With the objective of finding growth opportunities and reducing sales and support costs for HP’s CSO, the company has performed audits on their enterprise customer management strategy. While the current approach has been successful, Diaz wants to further identify the commissioned gaps, weaknesses, and opportunities of altering the current system. Before acting upon the recommendations presented by the audits, Diaz must decide if HP is ready for more change and if the changes would results in benefits to the organization.
The current sales process adopted by HP does not take advantage of the total sales opportunity from customers. Additionally, with the steps of qualifying and post sales servicing, it led to time drains. As sales regions were measured as cost centres, the sales force focused on meeting sales target above all else. Employees sold more volumes internally and the consumer initiated more than 80% of customer sales. Another trend arising was customers wanting to consolidate supplier base, therefore putting increasing pressure of price on HP.
Although HP was a preferred vendor & strong in repurchase, the company lacked in the ability to enter the innovative projects segment. As well, the sales force could not convert sales in replacement and expansion projects. The team focused less time on the innovation projects. Other problems the …show more content…
By adopting this strategy, the company can have improved segmentation, which will allow for better targeting of consumers. As each division will act as a separate profit centre, it will allow for better control of each division and stimulate competition among which enhance. Furthermore, this strategy will distribute decision-making and hold employees accountable. The downfall of this strategy includes duplication of efforts and an abundance of competition can hamper overall
The current sales process adopted by HP does not take advantage of the total sales opportunity from customers. Additionally, with the steps of qualifying and post sales servicing, it led to time drains. As sales regions were measured as cost centres, the sales force focused on meeting sales target above all else. Employees sold more volumes internally and the consumer initiated more than 80% of customer sales. Another trend arising was customers wanting to consolidate supplier base, therefore putting increasing pressure of price on HP.
Although HP was a preferred vendor & strong in repurchase, the company lacked in the ability to enter the innovative projects segment. As well, the sales force could not convert sales in replacement and expansion projects. The team focused less time on the innovation projects. Other problems the …show more content…
By adopting this strategy, the company can have improved segmentation, which will allow for better targeting of consumers. As each division will act as a separate profit centre, it will allow for better control of each division and stimulate competition among which enhance. Furthermore, this strategy will distribute decision-making and hold employees accountable. The downfall of this strategy includes duplication of efforts and an abundance of competition can hamper overall