Crestlight Paper Company

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Information about Crestlight Paper Company
Business & Mgmt

Published on March 12, 2014

Author: argharay56

Source: slideshare.net

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Crestlight Paper Company

Crestlight Paper Com. Case Analysis SDM, NMP Term IV Group 5 Abhijeet Tomar - 03 Argha Ray - 15 Khushal Malik - 28 Vipin Kathuria– 59

Context • Crestlight’s paper division has 3 product lines and approximately 20% market share in 1998. (Exhibit 1: 1460/7100) • Farrel is a man in hurry. • Crestlight witnessing widespread restructuring in the Education Division initiated by Farrel. • Replaces Divisional Sales Manager Wesley with greenhorn Andrew. • Andrew needs to focus on Salesforce performance and territory rationalization.

Yardsticks: • Widely admired Wesley being forced into retirement may have undesirable repercussions on existing salesforce. • Andrew has limited managerial experience in sales and historically confused about his career direction. • At 28, Andrew will have to lead a team much more senior to him. • Limited handover from Wesley to acclimatize Andrew. • Andrew will have to navigate on his own against the wind based on a few valuable advice from Wesley.

Objective Ratios: Salesman Gross Margin Remuneration Expenses PBT contribution Rank Jennings 79000 25155 8430 45415 1 Halbert 75000 29010 5940 40050 2 Prince 55000 21630 7800 25570 3 Bindon 59000 19620 15030 24350 4 Campbell 53000 21435 9900 21665 5 Thomson 47000 17535 9600 19865 6 Randall 50000 21990 10200 17810 7 Vereker 41000 16440 11460 13100 8 Anderson 39000 20340 5820 12840 9 Profit Before Tax Ranking Salesman Accounts Sold Potential Accounts Account Penetration Rank Thomson 364 423 86.1 1 Prince 413 566 73.0 2 Campbell 317 529 59.9 3 Anderson 398 699 56.9 4 Vereker 353 653 54.1 5 Bindon 476 934 51.0 6 Jennings 509 1060 48.0 7 Halbert 239 570 41.9 8 Randall 202 531 38.0 9 Penetration Ranking Salesman Sales 1998 Expenses Expense By Sales Rank Halbert 258000 5940 2.3 1 Jennings 239000 8430 3.5 2 Prince 154000 7800 5.1 3 Anderson 112000 5820 5.2 4 Campbell 143000 9900 6.9 5 Randall 142000 10200 7.2 6 Thomson 123000 9600 7.8 7 Bindon 156000 15030 9.6 8 Vereker 112000 11460 10.2 9 Sales Expense Ratio Ranking

Still More Objectivity: Salesman Calls Made Expenses Cost by Call Rank Anderson 1450 5820 4.0 1 Halbert 1230 5940 4.8 2 Prince 1196 7800 6.5 3 Jennings 1168 8430 7.2 4 Thomson 1220 9600 7.9 5 Vereker 1409 11460 8.1 6 Randall 1171 10200 8.7 7 Campbell 1135 9900 8.7 8 Bindon 1051 15030 14.3 9 Expense per Call Ratio Ranking Salesman Accounts Sold Calls Made Orders By Calls Rank Bindon 476 1051 0.45 1 Jennings 509 1168 0.44 2 Prince 413 1196 0.35 3 Thomson 364 1220 0.30 4 Campbell 317 1135 0.28 5 Anderson 398 1450 0.27 6 Vereker 353 1409 0.25 7 Halbert 239 1230 0.19 8 Randall 202 1171 0.17 9 Batting Average (Orders per Call - Hit Ratio) Ranking Salesman Sales 1998 Accounts Sold Sales By Account Rank Halbert 258000 239 1079.5 1 Randall 142000 202 703.0 2 Jennings 239000 509 469.5 3 Campbell 143000 317 451.1 4 Prince 154000 413 372.9 5 Thomson 123000 364 337.9 6 Bindon 156000 476 327.7 7 Vereker 112000 353 317.3 8 Anderson 112000 398 281.4 9 Sales per Account Ratio (Average Order Size) Ranking

Overall Objective Ranking: • Vereker and Randall needs a rap on the knuckle. • Bindon needs to be told to cut down expenses. • Halbert needs a shake up on call conversion. • Both Jennings and Prince are top draw. • Equal weightage method considered to arrive at overall rank. Salesman PBTRank PenetrationRank SalesExpenseRank ExpenseperCallRank BattingAvgRank AvgOrderSizeRank Total OverallObjectiveRank Jennings 1 7 2 4 2 3 19 1 Prince 3 2 3 3 3 5 19 2 Halbert 2 8 1 2 8 1 22 3 Thomson 6 1 7 5 4 6 29 4 Campbell 5 3 5 8 5 4 30 5 Anderson 9 4 4 1 6 9 33 6 Bindon 4 6 8 9 1 7 35 7 Randall 7 9 6 7 9 2 40 8 Vereker 8 5 9 6 7 8 43 9

Subjective Rating: • Vereker again performs poorly. Prince follows close behind. • Prince nullifies his lead in objective criteria to subjective evaluation. • Subjective rating derived based on age, Wesley’s feedback and assumptions. • Objective and Subjective not combined as they will just act as pointers for Andrew to “see the ropes”. • Any kneejerk reaction based on this will be unwarranted. Go slow unlike Farrel. Salesman Age Youthful Experience Knowledge CustomerSatisfaction Ideation Total Score Subjective Rank Halbert 54 1 5 5 5 5 21 1 Jennings 42 3 4 5 4 4 20 2 Bindon 33 5 3 3 5 4 20 2 Randall 48 2 5 5 3 5 20 2 Anderson 37 4 3 5 1 4 17 3 Campbell 43 3 3 5 3 3 17 3 Thomson 33 5 2 2 3 3 15 4 Prince 57 1 5 1 5 1 13 5 Vereker 29 5 1 1 1 1 9 6

Decision: • Farrel is infusing fresh blood. Hence, Andrew needs to think about easing out Prince gradually. • Vereker definitely needs to be replaced if he continues in current form. • Sales territory need to be rationalized based on accounts rather than pupils. • Clear case of redistribution between Halbert, Jennings and Bindon. • Allocate more portion of salary as commissions. • Increase penetration in South of UK. (Halbert, Jennings, Bindon) • Emphasize account maintenance as most have lost accounts from 1997.

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