Luận Văn Poor Key Account Management Of Salespeople At Thanh An Ha Noi

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
Nguyen Thi Thanh Nhan
POOR KEY ACCOUNT
MANAGEMENT OF SALESPEOPLE
AT THANH AN – HA NOI
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Dịch Vụ Hỗ Trợ Viết Thuê Tiểu Luận,Báo Cáo
Khoá Luận, Luận Văn
ZALO/TELEGRAM HỖ TRỢ 0934.536.149
MASTER OF BUSINESS ADMINISTRATION
Ho Chi Minh City – 2022

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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
Nguyen Thi Thanh Nhan
ID: 22170032 – MBus 8.2
POOR KEY ACCOUNT
MANAGEMENT OF SALESPEOPLE
MASTER OF BUSINESS ADMINISTRATION
SUPERVISOR: Assoc. Prof. TRAN HA MINH QUAN
Ho Chi Minh City – 2022

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SUPERVISOR’S REPORT ON THE THESIS PROPOSAL SUBMITTED
FOR DEGREE OF MASTER of BUSINESS ADMINSTRATION
The thesis final title:
POOR KEY ACCOUNT MANAGEMENT OF SALESPEOPLE
Student Name: Nguyen Thi Thanh Nhan
Supervisor: Assoc. Prof. Tran Ha Minh Quan
1. General comments
 Remarks on the student’s attitude:
...................................................................................................................
...................................................................................................................
 Remarks on the assignment’s academic quality:
...................................................................................................................
...................................................................................................................
2. Overall assessment:
Meet requirement for submitting
Not meet requirement for submitting
3. Other remarks:
- Did the student follow the report schedule?
Yes No Other ………………………………
- The Turnitin plagiarism percentage:
Supervisor’s signature

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Table of Contents
Executive Summary .................................................................................................................................4
Chapter 1: Introduction ............................................................................................................................5
1.1 Company overview.................................................................................................................5
Chapter 2: Problem identification........................................................................................................8
2.1 Symptoms analysis .................................................................................................................8
2.2 Initial cause-effect map................................................................................................................10
2.3 Updated cause-effect map............................................................................................................14
2.4 A discussion to eliminate some potential problems and focus on a central problem .....16
Chapter 3: Problem justification.............................................................................................................17
3.1 Problem definition........................................................................................................................17
3.2 Problem existence.................................................................................................................18
3.3 Problem importance and problem consequence................................................................18
Chapter 4: Causes Validation.................................................................................................................20
4.1 Causes informed by the theory............................................................................................20
4.2 Causes validation..................................................................................................................24
Chapter 5: Solutions...............................................................................................................................28
5.1 Alternative solutions ....................................................................................................................28
5.2 Implementation.....................................................................................................................29
5.2.1 Compensating................................................................................................................29
5.2.2 Action plan the solution......................................................................................................30
Chapter 6: Conclusions ..........................................................................................................................37
Chapter 7: Supporting information ........................................................................................................38
7.1 Methodology ................................................................................................................................38
7.2 Interview transcript .............................................................................................................38
7.2.1 Mr. Ngoc – Sales Supervisor – four of five losing key accounts........................... 38
7.2.2 Mr. Thien – a Salesperson – one of five the failing key account...............................40

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7.2.3 Mr. Vu – Sales Manager of Spinal Team...................................................................42
References..............................................................................................................................................46

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List of tables
Table 4.1: Operationalization of Constructs and Reliability
Table 5.2: The incentive policy currently
Table 5.3: The compensating policy
Table 5.4: The extra suggested compensation 1
List of figures
Figure 2.1: The revenues of three year 2016, 2017, 2018
Figure 2.2: Average of revenue per a case
Figure 3.3: The revenues of five key accounts in failure
List of diagrams
Diagram 1.1: The functional structure of the company
Diagram 1.2: The functional structure of spinal department
Diagram 2.1: Initial cause-effect map
Diagram 2.2: Updated cause-effect map
Diagram 4.1: Model of KAS effectiveness
Diagram 4.2: Final cause and effect map

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Executive Summary
In the context of this essay, it helps to have a more objective view of the issue in
the organization. For resolving the problems to improve the business
performance, we have identified what is the real problem, limiting mistakes when
identifying problems, namely a perception problem, and a target problem. In
order to identify the real problem, we must collect from many data sources as
well as in-depth interviews with relevant people. Furthermore, to determine
where the problem comes from, considering all the ongoing company or
department symptoms or potential risks are happens firstly. Like this essay, the
symptom is that sales of the five key accounts are reduced while total revenue
still increases for three consecutive years from 2016 to 2018. Then, six factors
have caused this symptom. One of the six issues that can be solved during this
time is poor key accounts management of salespeople. This problem is currently
present in the spinal team, and it will cause two serious consequences if not
resolved soon. Therefore, finding out the causes of the problem is the next step
before there are comprehensive solutions. Thanks to the theory, the two main
causes of the weakness of business staff are identified, including intrapreneurial
ability and poor communication. Next, there are three alternative solutions like
recruiting, training, and compensating that were identified for resolving this
issue. Nevertheless, compensation is the roof of cause in this situation. Finally,
the detail plan for a complete solution will be designed to suggest. Because if the
problem is not resolved thoroughly, it will not only that will this problem spread
to other major units if not resolved early. Thanks to this essay and the theories in
this course, I have learned many ways to approach and identify problems in my
actual business so that I can come up with appropriate solutions in each
circumstances and times.

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Chapter 1: Introduction
1.1 Company overview
Thanh An Limited Company was found in 2001, which the headquarter is located
in Hanoi city. Besides, there are three offices in Ho Chi Minh, Da Nang and Can
Tho with more 300 persons in 2018. Thanh An has distributed the equipment,
devices and implants. The strategy is that providing a complete system solution
in Orthopedic, Neurosurgery departments, and Operating room in high
technology medical equipment field to almost hospitals or clinics in Vietnam,
like ICU; Imaging diagnosis; Medical training equipment.
The company divides the structure according to the product in charge, including
groups of tools and equipment provided to the Orthopedic Trauma department;
group of goods supplied to Neurology; endoscopic product team, and project
equipment business.
Thanh An has over 15 years experienced up to now, which is one of the first
firms in VN which bring the spinal technology to Vietnam from 2005. Many
leading professional who had sent for training oversea by Thanh An, so a lot of
advantages can gain in this field. Although the market has been developed
quickly, many another brands approached the hospital for giving more various
products for the doctors choices not only quantity of products but also quality of
implants.
For better the company understanding, the overview diagrams and functional
personnel structure is showed below:

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Head of Branch
HCM
Da Nang office
(50 persons)
Ho Chi Minh office
(90 persons)
Ha Noi office
(135 persons)
Can Tho office
(35 persons)
Diagram 1.1: The functional structure of the company
I am working in Spine Department buying implant of Medtronic brand as a
Salesperson about 4 years. These products are high-tech goods. Almost huge
hospitals or specialize center are my customers through tenders or contracts or
even quotations every year. The Specialist spinal surgeons use these products to
treat of patients by inputting to into a body in a cervical or a back vertebral.
In this project, the spinal team will be conduct to analysis. The spine products are
made by Medtronic – USA, and Thanh An is an exclusive distributor that sell to
the hospital via the tender or contracts. Moreover, ones are classified high-tech
Thanh An HN
(310 persons)
Project
Dep.
Technical
Support Dep.
Sales
Department
Accountant
Dep.
Admin & HR
Dep.
Implant products
(14 persons)
Instrument products
(2 persons)
Endoscopic
Dep.
Spinal
Department
Orthopedic
Dep.

