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The Strong Corporation’s main competitor Leadrod Company, just filed for bank-ruptcy, presenting a potential opportunity for an increase in customers and revenue at Strong As a result several of

The Strong Corporation’s main competitor, Leadrod Company, just filed for bank-ruptcy, presenting a potential opportunity for an increase in customers and revenue at Strong. As a result, several of Leadrod’s salespeople have contacted Sam Smith, Strong’s vice president of sales, inquiring about employment with Strong. Currently Smith has no openings on his 10-person salesforce. However, he does not want to dismiss the Leadrod reps, some of whom are top performers that might be able to enhance Leadrod’s revenue stream that has been falling for the past year. After speaking to his CEO about adding a position to his salesforce, Smith was given permission to do so as long as the new salesperson made more of his salary in commissions than base salary. Smith, however, would like to add three of Leadrod’s salespeople. Currently there are four salespeople on Smith’s staff that outperform the other six, who are approximately equal in talent. Yet, Smith is hard-pressed to identify a clear laggard whom he would dismiss in favor of the competition’s salespeople. Smith is also concerned that he could disrupt the team chemistry he has worked hard to build the past two years by firing some of his current salespeople and hiring those from Leadrod. However, he does not know if he can pass up this opportunity to upgrade his salesforce. How should Smith approach this dilemma? Should he hire the new reps and deal with the ramifications of letting two of his people go, or can he afford to pass on the new reps altogether?

Apr 05 2020 View more View Less

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