Background
Tema Industrial Products (TIP) manufactures and sells a wide variety of industrial tools to various
resellers and end users. Founded in 1990, the company prides itself on producing high-quality,
durable tools. The company's salesforce has always been an integral part of its success. Sales reps
at TIP work hard and are rewarded accordingly.
Current Situation
Tema Industrial Product's national sales manager, Benjamin Oduro, has enjoyed a great deal of
success with his salesforce. Since his promotion to his position three years ago, things have gone
relatively smoothly, until now.
"When it rains, it pours," Ben thinks to himself as he sits at his
desk and contemplated two issues confronting him. For starters, one of his star salespeople,
Charles Anim, seems to be slowing down at a time when his help was desperately needed.
Secondly, the company has added a new Web page, and reps are upset.
Charles Anim has worked for TIP for almost three years. In his first year, he generated GHC
850,000 in revenues, hitting 112 percent of quota. He followed this by racking up sales of
GHC1.29 million, for 119 percent of quota. He accomplished this by prospecting and meeting
with customers 14 hours a day during the week, and completing reports and writing proposals on
the weekends. At this pace, Anim looked as if he would exceed quota again this year-that is, until
he had his first child two months ago. Currently, he's down to 50 to 60 hours per week, and his
sales reflect this.
Oduro is worried. TIP currently is undertaking an ambitious growth program. Next month alone,
it plans to introduce four new products. Oduro had hoped to make Anim a member of the
management team. In casual conversation with Anim, however, Oduro discovered that Anim was
not interested in becoming a manager at TIP because the big money is in sales. Anim is still
carning a hefty paycheck despite working fewer hours. To be successful, Oduro realizes that he
needs to get back the energetic, hard-charging Anim he hired, but he is not sure how.
In the meantime, the salesforce, including Anim, is upset.
As part of its aggressive growth
strategy, the company began accepting orders through its Web site. While customers are happy
about his, the salesforce is not. Although salespeople earn commissions on current customers who
order through the Web site, they do not receive commissions on any new Web customers in their
territories. The company's president, Samuel Patterson, views the Web site as an additional "rep."
However, salespeople see it as competition. Consequently, productivity and morale are down.
Oduro is caught in the middle. He needs to find a solution to please both his salesforce and
Patterson.
Question 1
How do you suggest that Oduro handles Anim?
(8 marks)
Assess the situation regarding Tema Industrial Products' use of the Web.
(10 marks)
What would you suggest that Oduro does to please both Patterson and his salesforce?
(8 marks)
Describe the primary financial and nonfinancial compensation rewards available to
salespeople.