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Salesperson 3
(4 Key accounts)
Salesperson 2
(4 Key accounts)
Salesperson 1
(5 Key accounts)
1 Sales Supervisor
(5 Key accounts)
Sales
Admin (1)
Clinical
Team (9)
Implant
Salespeople (4)
Instrument
Salespeople (2)
by Ministry of Health, so some big hospitals or specialize Clinics just have
conducted this method such as Cho Ray, HTO, 115, Nguyen Tri Phuong,…
In terms of personnel, there are 14 persons in the implant team including 1 sales
manager, 4 salespeople, 8 clinical supporting, and 1 sales admin.
Diagram 1.2: The functional structure of spinal department
Spine team
(17 persons)
Sales Manager (1)

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Chapter 2: Problem identification
2.1 Symptoms analysis
This is an industry which has a lot of affected by the policies of Government for
tender laws and insurance regulations beside market situation. Moreover, these
laws have changed every years, thus the result of business is also affected. Before
determining problems, we should scan the business’s outcome of this department
in the last 3 years 2016, 2017 and 2018 via total revenue in the following figure
2.1.
Figure 2.1: The revenues of three year 2016, 2017, 2018 (Thousand VND)
No. The Hospital
Cases
2016
Revenue in
2016
Cases
2017
Revenue in
2017
Cases
2018
Revenue in
2018
1 Cho Ray 222 4,927,873 635 20,923,015 669 23,462,025
2 Xuyen A 137 5,049,000 160 6,083,435 493 19,894,430
3
Nguyen Dinh
Chieu
19 917,300 113 5,937,300 159 8,226,600
4 HTO 207 4,923,100 212 6,514,670 206 7,699,700
5 115 People 180 7,023,035 161 5,795,974 126 4,763,471
6 Trung Vuong 45 1,920,850 100 4,436,560 111 5,354,600
7 175 Military 34 1,320,795 51 2,118,600 83 3,466,500
8 EXSON 105 2,658,140 90 2,214,645 115 3,146,965
9 Gia Dinh 55 1,555,380 45 2,071,860 70 2,641,995
10 Khanh Hoa 210 2,955,350 173 2,533,100 135 2,366,850
11 Pediatric 2 35 1,892,810 25 1,597,832 24 1,526,195
12 Tien Giang 0 - 0 - 26 1,311,825
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Dong Nai
Union
93 2,341,258 37 1,207,928 22 699,712
14 N.T.Phuong 86 3,382,540 54 1,802,755 29 1,037,560
15 120 Military 16 1,003,000
16 INH 19 399,500 41 1,467,750 23 994,565
17 District 2 0 - 18 739,000
18 UMH 4 34,400 0
-
9 571,000
19 7A Military 0 - 23 1,101,850 9 536,100
20 FV 3 210,000 3 160,500 11 522,500
21 Others 5,508,435 2,038,209 5,953,775
Total 47,019,766 68,005,983 95,918,368

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Looking at the figure 2.1, the revenue had been grown continuously in three
years. To be more precise, the overall growth of the southern office is 45% in
2017 and 41% in 2018. In general, the revenue is in a good growth. To know
where the revenue was rising from two sources like increasing in the number of
operation cases, and going up in value per case as the below figure 2.2
Figure 2.2: Average of revenue per a case
Revenue of 20
hospitals
(Thousand VND)
Case
2016
Year 2016
Case
2107
Year 2017
Case
2108
Year 2018
Total 1,613 47,019,766 2,038 68,005,983 2,593 95,918,368
Average of revenue/
1 case
(Thousand VND)
29,150 33,370 36,990
Growth (%) 14% 45% 41%
Seeing the figure 2.2, because new techniques are constantly being applied,
average value per case was augmented 14% in 2017 from 29,150,000 VND to
33,370,000 VND and 11% in 2018, and total revenue increased in this 3 years.
Seeing the table 2, because new techniques are constantly being applied, average
value per case was augmented 14% in 2017 from 29,150,000 VND to 33,370,000
VND and 11% in 2018, and total revenue increased in this 3 years. However, five
big hospitals has been decreasing revenues continuously in 2016; 2017; and 2018
such as 115; Khanh Hoa; Pediatric 2; Dong Nai; and Nguyen Tri Phuong hospital
that units had contributed nearly 36% revenue in 2016. In contrast, they had just
down to 12% in 2018. In particular, both the number of surgeries and revenue in
these five accounts dropped sharply in 2017 especially the biggest decreasing
was Nguyen Tri Phuong hospital with nearly 1.6 billion Vietnamdong with the
highest reduction rate approximately 48%. The next is People 115 with a
reduction of more than 1.2 billion VND with a rate of 17%. Dong Nai Union also
fell with a high of 48% in 2017 and 42% in 2018. Similarly, Khanh Hoa and
Pediatric 2 had a lower reduction of only 14% and 16% in 2017 respectively, and

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there was an increase 7% and 4% in 2018. We can see in figure 3 for clearly
overview:
Figure 3.3: The revenues of five key accounts in failure
Revenue
(Thousand
VND)
Cases
2016
Revenue
2016
Cases
2017
Revenue
2017
Growth
2017/
2016
Cases
2018
Revenue
2018
Growth
2018/
2017
Nguyen Tri
Phuong
86 3,382,540 54 1,802,755 -48% 29 1,037,560 -42%
115 People 180 7,023,035 161 5,795,974 -17% 126 4,763,471 -18%
Dong Nai
Union
93 2,341,258 37 1,207,928 -48% 22 699,712 -42%
Khanh Hoa
General
210 2,955,350 173 2,533,100 -14% 135 2,366,850 -7%
Pediatric 2 35 1,892,810 25 1,597,832 -16% 24 1,526,195 -4%
Therefore, revenues’ reducing of five accounts is huge issues in these situation
that have to warn urgent to prevent continued along tend to occur in other
potential units in the near future.
2.2 Initial cause-effect map
To determine problems, some interviews were conducted with two salespersons
being in charge of 5 accounts having reducing to find out the detail reasons
causing symptoms.
(1) Having more rivals
First, in the personal interview with Mr. Ngoc who managed 4 of 5 hospitals like
115, Nguyen Tri Phuong, Khanh Hoa and Pediatric 2 said that the reasons why
decreasing revenue were reduced using of doctors. Due to the number of rivals
approached this field, so the surgeons have more choices the new suppliers.
Furthermore, competitors have offered a lot of attractive program for doctors
such as training courses, devices investment, conference trips and finances
supports for doctor's department. Besides, doctors don’t want to depend on one
or two companies to get more assured, so surgeons have shared the cases with
others competitors.

