Question

Ahmed was waiting outside the cabin of his National Sales Manager, Ishfaq, for a meeting. Ahmed has been with cutting edge, a large company in office automation products. About a year back the company had launched high technology multipurpose products for the top end of the market and advertised for experienced sales executives in a leading newspaper. Ahmed, at that time was with a finance company and a star performer there. Due to economic crises and scams, the entire finance sector went in recession and he at the point was looking for a change. It was Ishfaq, who recommended Ahmed at all stages of the selection, he soon joined cutting Edge.

Ahmed liked the challenge of the new job, the environment and thought that he had made a right and a good decision. Three months later, he had been called by Areej, his boss, the head of sales for the north region. He was told in the meeting that for the last 3 months Ahmed has not picked up any sales for the company. Areej briefed him about his targets and asked Ahmed to meet him next week with his projections. In the next meeting, Areej did not look at Ahmed’s report instead asked him to concentrate on his calls and work. Although 5 months have passed, Ahmed could not get any big order but yes managed to pick up small products and contributed good amount.

Areej was not happy with these orders. He wanted Ahmed to sell new products. He wondered why Ahmed is selling old products in the market. Ahmed got disheartened and thought himself as a loser because everyone else in the office was making sales. He did not know what to do. “Saudi Television company is asking for a scanner free with 3 machines”, Ahmed shared with Areej.

Areej, “ How can you allow customers to dictate terms to you like this Mr. Ahmed”?

Areej was making appraisals at that time and was not happy with the performance of Ahmed and put his comments as” Not aggressive and shows no vision, he is slow and has not achieved his targets so far”.

When Ishfaq read these comments, he asked Areej to give him some time. He said, “Ahmed has a good record and has picked up business. May be he need little training on negotiations. You must train him” Areej wondered how he can teach someone skills but decided to accompany him to certain calls and try to improve the situation.

Next week, Areej accompanied Ahmed to a MNC and returned back office with an order of 13 big scanners and 5 printers. While driving back, Areej in an upbeat mood said, “Ahmed, what you have to do is to convince the customer that they have a need and do not be so rigid in negotiations, make ample leenway. Quote higher and come down slowly through the deal”.

Next day Ahmed was been asked to visit an existing customer, Ultra Channels and had a need of 12 scanners and 7 fax machines. Ahmed went to the office and discussed at length about their requirements. He found that since it is a liaison office and also the work force is just 20, so instead of 12 scanners and 7 fax machines, 8 scanners and 4 fax machines will serve the purpose.

The Branch Manager was impressed and appreciated Ahmed a lot over the phone to Mr Ishfaq.

Listening to the whole story, Areej got angry, called Ahmed, “Look, I have targets for my region and I have to achieve them. How can I do with people like you who go to the client and recommend them to buy less products. I do not understand how can you be so stupid”. This was on for 20 minutes and finally Ahmed said, “This is our duty to build an honest rapport with the client and also suggest them the best so that we can look forward for a long term relationship. I think this is the right way”.

Areej was upset and next week called Ahmed and a list of fixed clients. Areej said,” these clients were profitable at one point of time but because of competition have shifted. If will get extra incentive on bringing any order form these clients”. Areej was relieved on this shift as he was not keen to have Ahmed with him.

Hearing this, Ishfaq called Ahmed in his cabin and asked him, “Are you not happy with your work?”

Questions:

1) What is the major issue in this case?

2) Analyze the approach of Areej and Ahmed, which one is correct?

3) If you were Ishfaq, how you will improve the situation?

Answer 1

1. The major issue in this case is the different attitudes followed by Areej and Ahmed. Areej is focused only on increasing profit while Ahmed gives importance to benefit the customers and develop a long term relationship. Their conflict of interest is the major issue here.

2. In my opinion, both have mistakes. Both profit maximization and customer loyalty are important for a business to succeed. While Areej’s approach is to provide a higher initial price and then reduce to make a deal, Ahmed is trying to sell only as per the actual customer requirements. Areej’s approach is leading to the loss of potential customers in the long run while Ahmed’s approach will not help the company to make much profit from the business. Along with longterm customer relationship, profit is also important t for a business.

3. If I were Ishfaq, I would improve the situation by arranging training for Ahmed to improve his sales skills. He was a star performer in finance sector, so he is focused on cost optimization. He has no much expertise in sales and hence he is finding it difficult to achieve the target. Hence training is necessary to improve his skills related to sales.