Valley Winery Case Study
Case One:
Valley Winery
Valley Winery, a favorable wine company, hired Pat Waller as their sales manager of the San Francisco region’s chain division. Although the company has had increasing sales for the past several years, Valley Winery has its fair share of problems that have Waller worried. He is very aware of the competitiveness within the wine industry and is concerned that Valley Winery will not be able to continue consistently increasing their sales.
Turnover rate is the number one issue at Valley Winery. Every problem the company has bleeds into the turnover rate. The company’s turnover rate is currently at almost 100 percent a year; this is a huge issue that Waller must address. The existing sales rep employment average is seven months. There are many things that could be causing this problem. Often, sales reps are leaving the company quickly because they can’t meet their quotas. Hiring issues, which will be addressed later, are another contributing cause of the high turnover rate.
Sales reps’ aggressive attitudes are another issue that Waller will have to address. The Valley Winery as a whole is receiving negative feedback. Sales reps are not “playing fair” when it comes to competition. They have been known to tamper with competitors’ merchandise, misrepresent displays, and exaggerate their quotas. The root of these aggressive behaviors lies in the unrealistic quotas sales reps are given. The quotas given to sales reps are nearly impossible to meet each month, so they rely on shortcuts to sell more products each month. While Waller was on the job with Marv Flanigan, he asked him why he was exaggerating sales quotas. Waller was told that Marv’s current manager advised him to stretch his estimates because it is the only way he can meet his numbers each month. This means that not only are the sales reps exaggerating quotas and being aggressive, but also that upper management is encouraging dishonest behavior.
The third issue is hiring, which is
Valley Winery
Valley Winery, a favorable wine company, hired Pat Waller as their sales manager of the San Francisco region’s chain division. Although the company has had increasing sales for the past several years, Valley Winery has its fair share of problems that have Waller worried. He is very aware of the competitiveness within the wine industry and is concerned that Valley Winery will not be able to continue consistently increasing their sales.
Turnover rate is the number one issue at Valley Winery. Every problem the company has bleeds into the turnover rate. The company’s turnover rate is currently at almost 100 percent a year; this is a huge issue that Waller must address. The existing sales rep employment average is seven months. There are many things that could be causing this problem. Often, sales reps are leaving the company quickly because they can’t meet their quotas. Hiring issues, which will be addressed later, are another contributing cause of the high turnover rate.
Sales reps’ aggressive attitudes are another issue that Waller will have to address. The Valley Winery as a whole is receiving negative feedback. Sales reps are not “playing fair” when it comes to competition. They have been known to tamper with competitors’ merchandise, misrepresent displays, and exaggerate their quotas. The root of these aggressive behaviors lies in the unrealistic quotas sales reps are given. The quotas given to sales reps are nearly impossible to meet each month, so they rely on shortcuts to sell more products each month. While Waller was on the job with Marv Flanigan, he asked him why he was exaggerating sales quotas. Waller was told that Marv’s current manager advised him to stretch his estimates because it is the only way he can meet his numbers each month. This means that not only are the sales reps exaggerating quotas and being aggressive, but also that upper management is encouraging dishonest behavior.
The third issue is hiring, which is