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

AbstractThe newly appointed district sales manager, Larry Barr, faces the problem of allocating sales quotas among his various sales representatives. This decision get out affect everyones earnings including his own. This problem is compounded by the fact that different territories have, for a variety of reasons, different potentials. In addition, the territory that is known to be the toughest go out soon require a new sales rep. Company History/BackgroundCanadian Appliance Manufacturing Co. Ltd (CAMCO) was created in 1998 under the joint ownership of Canadian General Electric Ltd. and General Steel Wares Ltd. (G.S.W.). CAMCO purchased the production facilities of Westinghouse Canada Ltd. under which the brand name White-Westinghouse was created. Appliances manufactured by CAMCO in the former Westinghouse endt were branded Hotpoint. G.E., G.S.W., and Hotpoint study appliance plants became divisions of CAMCO. These divisions were operated independently, had their own separate man agement staff and competed for sales although they were all ultimately accountable to CAMCO.Larry Barr has recently been promoted to the district sales manager position for G.E. Appliances. nonpareil of his more important duties was the allocation of his district sales quota among his five salesmen. He received his 2002 quota in October 2001 at which time his immediate task was to determine an frank allocation of that quota. This was important because the companys incentive pay plan was ground on the salesmens attainment of quota and a portion of his remuneration was based on the degree to which his sales force met their quotas. The five territories wereTerritoryDestination/Sales PersonDescription9961Greater VancouverHudsons Bay, Firestone, Kmart, McDonald Garth RizzutoSupply, plus seven independent dealers9962 intimateAll customers from Quesnel to Nelson, Dan Seguinincluding contract sales (50 Customers)9963CoastalEatons, Woodward s, plus Vancouver Island Ken Blocknorth of Duncan and upper Fraser Valley (east of Clearbrook) (20 customers)9964Independent and NorthernAll independents in get down mainland and Fred SpeckSouth 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.