Case 8.1: Stalwart Industrial Products

1121 WordsJul 1, 20135 Pages
Case 8.1: Stalwart Industrial Products Case Summary: Stalwart Industrial Products is a manufacturer and seller of a wide variety of industrial tools that they sell to numerous resellers and end users. The company was founded in 1935 and prides itself on producing quality tools that last for a very long time. Stalwart’s national sales manager, Tom Beesman, has been well regarded as a successful leader since taking over his position three years ago that has helped to guide the sales force to a great deal of success. But, now Tom has two problems that are causing him massive headaches. The first problem is that one of his star salespeople, Charlie Davidson, is starting to perform below the expectations that he established for…show more content…
Therefore, eliminating the web site is not an option as it came from upstairs and it is a valuable tool for the company. So Tom needs to find a way to appease his sales force. In order to make up for their lost commissions from the web site, Tom can do one of two things. He can change the reward system to include a fixed salary amount to make up for those lost commissions on top of the sales force’s normal commissions. Or, since the company president stated that he views the web site as an additional rep, Tom could institute a team compensation package that includes the web site as a member of the sales force the salespersons are in fact gaining some level of compensation from the web site. Recommendation: Based on the facts of the case and the possible solutions, I feel like Tom has 2 main courses of action to undertake to solve his problems. To bring back the old Charlie Davidson, Tom needs to provide him with a new financial package that provides him with flexibility to care for his new child while also providing him with motivation to reach his quota and maximize his earning potential. The type of financial package needed would include a base salary and then commission plus bonuses for exceeding quota as he had every previous year Davidson had been with the company. The base salary will provide Davidson with a known income to provide for his child if he ever needs to take a little time off while
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