,246 381 210 3,051
C $ 1,620 $ 520 635 313 2,118
Totals $ 6,812 $ 2,478 1,106 576 6,466

Northcentral
Account Potential Active
category Sales Profits accounts accounts Calls
A $ 1,502 $ 660 60 42 1,030
B $ 3,404 $ 1,450 286 182 2,618
C $ 1,304 $ 510 499 216 1,299
Totals $ 6,210 $ 2,620 845 440 4,947