Essay on Valley Winery Case Study

1477 Words Nov 26th, 2012 6 Pages
Case One:
Valley Winery

Valley Winery, a favorable wine company, hired Pat Waller as their sales manager of the San Francisco region’s chain division. Although the company has had increasing sales for the past several years, Valley Winery has its fair share of problems that have Waller worried. He is very aware of the competitiveness within the wine industry and is concerned that Valley Winery will not be able to continue consistently increasing their sales.
Turnover rate is the number one issue at Valley Winery. Every problem the company has bleeds into the turnover rate. The company’s turnover rate is currently at almost 100 percent a year; this is a huge issue that Waller must address. The existing sales rep employment average
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With so much responsibility given to one person, effectiveness becomes a concern. The person in charge of hiring judges candidates based on youth and physical characteristics, rather than legitimate credentials. There is no consistency or checks and balances within the hiring process. Essentially, a single person is making all of the hiring decisions without any guidelines from upper management. Hiring sales reps based on qualifications would correlate with a reduction in the turnover rate.
The fourth and final issue is the quotas set for the sales reps. Unattainable quotas are the issue behind the turnover rate and the aggressive sales attitudes. Right now, each sales rep is required to meet monthly display quotas for different lines of products. It is nearly impossible for the reps to meet their quotas, which leads to exaggerating numbers and tampering with competitors’ products. Sales reps are discouraged by unrealistic quotas and overwhelming workloads; a combination that leads to low employee morale and high turnover. In order to solve his laundry list of issues, Pat Waller must do some serious restructuring, beginning with the hiring process. Waller needs to begin recruit top performers from competing firms. Because the wine industry is incredibly competitive, this will help the Valley Winery stay on top. Also, the interview process needs to be more thorough and realistic.

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