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(2) Decreasing customer’s needs
Second, Mr. Ngoc also mentioned that the reason is customer’s needs are
decreased owing to lack of surgeons. Particularly, doctors are sent to universities
for higher studying leading to without enough human resources for operating or
even some situations they left their jobs moving other hospitals. The most
prominent was in the Dong Nai Union that newspapers mentioned a lot in recent
times when many international private hospitals have built and had good
remuneration policies to attract talented people or experienced. On the other
hand, the status a quantity of patient declining at Pediatric 2 also made
decreasing needs buying since it is often passive in attracting pediatric patients
and depends on operating program of charitable donations.
(3) Changing laws of Ministry of Health & Insurance, and changing of
hospital’s BOD
Third, Mr. Ngoc gave the causes of reducing revenues at 115 in that it failed in
tenders that the major reason was a board of director change such as duty director
and chief of equipment department who will takeover bid. When the board of
directors is replaced, the relationship with the decision makers has not yet been
strongly established, as a result, the tender didn’t win all the items as in previous
years.
An other hand, apart from another interview Mr. Thien who is tasking Dong Nai,
he said that failing of tenders was just in some kinds of products is the main
reason during changing the methods in bid laws of The Ministry of Health.
Specifically, the Pharmacy department tended to choose products having lowest
price in tender evaluation instead well-known goods. Nevertheless, the company
didn’t agree the lower prices owing to long-term effect on other hospitals. In
addition, limited of strict insurance’s regulations lead to decline number of
operation cases. The users have to do their professional work as well as comply
with complex insurance procedures. This also causes mental fatigue for doctors
and reduces the focus on the surgeon's expertise.

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(4) Changing strategy and Internal’ HR of manufacturer
Fourth, at the same time, both of him has a few common comments that reasons
generated by the manufacturer like changing strategy and leaving their job which
greatly affected plans. Manufacturer without enough providing instruments and
goods by lack of experienced staffs to make a forecast and prepare ones that lead
to higher cancel or delay cases as well as arising the doctor’s complaints. On the
other hand, lack of goods or instruments come from the system warehouse
management software, then it is hard to follow a number using history.
(5) Expand market
Fifth, expanding markets still put a heavy pressure for Mr. Ngoc who is also a
sales supervisor in 12 provinces of the South. Furthermore, he also explained
that the lack of tools or goods due to pressure for reaching target, team have to
earn more income along with expand new markets as well as boost market share
and maximize turnover on the current markets. He supposed that company’s
target was set 20% every year on actually sales of a previous year, so that they
have to try improving the number of cases due to cannot raise prices. When the
number of operations increases, but the number of instruments is not
supplemented making some cases postponed or canceled. In some situations,
they had to deal with surgeons about changing operation’s time to another date or
later generating complaints of doctors owing to depending on a lot of issues of
their operating team. Hence, it led to reduce customer’s commitments as well as
using of doctors lower.

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(4)
Growth target
pressure
Increasing the
number of cases
Lack of goods and
Instruments
Increasing the
complaint of
Diagram 2.1: Initial cause-effect map
Problems Symptoms
Decreasing
revenue in 5
big hospitals
continuously
Failing of tenders
(some kinds of
products)
Changing laws of
Ministry of Health or
Insurance, and
changing of
hospital’s BOD
Manufacturer without
enough instruments
and goods providing
Changing strategy
and Internal’ HR
of manufacturer
Decreasing
Customer’s
commitments
Decreasing
customer’s needs
Decreasing using
of Doctors
Having more
rivals

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2.3 Updated cause-effect map
(6) Poor key account management of Salesman
To know more the potential problems along with having an objective views, an
interview with Mr. Vu - Sales Manager of spinal department was conducted. He
supposed that the crucial problem formed from the pretext of Salesperson. Because they
are poor key account management, then failing of tender when salespeople cannot adapt
quickly in new Ministry of Health & Insurance laws changing as well as without strong
relationship with customers in replacing of hospital' BOD. In some cases, salespeople
was not also sensitive to capture as well as pre-action for decision-making leaders so
leading to passivity and failing to build the next leader generation relationship.
Moreover, without sensitive to meet the needs of customers made reducing of doctor’s
commitments along with less using implants. On the other hand, Mr. Vu mentioned to a
reason why made lack of goods or instruments caused the operation being postponed or
even canceled. Each salesperson not only knows customers’ needs to make a more
accurate ordering and know how to cooperate with other parts such as tool management,
warehouse management, import and export department to forecast annual tools. Thus,
when the account manager lacks the management of the area, the complaint of doctor
will rise and decline the commitment of surgeons. These things can indirectly reduce the
use of the company's products and services selection that led to decrease revenue in
these hospitals.
Lack of goods or instruments come from less cooperation between persons in the
internal firm, no accurate forecast of goods. Furthermore, they also explain that the lack
of instruments or goods by expanding market and increasing target causing lower
services qualities. It was the same idea with Mr. Ngoc.
After all, the information collected from interviews of three people - two salespeople
who are in charge of those five hospitals & one manager and data quoted from my
organization, an initial cause-effect map is built as below to see the problem of the firm
as well as the causes clearly.

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Growth target
pressure
Increasing the
number of cases
Lack of goods
and Instruments
Increasing the
complaint of
doctors
Decreasing
Customer’s
commitments
Poor key account
Salespeople
Lack of co-operation
with others
A wrong forecast of
goods/foresee market
Salespeople without
strong relationship
with customers
Diagram 2.2: Updated cause-effect map
Problems Symptoms
Decreasing
revenue in 5 big
Hospitals
continuously
Failing of tenders
(some kinds of
products)
Changing laws of
Ministry of Health or
Insurance, and
changing of hospital’s
BOD
Salespeople without
adapt quickly
Manufacturer without
enough instruments
and goods providing
Changing
strategy and
Internal’ HR of
manufacturer
Decreasing
Customer’s need
Decreasing using
of Doctors
Having more
rivals

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2.4 A discussion to eliminate some potential problems and focus on a
central problem
As in the first introduction, I am working in Spinal Department as a Salesperson
who is one of four them in nearly 4 years. Hence, some problems belong to the
side of objective customers, or manufacturer, there are some alternatives that
cannot be implemented. Furthermore, other issues will not probably solve due to
lose control of the spinal department.
Based on the potential problems, these components can be created into six issues
to validate. First, the number of rivals along with more competitive pressures is
vital facing in this field. Second, decreasing customer’s need depends on the state
and policies of neurosurgical department at this time, thus the company cannot
intervene in this situation. Third, expanding market to gain growth target
required of strategy’s firms is indispensable development, so it is unavoidable in
the plant's growth. Fourth, although changing strategy in HR of Medtronic Spine
at Singapore had also caused lack of goods or instruments led to cancel or delay
operating cases, it is impossible to fix. Likewise, changing the laws Ministry of
Health & Changing BOD of Hospitals is the same thing. Final, salespeople
without strong relationship with customers as well as without adapt quickly is
major causes decreasing revenue in five big hospitals continuously.
On the whole, accordingly to results of a data and interviews, a conclusion that
poor key account management of salespeople is a central problem that can be
solve to improve the effectiveness along with prevent spreading to others
accounts in the future that is a key vision.

