The decision maker is Lawrence Binsky, president of Advantage food & beverage -possible problems with selling process for the new retail format (kiosk) -Sales training program needed improvement (no formal background in sales, they felt lost -trouble finding reliable sales representatives to hire without firing. -sales reps lasted on average 4 months -In review, all members agreed that the approach stage was the issue, more presentation was needed, therefore more prospect was needed -Lawrence believed the issue was that he made poor hiring decisions and he needs to find the perfect person for the job. iosk division was doing well but it did not guarantee future success and it could be improved. -selling process slowed as the sales reps attempted to locate the decision maker for the qualified company -further slowing the process… due to the fact that many people from the prospective customers were involved in the decision making process for the Avanti kiosk, compared to the vending unit. -Slowed process due to amount of work required to create a suitable space for the Avanti kiosk. (some customers would remodel an existing space while others would build a space) B.
Key Facts of the Case (relevant facts only, no analysis) – 10 Marks i) Provide the relevant background that led to the problem/opportunity(s). ii) Provide any additional case information that provides context to the problem or opportunity. -Advantage food & beverage (AF&B) founded in 1995 by two brothers, Lawrence and Daryl Binsky. -company offered traditional vending machine services to businesses in Columbus Ohio -Contract with Avanti Market system for exclusive territorial rights that included Columbus.
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Avanti Kiosk was similar to an on-site convenience store -2 divisions: Avanti kiosk division and he vending division -Avanti allowed the company to achieve su perior financial performance -101 potential business targets -salary $35000 base and additional 5 % commission (provided the location remained in operation and the sales reps remained with AF&B) -supply truck drivers restock merchandise -traditional selling process (exhibit 2) -gift basket left for the decision maker to aid with presentation scheduling – avanti kiosk operation could be established in as little as 2 weeks and as long as six weeks from close. lawrence also attended the presentation as he ould almost always close the sale at that time if presentation was going well C. Situation Analysis – 20 Marks i) Provide appropriate analysis for solving the case, for example: SWOT, Financials, PEST, Porter’s Five Forces, etc. If financial analysis is required complete/present in this section. ii) Provide the implications and conclusions of the observations that you have made in your analysis.
Strengths -2 divisions; Avanti and vending -exclusive territorial rights including Columbus (due to contract with Avanti) superior financial performance (net profit of $1 16,91 7) traditional selling process (might be a weakness) -$20 worth, gift basket for decision maker to aid with presentation scheduling. -lawrence attended the presentation as he would almost always close the sale at that time if presentation was going well and he handled all objections as well.
Weaknesses -Traditional selling process (possibly) -slow selling process due to sales rep attempting to locate the decision maker for a qualified company. -slow process due to amount of work required by customer to create a suitable space for the Avanti kiosk -sales reps hired and fired within average of 4 months selling process “seemed” problematic -sales training program needed improvement, sales reps had no formal background in sales. -in review, all members agreed that the approach stage was the issue, more presentations were needed, and reps needed to prospect more. small customer concerns like customer asking for a microwave with a turntable -a lot of space required for kiosk -high turnover rate Opportunities – 101 potential business targets -Establish more Avanti Kiosk Locations -Hire more reliable reps -improve sales rep training – longer training period could allow sales reps to ain confidence in selling process and develop sufficient knowledge about Avanti kiosk unit -senior management proposed an approach where sales reps spend 2 weeks following Lawrence and then another 2 weeks with Lawrence following them Th reats difficulty finding new sales reps to hire that would last longer than average 4 months. Other businesses doing same thing D. Identification of Realistic & Practical Alternatives that can be made by the Decision Maker – 5 Marks i) Provide 3 alternatives, one of which can be status quo. Describe each alternative with one or two sentences.
Each alternative must be a standalone solution to the case. (Make sure that your alternatives address the problem. If not, you may need to restate the problem or eliminate the alternative. No analysis is required at this point. ) 1. Improve the selling process; Get rid of the traditional selling process and come up with a new process, or improve the prospecting approach and presentation parts of it 2. Improve the sales training; train new employees better so that they have the required knowledge and background to complete their tasks efficiently. Can do the job shadowing idea, have sales reps ollowing Lawrence for 2 weeks, then have Lawrence following them for 2 weeks. 3.
Status quo ” keep things the same and hope for the best E. Decision Criteria (refer to text pages 47&48) – 10 Marks i) What goals or objectives must be achieved by any potential solution to the problem – quantitative and qualitative goals and or objectives of the company that are specific to the issue? (These are the standards under which the alternatives may be evaluated and compared ii) Are there any limiting constraints/considerations that may limit the range of solutions (e. g. can’t cost more than $1 million? 1. improve the speed of the selling process 2. generate more profit 3. maintain an efficient workforce with employees who perform efficiently 4. mprove training program F. Analysis of Alternatives – 20 Marks i) Provide the pros and cons for each alternative. ii) What is the most likely outcome of each alternative? iii) Provide any additional analysis that you think is necessary to evaluate each alternative. 1. Improve the selling process; pros -can speed up the selling process overall and get kiosk operational sooner Cons -new process might not be as efficient, could get worse. There is no definite problem, it just seems like there’s a problem. 2. Improve the sales training pro Sales reps will feel more comfortable with completing their tasks and they will perform more efficiently and faster.
This would increase sales and improve the selling process. This saves costs and time from trying to find and hire new employees. They wouldn’t need to do that if their current employees perform their job well. Con – cost of sales training 3. Status quo -Kiosk division was doing well now, maybe it will continue to do well Con it might not do well in the future, and future sales reps might not be reliable. Might have to continue to hire and fire new employees, might not ever find a “perfect” employee Hire more workers Pro – make prospecting more efficient, faster selling process. Less stress for sales reps, sales rep focused on just closing. Con – cost money to hire, cut into profits at first G.
Recommendation -10 marks i) State your recommendations by saying “l recommend Alternative… ” (Pick one alternative, and do not combine alternatives). ii) Explain how the key Problem was solved. iii) Present/Defend your rationale for selecting the Alternative referring back o your Analysis Of Alternatives and the Decision Criteria (use this section to convince the reader of your recommendation). iv) Present any important assumptions you made beyond the information provided within the case. recommend option 2; to improve the sales training. The sales reps claim to have no formal background in sales and they felt they were “groping in the dark”.
Improved sales training would give the sales rep the required knowledge for the job and make them feel more comfortable with completing their tasks. It would allow them to perform more efficiently. This ould also improve the sales process and decrease the time it takes to complete the whole process as the sale’s reps would be more efficient. (killing 2 birds with 1 stone) The only con would be the costs of training, which is worth it as it will improve the selling process, give the new employees the necessary knowledge to complete their tasks, and also save costs on hiring new employees. They wouldn’t have to fire their employees so theyd save time and money that would normally be spent on trying to find new workers.