BILLIE DANIELS

GROUP C -8 Submitted By: Group No. C-8 Rishabh Nagori 12P163 Siddharth Bharadwaj 12P170 Vikas Jain 12P178 Satish Kumar 12P230 Vikash Singh 12P239

Case Background
District Sales Representative for Consumer Food Wholesalers Inc Covered 50 supermarkets to check on promotion, turnover, ordering and inventory of CFW Strong believer in profit incentive and free enterprise Into politics behind the Republicans campaign Himself worked on straight commissions Poor Management led to over-order and clogging of lines Slack in checking the shelves and putting out additional supplies This affected stores profitability

What Billie Did & Its Outcome

Actions
Private arrangement with selected store men Mail a quarterly cheque for keeping an eye on CFW lines Amounted to one-fifth of Billies own commission

Outcomes
The Store man was better remunerated and were motivated to work better Inefficient selling pressure on store virtually eliminated Head store men worked harder, handled CFW lines efficiently CFWs sales in Billies territory increased significantly CFW named Billie as Representative of the Year Received a handsome dinner service and featured in the house magazine

The Genesis of Problem

Some chain complained about head store men being paid off by Mr. Daniels of CFW Fred Harper, National Sales Manager decided to remove Billie, if he was paying off customer employees

The Companies Creed

To conduct operations ethically, deal fairly with customers and suppliers, fulfill commitments, advertise fairly, cooperate with managements in the betterment of industry as a whole, and maintain our organization as an outstanding example of the American free enterprise system

Billies Argument
Voluntary given bonus from own commission as an added incentive to efficiency Has increased turnover for them and the company No store man is under obligation of any kind do it out of own interest If any objection it can be stopped there and then New Scheme : Put green stamps on cartons so that they are opened first Tries to indirectly blame Fred for non involvement and hence for his free enterprise decisions

Fred Dilemma & Options

Cant fire Billie as he candidly acknowledge his scheme But Billies actions are against company's policies Billie has performed well and has good repo within and outside the company
Set an example and send a message that company takes these things seriously Sales in Billies Region might get effected

Fire Billie

Retain Billie & End Schemes

Retaining Billie will save loss of sale to some extent Find other legitimate schemes to increase sales

Retain & Transfer Billie

Transfer Billie to some other locality to avoid issues with some stores Can affect sales in Billies territory but will save company ethics and reputation

Recommendations
Retain Billie & End Schemes
Retaining Billie and asking him to do away with such schemes, will help in retaining a good sales man Can use schemes recommended by him to increase sales Send out strict guidelines to the employees once again about following ethical standards Ask Billie to clear out the matter with all the outlets and sales man he was working with about the changed scenario and company policies

 THANK YOU