In: Operations Management
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)
The major issue, in this case, is Ahmed's inability to acquire huge requests for the organization. Together with his inclination to frame an honest compatibility with the customers, he is reducing the existing measures of request.
His chief, Areej is not content with his exhibition and needs him to get forceful in his exchange abilities.
2)
While Areej's approach may get the organization momentary requests, yet to remain fruitful in the business, it requires dependable trust between the shoppers and the organization. In such manner, Ahmed's approach is better. Not just the customers are satisfied with the administration yet they would feel that the organization has their eventual benefits on a basic level and is not reluctant to lose money during the time spent serving its customers.
This will help the organization in remaining fruitful for a more drawn out period.
3)
If I were Ishfaq, I would attempt to hold a meeting among Areej and Ahmed and encourage correspondence between the two. We would discuss about their approach in detail which would help them in understanding each other's point of view.
This will help in improving the connection between the two, I am certain.
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