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Study tour report

  1. 1. Rennes International School of Business ESC RENNESExecutive Master of Business Administration EMBA COHORT 1 (2003 - 2004) Study Tour Report Conducted by: Dr. Laurence Lambert Study Tour By Magdy A. Sattar July, 2003 Cairo, Egypt
  2. 2. TABLE OF CONTENTSIntroduction & Objective IIPart 1. Visit Overall Overview 1 1-1 Organization 1 1-2 Culture 1 1-3 Human Relation 1 1-4 Business environment 2 1-5 Points Of Interest 2Part 2. Sales Management 3 2-1 Fundamentals 3 2-2 Menatel Sales Management 3 2-3 Legris Sales Management 5 2-4 Points of improvement 7Part 3. Conclusion & Recommendation 8 IEMBA CairoRennes International School of Business
  3. 3. INTRODUCTION & OBJECTIVEThe purpose of this report is to have an overall overview of the study tour to Rennes(France) covering in the first part all its dimensions: cultural, business, organizational,human relations…stressing my points of interest and also indicating what could betransferred to my business environment at Egypt. In the second part I will identify themain fundamentals for sales management I have identified in the visits and in the endcomparing sales management style for Legris and my company, and the points ofimprovement for both companies. IIEMBA CairoRennes International School of Business
  4. 4. Part 1. VISIT OVERALL OVERVIEW1-1. ORGANIZATIONThe beginning of this memorable trip was not so promising. As my colleague Abd ElHameed and I were facing problems in getting our visa due to some clerical mistakes,we went to the French embassy early this morning to solve this problem. After thisobstacle in our tour –way was removed, our flight took off from Cairo internationalAirport at exactly 12:30PM. From this time, until we went back to the same airportthe most significant thing about the organization of the tour was time utilization.Due to the occurrence of the weekend in our visit agenda, and to make sure that webenefit from our tour, we had a very busy schedule –something we as mangers areused to – sight seeing, lectures even leisure time or tours were according to thisschedule which was very impressive.1-2. CULTUREFrance is known as a homeland of arts and culture. My visit to Rennes, Brittany’shistorical capital enhanced this knowledge with the memorable personal experience.One cannot help noticing the harmony between the modern buildings and thehistorical ones, preserving the province’s historical identity. As much as preserving anational identity seems to be a priority in the French culture respecting individualvariances and religious, political, and personal liberties is cherished as well. Thisrespect of individual variances is shown clearly in the diverse of races living alongwith the French mingling with them to the extent that I found it very hard todifferentiate and identify French people among others. One also cannot help noticing the high sense of the value of time. Work time orleisure time, is very well planned and applied. Equality in rights and duties betweenmen and women is strictly applied to the extent that no consideration of gender is putin mind when job tasks and nature are decided.1-3. HUMAN RELATIONSPeople of the Mediterranean are known for their warm feelings and mild temper. Thisincludes French people, the hospitality, and warm welcoming we have received fromMrs. Nadine `s family on dinner in her house was very much touching and reflectingthe simple small French family’s image. The sense of humor and how to receive,sometimes participate in a practical joke is also a characteristic of the Mediterraneanpeople. French people included, one of the waiters in a pizza restaurant we weredinning in noticed how we were teasing our colleague Yasser he participated in afunny and polite way to our joke, in a way that made us feel as if we were home inEgypt.One more thing reminded me of Egypt is the difference in the life style and humanrelations between the Brittany province and Paris the capital. While the former hasthe rather intimate, warm, and quite nature, the latter is distinguished by its speedy,distantly and noisy style 1EMBA CairoRennes International School of Business
  5. 5. 1-4. BUSINESS ENVIRONMENTS  The effective presence of the Chamber of Commerce beside the academy in Rennes reflects the belief in the integrated role of academic studies and the practical application in the field of business.  I was impressed- in fact, our whole group were impressed-by the reception thrown on our honor by the city council of Rennes. This reception attended by the person in charge of the external affaires reflects the government strategy of global economy and communication through every possible channel.  The technology by which historical castles such as Mont-Saint Michel and buildings such as The Cathedral Of St. Peter and the house of Parliament of Brittany are maintained and represented to the tourist is very modern yet it preserves the epical spirit of the place. Maps, pamphlets, effective means of transportation and special offers or promotions for tourists reflect the special care given to tourism considering it as an important source of income, and to the tourist as a customer which his loyalty and satisfaction from his tour must be gained.  In the two field visits to the factories of Legris`s Industries and La Française Des Plastiques, I have noticed that working women from all age categories outnumber working men, also the outstanding care given to maintain a clean Environment as much as possible was very impressive.  France being one of the modern world industrial countries the average income is high but so is the living standard.1-5. POINTS OF INTERESTWhat interested me most in this visit are two points  Time management to achieve maximum utilization  Expressing and communicating culture to others in a very simple and modern way yet preserving the unique and epical identity of this culture 2EMBA CairoRennes International School of Business
