Olympia Machine Company
The management team of an industrial equipment company debated the method of compensating sellers. Several executives have offered various alternatives to the current method of straight salary plus expenses. Each option has different effects on the business strategy, organization, management and sales management needs. As a result, the case raises questions and analyzes relevant issues such as aligning strategy and organization, the implementation of the strategy and cross-functional incentive systems and distribution management.
After going over the Case Study on Olympia Machines Inc I was able to come up with the best alternative solution for their compensation plan. While working as an office assistant for a fortune 500 marketing company I got acquainted with the marketing team and loan processors. They were the company's frontline champions for the services that were being sold. As well as the connection between the company and its customers. The marketing team and processors found revenue, and they made a primary contribution to top-line growth. More than anyone else they influenced how the marketplace perceived the organization and valued its services. On the other hand the way they did those things is largely a result of how they were paid.
Once every other month the CEO, President, and Vice President would stop by those departments to go over theory progress and try to come up with better strategies. At the same time they would let the two teams know that if they didn’t bring in more than they’re getting paid – they’re fired. They were Draws and advances were not just gifts; they came out of sales. This is how Olympia should conduct business. I feel that no one should be left in the dark. Information will never again be pacified.
Marketing professionals report that the best salespeople love straight commission because they know they get every dollar that’s coming to them and that their...