Sales forcs action plan case study

Creating a formal Sales Force Action Plan.


You are the newly hired Sales Manager (even though this a group project, imagine you are just one person) for an information technology (IT) firm located here in south

Florida. You were hired because of your past experience that you detailed in your resume and in the interviewing process. What impressed the owner of the firm and the

Executive Vice President (aka me) were your knowledge of sales, account management and sales force management, based in part on your master?s degree from Nova

Southeastern University. Now just as you get started, you have been given the very difficult task of turning around a failing sales team and leading them to success.

The company sells computing equipment such as, computers servers, storage devices, and peripherals (printers, monitors, other accessories, etc.). In addition, the firm

also provides computer and network services to customers. The product mix is about 50% services and 50% equipment. The gross margins are 15% on equipment and 35% for


It is almost the end of February and the new fiscal year starts April 1. Present projections for revenues for this fiscal year ending are expected to be just over

$25,000,000. The team has been without a sales manager for over 6 months. Your boss knows little or nothing about managing this team and needs a plan of action to get

things back on track. If this trend does not improve within the next 4 to 6 months the owner will need to layoff some employees.

There are 12 salespeople on your team who are expected to generate a total of $30,000,000 in revenue per year for the firm. On average these salespeople are paid a

salary of $30,000 per year and get paid an additional commission of 2% of the revenue they generate. The top salesperson has sold $2,000,000 in revenue so far this

year up to this point.

The characteristics of the sales force are as follows: 3 of the sales people are rookies (2 started four months ago and 1 started two months ago. The other 9 have all

been with the company at least two years.

You report to the Executive Vice President of the company (me), a poor excuse for a boss. You?ll get NO ADVICE from me on the best decisions to make or directions to

take, but I may be able to help with clarification of what I need from you.

Assume you have six months to turn this negative trend around and you cannot fire anyone at during that time period, the owner will not allow it. However, after that

period if things aren?t turned around layoffs will most likely happen, starting with the new Sales Manager (you) who wasn?t able to get things turned around.

Therefore, your neck is definitely on the line.

Your mission is to write a plan to evaluate and address this challenge. Consider everything you have learned about sales, and sales force management from the text and

other readings. Complete a detailed plan of action to address the problems you face with your new sales team. This plan should include many of the important topics we

have covered during the semester including go-to-market strategy, sales force assessment, territory alignment, goals, compensation, staffing, etc. At the same time you

need to be practical. You cannot do it all and you should not cover every single detail from the text.

Get specific and don?t be afraid to be bold. Also, since you?re being held most accountable, you?ve been given complete autonomy (other than your inability to fire

anyone) to make and implement decisions as you see fit. Therefore, tell me what you will do, not what you might do! Just make sure to base recommendations/decisions on

sound judgment, research, and practicality.

It is up to you to decide what is most important, what to focus most of your time and energy on, and how to turn this team around to be a driving force in the future

of the company.

Comply with the Course Competencies (see p.1 of syllabus if needed) by covering the relevant topics in your plan as well as other relevant topic areas that we have

covered this semester.

– Use in-text citations where appropriate (for all sources ? including textbook)
– Include a References page
– In-Text Citations and References page must be APA style

? MS Word 12pt. font, Times New Roman
? Maximum 11 double-spaced pages in length

1-Briefly cover how you would size and structure the sales force.
2-Describe an effective recruiting process for the future.
3-Develop a job profile.
4-Describe a sales training program for your new team.
5-Determine the right mix for motivating this team with a compensation p