Salesforce Organization Exercise

Sample Solution

I interviewed Sarah Jones, the Sales Manager at Acme Corporation, a leading manufacturer of cloud computing software. Acme Corporation's primary customers are businesses of all sizes.

1. What is Sarah Jones's name, job title, and company? Describe the industry? Who are this salesforce’s primary customers (e.g., manufacturers, retailers, businesses, consumers, etc.)

Sarah Jones is the Sales Manager at Acme Corporation, a leading manufacturer of cloud computing software. Acme Corporation's primary customers are businesses of all sizes.

1. Describe the organizational design for the salesforce. Which of the designs we discussed in class (e.g., geographical, market, product, function, etc.) does this most closely align with? Justify your answer.

Acme Corporation's salesforce is organized by product. Each sales team is responsible for selling a specific product or product line. This design is justified by the fact that Acme Corporation's products are complex and require a high level of expertise to sell effectively.

1. Why did the sales manager choose this particular sales organizational/territory design plan? According to this manager, what are the pros and cons of the design?

Sarah Jones chose a product-based sales organizational design for Acme Corporation because she believes it is the most effective way to sell the company's complex products. She explained that product experts are better able to understand the needs of customers and recommend the right solutions. They are also more likely to be able to answer customer questions and objections. The pros of a product-based sales organizational design include:

• Increased sales effectiveness: Product experts are better able to understand the needs of customers and recommend the right solutions.
• Improved customer satisfaction: Product experts can provide customers with a higher level of support and service.
• Increased employee engagement: Product experts are more likely to be engaged and motivated in their work.

The cons of a product-based sales organizational design include:

• Reduced cross-selling opportunities: Sales teams may be focused on selling their own products, rather than cross-selling other products that the company offers.
• Increased costs: A product-based sales organizational design can be more expensive to maintain, as it requires more sales teams and sales managers.

Overall, Sarah Jones believes that the pros of a product-based sales organizational design outweigh the cons. She has found that this design has been effective in helping Acme Corporation to achieve its sales goals. Here are some additional thoughts on the pros and cons of a product-based sales organizational design: Pros:

• Product experts are more likely to be able to understand the needs of customers and recommend the right solutions.
• Product experts can provide customers with a higher level of support and service.
• Product experts are more likely to be engaged and motivated in their work.
• A product-based sales organizational design can lead to increased customer satisfaction, as customers are more likely to be happy working with a salesperson who is an expert on the product they are interested in.
• A product-based sales organizational design can also lead to increased sales, as salespeople who are experts on their product are more likely to be able to close deals.

Cons:

• A product-based sales organizational design can be more expensive to maintain, as it requires more sales teams and sales managers.
• A product-based sales organizational design can also lead to reduced cross-selling opportunities, as salespeople may be focused on selling their own products rather than cross-selling other products that the company offers.
• A product-based sales organizational design can also lead to increased competition between sales teams, as each team is vying to sell the most products.

Ultimately, the best sales organizational design for a company will depend on a number of factors, including the company's products, customers, and industry.