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    Valley Winery Case Study

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    sarakhan0622
    Valley Winery was experiencing high turnover of 100% annually among its salesforce of 50 reps. The case examines problems at Valley Winery, including unrealistic quotas that put pressure on sales reps. Reps engaged in unethical behaviors like lying about sales numbers due to pressure to meet unattainable quotas. The document recommends realistic quotas based on sales potential, improved hiring and training processes, reduced turnover through competitive wages and goal setting, and establishing an ethical culture with leadership and communication.

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    Valley Winery Case Study

    Uploaded by

    sarakhan0622
    146 views15 pages
    Valley Winery was experiencing high turnover of 100% annually among its salesforce of 50 reps. The case examines problems at Valley Winery, including unrealistic quotas that put pressure on sales reps. Reps engaged in unethical behaviors like lying about sales numbers due to pressure to meet unattainable quotas. The document recommends realistic quotas based on sales potential, improved hiring and training processes, reduced turnover through competitive wages and goal setting, and establishing an ethical culture with leadership and communication.

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    Valley Winery was experiencing high turnover of 100% annually among its salesforce of 50 reps. The case examines problems at Valley Winery, including unrealistic quotas that put pressure on sales reps. Reps engaged in unethical behaviors like lying about sales numbers due to pressure to meet unattainable quotas. The document recommends realistic quotas based on sales potential, improved hiring and training processes, reduced turnover through competitive wages and goal setting, and establishing an ethical culture with leadership and communication.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    146 views15 pages

    Valley Winery Case Study

    Uploaded by

    sarakhan0622
    Valley Winery was experiencing high turnover of 100% annually among its salesforce of 50 reps. The case examines problems at Valley Winery, including unrealistic quotas that put pressure on sales reps. Reps engaged in unethical behaviors like lying about sales numbers due to pressure to meet unattainable quotas. The document recommends realistic quotas based on sales potential, improved hiring and training processes, reduced turnover through competitive wages and goal setting, and establishing an ethical culture with leadership and communication.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    VALLEY WINERY CASE

    STUDY ANALYSIS
    Amna Fayyaz
    Hooria Adnan
    Sara Khan
    Aown Sahi
    Sec B-II
    MBA 2

    Decision Focus

    Paul Waller is wondering how to:


    better plan and organize the sales
    force activities of Valley Winery

    despite good sales the turnover ratio


    was almost100%

    Case Facts

    Valley winery founded in 1933

    largest domestic producer in the US. Market share


    40%

    Growth attributed to High quality wines & low


    prices

    Sales exceeded $1.5 billion (2004)

    push aggressive selling strategy

    Distribution done
    distributors.

    Valley owns 50 % of the distribution

    Three sales groups responsible for making


    sales.

    through

    nationwide

    The career type (the liquor and bars)


    the restaurants and resorts
    chain division

    Recruitment from universities 10 to 15 new sales


    reps a year.

    10 hires from the job search web sites.

    15 to 20 reps from the local employment agencies

    Large portions of the hires are college graduates


    who had no experience or training

    Problems

    Severe turnover (100% a year, 50 sales rep hired


    each year)

    Sales reps practicing unethical behavior.

    relocated competitive displays and


    hairsprays on competitors merchandise

    Competitive spirit disliked by others

    No mentoring by district managers (babysitter)

    spray

    Winery management encouraged sales


    reps to lie

    Marvs current manager advised him to


    stretch his estimates because it is the
    only way he can meet his numbers each
    month

    Case of management malfunction

    Dissatisfaction amongst employees due to


    poor treatment by district managers

    Murphy said that hed get calls late at night


    from his district manager 2-3 times a week
    to check his progress

    Frustrating and annoying for sales reps

    Problems in Recruiting

    The use of 6 local employment agencies,


    with fees of approximately $2,000 per hired
    individual, was expensive

    Too much of an emphasis on youth and


    physical attributes

    Core Problem

    Unrealistic Quotas
    to achieve

    Unusual amount of pressure from


    management

    Nobody, but nobody, ever makes quota


    Marv Flaningan
    Hiring fresh college graduates

    Recommendations

    Attainable
    Complete
    Timely
    Easy

    Quotas should be
    realistic

    Set according to
    the mentioned
    diagram

    Recommendations
    contd.
    Revise
    hiring
    and
    training
    process
    Reduced
    Turnover

    Leadershi
    p
    Incorpora
    te Ethics

    Emphasis on candidates intellectual and


    reasoning abilities not just physical
    appearance
    Focus on training process
    Retain Employees
    Competitive Wage Plan
    Goal Setting
    Quotas Should be attainable
    District Managers should be mentoring
    and advisable
    Relationship should be trust worthy
    Continuous Communication and
    Vigilance
    Lead by example
    Value System has to be developed
    Employees should not misrepresent sales
    numbers otherwise they will be
    penalized

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