Báo cáo phân tích case study microdyne dựa theo lý thuyết “module 6 managing your time and territory

Attractiveness: Accounts are potentially attractive because they offer high opportunity, but the sales organization currently has weak position with accounts.. Sales call strategy: A

TRUONG DAI HOC TON DUC THANG

KHOA QUAN TRI KINH DOANH

PHAN TICH CASE STUDY MICRODYNE DUA THEO LY THUYET “MODULE 6 - MANAGING

YOUR TIME AND TERRITORY”

Giảng viên hướng dẫn: Trần Nguyên An

Lắp: Thực hành chuyên môn 2 — 704039

Ca I— Thuứ 7

Nhom thirc hién: Selling Superstar

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722H0032 Lê Ngọc Mỹ Tâm

722H0079 Trần Minh Thy

B2100501 Lê Lâm Khanh Vy 722H0016 Dương Châu Phú THÀNH PHÓ HÒ CHÍ MINH, THÁNG 5 NĂM 2024

NHAN XET CUA GIANG VIEN

TABLE OF CONTENTS

DL INTRODUCTION uo .csccsccsssessceceessenseenceeeeaceaeesaesaeeenecaeeagesaceaeesaeeagesaessagsesaeeesaeeenaesaneeeas 1

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5 STRATEGIC RESPONSE TO VENDOR REIEH ỏ co se se sec 12 5.1 Hypothetical scenario: Call from the former Dynamic Tools CEỠ 12 5.2, Strategic actions Bill should take: 13

6 LESSONS LEARNED FROM THE CASE STUDY .0 ccsccsccsscscscceesseceseceeseetessneeaes 15 L0/(/09//01// 06h 17 7.1 Summary of key points from the an4ÌySÏS co chư, 17 7,2, Implications for future sales stratèies and account manàemeni 18 NEEEREINC E HH TH TH HT TH TH TH HH 0 0900 20

1 INTRODUCTION

In the ever-evolving high-tech industry, where market conditions and _ business environments can shift rapidly, effectively managing customer relationships and strategically adapting sales approaches are vital for success The MicroDyne case study vividly illustrates the complexities and opportunities encountered by a salesperson when their client undergoes a significant organizational change, such as a merger Mergers often bring about a host of challenges, including changes in decision-makers, realignment of business strategies, and potential shifts in vendor preferences These factors can significantly impact the dynamics of established customer relationships and necessitate a reevaluation of sales strategies

This report delves into the intricacies of the MicroDyne case study, focusing on the experiences of Bill Maguire, a dedicated salesperson who must navigate the turbulent waters following the merger of Micro-Automation and Dynamic Tools into MicroDyne

By leveraging the theoretical framework provided in Module 6: Managing Your Time and Territory, this analysis aims to offer a comprehensive understanding of how sales professionals can effectively allocate their time and resources, manage their territories, and maintain strong client relationships amidst organizational upheavals Through this case study, we will explore practical strategies for addressing the challenges posed by such significant changes and highlight the importance of adaptability, strategic planning, and proactive engagement in achieving sustained sales success

2 CASE STUDY SUMMARY

Brief overview of the MicroDyne case study:

The case study revolves around Bill Maguire, a salesperson who experiences a significant shakeup in his professional life due to a corporate merger Micro-Automation and Dynamic Tools merge to form a new company called MicroDyne Bill initially secured the Dynamic Tools account two years prior after a challenging negotiation process Despite Dynamic Tools being loyal to his strongest competitor, Target Supply, for almost

a decade, Bill’s lower price and strong customer testimonials, including one from a close friend of the CFO, helped him win the business

Over the following two years, Bill worked hard to strengthen his relationship with Dynamic Tools, though he faced ongoing resistance from Jack Reilly, the director of manufacturing Jack vehemently opposed Bill and had a strong preference for Target Supply Six months prior to the merger, Jack left Dynamic Tools to join Micro- Automation, another of Bill’s smaller accounts Upon joining Micro-Automation, Jack immediately canceled all outstanding orders with Bill’s company and switched all their business back to Target Supply

