Sales and Distribution
World Wide Equipment |
World Wide Equipment is UK based multinational in the heating air conditioning and ventilation industry, it has been rated as one of the most innovative companies in the particular sector, and the company majorly deals in B2B, like hospitals shopping malls, hotels. As mentioned above World Wide Equipment is a multinational company so it has one of its branches situated in China and the firm has had an enormous growth in the span of 20 years going from an ordinary US$6 million to a staggering US$ 70 million.
World Wide Equipment relished a premium brand image in China and had priced its chillers on a higher note , not only were they selling higher than the local manufactures and the joint venture companies ,but 10% higher than their international counterpart. The unique selling point of the products are they are the most energy efficient products amongst all its major competitors both locally and internationally and to its advantage company had a much larger customer base as compared and the reason being that they were early entrant. World Wide Equipment China was part of the Asia –Pacific area office located in Hong Kong and within China they had three sales offices in mainland china namely Beijing, Shanghai and Guangzhou. Frank Wang the regional sales manager of the Beijing office had received a fax of the half yearly sales performance for the three offices and it was seen that Beijing office ranked third in the list and it was a reason to worry as the Beijing office had always been rated as one of the most consistent out of the three.
The Decision Dilemma – Frank Wang the regional sales manager has a task in front of him, and those are the decisions that he has to come up with in order to put his sales team right on track. Wang has a few immediate and long term issues that have to be addressed. The immediate issue that he has to address is the low sales performance of his employees, the drop in the sales performance was due to loosing large tenders on trot and it was just not about losing, it was about coming very close to the deal and losing it out at the last moment, this was somehow tampering the morale of the whole sales team. Generally there are two options for any team which loose the close calls, either they are motivated to do better or their morale go down like in the case of sales team in World Wide Equipment. If the reports are to be believed, the major cause of failure has been courtesy Li Weimin. Li Weimen was suggested by Frank Wang’s boss Frank Yu and was recommended because of his experience in the textile industry since textile was the genre that the company wanted to venture into. However the inclusion of Weimen was less on his merits and more because of recommendation, Weimen had more of contacts rather than skills and his inclusion was not much of help as it was witnessed later on, that the inclusion had taken a toll on the overall performance of the sales team, though it would be unfair to blame him all alone, because one individual does not create a sales team, but one individual is enough to spoil a going on deal, which was the case with World Wide Equipment. Weimen was one of the, major reasons for the failure of two of the most important deals. One of the major decisions that Wang has to make here is that what he does with Weimen, who was a recommendation from his boss, what Wang needs to decide here whether he would want Weimen to shift to Guangzhou where actually all recourses can be put to work because of his influence in that region, where as he had no influence in Beijing what so ever. Since Wang had never got the need of firing any of his sales persons, so he would want to shift Weimen out of the Beijing office, as it had been bothering the rest of the staff as well. So his first major decision is to get Weimen not fired but shift him...