Overhauling a Vast Corporate Sales Force
Background of the Case
HP being one of the world’s most famous companies had faced problems in their corporate sales. This resulted to flattened revenues and profits as well as the dropped of their stock price. Fortunately they have Mark Hurd, their newest CEO, was trying find out the real problem and seek for possible solutions. He found out complains from customer regarding on HP’s confusing management. Their frustrating structure had a multiple layer of bureaucracy making their system very centralized and lack of customer focus. Thus, Hurd took a step to reduce inefficient salespeople and eliminated the CSG division instead divided them to the 3 divisions to ensure that each of them could spend more quality time with the customer. Also, HP assigned each salesperson three or fewer accounts and wherein the top 2,000 accounts were assigned to just one salesperson. Indeed, Hurd did not fail to accomplish his goal. HP’s revenue consistently increased its revenue and stock price. Moreover, he also acknowledged HP’s enormous size as a “strange friend" it gives the company a big portfolio of products and services. The only negative thing about it is the multiple organizational layers. Lastly, HP’s changes of structure and system made customers satisfied and salespeople productive.
How will HP sustain its long-term profitable relationships between the salespeople and their clients?
• To be able to describe and understand the scenario of HP
• To develop possible alternative courses of actions to address the problem
• To determine ways on how HP can sustain long-term profitable relationships
• To choose one of the possible courses of action that HP can implement
• Established strong brand name
• Customer-driven CEO
• A large company offering a wide array of products and services
• Increasing revenues, profits & stock price
• Competent number... [continues]
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