Consider a sales business, in which customers are much more likely to buy, and b

Question

Consider a sales business, in which customers are much more likely to buy, and buy in large volume, from salespeople with whom they have long-standing relationships. Suppose that there are many firms in this industry and that these firms sell similar and substitutable products.

Which of the following initiatives by a firm in this industry is most likely to REDUCE the threat of its salespeople will appropriate profits that would otherwise go to the firm? Explain.

1. Give annual awards to salespeople who are the most productive and most profitable for the company.

2. Organize salespeople into sales teams on which all members interact regularly with all customers assigned to the team.

3. Pay salespeople a negotiated percentage of the sales they complete.

4. allocate new customers to salespeople using a rule that the customers who are likely to be the most valuable customers go to the highest volume, most profitable salespeople.

Explanation / Answer

Give annual awards to salespeople who are the most productive and most profitable for the company.

Your first priority should be to retain and motivate star employees, your second priority to retain and motivate satisfactory employees. Therefore, award the largest salary increases to your stars, much more modest increases to satisfactory performers, and no increases to employees whose performance falls below expectations.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.