The merger between Micro-Automation and Dynamic Tools creates a new challenge for Bill, as Micro-Automation, now part of MicroDyne, is a larger entity overall With Jack Reilly back in a prominent role at MicroDyne, Bill fears the potential cancellation of his

contracts This concern becomes immediate when Bill receives a call from MicroDyne,

prompting him to worry if Jack is already moving to cancel their agreements

The case highlights the complexities and dynamics of business relationships, the impact

of corporate mergers, and the challenges sales professionals face in maintaining and securing accounts amidst organizational changes

3 THEORETICAL FRAMEWORK

3.1 Introduction The Self-Management Process:

Set sales goals

Evaluate Design sales strategy

performance and allocate resources

Implement time and

employment There are many types of sales goals that salespeople should consider to set the sales target, such as: performance goals, activity goals, conversion goals

The second step is Designing sales strategy and allocating resources Sales representatives oversee various resources, including physical ones like samples, demo products, trial products, brochures, direct mail budgets, and other marketing materials While these physical resources represent a cost to the company, salespeople view them as investments because they must be managed effectively to yield the best possible return, similar to financial investments that generate dividends or price increases

The third step is Implementing time and territory strategy Time is a limited resource Once spent, it cannot be regained Following tips for managing your time as a salesperson; keep these in mind as you read through this section: Start earlier than anyone else, manage responsiveness, schedule in advance, use downtime wisely Salesperson can use daily activity planning, guidelines and planning processes to make a schedule for managing time effectively

The final stage is Evaluating performance Assessing performance is a key aspect of self- management, guiding the salesperson's effort level and offering insights into the most effective strategies It's important for salespeople to evaluate each sales call separately and analyze which actions result in the desired outcomes and at what frequency There are many kinds of analysis for salesperson to evaluate their performance, such as: post call analysis, activity analysis, performance analysis, productivity analysis

3.2 Introduction to the sales call allocation grid and its components:

The sales call allocation grid below provided categorizes accounts based on the company's competitive standing with each account and the sales potential of the account The aim of categorizing accounts using grid analysis is to identify which accounts should

be allocated more resources effectively

Sales call strategy:

Accounts should receive a high level

of sales calls because they are the sales organization’s most attractive accounts

Attractiveness:

Accounts are potentially attractive

because they offer high opportunity,

but the sales organization currently has weak position with accounts

Sales call strategy:

Accounts should receive a high level

of sales calls to strengthen the sales organization's position

Segment 3 Attractiveness:

Accounts are somewhat attractive because the sales organization has

a strong position, but future opportunity is limited

Sales call strategy:

Accounts should receive a moderate level of sales calls to maintain the current strength of the sales organization's position

Segment 4

Attractiveness:

Accounts are very unattractive because

they offer low opportunity, and the sales organization has a weak position

Sales call strategy:

Accounts should receive a minimal level of sales calls, and efforts should be made to selectively eliminate or replace personal sales calls with telephone sales calls, direct mail, etc

Source: Raymond W LoForge, Clifford E Young, and 8 Curtis Hamm, “Increasing Sales Productivity through Improved Sales Call Allocation Strategies," Journal of Personal Selling and Sales Management, November

The salesperson and company's effectiveness in selling the account is reflected in the strength of position Factors determining this strength include the account's current share

of product purchases, the account's attitude towards the company and salesperson, and the relationship between the salesperson and key decision makers in the account

Understanding the strength of position helps the salesperson gauge the potential sales level in the account.

