Arck Systems

Submitted By-
Ananya Verma PGP12110
Gagan Sharma PGP12116
Lovlin Jain PGP12093
Rashmi PGP12069
Saumya Chaudhary PGP12073
Shruti Kareliya PGP12071
 INTRODUCTI
ON
● Arck Systems was a medium-sized corporate server manufacturer, specialising in
powerful network computers for data management in businesses
● Businesses used these servers to run established business software programmes
that the company had obtained. These services help other businesses in keeping
track of their finances, employee resources, and customer accounts.
● They developed and sold a UNIX-based operating system for their servers, but the
software that ran on it was developed by third parties.
● Lux Software was the most popular middleware provider. Middleware is a set of
software or a package that functions as a link between several software applications.
● Arck Systems' CEO wanted to expand the company's software division since the
corporate software market was growing faster than the hardware sector, and software
margins were more than double those of hardware.
● Lux Software was bought by Arck in an all-stock deal that valued the firm at 50
percent more than its market capitalisation. This was done in order to integrate
hardware and software more efficiently.

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 SITUATIONAL
ANALYSIS
● After the sale, the key sales management staff of Lux Software left the
company. The sales force was now left with the Arck sales management team
to control however the salesperson were left to be handled.
● Bryan Mynor, EVP for sales at Arck systems, has been assigned responsibility
for overseeing the Lux software sales team in addition to Arck systems.
● Both companies' methods to sales management were similar in many areas,
including sales cycles and average revenues.
● The compensation plans for salespeople at both organisations, however, are
vastly different.
● The issue faced by a senior sales manager at an enterprise software company
while settling on a compensation plan. The current compensation plan is
extremely aggressive and rewards "award-winning" employees.

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 MAJOR
ACTORS
● Bryan Mynor
-Executive Vice President for Worldwide Sales
of Arck Systems
-Bryan Mynor was a 30-year veteran of enterprise hardware sales

● Rob Chatterji - the Chairman and CEO of Arck

● Evan Hong - the CEO of Lux Software and its longtime chief
engineer

● Chris Snyder - Lux Software’s EVP of Sales

● Sharon Esteves - the head of U.S. Sales previously for Lux

Softwares

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PROTAGONIST
Chatterji and Mynor had decided to work as
individual entities temporarily

Mynor has to analyze the effects of

accelerator and the share of it in the salary
package of all the employees

Bryan Mynor was a 30-year veteran of

enterprise hardware sales, having sold
mainframes to financial institutions in the
1970s after a career as an officer in the U.S.
Navy which included a stint on Navy’s
college football team

In his 4 years’ tenure, he managed a

promotion after two years and showed
impact on sales through change in
compensation plan
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 PROBLEM
STATEMENT

-How to manage Lux’s sales force in

the best possible way?

-If Arck should get rid of accelerators

of Lux software? How?

-After the merger, few people began

quitting

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AVAILABLE
OPTIONS
Changes should be made in compensation plan to increase base
pay of Lux Software sales team. Increase the sales commission
for Lux sales team.

Continue with the current compensation plan and accelerators to

give employees time to adjust with the merger and retain them.

Introduce provisions in the deal to make sure key salespeople do

not follow Snyder out of the company and began training them.

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RECOMMENDATION
S
● There should be a training program that makes both the
sales force competent of cross domain selling

● The basic pay should be increased, which is currently half of

Arck

● Have a common set rule for increment like minimum

deviation from mean which focuses on constant above
average performance

● An upper limit should be imposed for the discount rate at

maximum a sales representative can offer

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THANKYO
U!
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