Crestlight Paper Com.Case Analysis

SDM, NMP Term IV

Group 5Abhijeet Tomar - 03Argha Ray - 15Khushal Malik - 28 Vipin Kathuria– 59

Context• Crestlight’s paper division has 3 product lines and approximately 20% market

share in 1998. (Exhibit 1: 1460/7100)

• Farrel is a man in hurry.

• Crestlight witnessing widespread restructuring in the Education Division initiated by Farrel.

• Replaces Divisional Sales Manager Wesley with greenhorn Andrew.

• Andrew needs to focus on Salesforce performance and territory rationalization.

Yardsticks:• Widely admired Wesley being forced into retirement may have

undesirable repercussions on existing salesforce.

• Andrew has limited managerial experience in sales and historically confused about his career direction.

• At 28, Andrew will have to lead a team much more senior to him.

• Limited handover from Wesley to acclimatize Andrew.

• Andrew will have to navigate on his own against the wind based on a few valuable advice from Wesley.

Objective Ratios:Salesman Gross Margin Remuneration Expenses PBT contribution RankJennings 79000 25155 8430 45415 1Halbert 75000 29010 5940 40050 2Prince 55000 21630 7800 25570 3Bindon 59000 19620 15030 24350 4Campbell 53000 21435 9900 21665 5Thomson 47000 17535 9600 19865 6Randall 50000 21990 10200 17810 7Vereker 41000 16440 11460 13100 8Anderson 39000 20340 5820 12840 9

Profit Before Tax Ranking

Salesman Accounts Sold Potential Accounts Account Penetration RankThomson 364 423 86.1 1Prince 413 566 73.0 2Campbell 317 529 59.9 3Anderson 398 699 56.9 4Vereker 353 653 54.1 5Bindon 476 934 51.0 6Jennings 509 1060 48.0 7Halbert 239 570 41.9 8Randall 202 531 38.0 9

Penetration Ranking

Salesman Sales 1998 Expenses Expense By Sales RankHalbert 258000 5940 2.3 1Jennings 239000 8430 3.5 2Prince 154000 7800 5.1 3Anderson 112000 5820 5.2 4Campbell 143000 9900 6.9 5Randall 142000 10200 7.2 6Thomson 123000 9600 7.8 7Bindon 156000 15030 9.6 8Vereker 112000 11460 10.2 9

Sales Expense Ratio Ranking

Still More Objectivity:Salesman Calls Made Expenses Cost by Call RankAnderson 1450 5820 4.0 1Halbert 1230 5940 4.8 2Prince 1196 7800 6.5 3Jennings 1168 8430 7.2 4Thomson 1220 9600 7.9 5Vereker 1409 11460 8.1 6Randall 1171 10200 8.7 7Campbell 1135 9900 8.7 8Bindon 1051 15030 14.3 9

Expense per Call Ratio Ranking

Salesman Accounts SoldCalls Made Orders By Calls RankBindon 476 1051 0.45 1Jennings 509 1168 0.44 2Prince 413 1196 0.35 3Thomson 364 1220 0.30 4Campbell 317 1135 0.28 5Anderson 398 1450 0.27 6Vereker 353 1409 0.25 7Halbert 239 1230 0.19 8Randall 202 1171 0.17 9

Batting Average (Orders per Call - Hit Ratio) Ranking

Salesman Sales 1998 Accounts Sold Sales By Account RankHalbert 258000 239 1079.5 1Randall 142000 202 703.0 2Jennings 239000 509 469.5 3Campbell 143000 317 451.1 4Prince 154000 413 372.9 5Thomson 123000 364 337.9 6Bindon 156000 476 327.7 7Vereker 112000 353 317.3 8Anderson 112000 398 281.4 9

Sales per Account Ratio (Average Order Size) Ranking

Overall Objective Ranking:

• Vereker and Randall needs a rap on the knuckle.• Bindon needs to be told to cut down expenses.• Halbert needs a shake up on call conversion.• Both Jennings and Prince are top draw.• Equal weightage method considered to arrive at overall rank.

Salesman PBT Rank Penetration Rank Sales Expense Rank Expense per CallRank Batting Avg Rank Avg Order Size Rank Total Overall Objective RankJennings 1 7 2 4 2 3 19 1Prince 3 2 3 3 3 5 19 2Halbert 2 8 1 2 8 1 22 3Thomson 6 1 7 5 4 6 29 4Campbell 5 3 5 8 5 4 30 5Anderson 9 4 4 1 6 9 33 6Bindon 4 6 8 9 1 7 35 7Randall 7 9 6 7 9 2 40 8Vereker 8 5 9 6 7 8 43 9

Subjective Rating:

• Vereker again performs poorly. Prince follows close behind.• Prince nullifies his lead in objective criteria to subjective evaluation.• Subjective rating derived based on age, Wesley’s feedback and assumptions.• Objective and Subjective not combined as they will just act as pointers for Andrew to

“see the ropes”.• Any kneejerk reaction based on this will be unwarranted. Go slow unlike Farrel.

Salesman Age Youthful Experience Knowledge Customer Satisfaction Ideation Total Score Subjective RankHalbert 54 1 5 5 5 5 21 1Jennings 42 3 4 5 4 4 20 2Bindon 33 5 3 3 5 4 20 2Randall 48 2 5 5 3 5 20 2Anderson 37 4 3 5 1 4 17 3Campbell 43 3 3 5 3 3 17 3Thomson 33 5 2 2 3 3 15 4Prince 57 1 5 1 5 1 13 5Vereker 29 5 1 1 1 1 9 6

Decision:• Farrel is infusing fresh blood. Hence, Andrew needs to think about easing

out Prince gradually.

• Vereker definitely needs to be replaced if he continues in current form.

• Sales territory need to be rationalized based on accounts rather than pupils.

• Clear case of redistribution between Halbert, Jennings and Bindon.

• Allocate more portion of salary as commissions.

• Increase penetration in South of UK. (Halbert, Jennings, Bindon)

• Emphasize account maintenance as most have lost accounts from 1997.