General Electric (GE) Appliances Case Study :: Business Management Analysis

AbstractThe newly appointed district gross gross revenue manager, Larry Barr, faces the enigma of exclusivelyocating sales quotas among his various sales representatives. This decision will affect everyones earnings including his own. This problem is compounded by the fact that diametric territories have, for a variety of reasons, different potentials. In addition, the territory that is known to be the toughest will soon shoot a new sales rep. Company History/BackgroundCanadian Appliance Manufacturing Co. Ltd (CAMCO) was created in 1998 under the joint ownership of Canadian public Electric Ltd. and General Steel Wares Ltd. (G.S.W.). CAMCO purchased the production facilities of Westinghouse Canada Ltd. under which the brand identify White-Westinghouse was created. Appliances manufactured by CAMCO in the former Westinghouse plant were branded Hotpoint. G.E., G.S.W., and Hotpoint major(ip) appliance plants became divisions of CAMCO. These divisions were operated independently, h ad their own separate management staff and competed for sales although they were all ultimately accountable to CAMCO.Larry Barr has recently been promoted to the district sales manager mail for G.E. Appliances. One of his more important duties was the allocation of his district sales quota among his five-spot salesmen. He received his 2002 quota in October 2001 at which time his immediate delegate was to determine an equitable allocation of that quota. This was important because the companys inducing pay plan was based on the salesmens attainment of quota and a portion of his remuneration was based on the degree to which his sales intensity met their quotas. The five territories wereTerritoryDestination/Sales PersonDescription9961greater VancouverHudsons Bay, Firestone, Kmart, McDonald Garth RizzutoSupply, plus seven independent dealers9962Interior all in all customers from Quesnel to Nelson, Dan Seguinincluding contract sales (5 0 Customers)9963CoastalEatons, Woodwards, plus Vancouver Island Ken Blocknorth of Duncan and upper Fraser vale (east of Clearbrook) (20 customers)9964Independent and NorthernAll independents in lower mainland and Fred Speck second Vancouver Island, plus northern B.C. and Yujon (30 customers)9967ContractContract sales Vancouver, Victoria All contract Jim Wistesales outside 9962 (50-60 customers)The sales incentive plan was a critical part of G.E.s sales force plan. Each salesman had a portion of his earnings dependent on his performance with respect to quota as well as Barr being awarded a bonus based on the sales performance of his district.