Case 8.1: Stalwart Industrial Products
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 himself. Davidson has worked for Stalwart for three years and he hit 112 percent of his quota his first year and 119 percent of his quota the second year. He did this by prospecting and meeting with customers 14 hours a day during the week and writing proposals and doing reports on weekends. He was on pace to exceed quota again this year, but after having his first child two months ago, he’s down to 50 to 60 hours a week and his sales are reflecting this. Tom had hoped to make Davidson a member of the management team, but in casual conversation with him, Davidson indicated he wanted to remain in sales because that’s where the big money is. That’s a problem for Tom because Davidson is still getting the same hefty salary while working fewer hours. Tom needs the old, energetic Davidson back but he doesn’t know how to get him. The second problem facing Tom is the use of the company website to accept orders. The company recently decided to do this this as part of an aggressive new growth strategy and the sales force is not at all happy about it. This is because while the salespeople can earn commissions on current customers who order through the web site, they can’t receive commissions on any new web customers in their territories.
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 himself. Davidson has worked for Stalwart for three years and he hit 112 percent of his quota his first year and 119 percent of his quota the second year. He did this by prospecting and meeting with customers 14 hours a day during the week and writing proposals and doing reports on weekends. He was on pace to exceed quota again this year, but after having his first child two months ago, he’s down to 50 to 60 hours a week and his sales are reflecting this. Tom had hoped to make Davidson a member of the management team, but in casual conversation with him, Davidson indicated he wanted to remain in sales because that’s where the big money is. That’s a problem for Tom because Davidson is still getting the same hefty salary while working fewer hours. Tom needs the old, energetic Davidson back but he doesn’t know how to get him. The second problem facing Tom is the use of the company website to accept orders. The company recently decided to do this this as part of an aggressive new growth strategy and the sales force is not at all happy about it. This is because while the salespeople can earn commissions on current customers who order through the web site, they can’t receive commissions on any new web customers in their territories.