ARCK SYSTEMS

GROUP 6
ASMITA SINGH
NEHA KHAIRWAL
ANANYA YADAV
DIVYA SHARMA
ARADHANA PATWA
DEEPTI YADAV
MOHD. FARHAN
SANJAY KV
MAJOR PERSONALITIES
BRYAN MYNOR- EXECUTIVE VP OF WORLDWIDE SALES OF ARCK SYSTEMS,
POST MERGER IN CHARGE OF LUX SOFTWARE SALESFORCE

ROB CHATTERJEE- CHAIRMAN AND CEO OF ARCH , PLANNED TO KEEP THE SALES ORGANIZATIONS OF TWO
COMPANIES DIFFERENT AS WORRIED DUE TO COMPENSATION SCHEME FOLLOWED AT LUX

EVAN HONG- CEO OF LUX SOFTWARE, POST MERGER EXECUTIVE VP OF SOFTWARE SOLUTIONS AND BOARD
MEMBER

CHRIS SYNDER- LUX SOFTWARE EVP OF SALES, LEFT THE ORGANIZATION POST MERGER
SHARON ESTEVES- COUNTRY HEAD OF SALES
INTRODUCTION
• MEDIUM-SIZED MANUFACTURER OF ENTERPRISE SERVICES THAT HELPED COMPANIES
TO TRACK FINANCE, HUMAN RESOURCES AND ACCOUNTS
• GROSS MARGIN WERE DOUBLE THAN THAT OF HARDWARE MARKET
• STRATEGIC DECISION TO PURCHASE LUX SOFTWARES, A LEADING PROVIDER OF
MIDDLEWARE
• LARGE STOCKS WERE ENSURED IF THEY CONTINUED WITH THE MERGED ENTITY
ATLEAST 3 YEARS BUT MANY OF THE SALES FORCE LEFT
• SALES FORCE WAS KEPT SEPARATE FOR TIME-BEING
SITUATION ANALYSIS
1. AT ARCK SALES PEOPLE WERE TYPICALLY CONCERNED ABOUT SPECIFICATIONS, THE SPEED, PROCESSING
AND RELIABILITY BUT AT LUX THEY CREATED VALUE CHAIN OF THE COMPANY

2. THE TWO ORGANIZATION WERE COMMON IN FOLLOWING WAYS

• ASSIGNED DEDICATED SALESPEOPLE TO CUSTOMER TERRITORIES

• DEDICATED LIST OF CUSTOMERS TO TARGET AND NOT ALLOWED TO SELL OTHER PRODUCTS

• SALES PEOPLE DISTRICT MANAGER REGIONAL MANAGERS COUNTRY HEAD (SALES)

• WIDE DISCRETION AVAILABLE FOR SALESPERSON TO NEGOTIATE AN APPROPRIATE DISCOUNT OFF OF

LIST PRICE

• BOTH COMPANIES HAD SIMILAR DISCOUNT APPROVAL SYSTEM

• SALES COMPENSATION PLAN WAS AGGRESSIVE BUT PRETTY STANDARD ACCORDING TO THE INDUSTRY

• SALES CYCLE WAS ABOUT A YEAR AND APPROXIMATELY $35000

PROBLEMS
• THE BASIC WORKING OF SALES DEPARTMENT WAS SIMILAR BUT ACCELERATORS VARIED
FROM 8% TO 24% COMPENSATION TO TOP PERFORMERS
• THIS LEAD TO THE DIFFERENCE OF 30 TIMES BETTER SALARY AS PRODUCTIVITY WAS
BETTER ONLY 14 TIMES
• A DIFFERENCE OF 33000 IN THE BASE PAY
• CULTURALLY DIFFETENT REGIONS BUT AS AN ORGANIZATIONS PERFORMANCE
MEASUREMENT AND STANDARDS SHOULD BE MADE
RECOMMENDATIONS
• DEVELOP A STANDARD COMPENSATION SCHEME THAT WOULD MOTIVATE AND PAY
PROPORTIONATELY
• RESTRUCTURING THE JOB EXPECTATIONS, MAINTAIN THE COMPANY POLICIES AND
COMMISSION PLANS TO FURTHER DEVELOP ON ORGANIZATION CULTURE
• COORDINATE WITH SHANRON TO UNDERSTAND AND INTEGRATE THE LUX SOFTWARE
ORGANIZATION CULTURE