  6. 6. Part 2. SALES MANAGEMENT2-1. FUNDAMENTALSThe basic two elements in sales management are building or designing the sales forceand managing this sales force or department.2-1-1. HOW TO DESIGN A SALES FORCE?To design a sales force we need to recognize the followings:1- Objectives include prospecting, targeting, communicating, selling, servicing,information gathering and allocating.2- Strategy by choosing the mix of selling approaches that is most effective.3- Structure is mainly depends on dividing territories by geography, product, ormarket (or some combination of these elements).4- Size estimating the total workload and how many sales hours (and hencesalespeople) will be needed.5- Compensation mainly depends on determining what types of salaries,commissions, bonuses, expense accounts, and benefits to be given, and how muchweight customer satisfaction should have in determining total compensation.2-1-2. HOW TO MANAGE A SALES FORCE?1- Recruiting, and selecting sales representatives.2- Training, the representatives on sales techniques and on the company’s products,policies, and customer-satisfaction orientation.3- Supervising, how to supervise the sales force and help representatives to use theirtime efficiently.4- Motivating, how to motivate the sales force, and balancing quotas, monetaryrewards, and supplementary motivators.5- Evaluating, how to evaluate individual and group sales performance.2-2. MENATEL SALES MANAGEMENT2-2-1. MENATELMenatel is a joint stock company under investment low number 8/1997 registered in1998 under number 314030. Menatel is granted a ten years; renewable license, toinstall, operate, and manage a telecommunication network of at least 33,000 publicpayphone. Menatel is determined to achieve this target by the end of 2004. Egyptian 3EMBA CairoRennes International School of Business
  7. 7. shares are 51% and foreign shares are 49%. France Telecom (FCR) -providingMenatel with the know-how technology and management- holds the main foreignshares, which is 44 %. The main Egyptian company with 18% share is the NationalBank Of Egypt (NBE).2-2-2. HOW DID MENATEL DESIGN ITS SALES FORCE?1- Objectives.Menatel sales force objectives are clear and communicated to all; the sales force is toachieve the followings: *Achieving the pre-set cards sales target. *Maintaining and enhancing relations with the distributors’ network. *To characterizes Menatel card by, availability, accessibility, and acceptability.2- Strategy.Menatel sales force strategy is to have a point of sales around each payphone and inmain public areas elsewhere.3- Structure.Menatel structured its sales into 75 % indirect sales through distributors and 25 %direct sales through Menatel sales representatives. For both, direct and indirect sales,territories are divided by geographical locations.4- Size.For indirect sales Menatel has 7 main distributors and 13 sub-distributors to cover 7different regions all over Egypt, for direct sales Menatel has 120 sales representativesreporting to 5 branches and the head office to fulfill the uncovered locations withMenatel cards.5- Compensation.Menatel implemented compensation plan that combine fixed and variable pay whichall in all bear with the “going market price”, for the fixed amount, a salary is intendedto satisfy the representative’s need for income stability, for the variable amount,commission and the annual profit sharing, are intended to stimulate and rewardgreater effort, in addition to transportation allowances to cover the salesrepresentative’s car expenses and medical insurance.2-2-3. HOW DO MENATEL MANAGE ITS SALES FORCE?1- Recruiting.At the heart of a successful sales force is the selection of effective representatives.Menatel sales management developed its selection criteria and insist on choosing thenewly graduates or the ones with no sales experience before to buildup Menatelunique sales force. The selection procedures start by examining all the applicant’sdocuments through, then two or three interviews (HR, Personal, Sales Supervisor),finally an interview with the sales manager. 4EMBA CairoRennes International School of Business
  8. 8. 2- Training.Menatel buildup its unique training module for the sales force, the sales manager withthe help of all sales supervisor are in charge of implementing and adapting thistraining module to all the newly representatives, also to recharge the oldrepresentatives’ selling and personal skills through monthly workshop, to insure thatMenatel sales representative is not just a salesman, he is a solution vender. We sellcustomer satisfaction.3- Supervising.The supervision role at Menatel is substantial due to the nature of Menatel sales forceobjectives, also Menatel sales supervisors have important role in evaluating,motivating and training the sales representatives. Menatel sales supervisors areresponsible for fulfilling daily, weekly and monthly reports to help their teamsunderstand how they manage their time and how they might increase theirproductivity effectively.4- Motivating.In general almost all salesmen are motivated by pay (commissions) and less motivatedby verbal appreciation and job-security, unfortunately at Menatel sales representativesare motivated by verbal appreciation and job- security, as Menatel commissionspolicy is not clear or fair enough to the sales people that is why the sales annualturnover for Menatel is considerably high.5- Evaluating.Good feed-forward (recruiting, training, supervision, motivation) requires goodfeedback, which means getting information from the sales representatives to evaluatetheir performance. At Menatel the sales reports (daily, weekly, monthly) are the toolsto collect information to measure the sales