Sales Territory Misalignment
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The central problem in this case is misaligned sales territories. This is causing morale issues and frictions between the reps. In general this is a symptom on a lack of sales management at Village Beds. The new sales manager is forced with not only aligned the territories to balance territory potential and workload, but also to assert is authority as a newcomer in a family owned and operated business, in which some of the reps have long-stands ties, and in other cases, long standing resentments.
One method of aligning the territories would be around state boundaries. However, the case does not provide enough information on nursing homes per state in order to provide this solution in detail. Another solution would be to take the largest regions, Midwest, New England and West and give each region an additional rep. Or even two additional reps to the Midwest, which carries almost five times more nursing homes than some of the other regions. Additional information which would be helpful in analysis would include the % penetration per region, or $ value per current customer. So that analysis could be performed based on new account penetrations as well...