MCC: Plan for the Increase in Sales between Foreign Countries
MCC Case Study
The first thing I noticed in the case was how well MCC began to plan for the increase in sales between foreign countries. They realized international coordination must be addressed and assembled centrally coordinated policies for human resources, sales, and marketing. With this plan of action they hoped to increase customer satisfaction as well because they too are internationalizing in many cases. Again, a great start, but unfortunately soon to fail.
In order to maintain sales, MCC targeted their employees and enacted a new rewards system. This rewards system was a huge flop for many reasons. First of all, a day to day performance pay is far too unpredictable. It can be intimidating to employees and cause uncertainty. Some work better in groups or as a team and would accomplish more with others rather than competing in the workplace. Also, what if something were to happen in ones life that prohibits maximum performance? This was the case for Clara and Peter who worked for the Swedish software company. Clara has two children and lost her husband this past year causing lots of stress on her leading to a decrease in performance. Peter isn’t happy either. His marriage is dwindling and finances are low which in turn decreased his performance. Unfortunately for them, weak performance equals weak pay, only bringing them down further. No wonder why their best employees left along with the other five after the rewards system had been enacted for a year. MCC needs to take a hint after the first year, listen to their employee’s feedback, and enact a new system that ties performance as a whole. Clearly individualism isn’t working in this case and they need to reevaluate their restraining and driving forces. Luckily, Mr. Johnson came along to present his ideas on motivating the sales force.
During the much needed meeting in Milan, Mr. Johnson wants everyone to be on the same level but approaches them wrongly. Normally, when you call a meeting to reason
The first thing I noticed in the case was how well MCC began to plan for the increase in sales between foreign countries. They realized international coordination must be addressed and assembled centrally coordinated policies for human resources, sales, and marketing. With this plan of action they hoped to increase customer satisfaction as well because they too are internationalizing in many cases. Again, a great start, but unfortunately soon to fail.
In order to maintain sales, MCC targeted their employees and enacted a new rewards system. This rewards system was a huge flop for many reasons. First of all, a day to day performance pay is far too unpredictable. It can be intimidating to employees and cause uncertainty. Some work better in groups or as a team and would accomplish more with others rather than competing in the workplace. Also, what if something were to happen in ones life that prohibits maximum performance? This was the case for Clara and Peter who worked for the Swedish software company. Clara has two children and lost her husband this past year causing lots of stress on her leading to a decrease in performance. Peter isn’t happy either. His marriage is dwindling and finances are low which in turn decreased his performance. Unfortunately for them, weak performance equals weak pay, only bringing them down further. No wonder why their best employees left along with the other five after the rewards system had been enacted for a year. MCC needs to take a hint after the first year, listen to their employee’s feedback, and enact a new system that ties performance as a whole. Clearly individualism isn’t working in this case and they need to reevaluate their restraining and driving forces. Luckily, Mr. Johnson came along to present his ideas on motivating the sales force.
During the much needed meeting in Milan, Mr. Johnson wants everyone to be on the same level but approaches them wrongly. Normally, when you call a meeting to reason