PACIFIC MEDICAL SUPPLY COMPANY| Case 6| | Submitted to | Samy AhmedFaculty Member: MKT 445Sales Management| Submitted by| Medhad Nasser Chowdhury082735530Section : 01| 3/24/2013| Case Background Pacific Medical Supply Company was a prominent supplier in the southern California region. They used to supply medical instruments and all other itineraries using a distribution channel consisting of sales commission based Sales force. Jim Shine, the owner of Pacific Medical, started off his career with a background of a salesman at a beach application store.His first venture into the medical supplies business commenced in a garage and slowly climbed up to be a fully fledged business covering Southern California meaning major cities such as Los Angeles. With the company growing big Jim’s role moved from sales rep to sales manager to now in a position where he focuses into the whole companies operations.
Jim had adopted a business model which ensured the company to be in the profit side of the margin. Then there was the Jim’s sales commission policies which clearly stated how the commission percentage was set. He also had a major list which stated how the sales commission would be structured.
Everything seemed fine till Jim employed his most recent and the youngest sales employee, a young business grad female person, named Nicole Landis. Nicole was very good at her job as a sales rep and brought a different meaning of the sales commission. She worked hard and climbed up the ladder in making more revenues for Jim and consequently commission for herself. Jim saw his projected figures going up my immense degree and was glad he made the decision in hiring Nicole but as time passed, Nicole’s achievement increased so did the negative perception by the other employees.Soon came a scenario where Jim realized his sales force was in jeopardy and he had failed in the sales manager’s role.
Case Analysis Nicole Landis, the youngest sales person in Jim’s sales force channel, was a young marketing graduate who had evolved into the best salesperson with the highest sales figure consequently making the highest annual sales commission. Nicole was a natural in sales if there ever was one. She could bond and rapport with anyone from purchasing agents to direct customers.
Her sales style was to nurture her customers by being honest and prepared. She approached her sales role as an expert consultant who could solve customer’s problems and fulfill needs with her products. Nicole basically put a tick on all the best traits a salesperson could have: Jim Shine’s business model was excellent as per the business’s requirement. He took up the opportunity of Chinese products having very low cost and a high margin of profit. The 80-20 profit model was formed where only 20 percent of the products sold had a 80 percent profit margin.His business model was designed with excellence with a vision very well stated. Jim Shine had his business running with a sales force for a distribution channel. He believed his sales commission structure was well to do till one of his employees Nicole Landis maximized her sales productivity and cracks started being visible in Jim’s commission structure.
It was seen, while making the structure Jim put up lucrative commission percentages on high quantity of products sold as he never thought any employee would outperform those sales targets.Jim Shine never realized a sales manager’s role stands very effective if there is an unbalance in the sales force. He found Nicole’s extravagant performance very superb as with the sales figures running high his profits increased consequently. Jim made sure all operations were going smooth nevertheless moving a long way from his Sales Manager’s Role.
His whole sales force was getting jeopardized and the companies alignment was getting weaker. Case ConclusionFirst Jim Shine should strengthen his Sales managerial role and bringing in stability in his Sales force. He should look into Nicole’s situation and bring about a sustainable decision where his best employee Nicole can be retained. He should see if he himself is capable in sustaining the sales managerial role or he should look for a new manager. He should see how can he bring the traits seen in Nicole into the other employees.
He should balance the two ideas of making Nicole a manager or bring about a complete re-engineering in his sales commission structure.