Case Study 7-1
Sunrise Cleaners “To train or not to train”
Background: Sunrise cleaners company sales have been expanding rapidly. In order to meet the demand Mickie Parsons, Sunrise sales manager, has hired a number of sales representatives and expects to hire 6 to 10 salespeople in the coming year and more the following. Recently, they have been hiring recent marketing graduates but they do not have experience. However, they need more training on both company policies and sales procedures before they are effective in making sales calls. Sunrise does not have a training program, Parsons has suggested to the president of Sunrise two options. One is to hire a recruiter who would spend half of his or her time on recruiting and the other half on training. His paid salary would be $60,000 a year with an added cost of $30,000 a year. The second option is to contract with an outside company that specializes in sales force training and that would be $20,000 a week.
Strengths: Developing a new training program would be a good idea for this company. If they expect to keep growing and hiring new sales reps they should definitely advance and invest in this type of program. New sales representatives will know more about the product, competitive products, knowledge of the customers, company, business principles, legal constraints on selling, selling skills, and relationship- building skills.
Threats: If program does not work, Sunrise cleaners could be losing thousands of dollars in this program. Not having a program like this will not let the new sales reps to really learn and accept the values of the company.
Recommendations: I would have a training program. If I were to choose which option, I'd have to go with option one. Having option two, is too expensive and it will take longer to move forward. and bringing in someone outside the company can take a longer time because they will also have to teach him about the companies values and goals.
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