The document discusses a revision to the sales organization structure at an electrical product company. Previously, each of the company's 31 products were sold by all three sales groups, making it difficult to keep track of products and sales policies. The new structure segments the customer base into industrial, dealer & channel, and government customers. It also divides the 31 products among these customer groups. This allows sales engineers to specialize in fewer products for their customer segments. The regional manager reported difficulties in tracking all 31 products under the old structure. The new structure aims to make sales and product tracking more efficient.
3. INDEX
CASE OVERVIEW
SWOT Analysis
PEST Analysis
OLD Organizational Structure
NEW Organizational Structure
Analysis of case questions
Recommendations
4. CASE OVERVIEW
Mr. U.K Gupta, Regional sales manager said there are difficulties
in keeping track on all 31 products From 6 division of the eastern
region of electrical product company.
Now all 31 products are sold by all three groups of Sales people
It is difficult to keep track of all product & their sales policies.
5. SWOT
Strength
- Proper segmentation of
market
- Industrial Customers
- small/domestic
- Govt. customer
Weakness
- No proper Organizational
structure.
- No guidelines for Reporting
- Lack of product
Specialization
Opportunity Threat
Change always create
resistance And is not under
the control of Organization
6. PEST
Political
No political factor
Economic
There is a general
improvement in economy and
has a positive impact on
company.
Social Technology
As company deals in electric
products ,so technology is a
crucial factor they have to be
updated for better growth
8. CUSTOMER BASED ORGANISATION
STRUCTURE(NEW)
D1 D2 D3 D4 D5 D6
Sales team
REGION
1
REGION
2
REGION
3
REGION
4
INDUTRIAL
CUSTOMER
DEALER &
CHANNEL
SALES
GOVT &
PSUS
31
PRODUCTS
31
PRODUCTS
31
PRODUCTS
9. QUES 16:Was the Decision to make
a change in organisation right?
CASE facts
Sales and profit increased after change.
Employee face difficulty in handling 31 products instead of only 6
products.
10. Decision is correct
In any business customer is God
Proper care need to be taken to avoid any kind of irritation and
dissatisfaction
Business transaction and dealings should be as easy as possible to
promote the growth of any business
In earlier structure, customer has to undergo multiple contact
points(different SE from different division used to contact
them)
11. Moreover, in earlier system there customer dissatisfaction
It takes time to master any product technical features and
sales policies and hence SE are facing difficulty as structure
is new
Change always creates resistance and is inevitable
12. QUE-Are there any alternate sales
organisation structures available to the
company?
Case does not mention the mission, vision,
objective and goals of Electrical Product
Company
based on desired goals and objectives, decision need to be taken for
any alternate organisation structure
13. QUE --If you were the general manager of
Eastern region to whom UK Gupta reported, how
would you respond to his problem?
I shall decide goal and objective for short term(current year) and long
term (5 year)
Based on same, I shall further plan proper organizational structure
In order to find solution to current, I shall introduce staff together with line
organization.
Divide organization into 2 groups:
Central marketing group
Product management group
14. •Sales people need to focus only on sales
•Regarding product Recommendation, framing of sales policies
shall be done by product management group
15. For effective conversion of
opportunity to order
Proper team with their goal plan is required
Avoid Duplication of customer coverage
Lack of product specialization by sales team can be covered
by product management.
Clear cut guidelines of reporting and goals structures for
employees.