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Chapter 3: Problem justification
3.1 Problem definition
It's a matter of the great strategic importance for a supplying firm is a key
account (5). Key accounts are considered separate business accounts with another
accounts managed by the company, and are not similar from regular sales
accounts, resulting in significant profits over a number of years through business
activity repeated (35). Offerings to the accounts can include service or product
adaptations, high-up management involvement, and especial pricing terms (6).
KAM has targeted on standard practice of key B2B buyers long ago by providing
them goodwill policy in areas such as service support, marketing, and
administration Key accounts - KAs also called national or strategic accounts, are
partners in the B2B market which are important, huge, and have committed
resources available for them that aren’t offered to the company's average
accounts (8). In the recent years, a quantity of firms carrying a KA program has
redoubled and, nearly 15% account that KAs report for over 50% in their
turnover across these enterprises. Overall, a rapid rise and high value of dollar
associated with actions of the new KAM plans supports, and the possible
implication for such income relying are clear (10) argument that one of best ways
basic improvement in marketing is a making emphasis upon KAM.
Furthermore, according to (11), KAM is strategies of a supplier in reaction to
main account’s sale needs, and changes of the environmental. KAs features
purchasing process coordinated a centralized, large purchases, and needs to
special services. KAM study could be separated up three focuses like the dyadic
key account relationship, the individual key account manager, and the design of
key account programs (8). Getting the individual key account managers like the
analytics unit, it seems to personal selling research (8). The recent documents on
KAM provides new insights to the structural factors that make up the
effectiveness of KAM but emphasize needs to research more about cross-linking

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connections of the major account managers. Workman at el. (12) realizes that as
KAM is chiefly about coordinating and managing the activities that main account
manager has the informal power, more studies are needed to know how the key
account manager can best achieve their targets and get the necessary resources.
KAM is placed in the context of personal selling or personal key account
management contributing to solving these problems.
3.2 Problem existence
There are only 20 key accounts for 4 salespersons in which Mr. Ngọc having 12
years worked for Thanh An, takes care 4 of 6 key accounts fall down the revenue
continuously while others accounts have still grown. As a result, it is great issues
that should careful consider solving urgent for avoiding continuously spreading.
Implants in spinal surgery are classified as prosthetics & orthopedic instruments.
According to BMI, the medical equipment market, the market revenue was only
about 800 million USD in 2015 and before, but in 2016 this figure exceeded 1
billion USD (17). As StoxPlus, in the period of 2011-2015, the import turnover
of prosthetics and orthopedic instruments was 8.3% in medical equipment
industry (17)... Besides, the orthopedic and prosthetic group accounted for 6% in
2019 from 5% in 2015 in the Vietnamese medical equipment market (18). In
addition, Vietnam Medi Pharm also calculated 10% growth in the spinal implants
market in 2018 (19). This shows that this spinal field is still in the growth stage.
Hence, declining of revenues of these accounts are enormous issues in the growth
market that we should alert to happen out of control.
3.3 Problem importance and problem consequence
Key accounts representative is one of the most important chances for building
successful partnerships. To create these key accounts firms employ committed
managers and align their resources with the needs of the customer. Besides
negative impacts of poor key account management mentioned on initial cause-

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effect map, some consequences of this problem can be found based on the
literature to determine the important of one. In the theory, poor KAM affects
two things.
First, according to (20, 21) the key account managers is called as sales managers
who are responsible for communicating to huge complex strategic important
buyers in one voice representing the full abilities of a department. The key
account manager is likely to encounter for meeting consumer demands and
maintain long-term relationships (21). In spinal team, even sales supervisor or
salesperson, they have complete making-decision at their accounts management
but they cannot meet need’s customer and retain durance relationship. As the
interview Mr. Vu – Sales Manager, he said that Mr. Ngoc who directly these key
account without strong relationship with customers, so leading to decreasing
using of Doctors as well as reducing revenue in ones continuously.
Second, James at el. (21) also gave intra-organisational, interpersonal conflict.
Conflict is a potential consequence of all interdependent relationships, occurring
from the highly the divergent need of two or more disagreements, parties,
misalignment, misunderstandings of resources or any of a lot of intangible a
factor. Conflict can arise between cooperating parties working towards similar
objectives or between disputants targeting to achieve opposing objectives.
However, this does not exist the conflict in my team, the role of salesperson for
propose the strategic was in power and free.
In general, salespeople are often required to manage a variety of complex
relationships both internally and externally. Therefore, discover an aspect of the
internal sales role of the main account manager has not been resolved before,
namely how the main account manager handles multiple conflict issues
simultaneously while actually show their internal selling duties (21).

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Chapter 4: Causes Validation
4.1 Causes informed by the theory
Firstly, KAS perceived effectiveness is explained as the level of which the KAS
has contributed cooperation and formed a worthwhile, productive, and enduring
the partner relationship with customers (22).
A key account salesperson - KAS is in charge of developing and maintaining
direct relationships with a few consumers units that cut across goods or
geographical boundaries. In the theory, the different term has been done to
describe this way of sales organization including big accounts, national accounts
(23), major accounts (24), strategic accounts, global accounts, and house or
corporate accounts (25). It is obvious that key account salespeople requires a
very large deal of investment in resources and human focused on some key
customers (7) Their action plan must be proven on an economic foundation.
The effective determinants of KAS are strategic intrapreneurial ability and
capabilities despite intermediate processes of customer confidence and
communication quality. Strategic competence is the capability of KAS to
examine organizational as well as business happens of customers, and focus upon
the long-term benefits. Internal ability is the ability of KAS to put individual or
other resources in the seller company and use effectiveness them to support
customer accounts. KAS Effectiveness sets up individual KAS capabilities like
internal capabilities, and strategic capabilities as a premise for structural
orientation of relationships, customer confidence, and communication quality.
The cognitive effect of KAS represents the results of KAS relationships.
Before analyzing each factor that makes KAS effectiveness, we look at the model
of the overall impact factors below:

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Diagram 4.1: Model of KAS effectiveness
Sources: Sengupta et al. (2000)
Individual Abilities consists of strategic abilty and intrapreneurial ability.
(1) Strategic Ability.
Strategic ability is the aware ability of KAS to study the organization and
business issues of customers and give attention to the long-term benefits, beyond
the needs of customers stated. Wide vision and good judgment synthesizing in
various information to reach higher order concepts characterizes strategic
capabilities.
This is the KAS as cognitive thinker as opposed to active doer. While similar to
the ideas of directed problem-solving (26) and trait competitiveness (Brown,
Cron and Slocum 1998) found to be important for all salespeople, strategic
ability is knowledge-based, inculcated by experience or education. Companies
are willing to pay higher salaries to key account salespeople, and have higher
expectations of their performance, because of their strategic ability (24; 27; 28;
29).

22
(2) Intrapreneurial Ability.
This construct is borrowed from the management literature. Pinchott at el. (30)
defined intrapreneurship as entrepreneurship inside the corporation. Intrapreneurs
pursue innovation while staying within the existing corporate umbrella. The
intrapreneur is the KAS as active doer as opposed to cognitive thinker. It
includes the KAS's ability to locate personnel or other resources within the seller
firm and deploy them to assist the customer account (29). KAS turns a plan into a
successful reality (30), even if these means accepting risk by doing against
conventional intelligences. While all salespersons need to self-determine,
participate and accept challenges (26), intrapreneurial cability arises from the
unofficial influence that KAS has gained and efforts in the company.
Relationship Process Constructs of communication quality and customer trust.
(3) Communication Quality.
Communication quality is levels to which contents of the communication is that
knew and received by another parties in a relationship. Mohr at el. (31) said that
communication is glues that keep a distribution channel together. This is similar
in contexts of maintaining and developing the key account relationship.
Communication between the account and KAS and takes place via phone calls,
meetings, letters, faxes or emails. These interactions can produce emotional
relationships, strong or they may still be related to function and business (7).
(4) Customer Trust.
Morgan at el. (32) conceptualized the belief as consisting when a party has
confidence in the trust and integrity of the exchange partner. In this context,
integrity is the client's belief that KAS will send what was committed. Beside
integrity, give another dimension of belief, patience from opportunism. These are
the belief of customers which the KAS will not deliver any actions to damage the
interests of clients. Connecting these perspectives, a buyer confidence in this
research refers to client’s trust about whether KAS has integrity and patience or

