Crestlight Paper Com. is witnessing widespread restructuring initiated by Farrel, including replacing the Divisional Sales Manager Wesley with the greenhorn Andrew. Andrew needs to focus on improving salesforce performance and rationalizing sales territories. Based on objective metrics like profit contribution, sales expenses, call conversion rates, and subjective metrics like experience, Prince and Vereker performed the worst and Andrew should gradually replace Prince and replace Vereker. Territories also need rerationalizing based on accounts rather than pupils.
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Crestlight Paper Company
1. Crestlight Paper Com.
Case Analysis
SDM, NMP Term IV
Group 5
Abhijeet Tomar - 03
Argha Ray - 15
Khushal Malik - 28
Vipin Kathuria– 59
2. Context
• Crestlight’s paper division has 3 product lines and approximately 20% market
share in 1998. (Exhibit 1: 1460/7100)
• Farrel is a man in hurry.
• Crestlight witnessing widespread restructuring in the Education Division
initiated by Farrel.
• Replaces Divisional Sales Manager Wesley with greenhorn Andrew.
• Andrew needs to focus on Salesforce performance and territory rationalization.
3. Yardsticks:
• Widely admired Wesley being forced into retirement may have
undesirable repercussions on existing salesforce.
• Andrew has limited managerial experience in sales and historically
confused about his career direction.
• At 28, Andrew will have to lead a team much more senior to him.
• Limited handover from Wesley to acclimatize Andrew.
• Andrew will have to navigate on his own against the wind based on a few
valuable advice from Wesley.
5. Still More Objectivity:
Salesman Calls Made Expenses Cost by Call Rank
Anderson 1450 5820 4.0 1
Halbert 1230 5940 4.8 2
Prince 1196 7800 6.5 3
Jennings 1168 8430 7.2 4
Thomson 1220 9600 7.9 5
Vereker 1409 11460 8.1 6
Randall 1171 10200 8.7 7
Campbell 1135 9900 8.7 8
Bindon 1051 15030 14.3 9
Expense per Call Ratio Ranking
Salesman Accounts Sold Calls Made Orders By Calls Rank
Bindon 476 1051 0.45 1
Jennings 509 1168 0.44 2
Prince 413 1196 0.35 3
Thomson 364 1220 0.30 4
Campbell 317 1135 0.28 5
Anderson 398 1450 0.27 6
Vereker 353 1409 0.25 7
Halbert 239 1230 0.19 8
Randall 202 1171 0.17 9
Batting Average (Orders per Call - Hit Ratio) Ranking
Salesman Sales 1998 Accounts Sold Sales By Account Rank
Halbert 258000 239 1079.5 1
Randall 142000 202 703.0 2
Jennings 239000 509 469.5 3
Campbell 143000 317 451.1 4
Prince 154000 413 372.9 5
Thomson 123000 364 337.9 6
Bindon 156000 476 327.7 7
Vereker 112000 353 317.3 8
Anderson 112000 398 281.4 9
Sales per Account Ratio (Average Order Size) Ranking
6. Overall Objective Ranking:
• Vereker and Randall needs a rap on the knuckle.
• Bindon needs to be told to cut down expenses.
• Halbert needs a shake up on call conversion.
• Both Jennings and Prince are top draw.
• Equal weightage method considered to arrive at overall rank.
Salesman PBTRank PenetrationRank SalesExpenseRank ExpenseperCallRank BattingAvgRank AvgOrderSizeRank Total OverallObjectiveRank
Jennings 1 7 2 4 2 3 19 1
Prince 3 2 3 3 3 5 19 2
Halbert 2 8 1 2 8 1 22 3
Thomson 6 1 7 5 4 6 29 4
Campbell 5 3 5 8 5 4 30 5
Anderson 9 4 4 1 6 9 33 6
Bindon 4 6 8 9 1 7 35 7
Randall 7 9 6 7 9 2 40 8
Vereker 8 5 9 6 7 8 43 9
7. Subjective Rating:
• Vereker again performs poorly. Prince follows close behind.
• Prince nullifies his lead in objective criteria to subjective evaluation.
• Subjective rating derived based on age, Wesley’s feedback and
assumptions.
• Objective and Subjective not combined as they will just act as pointers for
Andrew to “see the ropes”.
• Any kneejerk reaction based on this will be unwarranted. Go slow unlike
Farrel.
Salesman Age Youthful Experience Knowledge CustomerSatisfaction Ideation Total Score Subjective Rank
Halbert 54 1 5 5 5 5 21 1
Jennings 42 3 4 5 4 4 20 2
Bindon 33 5 3 3 5 4 20 2
Randall 48 2 5 5 3 5 20 2
Anderson 37 4 3 5 1 4 17 3
Campbell 43 3 3 5 3 3 17 3
Thomson 33 5 2 2 3 3 15 4
Prince 57 1 5 1 5 1 13 5
Vereker 29 5 1 1 1 1 9 6
8. Decision:
• Farrel is infusing fresh blood. Hence, Andrew needs to think about easing
out Prince gradually.
• Vereker definitely needs to be replaced if he continues in current form.
• Sales territory need to be rationalized based on accounts rather than
pupils.
• Clear case of redistribution between Halbert, Jennings and Bindon.
• Allocate more portion of salary as commissions.
• Increase penetration in South of UK. (Halbert, Jennings, Bindon)
• Emphasize account maintenance as most have lost accounts from 1997.