Sales & Purchasing Management Assignment

BCO226 SALES & PURCHASING MANAGEMENT Case & rubrics

Task

Details of the case:

• This is an individual task

• Answer all 6 questions at the end of the case

• The contents page should breakdown the structure of your case (Introduction,

Mainbody, Conclusions etc.)

• The report should be uploaded in pdf format

Formalities:

• Wordcount: 1500 words

• Cover, Table of Contents, References and Appendix are excluded of the total wordcount.

• Font: Arial 12,5 pts.

• Text alignment: Justified.

• The in-text References and the Bibliography have to be in Harvard’s citation style.

MicroEar-Business Challenges

MicroEar are a fledgling provider of custom, in-the-ear hearing instruments (hearing aids). They had to adopt a wholesale approach from a collaborative approach, due to lack of funding, and had to develop a strong sales organization that would help it grow profitably.

Solutions

MicroEar created a successful sales force by establishing sales management processes that the company continues to use today.

Results

• Company has grown to $28 million in annual revenue.

• Sales management systems drive profitability, generating gross margins of 32 to 45%.

• Sales representatives increased contacts with decision-makers from 5 to 20 per day.

• New product introductions are exceptionally successful due to established sales management systems.

Background

When funding sources dried up a year and a half after James Lawther founded MicroEar, he was forced to alter his business to a wholesale organization.

Instead of serving patients who would come to Micro-Tech wholesale outlets, Micro-Tech (owned by MicroEar) would have to call on audiologists, hospital clinics and private clinics to proactively sell its products.

“All of sales management systems – commission structure, recognition, reporting, collaborative quota setting – were designed to create a high-performance sales organization in which our MicroEar sales representatives aligned their personal targets with corporate objectives.”

“Not all salespeople make good managers,” James Lawther says, “but our adherence to a prescribed set of activities reminded me of the ‘science of sales’.”

Creating a Culture of Accountability

Sales representatives developed monthly and quarterly business sales plans that documented account strategies and tactics to achieve quotas and forecasted results of implementation. This account planning was the foundation for personal accountability and company growth.

Sales Management Systems that Drive Growth

In addition to creating a culture of accountability, the sales director developed a new business- development process. They also refined the company’s recruiting system.

MicroEar continues to use the systems developed more than 10 years ago. “In fact,” according to James Lawther, “other companies have tried to mimic our systems, a testimonial to our industry leadership.”

A stickler for systems, he adds, “Re4engineering taught me that there are departments that a business like ours should focus on. It’s imperative that each of the functions develop and work within systems.”

MicroEar has adopted disciplined sales management processes and continues to appreciate training new salespeople, troubleshooting with sales representatives, and coaching her with new product launches.

These questions must be answered within the context of your report:

1. Compare and contrast the old sales relationship with the new sales relationship?

2. What kinds of account classification would the MicroEar need to adopt?

3. What processes has MicroEar put in place in terms of sales and what metrics would be useful for the organisation?

4. What could be the set of prescribed activities that MicroEar could adopt within sales?

5. How do they maintain their success with respect to sales?

6. Compare and contrast MicroEars sales strategies to at least one other organization you have studies?

Submission: Week 4 – Via Moodle (Turnitin). Sunday 21st February at 23:59

Weight: This task is a 20% of your total grade for this subject.

It assesses the following learning outcomes:

• Understand the sales management function as part of the overall company strategy.

• The selling processes involved in go-to-market activities.

• The importance of personal selling and other selling activities.

Rubrics

Exceptional 90-100 Good 80-89 Fair 70-79 Marginal fail 60-69

Knowledge & Understanding

(20%)

Student demonstrates excellent understanding of the sales management function and mentions concepts around sales relationships and selling processes using the correct technical vocabulary

Student demonstrates good understanding of the sales management function and mentions concepts around sales relationships and selling processes. Demonstrates use of the relevant vocabulary.

Student understands the sales management function and mentions concepts around sales relationships and provides minimum theory and/or some use of vocabulary.

Student understands the task and attempts to answer the question but does not mention sales management functions and concepts around sales relationships and selling processes and uses minimum amount of relevant vocabulary.

Application (30%) Student applies fully relevant knowledge of the sales management function and concepts around sales relationships and selling processes from the topics delivered in class.

Student applies mostly relevant knowledge from the sales management function and mentions concepts around sales relationships and selling processes

Student applies some relevant knowledge of the sales management function and mentions concepts around sales relationships and selling processes delivered in class. Misunderstanding may be evident on these topics.

Student applies little relevant knowledge from the sales management function and mentions concepts around sales relationships and selling processes delivered in class. Many misunderstandings are evident.

Critical Thinking (30%)

Student critically assesses in excellent ways the sales management function and concepts around sales relationships and selling processes, drawing outstanding conclusions from relevant authors.

Student critically assesses in a good way the sales management function and concepts around sales relationships and selling processes, drawing conclusions from relevant authors and references.

Student provides some insights on the sales management function and concepts around sales relationships and selling processes, but stays on the surface of the topic. References may not be relevant.

Student makes little or no critical thinking insights on the sales management function and concepts around sales relationships and selling processes. The document does not cite appropriate authors, and does not provide valid sources.

Communication (20%)

Student communicates their ideas on the sales management function and concepts around sales relationships and selling processes extremely clearly and concisely, respecting

Student communicates their ideas clearly on the sales management function and concepts around sales relationships and selling processes and concisely, respecting word count,

Student communicates their ideas on the sales management function and concepts around sales relationships and selling processes with some clarity and concision. The

Student communicates their ideas in a somewhat unclear and unconcise way. Does not reach or does exceed wordcount excessively and misspelling errors are evident. Many misspelling

word count, grammar and

spellcheck. Use of appropriate schematics. Harvard referenced. Structured coherently. English correct.

grammar and spellcheck. Mostly follows Harvard referencing. Structured mostly coherently. Some errors in English

document may be slightly over or under the wordcount limit. Several misspelling errors may be evident. Some errors in referencing or missing citations. Structured OK. Several errors in English

errors evident. Several errors in referencing or missing citations. Structured poorly. Many errors in English