Hanover-Bates Chemical Corporation

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Question One: Identifying the Key Issues Prior to examining the case of the Hanover-Bates Chemical Corporation, we have identified the following problems. Firstly, Hanover-Bates filled the position of their new sales manager, in the Northeast district, with an individual (Jim Sprague) who has much less experience then many sales representatives within the firm. Hanover-Bates views this as a good investment because their previous sales manager retired. Hiring Sprague ensures they will not have to repeat the hiring process within the next three years due to retirement. However, this placement resulted in on-going discussion between both district and corporate headquarter employees and consequently has Hanover-Bates’ best sales representative (Hank Carver) threatening to quit. Secondly, the Northeast district has very poor profit performance compared to other districts within the firm. They are not making their sales quota and are not utilizing the opportunity of potential future accounts. In addition, within the chemical industry, customers perceive minimal quality differences among products. With this being said, we believe competition is very high and it is important to have a sales force producing the best of their ability. Question Two: Northeast’s Performance Vs. Other Districts Hanover-Bates Chemical Corporation has divided their total sales territory into seven districts, four of which, were not able to meet their sales quota in 2000. One district that was not able to meet their sales quota was District 3, the northeast district, which has a newly appointed manager, Jim Sprague. The other districts that did not make their sales quota in 2000 fell short by 3% while the northeast district fell short of their sales quota by almost 7% (Appendix 1). This is a large deficit, especially when compared to the north-central district’s

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