Case 3.2 Hanover-Bates Chemical Corporation

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Case 3.2 Hanover-Bates Chemical Corporation Hanover-Bates Chemical Corporation produces chemicals for the chemical plating industry. It has plants in Los Angeles, Houston, Chicago, and Newark. The production process involves taking chemicals purchased from other suppliers and mixing them into user-based formulas. The Hanover-Bates has a strong balance sheet and trades on the over-the-counter market. There are seven sales districts within the organization with a total of forty sales representatives. Each receives a salary, fringe benefits, and commissions of 0.5 percent of their dollar sales volume up to their sales quota. Field sales efforts are extremely important and quality control is critical with supplying the plater with the…show more content…
Sprague is expected get on board quickly and to be more responsive to Hanover-Bates new plans and policies. However, without his sales force being on board, this will be difficult. Another issue deals with the basic fact that he was chosen for the position. He has taken a position in a division that is somewhat hostile toward him. It was assumed that one of the veteran sales representatives with 34 years of experience (Hank Carver) would get the district manager’s position. Since he did not, many of the sales representatives, along with Carter, are very bitter. They think that Sprague is young and lacks the experience to be a good manager. He also stepped on toes at a dinner he had with Carver and John Follet where he tried to explain what he hoped to improve in the district. The two men viewed the information as criticism and Carver went so far as to threaten to quit the following day. Possible Solutions James Sprague has many options available to him in dealing with the problems he has been given with the acceptance of the management position. There are two different areas of need in the division that Sprague needs to address: Employee relations and division profits. The first area of need is employee relations. One option would be for James Sprague to call his sales representatives together, letting them know that he is aware of their bad will towards him and give them an ultimatum to get on board or to turn in

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