Consider the following scenario: You are a sales manager for a regional electric

Question

Consider the following scenario: You are a sales manager for a regional electrical distributor. You just learned that one of your smaller, nonstrategic suppliers of copper wire has directly emailed your salespeople (without your knowledge) with details of an incentive plan that would provide your salespeople with bonuses, paid directly by the supplier, if they met certain sales requirements of their product over the next quarter Is the supplier using a push or pull strategy? As the manager of the distributor, what actions would you take, if any, in response once you found out about this program? Explain your actions.

Explanation / Answer

The supplier is using a pull strategy in which he is in a way forcing the salespeople to sell his products. This is similar to a way in which when you have created a buzz about your product and the customers are actively trying to find your product in the market. As a manager I would terminate or suspend the salespeople who have accepted this offer because it is against the reputation of the organization and will demean the company. Also, I will blacklist that supplier for getting engaged in unethical ways of doing business.

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