June 10th, 2012
Hanover-Bates Chemical Corporation Sale Management Analysis
The Hanover-Bates Chemical Corporation is a company who produces processing chemicals for the chemical plating industry. James Sprague was promoted to the northeast district sales manager for the company. Sprague sales experience was approximately 4 years which 2 were spent assisting the national sales manager. The team he will manage has a significant more experience that he does in sales. Sprague has been perceived as inexperience and it became apparent when he approached his very seasoned sales team and suggested they were doing a poor job. Jim stated during a dinner meeting that “allocation of sales effort to products and customer categories can be improved” thus making members of the team feel worthless even though some had spent 30 plus years working for the organization. The message did not resonate well with individuals who actually been selling the product much longer then he had. Carver, one of the senior members of the sales team, stated “that 34 years of experience don’t count for anything.” Based on the reading, Sprague will have to win over his teams perception of him in order execute his plan of increasing gross profits. Performance Comparison
When Sprague took over the north east district he knew there was work ahead. One senior executive mentioned to Sprague that many are expected him to fail. This was a clear sign, he was going to work with some very disgruntle employees. In the northeast district, one of his” top priorities was to conduct a sales and profit analysis in order to identify opportunities”. When evaluating performance against other districts, it came to light, the lower profit margins the district had. In fact it was one of the worst in the company. Since Gross profit is what Sprague identified as an issue, I will review Exhibit 5-5. In the north east, “A” accounts did $1,830...