Medtech Case

Satisfactory Essays
Medtech is a pharmaceutical company that has been working on developing cancer drugs for the three years. They have worked on getting them through clinical trials and getting FDA approval for three years. Unfortunately, after working so much on getting the drug approved, they did not have a sales team ready for when the FDA approval came through. They would need to work quickly to get their sales force in place because they only have seven years to maximize on their return.

Doug Reynolds was a university researcher; he left to start a new company. The knowledge Doug had from being a molecular biologist helped with ideas on how to create skin cancer treatments for melanoma. This type of drug would treat melanoma without having to do surgery. Doug
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They call on oncologist and dermatologists. They report to one of the 10 sales managers. Harold is over the 10 sales managers; the sales have not met the company's expectations even though the sales seem to be good. The sales team wants more than they are getting, the sales managers brought it to the attention of Harold, asking for a contest for the sales team to drive more excitement. She suggested that this would help motivated them to generate more sales. Harold did not agree, he thinks since the sales force are paid 100% commission that should drive them to sell more. It was also brought up that the sales force should be reimbursed for entertainment expenses. This would keep them up to date with the competition. Since the 4 years they have been in business, they have not changed their reimbursement policy. Currently, they have give $250 a month for car allowance and $50 for incidental expenses. Since the company is struggling due to their sales numbers declining, he has decided to take a look at the overall compensation plan since he is worried the sales force will look at leaving for a better
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