I.M.A.G.

E International

Case Facts
Manufacturer of office copiers based in France Commenced export operations to United States in 1991 Estimated 6% dollar market share in 2000

PRODUCT LEADERSHIP

Major strength in smaller models LImage was valued for its speed, definition, high speed output and elegant styling Technological Resources: Advanced Imaging Technology Physical Resources: Aggressive sales organization Reputational Resources: Reputation with customers, service quality

RESOURCES

Manufacturing machines that win awards for elegance, simplicity and functionality
CAPABILITIES

CORE COMPETENCIES

Advanced Imaging technology Aggressive sales organization Excellent service capability

PROBLEM STATEMENT
To address I.M.A.G.E Internationals Sales budget issues and HR policies while maintaining a consistency with the companys unique mission and background

STRATEGIC ISSUES: Usage of Quota System for Performance evaluation Incentive Structure

OPERATIONAL ISSUES: Difficulties involved in meeting up with the sales budget

Analysis-Incentive structure for the sales force

Sales force Training Performance Evaluation Incentives

Sales Representative were between 28 and 40 in age and had experience in sales force New hire underwent a one-month training course held twice a year All sales rep were given a one-week refresher course A two-day field training visit

No Formal performance appraisal No submission of reports No quotas Point based evaluation

Business expenses were reimbursed Medical. Insurance and retirement benefits Vacations Maternity leaves Company-leased car

Payment above industry standards Absence of Formal performance evaluation

Analysis-Incentive structure for the sales force

Absence of Quota System
Quota system places too much burden on the stronger ones and too little challenge on the weaker ones

INCENTIVES/Morale Building

Palm Springs convention Sales contests that has an impact on short term results Newsletter

Point Based Ranking

Assign points in each of the four categories: cumulative sales year-to-date; percent sales gain over same month last year, percent cumulative sales gain against territory BPI Ranked from top to bottom based on fewest points

Incentive structure aims at motivating their sales force which is their Key resource and thereby sustaining their core competency

Analysis-Incentive structure for the sales force

Sales Force Uniform Expenditure $1100 Total no of employees 412

District Managers Sale of service contracts

Expenditure $425

Employees Palms Spring Convention Sales Contest Newsletter Super Bowl Total Expenditure/Employee

Expenditure 1200000 200000 60000 81000 1541000 3740.291262

Recommendations

Incentive structure aims at motivating their sales force which is their Key resource and thereby sustaining their core competency.

Limiting expenditures on sales force can affect their revenues

Improve communication between Headquarters and the US Business Unit to solve operational issues

Action Plan: Emphasis on incentives/perks for employee motivation to sustain their core competency and to increase their market share in US Improve communication between Headquarters and the US Business Unit to solve operational issues