Wesco Essay

9134 Words May 30th, 2012 37 Pages
Harvard Business School

9-598-021
Rev. February 9, 1998.

WESCO Distribution, Inc.
Late in June 1997, Jim Piraino, VP marketing for WESCO Distribution, Inc. (see Exhibit 1), was preparing for a yearly review meeting with his CEO Roy Haley. At the top of the agenda was the performance of the National Accounts (NA) program during the first half of 1997 (see Exhibit 2). Haley had ambitious plans for WESCO over the next five years. He had charted out a course that called for an annual growth rate of 6% to 8% in sales, and more important, an annual increase of 12% to 16% in profitability. "In 1996, we were a $2.2 billion company with an EBIT of around 3%. I want us to be a $3 billion company with an EBIT of over 5% by the year 2000. This
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During the first five months of 1997, the account had generated only 40% of its target sales volume, with gross margins falling a full 2% from the prior year. Piraino reflected on the meeting: From our account analysis prior to signing the agreement, this was a very promising NA customer offering immediate, exclusive access to their 28 U.S. plants. We thought we could increase their existing $1.5 million annual purchases from us
Professor Das Narayandas prepared this case with the assistance of Research Associate Sara Frug as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright © 1997 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685 or write Harvard Business School Publishing, Boston, MA 02163. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permi ssion of Harvard Business School.

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This document is authorized for use only in Global Marketing Management by Seigyoung Auh from April 2012 to June 2012.

598-021

WESCO Distribution, Inc.

by a factor of ten. However, ever since

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