4 APPLICATION OF THE SALES CALLALLOCATION GRID

4.1 Grid Analysis

In the process of sales and customer management, businesses need to understand that not all customers have the same potential, and the profitability of each customer account varies greatly According to the rule, 80% of sales from a business come from 20% of the customers Therefore, sales staff must focus on customers who are likely to bring high profits and minimize those who have little or no profit potential for the company For this reason, staff need to categorize customers based on their sales potential and avoid wasting too much time and resources on customers with low prospects in order to optimize profits and achieve sales targets

Regarding customer analysis, there are two types: ABC Analysis and Grid Analysis ABC Analysis is the simplest form of customer analysis, based on the 80/20 principle, meaning that customers with the highest sales potential will receive the most attention This method identifies 'A' accounts as those most likely to make the most purchases, representing 20%, 'B' accounts as the remaining 80%, and finally 'C' accounts as those who are not customers or do not make purchases However, this method has a drawback because it is only effective in industries that require frequent contact with the same accounts, while industries such as machinery and furniture typically make calls to advise until the product is sold, followed by a very long period before a second transaction occurs, making this analysis potentially unhelpful

Therefore, we have a second method of analysis, known as Grid Analysis This analysis is based on a company's competitive position regarding an account and the sales potential of the customer to determine which accounts should receive more focus This is all illustrated in the following diagram:

sales organization has a strong but the sales organization currently has

R position a weak position with accounts

Sales call strategy: Sales call strategy:

Accounts should receive a high level Accounts should receive a high level 2| of sales calls because they are the of sales calls to strengthen the sales

5 sales organization's most attractive organization's position

= accounts

|

3 Segment 3 Segment 4

EÌ Attractiveness: Attractiveness:

8 Accounts are somewhat attractive Accounts are very unattractive because

< because the sales organization has they offer low opportunity, and the sales

a strong position, but future organization has a weak position

opportunity is limited

Sales call strategy: Sales call strategy:

Accounts should receive a moderate Accounts should receive a minimal level of sales calls to maintain the level of sales calls, and efforts should be current strength of the sales made to selectively eliminate or replace organization's position personal sales calls with telephone sales

calls, direct mail, etc

Source: W LoForge, Clifford E Y, and B Curtis Hamm, “Increasi ae

Improved Se Col Alois Seetaginn” lesa ol Perce Sellers coed Sree Rican

1983, pp na

Image 4.1 Sales Call Allocation Grid Source: Module 6 - Managing Your Time and Territory

According to this diagram, we will consider two dimensions:

First, the Account Opportunity, which shows how much the account needs the product and whether the account has the ability to pay

LK Second, the Strength of Position, which shows how strong the sales staff and the company are in selling to the account

With the diagram in Figure 15.5, we can interpret as follows:

Segment 1: High Account Opportunity and Strong Position

(| Attractiveness: The account is very attractive because it offers high opportunities and the sales organization has a strong position

1 Sales call strategy: The account should receive sales calls at a high frequency because this is the most attractive account of the sales organization

Segment 2: High Account Opportunity and Weak Position

LC Attractiveness: The potential account is attractive because it offers high opportunities, but the sales organization has a weak position regarding the account

1 Sales call strategy: The account should receive sales calls at a high frequency to strengthen the sales organization's position

Segment 3: Low Account Opportunity and Strong Position

(1 Attractiveness: The account is also attractive because the sales organization has a strong position, but future opportunities are limited

1 Sales call strategy: The account should receive sales calls at a moderate frequency

to maintain the current position of the sales organization

Segment 4: Low Account Opportunity and Weak Position

(1 Attractiveness: The account is not attractive (or has low attractiveness) because it offers low opportunities and the position of the sales organization is very weak

1 Sales call strategy : The account should receive as few sales calls as possible, and those sales efforts should be reserved to eliminate or replace personal sales calls with phone calls or emails ”

4.2 MicroDyne Analysis

Based on the continuous changes in customer relationships, the company merger, and the influence of Jack Reilly, using ABC Analysis would oversimplify the already complex situation due to the merger of two companies and Jack's influence ABC Analysis would not account for the strategic needs to rebuild relationships, especially with the key