Blog

BCO226: Sales & Purchasing Management

BCO226: Sales & Purchasing Management

Task

  • This is an individual task
  • Answer all 6questions at the end of the case
  • The contents page should breakdown the structure of your case (Introduction, Mainbody, Conclusions etc.)
  • The report should be uploaded in formatted

Formalities:

  • Word count: 1500 words
  • Cover, Table of Contents, References and Appendix are excluded of the total word count.
  • Font: Arial 12,5 pts.
  • Text alignment: Justified.
  • The in-text References and the Bibliography have to be in Harvard’s citation style.

Micro Ear-Business Challenges

Micro-ear are fledgling provider of custom, in-the-ear hearing instruments (hearing aids). They had to adopt a wholesale approach from a collaborative approach,due to lack of funding,and had to develop a strong sales organization that would help it grow profitably.

Solutions

Micro Ear created a successful sales force by establishing sales management processes that the company continues to use today.

Results

  • Company has grown to $28 million in annual revenue.
  • Sales management systems drive profitability, generating gross margins of 32to 45%.
  • Sales representatives increased contacts with decision-makers from 5 to 20 per day.
  • New product introductions are exceptionally successful due to established sales management systems.

Background

When funding sources dried up a year and a half after James Lawther founded MicroEar, he was forced to alter his business to a wholesale organization.Instead of serving patients who would come to Micro-Techwholesaleoutlets, Micro-Tech(owned by MicroEar)would have to call on audiologists, hospital clinics and private clinics to proactively sell its products.“All of sales management systems –commission structure, recognition, reporting, collaborative quota setting –were designed to create a high-performance sales organization in which our MicroEar sales representatives aligned their personal targets with corporate objectives.”“Not all salespeople make good managers,” James Lawther says, “but our adherence to a prescribed set of activities reminded me of the ‘science of sales’.”

Creating a Culture of Accountability

Sales representatives developed monthly and quarterly business sales plans that documented account strategies and tactics to achieve quotas and forecasted results of implementation. This account planning was the foundation for personal accountability and company growth.Sales Management Systems that Drive GrowthIn addition to creating a culture of accountability, the sales director developed a new business-development process. They also refined the company’s recruiting system.MicroEar continues to use the systems developed more than 10 years ago. “In fact,” according to James Lawther, “other companies have tried to mimic our systems, a testimonial to our industry leadership.”A stickler for systems, he adds, “Re4engineering taught me that there are departments that a business like ours should focus on. It’s imperative that each of the functions develop and work within systems.”MicroEar has adopted disciplined sales management processes and continues to appreciate training new salespeople, troubleshooting with sales representatives, and coaching her with new product launches
These questions mustbe answered within the context of your report:
  1. Compare and contrast the old sales relationship with the new sales relationship?
  2. What kinds of account classification would the Micro Ear need to adopt?
  3. What processes has Micro Ear put in place in terms of sale sand what metrics would be useful for the organization?
  4. What could be the set of prescribed activities that Micro Ear could adopt within sales?
  5. How do they maintain their success with respect to sales?
  6. Compare and contrast Micro Ears sales strategies to at least one other organization you have studies?

Leave a Reply