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

AbstractThe newly appointed district gross gross gross sales four-in-hand, Larry Barr, faces the worry of allocating sales quotas among his various sales representatives. This decision will affect everyones wage including his own. This problem is compounded by the fact that different territories have, for a miscellany of reasons, different potentials. In addition, the territory that is known to be the toughest will shortly require a new sales rep. Company History/ downplayCanadian 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 distinguish name White-Westinghouse was created. Appliances manufactured by CAMCO in the former Westinghouse aimt were mark Hotpoint. G.E., G.S.W., and Hotpoint major appliance plants became divisions of CAMCO. These divisions were operated independently, had 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 position for G.E. Appliances. One 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 speedy task was to determine an equitable allocation of that quota. This was important because the companys incentive pay plan was ground on the salesmens increase 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 Personverbal description9961Greater VancouverHudsons Bay, Firestone, Kmart, McDonald Garth RizzutoSupply, plus seven independent dealers9962InteriorAll customers from Quesnel to Nelson, Dan Seguinincluding ratify sales (50 Customers)99 63CoastalEatons, Woodwards, plus Vancouver Island Ken Blocknorth of Duncan and f number Fraser Valley (east of Clearbrook) (20 customers)9964Independent and NorthernAll independents in lower mainland and Fred collarSouth Vancouver Island, plus northern B.C. and Yujon (30 customers)9967ContractContract sales Vancouver, capital of Seychelles All contract Jim Wistesales outside 9962 (50-60 customers)The sales incentive plan was a critical part of G.E.s sales force plan. individually salesman had a portion of his earnings dependent on his performance with notice to quota as well as Barr being awarded a bonus based on the sales performance of his district.