The document discusses Royal Dutch Shell's management of its multinational sales force. It analyzes factors that affect transferring sales practices overseas, such as geographic dimensions, degree of market development, political/legal environments, and cultural aspects. The document also examines articles on topics like centralization versus decentralization of sales force management, organizational structure decisions for multinational sales forces, and whether sales training should be standardized or localized. It provides examples of Shell's sales practices in Egypt and recommendations for Shell, including outsourcing analysis, implementing an organizational effectiveness model, and providing extensive behavioral training to sales personnel.

1. Managing the Multinational
Sales Force
Royal Dutch Shell
Project By:
Aya Ahmed
Lara Azzam
Mostafa Hashem
Amira Zeyada
MKTG 4401
Dr. Omar Ramzy

2. The Company
 Founded in 1886
 Started as oil refining and lubricant production
 Merger with Royal Dutch 1907
 International operations with multinational employees
 Employs over 24,000 office workers with $2.1B revenue in
2008
 Main products: Helix Ultra, Rimula and Gadus

3. Looking at the Main Article
“Managing the Multinational Sales Force” by John Hill
& Richard Still
How involved are MNC’s when it comes to
influencing their overseas sales departments
 Looked at 14 companies in the general consumer,
pharmaceutical, industrial and EDP Industries
 Companies mostly selective about the sales policies
they influenced
 Usually:
International
Planning done in
head office
Plan, administer
and control
sales forces.

4. Factors that affect the transferal of sales
practices over seas
Geographic
Dimension
Degree of
Market
Development
Political/Legal
Environment
Cultural
Aspects
Local Marketing
Circumstances
Looking at the Main Article

5. Looking at the Main Article
Geographic Dimension
Large Market
 Specialized
responsibilities
 Distributed by territory,
product or customer
Small Market
 Split up geographically
 Representatives responsible
for a broad range of
products
Degree of Market
Development
 Must consider development of technology and human
resource education level

6. Looking at the Main Article
Political & Legal Environment
 Compensation packages are always affected by the
programs set by a company
Cultural Norms
 Training programs, recruitment techniques and selling
techniques are adjusted to suit the reality
Dialects
Local Market Circumstances
 Societies habits affect how things are managed

7. Centralization  Decentralization
"International Salesforce Management: a Relationship
Perspective" by Jeffery Lewin & Wesley Johnston
• HQ Decisions: Which sales channels to choose and how
Exporting to
a Third Party
Better and
faster
penetration of
market
Cost Efficient
Developing
a salesforce
Inefficient
when entering
a new market
On the long-run,
gives more
control
to structure the salesforce?
• Local Office Decisions: Decisions of recruitment
compensation, training and organizing the sales
activities.
• Shell Egypt:
• Long history in Egypt  Decisions have long been
decentralized in favor of national office
• Only basic strategic decisions left to HQ

8. Organizational Structure Decisions
Determinants of
Decisions
Industry-based
Factors
Corporate-based
Factors
Environmental
Factors
"Organizing the Overseas Sales Force: How
Multinationals Do It"

9. Article ‘Sources of Effectiveness in the Business to
Business Sales Organization
• Geographic and physical dimensions
• The degree of market development
• Salespeople and their methodology in managing
sales

10. “Sales Training: Comparing Multinational
and Domestic Companies”
Should sales training be standardized or localized?
 Cultural norms should be taken into consideration
 Aligning with the other articles, MNCs must consider the
local reality needs
 Tailor the training to suit the education level and needs of
society

11. Shell’s Practices and the Article
Content
• Establishing and managing a sales force in a foreign
market
• The potential problems in the Egyptian Market
• Geographic selling technique
• The political issues
• The recruiting, training, and deploying of salespersons
• The culture of the foreign country they operating or
intending to operate in

12. The Selling Approach - SPANCOP
• Suspect
• Prospect
• Approach
• Negotiate
• Order
• Payment
Key Accounts – Handled by
Shell’s Salesforce
Diamond Platinum Gold

13. Shell’s Practices and the Course
Content
 3-4 members extended, multi-level selling team
Egypt’s Office
 International members in team for international accounts
 Post-Purchase and Technical Support activities as part of
CRM increase chances of cross & up-selling
 Organizational Structure: Geographic – Customer
Helix & Rimula
Oriented (Consumer Structure
and
Transportation Vehicles)
Gadus (Industrial Uses)

14. Recommendations
Outsourcing Analysis
Organizational
Effectiveness Model
Trainings

15. Recommendations
Outsourcing Analysis
 Reconsider outsourcing of Silver + Bronze – broaden
horizons
 Upselling
 All customers are dead in the long run
 Scouting for customers - keep customer database
updated for potential upgrades

16. Recommendations
Organizational Effectiveness Model
Salesperson
Characteristics

17. Recommendations
 Sales Management Control & Salesforce Behavior and
Outcome Performance
Monitoring Directing Evaluating Rewarding
 Improving Management
 Result: Best Possible Candidates Leading Salesforce

18. Recommendations
Determine type of employees to cater to their motivations:
Behavioral Motivations Outcome Motivations
Spend time with salespeople in
the field.
Producing a high market share
for your company.
Make joint calls with
salespeople.
Making sales of those products
with the highest profit margins
Regularly review call reports
from salespeople
Quickly generating sales of new
company products/services
Monitor the day-to-day activities
of salespeople.
Identifying and selling to major
accounts.

19. Recommendations
 Recognizing who’s doing well and who needs training:
 Salesperson Characteristics:
 Are the salespeople motivated, and if so, by what?
 Which salespeople strive for long-term accomplishment and
which ones focus on the immediate future?
 Which salespeople enjoy facing challenging environments
rather than staying in their comfort zones?

20. Recommendations
 Sales territory design:
 Salesperson effectiveness about more than skill:
 Territory needs selling potential
 Put most skilled salespeople in areas with most selling
potential maximum effectiveness

21. Recommendations
Trainings
 Extensive behavioural training
 Sales personnel – first line employees
 Weekly/Biweekly trainings

22. Thank You!
Questions?