reps performance, in addition to the annualappraisal form (designed specially for sales reps), Menatel can point key indicators ofsales revenue and sales representatives` performance, which enable Menatel to tune oradjust the sales force performance to serve Menatel objectives.2-3. LEGRIS SALES MANAGEMENT2-3-1. LEGRIS.Legris Industries is a diversified industrial group (Legris, Comap, Savoye) whoseexpertise extends from design to production, engineering and marketing with a steadyincreasing service component. Since its foundation in1987, Legris Industries haspursued a business-to-business industrial strategy, investing new resources to buildleading position on European and worldwide markets. Backed by a worldwidenetwork of distributors, Legris designs, manufactures and markets value-addedsolutions for the distribution of industrial fluids. Building on their core know-how ininstant fittings they have developed strong positions in three areas; Industrial Fittings(Legris Connectic), Compressed Air System (Legris Transair) and AutomotiveFittings (Legris Autoline). Legris is number one worldwide in instant fittings forcompressed-air circuits. 5EMBA CairoRennes International School of Business
  9. 9. 2-3-2 HOW DID LEGRIS DESIGN ITS SALES FORCE?1- ObjectivesLegris objectives are; * To offer connecting solutions for industrial fluids. * To be close to the market wherever in the world. * To adapt their production to all the requirements. * To meet the needs of numerous industrial fields.2- StrategyLegris strategy is to focus on international niche markets where they can stake outleading positions to generate lasting profits. In addition, maintain extensive researchand products innovation in order to offer new solutions and wider applications for itscustomers.3- StructureLegris structured its sales into 87 % indirect sales through distributors and 13 % directsales through Legris sales representatives. For both, direct and indirect sales,territories are divided geographically.4- SizeFor Legris sales force size they have 22 sales subsidiaries in Europe, America, Asia,Oceania, agents on the four continents, more than 1000 distributors and 2500 salespoints in the world.5- CompensationClearly defined methods are applied to track labor market and wage trends with aview to ensure that the fixed compensation of Group employees is at least equal to theminimum in the relevant segment. Variable compensation is based on an equallymethodical approach to ensure proper recognition for both individual and joint effortsthrough bonus, profit sharing, employee share ownership schemes and otherarrangements.2-3-3. HOW DO LEGRIS MANAGE ITS SALES FORCE?1- RecruitingLegris industries are international group employing nearly 3,200 people from 30countries. Initiatives to attract young talent to the world of industry include a presenceat trade fair plus ongoing contacts with schools, universities and training centers.They are also very active in professional associations.2- TrainingLegris invest heavily in training- nearly 3% of total personal expenses- that covers notonly specific job qualifications, basic or advanced, but also opportunities for personaldevelopment through the acquisition of management know-how and other skillswhich add to the career potential within employees’ own division or another sectionof the Group. 6EMBA CairoRennes International School of Business
  10. 10. 3- SupervisingLegris put its sales force online with a software system that gives its sales people aconstant supply of information about the company and the people they are dealingwith. Using laptop computers, each salesman can access three types of programs; onegives them a set of generic tools, second to provide them with products informationand the third to provide them with all customer information, in order to answer allcustomer needs with a few keystrokes. This system in addition to the compensationpolicy allows Legris to supervise their sales force remotely.4- MotivatingAt Legris the sales force are paid mostly on commission. This fact is what mostlymotivates the sales people in Legris. Legris also motivates its sales force and gainstheir loyalty by insuring other benefits to their end (insurance, profit share and otherarrangements).5- EvaluatingUnfortunately I have no specific data concerning how Legris evaluate its sales forcebut for sure their policy of evaluation is based on three main points, the achievedtarget, the sales reports (daily, weekly, monthly) and the normal annual appraisal.2-4. POINTS OF IMPROVEMENTSFor Menatel the need to improve its motivation policy by improving Menatelcompensation policy and rely more on the most effective motivator for all salespeople whish is commissions. For Legris the need to improve the size of their networkand to have effective availability in the African market. Also they need to have moreface-to-face communication between the sales men and their supervisor. 7EMBA CairoRennes International School of Business
  11. 11. Part 3. CONCLUSION AND RECOMMENDATIONSI strongly believe that this well organized and memorable tour came just in time forme to enhance my professional skills as a manger, my conceptual skills as a person,and my academic skills as a scholar with the personal and live experience of day-to-day life of a foreign modern country such as France.This is mainly why I strongly recommend another study tour in an advanced stage ofthe EMBA. As we will be more able not only to receive as in the first tour but also toparticipate and apply what we have learned.I suggest that The Strategy module scheduled in the last of the EMBA should takeplace in the academy of Rennes were we could participate in a workshop with Frenchmangers and perhaps share experiences with them professional, conceptual andacademically. 8EMBA CairoRennes International School of Business