23
its business dealings. Developing trust is thought d carefully to achievement in
the key account relationship (7; 28).
The definition here catches the customer’s belief for the KAS as people contrary
to the belief of customers in the selling organization (33). This method has been
applied to build an individual KAS performance model instead of the sales
organization's performance.
(5) Relationship Outcome: KAS Perceived Effectiveness
Not only qualitative but also quantitative results were used to assess the
effectiveness of major account programs (24). Such results are also known as a
basis to compensate the main account salesman. In relationships management,
and alliance document, a qualitative indicator of performance is widely used as
the perceived effect of relationships (30). This concept has been adapted for
effective KAS model. Intrapreneurial ability and strategic capabilities are
positively related to the quality of relationships that KAS creates a primary
account.
The table 4.1 gives summary items used to describe the model constructs and
reliability.
Table 4.1: Operationalization of Constructs and Reliability
No Construct Item Indicator
1
Strategic
Ability
I believe that for this customer account
I do a good job of thinking about the customer’s long-term
interests.
What I do best in my job is think strategically on behalf the
customer.
2
Intrapreneurial
Ability
I have been complimented for:
My creative solutions to this customer’s problems
Innovating around my firm’s constraints
Taking risks in trying our new approaches
Getting internal resources allocated for this customer
Implementing project plans for this customer account.

24
3
Communication
Quality
For this customer account, the quality of communications:
From me to customer personnel is good.
From customer personnel to me is good
Overall, is clear and understood.
For this customer account, I often have to clarify requests made
by customer personnel.
4 Customer Trust
This customer’s personnel believe that:
I do my job with integrity
I will not undertake any actions to harm their firm’s interests.
5
KAS Perceived
Effectiveness
As Key Account representative, I have:
Promoting future cooperation with the customer account.
Building a productive, worthwhile customer relationship
Building a customer relationship that will outlive my tenure with
the customer account.
4.2 Causes validation
According to (20), there are three criteria to evaluate KAS Effectiveness
 Promoting future cooperation with the customer account.
 Building a productive, worthwhile customer relationship.
 Building a customer relationship that will outlive my tenure with the customer
account.
Through in-depth interviews with two key account salespersons and one sales
manager, the spinal group has not yet built an effective and valuable relationship
with the customers. It is obvious that when the surgeons have much choice, they
switch to competing rival’s products. Specifically, the causes are as follows:
(1) Intrapreneurial Ability
The ability of intrapreneurial is a human resource that joints other resources to
generate a product, creates irregular decisions, innovate and take risks. The scale
to evaluate whether an employee has followed or not (22) includes five things:
 Developing solutions to the problems of customer
 Innovating around the firm’s constraints

25
 Taking risks the new approaches
 Getting internal resources allocated for this customer
 Implementing project plans for this customer account.
The inner ability allows KAS to find innovative solutions to customer issues.
Again, this feature needs interaction with customers individual to determine their
needs and, organizational constraints. Although some alternatives can suggest
themselves to KAS, they must be assumed about customer employees to get
information on feasibility. Therefore, communication quality is very important to
exchange this mutual idea. The inner ability helps building affective empathy, an
emotional response to problems of customer followed by a perfectly willing to
make things about it. KAS and customers in situations that solve this problem
develop flexible, adaptive relationships. Mohr at el. (31) propose that relational
connections structures have higher communication quality.
In spine field, intrapreneurial ability to discover creative solutions to customer
problems is essential. For a good example, in the spine field, with specific high-
tech products, implants into the patient's body, the emphasis must be on all the
supplies, equipment and instruments to support surgery to bring the highest effect
for patients. In order to gain this achievement, it is necessary to find innovative
solutions in incomplete special cases of tools or equipment such as combining
tools or finding alternative or generating full size supplies. However, these
salespeople are not in charge of units, so this is also one of the reasons for not
achieving good results. In brief, the intrapreneurial ability may help to reduce
postponement of surgery as well as make more confidence for surgery in special
cases that improve the benefits of sales staff.
(2) Communication Quality
For this customer account, the quality of communications:
 From me to customer personnel is good.

26
 From customer personnel to me is good
 Overall, is clear and understood.
 For this customer account, I often have to clarify requests made by customer
personnel.
The process communication requires considerable efforts on the part of the KAS
to meet with customer personnel at different horizontal and vertical levels. It may
also demand the KAS to discuss these with customer personnel which can
uncover opportunities and threats for accounts. A high level of cognitive
empathy for the customer implications and subsequent discussions with ones
improves interaction with the customer account and provides intellectual
understanding of the latter's problem. This ability lets the KAS build a supportive
climate for the relationship with buyers.
Among the four factors that evaluate a salesperson's ability to communicate
effectiveness which did not meet the customer's idea especially customer
personnel to salespeople is not good. This was identified in in-depth interviews
with the sales manager. When receiving information from customers, they often
do not clarify or ask again to get the best understanding. Besides, although
salespeople actively exchange information for customers in some cases such as
attending conferences, training courses or confirming information, they also
could not receive a specific response or get answers from listeners at the right
time.
4.2 Final cause and effect map
Basing on both literature various journal articles in the area of the potential
central problems and check the new findings and the data along with interviews,
the updated cause-effect map has been developed. The updated cause-effect map
showed more accurate context of the central problem, consequences, symptoms,
and potential causes.

27
Potential Causes Central Problem Consequences
Validated Symptom
From customer
personnel to
me is not good
Decreasing revenue
in 5 big Hospitals
continuously
intra-
organisational,
interpersonal
conflict
Without meeting
customer demands
and maintain long
term relationships
Poor key account
management of
Salespeople
In order to come up with the best solution to solve the problem, a review from
the symptoms that sales of five major hospitals decrease while overall sales of
the group still increase. This problem is very serious because it causes two major
consequences that are not responsive and maintain long-term relationships with
customers, and this is also the cause of internal conflicts. A part of from many
causes of this symptom, the central problem of poor key account salespeople is
determined through data sources and in-depth interviews with three staff. Next,
there are two main groups of causes with four factors that make the key account
salespeople effectiveness, of which company employees have two causes due to
their incompetence and poor communication. The diagram 4.2 below summarizes
the whole view.
Diagram 4.2: Final cause and effect map
Lack of
Intrapreneurial
Ability
Poor
Communication
Quality

28
Chapter 5: Solutions
5.1 Alternative solutions
Through open-ended interviews with the sales manager and key account
salespeople, we can know the question to find the distinguish KAS from the
general industry salesperson (22). The recruiting topics from these interviews are
that KAS is a strategic thinker, and performs better, or makes everything happen.
The anecdotal differences have just been confirmed. The research provides
witness that key account salespersons are both doers and thinkers. The challenge
of businesses using the company is how to train, recruit and compensate for these
individuals.
(1) Recruiting
The most companies recruit key account salespeople from a pool of one who
have about seven years of prior experience in a general field sales assignment.
Prior experience in the same company is useful so that general salespeople can
build informal influence networks, as well as develop their implementation skills.
However, experience alone will not suffice. Hence, the company is provided
concrete guidelines on what abilities to look for in promoting general salespeople
to key account selling positions. The firm wants analytical, strategic thinkers and
innovative, intrapreneurial doers to fill these positions of responsibility.
(2) Training
It is reasonable to feel certain that not large set of sales forces will generally
qualify as internal, who are creative and risk-taking. Furthermore, managers
should recruit major account salespeople who can effectively communicate with
clients in their own terms. When general salespersons have been offered of key
account sales positions, they must be trained to further enhance their
communication capabilities. Newly appointed primary account salespeople
cannot sound familiar with things such as project management, product

