Activity Based Quota System Case Study

Question 1:

1. I would suggest Ralph uses the activity-based quota system. He is a director of sales from the company of Bright Plastics, Ralph Dickerson has been through many changes in many sales organizations. Also, he recognized that a new change was needed when it came to the quota system. His employees are already used to the sales-based quota so they could not change easy their quota systems and accept it. Ralph is going to face a couple of challenges implementing the activity-based quota system. Activity-based quota system based on the most important activities, it believes will lead to sales. The salesperson or a team of salespeople may set more than one activity quota and helps a salesperson satisfied their customer by keeping …show more content…
The challenge Ralph will mainly face is changing his sales staff mind set. He will have to implant in their heads that they are trying to build a long lasting relationship with their customers. He will increase focus on core customer segment and decrease brand confusion. Instead the sales people focusing on selling units and moving on they will focus more on their customers and that they are doing everything they can to fulfill their customer desires. Since they are already sales volume quota he will have to get them acquainted with the activity based quota, and teach them that it goes hand in hand with sales. activity-based quota system must be met by a salesperson during a given time period. An activity quota may require a salesperson to make a certain number of outbound calls, send a certain number of emails to potential clients or submit a certain number of statements of work. I also recommend Purpose-Driven Selling, which will allow his company sales force to build more of a relationship with their customers. Purpose-based selling will be more of an activity based quota system. Purpose-driven performance management should also include dialogue between supervisors and their employees, and an employer should ensure its supervisors are trained for these situations. Purpose-driven is a way for a business or brand to bond with a target audience based on their shared needs and interests in supporting a worthy cause. The activity based quota will aid sales by allowing sales …show more content…
Since seasonality can also be a factor, Rajiv should also have used the decomposition method so as to forecast the sales. Additionally, there is no single method which is superior under all the conditions, then best strategy would be to make use of several methods. Also, Rajiv could have turned to the scenario planning so as to develop a forecasting given the different possible conditions. Finally, I believe that Rajiv should also utilize the statistical demand analysis of the sales forecast method so as to predict the company’s sales potential. This method will allow the company to determine the relationship between the sales and the important factors that are affecting sales to forecast the future since it emphasizes on not isolating all the factors that affect sales and then to estimate the magnitude of the impact. In this case, this method would have given Rajiv a better understanding of the sales forecast in their current market and by geographical territory. The company, based on their services, could evaluate scenarios that are affecting their market such as the economic environment, the seasonal shifts, or the changes in the demand in regards to the trade-show