Problem Statement David Tomas announced possible territory reorganizations, but some of employees

responded to negatively and some of employees not. He is concerned about productivity of the unit
now.
Analysis Hypothesis #1: The misunderstanding between David Tomas, Syracuse division sales manager,
and Clifford Nelson, one of veteran sale reps, might have been caused by the differences of VABEs. The
back ground of David is very splendid. He graduated Stanford University, and pursued an MBA at
Northwestern University. He had work experienced for two years as a salesperson, and as an assistant to
Richard Topping, the top sales executives. Finally he gets his position which is division sales manager. He
is just 28 years old. A well-met his years, he has a passion to his working. He wants to improve the
divisions performance better than before, even if the division makes profit so far. He might be able to
double Pilgrims share of the Syracuse area wholesale drug business from 20% to 40% from territory
reorganizations. However the problem is David has not much experience as a sales person even if he is
sales manager. Especially Harry L. Schultz, Davids predecessor in Syracuse, had experience as a sales
person about 30 years. Undoubtedly, he can understand his sales people and every sales people follow
him. Compare to the Schultz, Davids leadership style is close to coercive to veteran sales people. To
veteran sales people include Nelson, when David tries to change something for the division, and John
Murray felt annoying when David had offered a few suggestions for improving Murrays selling
technique. It is natural that veteran sales people begin to doubt because of his short of experience. He
doesnt have any conclusion about changing of division. The lack of experience as a sales person, David
always focuses on sales policy of company, sales calendar, and market analysis records. Especially, sales
people are required experience and human moment, but David cannot understand these kinds of things.
Hypothesis 3: Tomas filled a routine report with the Albany office on the veteran sales rep*s field work
quite negatively because of his mem*es. David also did valuation the sales people even if he doesnt
know enough them. He just felt some sales people dont like me or like me without reasons. Also he
decides that Jackson, division general manager, has lack of concern for sales rep morale from the
conversation. Hypothesis 4: In the Syracuse division, there are several elements and factors that are
contributing to the disconnection of the group because of wrong social system. Hypothesis 5: T*he
companys* commission system for sales people *make *them fall into Jack ass fallacy. First of all, sales
people can get commission if they can sell lots of their drugs. Sometimes it is very unfair to sales people.
For instance, Suppose that sales person A sells 1000 drugs in 100 different retail drug stores and person
B sells 1000 drugs in one hospital. As things turned out they sell the same amount of drugs but
substantially person A was working more than person B. He went around the 100 different kinds of retail
drug stores. However person A and B got same amount of permission. Person A is going to be noticed
easily and he want to get territories which include hospital. In this case , Taylor also wanted get one
territory which has Mercy Hospital from veteran sales reps. Second, If person A got lots of permission
when he was young and after he is getting age he doesnt need any money, he is not working hard any
more. Even if he is not working hard, he already has lot of experience and he is acquainted with many
retailers or hospital. So they can easily sell what he wants but not company wants. So even if the newer
sales reps work harder than veteran, they cannot follow the veterans record and commission because
majority of customers want to buy drugs from people who are already acquainted with them. In this
case, when I check the Exhibit 2, I can see the commission between veteran sales reps and newer sales
reps. Even if veteran sales reps have the yolk of territory their commission in not much different from
Howard and Taylor, newer sales reps. Also, when I see the remarks on the routine report with the
Albany office on the sales reps field work, Bill Brooks and Clifford Nelson veteran sales reps both of
them need to train on new techniques. Hypothesis 6: David Tomas and Robert Jackson have different
leadership style and it makes sales people more complicated. Robert Jackson, division general
manager, has coercive leadership style. When he has a conversation with David, he looks like doesnt
care anything. He doesnt want to change his thinking and he doesnt want to hear anything from David.
He is alright himself. David Tomas has three different kinds of leadership style such as authoritative,
affiliative, and democratic. He wants change or reorganized division and has a vision to be able to
double Pilgrims share of the Syracuse area wholesale drug business form 20% to 40%. It tells me he is
authoritative leader. He tries to hear peoples opinion and he doesnt want to do anything to mess up
morale. It shows me he is affiliative and democratic.
Recommendations All of the divisions of Pilgrim Drug Company acted as a functionally autonomous
unit, maintaining its own warehouse, sales, purchasing, and accounting department now. Pilgrim Drug
Company should make a new standard rules for commission and sales.
First of all, the company should apply the different rules for between selling to the retail drug stores
and hospitals. It is true that if one sales person can sell to the hospital he or she can lots of profit to the
company but the company have to think about endeavor of all of sales people. Some sales people
cannot sell a lot even if he is working harder than some people because he got the territories without
hospital from company. Company should less pay the commission then now when the sales person sells
the drugs to the company or the company device totally different reward systems when the sales people
sell the drugs to hospitals such as free airplane ticket or free hotel room for vacation. Second, when the
hires the sales manager they have to think about experience. To sales people, experience is most
important thing. The excellent of scholarship is secondary one. The company should make a policy for
the sales department such as the qualification criteria of sales manager. For example, if person want to
be a sales manager, he or she have to work at least 7years at sales division etc. Third, the company has
to change the social system in sales department. Concord and collaboration is most important things in
sales division but now the system creates distrust and conflict between sales people. They mistrust and
conflict each other because they want to get better territories. When I see the Exhibit 1, Brooks and
Nelson veteran sales people always get the yolk territories. The company has to mix veteran sales reps
and newer sales reps when the company assigns the territories and the sales people can learn each
others strong point. Veteran sales reps can learn the new technology form newer sales reps and newer
sales reps can learn experience from veteran sales reps. Lastly, the company assigns territoriesmake a
round twice or three times a year. So every sales people can get a experience from a good territories.