Tom's Company case study

Topics: Sales, Sales management, Customer service Pages: 6 (3021 words) Published: November 3, 2014

2045970-2969895
An assignment focused on the whole knowledge from the course of Sales and Purchasing Management Presented to the professor of Sales
&Purchasing Management
Dr. Christoph von Gamm
By: Anel Nussupbayeva(5.02.2014)
1st Task.
How much revenue in total is Tom supposed to make every year Integrated Accounts = $ 100mln * 50 clients = $ 5 blnClustered accounts = $ 20 mln * 500 clients = $ 10 blnSMB = $ 5mln * 5000 clients = S 25 blnTotal Revenue = $ 5 bln+$ 10 bln+$ 25 bln = $ 40 blnPlease provide a breakdown of how much sales budget Tom does have per Integrated Account, per Account Cluster and per SMB Cluster. How many sales people does Tom have reporting into him, overall? What should Tom especially focus on, in order to make this structure work? Sales Budget        

   Integrated Account  Account Cluster  SMB Cluster  
Clients 50 500 5000  
Revenue per account $100,000,000.00 $20,000,000.00 $5,000,000.00   Gross profit per account $40,000,000.00 $9,000,000.00 $2,500,000.00   Sales cost per account $1,600,000.00 $270,000.00 $50,000.00           TOTAL

Revenue total $5,000,000,000.00 $10,000,000,000.00 $25,000,000,000.00 $40,000,000,000.00 Gross profit total $2,000,000,000.00 $4,500,000,000.00 $12,500,000,000.00 $19,000,000,000.00 Sales cost total $80,000,000.00 $135,000,000.00 $250,000,000.00 $465,000,000.00   Integrated Clustered SMB

Calls per year 400 400 150
Time per Call 3 2 1
Total clients: 50 500 5000
       
Total time: 60000 400000 750000
       
Selling time: 20% 35% 50%
Internal staff time: 30% 25% 0%
Travelling time: 50% 40% 50%
       
Total time available: 100% 100% 100%
       
Total working hours available: 1760 1760 1760
Total selling hours available: 352 616 880
       
Total sales people needed: 170.45 649.35 852.27
       
Total sales people needed: 1672.08    
In order to make this structure work in the company, Tom should at first make a forecast, because it’s important for giant multinational companies, since forecast of sales potential becomes a starting point for sales, marketing, financial, human recourses planning, capital investment, resource planning and budgeting. The forecast will help to find out how many workforce (salespeople, managers and etc) is needed to implement the new project, also it will help company to avoid problems like huge expenses, underestimated demand and etc. An effective, flexible, adequate organization structure is necessary to achieve sales goals, objectives and effectively allocate the budget and capital needed to have success in the project. Also, for Tom is necessary to prepare a salesperson workload analysis in order to estimate the time and effort required to cover each geographic area. What are the determining factors that determine the amount of money an individual sales person can make within this structural setting? (4 points of 100) Please show this alongside a calculated example Number of calls

The duration of the call
Travelling and other non-selling time spent of the whole working time available External factors could also influence the amount of money that each individual could earn such as inflation rate, economy growth, governmental changes ( some regulations, taxes, subsidiaries and etc) Tom has realized that the clients are becoming more and more global and at the same time, the buying decisions are dispersed across the world. Especially in the integrated accounts, the sales team is travelling from New York to Shanghai, Munich and Johannesburg. There are some who spend more time on the airplane than even in the office. He thinks this has to stop. What possibilities does Tom have to overcome this? How would this affect the sales teams, how can he structure the sales teams to increase sales productivity? In fact, travel time varies from one region to another depending on transportation, highway congestion, weather conditions, and the density of present and potential accounts. In order to minimize...
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