Ivey Publishing
D.H. Howden and Co. Limited: Sales Division
Product Number:
9A89A010
Publication Date:
01/01/1989
Length:
9 pages
Product Type:
Case
Source:
Ivey
The vice-president sales of a Canadian wholesale distributor of hardware products must present his proposal to change the sales force compensation program from straight salary to straight commission and to change the travel expense reimbursement from costs incurred to a flat annual budgeted amount per territory. There would be a three-year phase-in period but not all sales people would benefit nor be able to cope. The teaching objectives are to consider the advantages and disadvantages of different salesforce compensation plans; to address the implementation issues associated with changes in compensation plans; and to appreciate how what appears to be an operating decision can have significant strategic implications.
Learning Objective:
  • To consider the advantages and disadvantages of different salesforce compensation plans.
  • To address the implementation issues associated with changes in compensation plans.
  • To appreciate how what appears to be an operating decision can have significant strategic implications. This case has been used successfully in undergraduate, MBA and executive programs.
Issues:
Disciplines:
Marketing
Industries:
Wholesale Trade
Setting:
Canada, Large, 1988
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
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