29
knowledge, environmental scans, and newly updated laws. Advanced training in
these fields will bring improved efficiency for the main account salesperson.
(3) Compensating
In general, Salespeople compensation consists of both variable and fixed
components. For enterprises that use a combination of both, reward changes are
usually only awarded to meetings, or exceed sales quotas. The study shows that
because the relational processes have important in the sale of the main account,
companies should design the compensation level to meet or exceed the
benchmark for relationship processes, and outcomes as well (21).
As explanation above, there are three alternative solutions that suggested relying
on causes validated of the spinal team that can consider gaining the best solution
for enhancing the current infertile situation.
5.2 Implementation
5.2.1 Compensating
As Mr. Ngoc is a Sales supervisor, he said that recruiting a salesperson is quite
difficult to find candidates for responding department’s requirements. For a good
example, there is still no suitable candidate for sales position within five months
while the firm’s average salary level at 15 billion is also higher than other
competitors. Finally, a candidate is successful with a medium response level. Mr.
Vu – Sales manager was given the reason having the same Mr. Ngoc. Besides,
Mr. Vu was also mention the root of causes that is commission policies. He said
that the bonus mechanism hasn’t stimulated the maximize effort of the
salespeople.
In the above three solutions, Mr. Vu said that the main reason for this problem is
lack of motivation, so they do not want to learn and aggressively work for the
current bonus policy. If compared to companies in the industry, the policy that

30
Thanh An is applying is quite good compared to the average level. However,
within the group itself and the company's ceiling level, it limits the efforts.
Although the current bonus policy has been adjusted two years ago, it was
previously applied to the group as a whole rather than individually. So, it seems
that this policy still lacks motivation to maximize the resources of salespersons.
As a result, new reward policy design solutions will be the best method in this
period and may be possible implemented. Because when they are motivated, they
will find ways to learn to improve their skills and enhance the knowledge, which
will confidently communicate with customers as well as meet surgeons more
regularly.
5.2.2 Action plan the solution
5.2.2.1 The current policy for key account Salespeople
Nowadays, the sales target will be applied for two ways for two teams that sales
in and sales out. Sales in consists of nine clinicians and sales out includes four
salesman. For sales achieved every quarter, there is a rate of sales for that
quarter. The bonus for the clinical group will be equal to the bonus percentage
gaining multiplied by the revenue achieved, and the team leader and sales
manager will share it with you in the group based on the different priority ratio
criteria such as number of shifts overtime surgery, total number of operations and
seniority. For a good example, in the fourth quarter of 2018, 25 billion revenues
achieved 127% of the target of 19.7 billion. Thus, the surgical team will have a
total amount of 300 million equally 25 billion multiple by 1.2% for 9 members.
Meanwhile, the salespeople are calculated on the salary ratio of each person. The
coefficient is based on 50% of group sales plus 50% of personal sales achieved.
Therefore, it is not fair for the salespeople to achieve high sales value, but
sometimes the reward level gets less.

31
Table 5.2: The incentive policy currently
Actually/Target
(%)
Incentive for every
Salesman (coefficient x
Salary of month)
Actually/Target
(%)
Incentive for Clinical
Team % (coefficient x
Actually revenue)
≥ 80% – 89% 0.3 ≥ 80% – 89% 0.6
≥ 90% - 95% 0.4 ≥ 90% - 95% 0.8
≥ 96% - 100% 0.6 ≥ 96% - 100% 0.9
≥ 101% - 114% 0.8 ≥ 101% - 110% 1.0
≥ 115% - 126% 0.9 ≥ 111% - 120% 1.1
≥ 127% - 139% 1.1 ≥ 121% - 130% 1.2
≥ 140% 1.2 ≥ 131% 1.3
However, the current application of bonus policies has not stimulated the effort
to develop every salesman. Firstly, although the target year and target quarter are
applied to each domain is from the beginning of the fiscal year, but the individual
target is flexibly divided after having sales. For this reason, the team members
can often share with each other to achieve the highest possible reward.
5.2.2.2 Designing an appropriate reward system for Salespeople effectiveness
In general, sales volume is one of multiple objectives for the key accounts of an
enterprise. Besides, another way determined other objectives including (34):
 Renew customer contracts
 Sales results in a years;
 Increasing share of clients commitment;
 Account growth;
 Management effectiveness by 360 degree feedback;
 Specific personal objectives.
With these 6 criterion, this proposed solution will first use only three criteria to
consider the reward, namely (1) the sales result in a number of years; (2) specific
personal goals; and account growth.

32
(1) The sales target & specific personal goals
Because the reward is built from 50% of the target group general and 50% of the
individual goals, regardless of the total gain factor. Then, the percentage of
bonuses is conducted by coefficient multiple with the salary of each employee so
it causes that three problems. Firstly, salespeople do not want to receive taking
care of many hospitals because they will be less strenuous and can understand
customers better. Secondly, when the bonus level reached the top at 140%, they
do not want to do more. Third, if the initial salary is low, even if you do more,
the total income will not improve much. As a result, this has many limitations
that the personality of salespeople cannot put a lot of efforts into their work.
Therefore, this new policy is suggested with the aim of stimulating the force of
achieving revenue as much as possible. Having a general comparison between
the current policy in place and the proposed policy, see the table below:

33
Table 5.3: The compensating policy
No. Year Year 2017 Year 2018
Year 2019
(Assume)
Year 2020
(Assume)
1 Number of Salespeople (people) 3 4 4
5
2 Actual Sales (Thousand VND)
68,000,000 96,000,000 126,500,000 151,800,000
3 Target requirements
41,000,000 81,600,000 115,000,000 138,000,000
4
Coefficient incentive (%)
(Current Policy)
0.9 0.9 0.8 0.8
5 Average salary/ a month
14,000 15,000 16,000 17,000
6
Salary coefficient (Current)/
Salesperson (4) x 12 moths 11 11 10 10
7
Average total incentive of 1
salesperson (5) x (6) 151,200 162,000 153,600 163,200
8
Compensation (Thousand VND)
(Suggestion) (2) x (4) 612,000 864,000 920,000 1,104,000
9
Average total incentive of 1
salesperson (8)/(1) 204,000 216,000 230,000 220,800
10
Salary coefficient (Suggest)/
Salesperson (9)/(5) 15 14 14 13
11 Total cost of changing (9) - (7)
52,800 54,000 76,400 57,600
12
% increasing incentive/ actually
sale (11)/ (2)
0.08% 0.06% 0.06% 0.04%
Looking at the table 5.2, we can see that the total value of the overall bonus has
increased very little, even less than 0.1% of the total sales achieved. Specifically,
only the highest level is 0.08% while the profit margin of the firm must be higher
this ratio. The difference between the salespeople receives a fairer and more
worthy assessment with this proposed policy yet. They will receive
commensurate with what they do and try to bring in as much sales as possible.

