Week Two Written Assignment Phelps, Inc You are Philip Manual, the head of sales

Question

Week Two Written Assignment Phelps, Inc You are Philip Manual, the head of sales for an office products firm, Phelps, Inc. Your personnel sell primarily to small businesses in the Los Argeles Metropolitan area Phelps is doing about average for this rapidly growing market. The firm's new president, Jose Ortega, is putting a lot of pressure on you to increase sales. You feel that a major obstacle is the firm's policy on extending credit. Celeste, the head of the credit office, insists that all n low; credit terms and collection procedures are tough. You can appreciate her point of view, but you feel it's unrealistic. Your compeitors are much more lenient in their credit examinations; they extend credit to higher credit risks; their credit terms are more favorable competition. When you brought this concern to jose, he said give any clues to his priorities on this matter Sure, we need to increase sales, but the small business are pushing back on you. They frequently complain that they arent playing on a "level fieldr with their failure in this area is the highest in the country, so we have to be careful that we don't make bad credit decisions Questions: 1. What are the salient situational factors? 2. What is the most appropriate negotiation strategy? 3. What advice would you offer to Jose Ortega? Celeste? Philip? Source: David Whetten and Kim Cameron, Developing Management Skills, 7th edition, Prentice Hall, Upper Saddle River, New Jersey, 2007

Explanation / Answer

1. The salient situational factors are , the company has average sales in the competitive market of office products. The head of sales believes that it is due to company's strict policy in extending credit.

2. The most appropriate negotiation strategy in this situation is inaction strategy, which is based on real information and facts.

3. Jose Ortega: He should clearly define his motives and aims to Jose and Celeste. He should clear his priorities to them.

Celeste: Needs to realistic and should have a little lenient approach towards the client.

Philip: Needs to collect information and facts regarding his claim for the company's credit policy, so that he can negotiate effectively with Celeste to approve some leniency in the same.

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