1. Holden electricals
• Explanation of this case study
• This case study describes the recruiting challenges faced by Holden Electrical Supplies Company, a
manufacturer of electrical equipment. The company has seen a significant increase in sales over the past
eight years, but has struggled to recruit and retain enough sales personnel to keep up with the growth. The
recruiting problem is compounded by a decline in the number of college seniors interested in sales careers,
as well as increased competition from other companies. The company's recruiting methods have been
evaluated, with some district managers suggesting changes to the current college recruiting program, while
others propose abandoning it altogether and recruiting from other sources. The general sales managers
propose recruiting from the current sales force, while the president suggests internal recruiting from non-
selling divisions such as engineering, design and manufacturing. The case highlights the importance of a
continuous recruiting program for any company to attract suitable employees
2. Problem statement
1. Holden Electrical Supplies Company is facing a problem in recruiting new sales personnel to keep up with
the growth in sales volume and plant expansion.
2. The company is experiencing a decline in the number of college seniors interested in a selling career, as
well as increased competition for good young salespeople from other companies.
3. The current college recruiting program is costly and has a low acceptance rate, leading to questions about
its effectiveness.
4. There is a debate within the company over the best approach to recruiting new sales personnel, with some
favoring internal recruiting and others advocating for different methods.
5. There is a need for a comprehensive analysis of Holden's entire personnel recruiting program in order to
address the company's difficulty in attracting satisfactory people to the sales organization.
3. Use of concepts and applications of sales and
distribution management in marketing
• In order to solve the recruiting problem faced by Holden Electrical Supplies Company, the company can utilize concepts and applications of sales and distribution
management in marketing.
• One approach would be to focus on internal recruiting by utilizing the support of the current sales force to identify and recruit potential candidates. This approach
would allow the company to tap into the knowledge and experience of the sales force, who are already familiar with the requirements for selling the Holden line.
• Another approach would be to focus on recruiting from non-selling divisions within the company, such as engineering, design, and manufacturing. This approach
would leverage the familiarity and proven abilities of these employees as indicators of potential success as sales engineers.
• Another alternative is to focus on college recruiting program, but with some modifications such as recruiting college juniors for the summer employment more or
less on a trial basis, concentrating on fewer schools, and getting on friendly terms with placement directors and professors.
• Regardless of the approach chosen, it is crucial that the company implement a continuous program to attract satisfactory people to the sales organization. This
could involve regularly reviewing and updating recruiting methods, tracking recruitment costs and conversion rates, and conducting regular evaluations of the
effectiveness of the program.
• Additionally, it is important for Holden to have a clear understanding of the skills and qualifications required for sales engineers and to develop a comprehensive
training and development program for new hires. This will help to ensure that new recruits are able to effectively contribute to the company's sales operations.
• Overall, by utilizing concepts and applications of sales and distribution management in marketing, Holden can effectively address their recruiting problem and
ensure that their sales operations are well-staffed with qualified and competent sales engineers.
•
4. Case analysis
• The Holden Electrical Supplies Company is facing a recruiting problem as they need to hire more sales personnel to keep up with
the increase in sales volume and expansion of their plant. The problem is compounded by a decline in the number of college
seniors interested in a selling career and increased competition from other companies for talented young people.
• The company currently relies on recruiting college graduates from engineering colleges, but this method has proven to be costly
and not very effective, with only 5% of candidates interviewed accepting employment with Holden. District sales managers have
different opinions on how to handle this problem, with some suggesting that the company should discontinue college recruiting
and others suggesting modifications such as recruiting college juniors for summer employment and focusing on fewer schools.
• The general sales managers favor abandoning the college recruiting program and instead adopting an active recruiting program
utilizing other sources, such as current sales engineers and non-selling divisions within the company, such as engineering, design,
and manufacturing. The president also prefers internal recruiting from non-selling divisions, citing their familiarity with Holden and
their proven abilities as indicators of potential success as sales engineers.
• Overall, it appears that Holden needs to conduct a complete analysis of their entire personnel recruiting program and consider
different approaches to attract satisfactory people to the sales organization. It is important that they have a continuous program in
place to address this issue.
5. Recommendation for this case study
• Based on the information provided in the case study, it is recommended that Holden Electrical Supplies Company
conducts a complete analysis of their entire personnel recruiting program and considers a combination of different
recruiting methods.
• First, the company should consider continuing the college recruiting program, but with a few modifications such as
recruiting college juniors for the summer employment on a trial basis, focusing on fewer schools, and building
relationships with placement directors and professors. This will help to reduce the high cost of recruiting and
increase the success rate of hiring qualified candidates.
• Additionally, the company should also consider implementing an active recruiting program utilizing other sources,
such as recruiting from the sales force and other non-selling divisions within the company. This will help to identify
potential candidates who have a good understanding of the company's requirements and are familiar with the
Holden line.
• Finally, it is important that the company establishes a continuous program to attract satisfactory people to the sales
organization. This can be achieved by regularly reviewing and updating the recruiting methods, providing training
and development opportunities, and building a positive company culture that attracts top talent.
6. Summary of this case study
• Holden Electrical Supplies Company is a manufacturer of electrical equipment based in Cincinnati, Ohio.
They have a sales force of 200 people operating out of 20 offices across the country, and have seen a 50%
increase in sales over the past eight years. However, they are facing a problem with recruiting new
salespeople due to a decline in the number of college students interested in a selling career and increased
competition for candidates. Management has ordered an evaluation of recruiting methods, which includes
input from district managers and general sales managers. The options being considered include continuing
the current college recruiting program with modifications, using internal recruiting from other divisions of
the company, and using the current sales force to recruit new sales engineers. Regardless of the approach
chosen, it is important for the company to have a continuous program to attract satisfactory people to the
sales organization.
•
7. Case 2 Questions: Evaluate Holden’s recruiting program, suggesting whether or
not the company should have continued in college recruiting of sales engineers.
• Holden Electrical Supplies Company's recruiting program for sales engineers appears to be facing several challenges, including a
decrease in the number of college seniors interested in a selling career, increased competition for talent, and high costs associated
with the current program. Additionally, district sales managers and general sales managers have expressed concerns about the
effectiveness of the college recruiting program, citing issues such as lack of experience and maturity among candidates, as well as
the time and resources required to recruit from engineering colleges.
• Given these challenges, it may be worth considering alternative recruiting strategies for Holden. One possibility is to focus on
internal recruiting, utilizing the existing sales force or other non-selling divisions within the company as a source of potential sales
engineers. This approach could potentially benefit from the candidates' familiarity with Holden and their proven abilities within
the company.
• Another possibility is to adopt an active recruiting program that utilizes other sources beyond college recruiting. This could involve
reaching out to potential candidates through networking, job fairs, or other recruitment events. Additionally, the company may
consider offering summer internships to college juniors as a way to identify and evaluate potential sales engineers.
• Overall, it appears that Holden's college recruiting program for sales engineers may not be as effective as it could be, given the
high costs and low acceptance rate among candidates. However, it is also important for the company to have a continuous
program in place to attract satisfactory people to the sales organization. Therefore, it is suggested that the company conduct a
complete analysis of the entire personnel recruiting program and explore alternative recruiting strategies that could potentially be
more effective in addressing the company's recruiting challenges.