34
(2) Account growth
In addition, a criterion to encourage growth on key accounts should be
implemented. Specifically, if customers with sales account for 7% of revenue,
and have a growth rate of 100% or more compared to the previous year, they will
be rewarded with 0.1% of the total revenue of for salesperson responsible. As an
example, when a unit considered meeting this criterion, in 2019, the actual
revenue is 100 billion, of which Nguyen Dinh Chieu hospital has the revenue of
15 billion, up 114% with 2018 only 7 billion. As such, you will be rewarded with
an additional 15 million VND at the end of the year. The formula is as follows:
Revenues in 2019 * 0.1% = 15 billion * 0.1% = 15 million.
Criterion Requirement Compensation
Revenue of account A/ Total
revenue ≥ 7% Meet both
requirements
Revenue of
account A x 0.1%
Growth of revenue of account A
compared the previous year ≥ 100%
Thus, the implementation plan can be summarized as follows:
 Suggestion: according to tables 5.3 and 5.4.
 Time to apply: the new policy will be applied in 2020.
 People: all salespeople of Spinal products.
 The cost: the compensation costs increase less than 0.1% on total revenue.
 Benefits:
 Encouraging the highest personal effort
 Deserving to receive with the revenue achieved.
 Taking deeper development in major accounts
 Creating more equity in the salespersons

35
 Incomes:
As competition is increasingly fierce, the spinal group is losing its market-
leading competitive advantage and some exclusive products. Moreover, sales
have grown very rapidly in the last three years, specifically the increase of more
than 40% per year, so the market share and market are entering the saturation
phase. Therefore, growth is forecast to increase by 10% in 2019 only in 2018.
Moreover, to be able to exploit all resources, this suggested compensation policy
is the best in the current and near future.
According to this bonus policy, it is expected that these main hospitals will grow
by more than 100% and specifically as below:
Table 5.: The extra suggested compensation 2
No. Hospitals
Year 2018
(Thousand VND)
Year 2019 (Predict)
(Thousand VND)
1 Nguyen Dinh Chieu 8,226,700 18,000,000
2 HTO 7,610,000 16,000,000
3 175 Military 346,700 7,300,000
4 Trung Vuong 5,354,700 12,000,000
5 115 People 4,763,500 10,000,000
Total 63,300,000
Conclusion, any combination, a multi-goal approach could be more nearly
aligned with firm objectives than easy volume schemes. Sometimes, this includes
starting from the beginning to design the main account management reward,
which may be the following: compensated design, followed by goal setting,
performance evaluation, and then divide rewards. Last but not least, emotional
responses are brought into awareness of justice in the process. In that case of
major account managers, the challenge of fairness is greater than that of selling in
the field. Primary account group members always expect the commission for
their contribution to exploring business for strategic clients. In additional
complexity of designing a reward program for main account management, they

36
are often supported by a team. The team may think that major account managers
are not the only one who deserves to receive the incentives. While rewarding a
team, awareness of justice is very important to motivation. Historically, this is a
standard practice to receive team members equally for achieving specific goals.
Thus, due to stimulate maximum sales growth, employees who still retain the
spirit of teamwork should still be rewarded according to the percentage of
revenue achieved at the rate achieved and without the upper limit.
In closing, the current resources allowed in this context, these policies can be
implemented in the short term. However, it is advisable to build a strong
customer relationship and marketing in the long-term as a solution.

37
Chapter 6: Conclusions
In short, recognizing the symptoms of a business problem is not simply that we
can see it. Sometimes, problems are not obvious instead in a hidden form. Hence,
it is very difficult to recognize, but it is very dangerous due to its impacts when
we are easy to lose control and make difficult to react. On the other hand, to
ensure that we don't miss out on any issues that cause that symptom, we should
read in the relevant articles that mention this trouble. Therefore, it is advisable to
take a comprehensive look at all of the smallest problems and to determine if it is
really a problem. The first step is very important for us to get the real issue,
because the premise is not right, it will take time and cost to do while ignoring
urgent and more important issues. In brief, the initial cause-effect map is drawn
to give an overview of the symptoms and the problems it causes are compiled
from the company data sources, specialized interviews and theoretical sources.
Then, it is necessary to determine whether this problem really exists in its
organization and how important it is by answering the question of what its
consequences will be if you do not solve it. Besides, arguing the problem of why
the problem can be solved. Next, finding out the main causes and sub-causes for
this problem based on theoretical sources, thereby determining what causes the
company is facing. From these causes, we will find and choose the most suitable
solution like my company is a reward. This is the right solution for this time to
explore and improve the efforts of salespeople as well as this policy can be
enforced. The problem, the weak issue of the salesperson in charge of the key
accounts needs to be immediately alerted not by the five hospitals, but the
problem lies in the bonus policy that has not yet evaluated and rewarded the
individual capacity. Further, if this situation persists, not only will this hospital
year, but even larger hospitals like Cho Ray or Xuyen A hospital will gradually
lose market share by subjective salespeople.

38
Chapter 7: Supporting information
7.1 Methodology:
Purpose – This document is to complete the Master's thesis by testing the
application of theories learned in the department we are working to identify
problems and make possible solutions.
Approach - Solutions to boost sales can be done in many ways. In particular, the
direct method by creating incentives for business staff to improve productivity by
rewarding tools is quite realistic in the increasingly fierce market. In addition,
recruitment is also difficult to find suitable candidates.
Methodology - Qualitative method by in-depth interview many times with three
personnel are two salespersons in charge of five key accounts and one Sales
Manager of this products.
7.2 Interview transcript
7.2.1 Mr. Ngoc – Sales Supervisor – four of five losing key accounts
Interviewer: Can you assess the business situation of the current spinal group as
well as the accounts in which you are in charge?
Mr. Ngoc: Yes, of course. The situation of neurological group business in the
coming time will face many difficulties and it is also difficult to achieve sales.
Interviewer: What factors do you think lead to a difficult business situation and
hard to achieve the sales target?
Mr. Ngoc: There are a lot of competitors that approached this field. Moreover,
some of the previous products along with new techniques of the company have
monopoly on advantages, but rivals have also deployed a loss of competitive
advantage now. On the other hand, the policy of insurance changing also more
impact on quality products, because the bidding rules divided into two packages

39
and choose the products with the lowest prices. So the risk of fail is well-known
having high prices.
Interviewer: What is the stage of the spinal market right now?
Mr. Ngoc: The market is gradually positioning the saturation period, the number
of patients in these hospitals has increased insignificantly even some hospitals
have reduced the number of diseases because some new specialist centers have
built. Overall, growth is estimated at 15% over the years.
Interviewer: What does your evaluation the performance of 4 accounts: People
115; Pediatric 2; Nguyen Tri Phuong; and Khanh Hoa general?
Mr. Ngoc:
- Nguyen Tri Phuong hospital: Since Dr. Tuan - chief of neurosurgery
department was busy studying Ph.D. for a year, the amount of surgery is less.
Besides, this is the hospital that the health department has made a reference to
apply other hospitals, so companies want to win a bid at this hospital. On the
other hand, because Dr. Tuan also developed a high technique of Pakinson
disease treatment, then he reduced the amount of spinal products.
- People 115: 115 hospital is one of the major centers and leading hospitals of the
health department Ho Chi Minh City. Therefore, the specialist doctors here will
have the right to choose the tender products in centralized bidding at the health
department HCM city. Therefore, most firms want to participate in bidding at
this hospital so that doctors have certain experiences, and get the opportunity to
achieve through a focused bidding technique. Therefore, the share of market
share with competitors is increasing, leading to reduced sales. Another aspect,
the heads of neurosurgery Department – Mr. Si also wants the company to put
the tools at the hospital so that the doctors can take the initiative and feel more
secure when having surgery for patients. Due to the pressure of a little the

