Kerry, the new sales director, just completed her first staff meeting to set annual goals. She managed to get the team's consens
us on increasing sales volume by 10 percent over the next year. Kerry had suggested that the team focus on increasing sales of the base model first and then focus attention on the premium offerings. In closing, she reminded the group that the whole team would share responsibility for ensuring that sales goals were met. As they left the meeting, her company president, Richard, congratulated her on her planning but suggested there was one thing she might reconsider. What did he notice? Kerry had ...
There are potential concerns here. First, focusing solely on the base model might boost total sales volume, but may not enhance profits since premium models typically offer higher contribution margins. This could be a misunderstanding as contribution margins aren't mentioned, yet it's commonly known that car salespeople tend to present premium options first. Secondly, while collaborative goals may work well in cultures like Japan, in the US, where success is often evaluated individually, a team-based responsibility for sales targets might not be effective. Imagine increasing your personal sales by 15%, but if the collective group doesn't achieve the same growth, what happens to you? Normally, an individual sales increase is rewarded with bonuses or higher commissions.