40
number of instruments, the company only has one set in the country in the
southern office, and one must use it for other hospitals, so it cannot meet the
surgeon's requirements. As a result, doctors are not satisfied with the spine team.
- Pediatric 2: Pediatric 2 has a difference context that belongs to another case
due to the subjective side of hospital. The company has a very good relationship
with Dr. Can - head of pediatrics department who has supported this product
100%. However, the amount of surgery is not much, and almost when the
children are off or have a charity organization coming to surgery. Therefore,
using only marketing methods to attract new patients to support hospitals can
improve the situation.
- Khanh Hoa general: Because Dr. Manh - head of the spinal department only
uses proprietary products such as anterior cervical spine, posterior cervical spine,
cement pump, and some other popular spinal techniques. Nevertheless, because
the company's cement pump product is often short of supplies from manufacture,
it affects the work of doctors to create a loss of trust and monopoly status in the
hospital. Additionally, the support of the surgeon was also transferred from
Thanh An to the other rivals.
Interviewer: Can you compare the investment of your company to your
customers with others rivals?
Mr. Ngoc: Competitors have many diverse ways to invest in customers. For
example, they will invite both customers along with client’s relatives to go on
annual vacations for the board of directors; sponsor expert doctors to combine
discussion knowledge and travel overseas tours; or domestic conferences also
give a large number of doctors and nurses attending these ones.
7.2.2 Mr. Thien – a Salesperson – one of five the failing key account

41
Interviewer: What are the causes leading to the failure of these accounts at Dong
Nai Union hospital?
Mr. Thien: In my opinion, the reduction in sales at Dong Nai hospital in
particular and other hospitals in general is for the following reasons:
- First, due to the regulations of the hospital's bid evaluation, the pharmacy
department has a lot of decision-making power, so the expertise only assesses
technical features with a low proportion of decisions. Therefore, most of the
participating products are reached the first round. Next to the second round,
according to the criteria of selecting the lowest prices, the quality products of the
company were failed for a number of items.
- Second, the number of new companies has approached the market too much, so
they actively go to the provincial hospitals to penetrate the market where other
firms often have less care for doctors. Particularly, up to six companies increased
within two years, besides long-time rival companies also implemented many new
techniques.
- Third, the neurosurgery department has a decrease in number of patients due to
the development of other hospitals in the province such as Dong Nai General
Hospital, ITO Dong Nai...
- Final, shortages of goods and instruments also caused a drop in sales.
Especially for the cement pumping technique that the surgeons usually uses.
Moreover, other tools also lack sizes of implants in a few times also make
doctors to be postponed or canceled.
Interviewer: Do you believe that the revenues will be increased in the next
years?

42
Mr. Thien: Yes, I hope so. Learning from the following years of bidding, to be
able to win all the items I attend, I have to discuss carefully with the special
characteristics of the products to put into the technical features of our products to
prevent opponents from participating.
7.2.3 Mr. Vu – Sales Manager of Spinal Team
Interviewer: Can you assess the business situation of the current spinal group?
Mr. Vu: I am very worried about the business results in the coming years,
specifically 2019 and 2020.
Interviewer: What factors do you think lead to drop down business situation and
hard to achieve sales target of the next years?
Mr. Vu: Sales of the last two years have been very high, large hospitals such as
Cho Ray have occupied a very high market share from over 30%, Xuyen A
accounts for about 60%, so to increase market share will be difficult and also
impossible. Because these units have a number of operations performed at the
same time, there are not enough instruments to support at the same time.
Meanwhile, the target next year is equal to the growth factor multiplied by 5
years of sales so the number exceeds the current capacity.
Interviewer: According to the annual revenue report, although the total revenue
has grown very well, some hospitals have reduced revenue, what do you think
about this situation?
Mr. Vũ: Exactly. I have observed that some hospitals have reduced turnovers,
especially for the five units that three years ago had a very high turnover of
approximately 40% of total revenue in 2016. After three years, the proportion of
contributions decreased to only 12% yet. This is also one of the major issues that
I am noticing for consideration during the time.

43
Interviewer: What do you think the reasons are caused the failure of these
accounts?
Mr. Vũ: There are many reasons for this problem both objective and subjective
following:
- First, due to the decline in the number of patients at the hospital. In addition, the
policy of insurance the price ceiling as well as procedures and regulations require
professional doctors that have to follow, so high-quality items like my company
lose their advantages.
- Second, the situation of competition is intense increasingly. Doctors have too
many product choices. In addition, small rivals have flexible deflection policies
to attract and meet customers' requirements. For a large company like Thanh An
has a lot of disadvantages compared to another enterprises in the industry.
- Third, the biggest problem is due to the key account salesperson. They haven’t a
positive working attitude and do not really trying the best. Ones also did not
often meet customers, or the discussions were not effective. Therefore, it has not
response the timely needs of customers. The salespeople are not enough the
ability to be sensitive to capture customers' ideas or lacking creativity in solving
problems especially in cases of shortage of goods or tools. However, the target
group and individual target still achieve, so they still have not realized the
problem or have not really acted.
- Four, it is also related to the main account management, they do not closely
follow the market situation, then they delayed or missed the supplementation the
quantity of goods in the contract or listing of bid plans for the next year. Or in
some cases they know but the relationship with customers is not strong enough to
complete the job but they cannot find the direction of processing nor report to the
superiors asking for support. For example, a reason encountered in hospital 115

44
is a part BOD decision to change bid, but business staff has not had good
relationship with these main people.
- Final, shortages of goods and instruments are also the cause of this problem. The
number of operations is increasing, but the amount of supplies is not adequate.
Besides, long-term tools are also worn out but have not been replaced. This issue
comes mainly from the manufacturer, for reasons such as changing personnel and
their strategies. So, they still have not met the requirements from the distributor.
On the other hand, on the side of goods, there is a shortage of personnel due to
the lack of sufficient supply from both producers and Thanh An. As for the
company has three reasons: (1) the policy of minimizing the inventory cost limit,
(2) the ordering department usually places orders based on the previous use
history but rarely synthesizes according to the proposed demand of four offices;
(3) salespeople do not predict the market demand for products that use.
Interviewer: What things do you want to suggest for enhancing the business
performance?
Mr. Vu: First of all, to adjust the attitude of employees in their work to
encourage them to make efforts to build relationships with customers, improve
the quality of communication to confidently meet customers more regular.
Currently, I also know that there are unreasonable policies in the bonus policy. It
is not yet possible to assess the ability of each member in the compensation
scheme even though they all achieve the target. Besides, organizing internal
courses to share knowledge and market experience for each other.
Interviewer: What will solutions help improving the efforts of salespeople?
Mr. Vu: Concerning about the circumstances of each employee to see if they are
struggling to solve is also a way to focus on work. Besides, the reward policy
must be developed mainly based on personal revenue. In addition, the incentive

45
must be calculated on the sales generated rather than their salary. This policy in
the long-term is still more beneficial to the need to not manage the number of
salespeople more. Additionally, always manage backup alternatives or cross-
control plans by a unit with two employees who are in charge of the hospital
according to each doctor. This is also the methods that is being applied only over
two units such Trung Vuong hospital and HTO.

46
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