Spectrum Brands Inc. Case Study Question Merging and acquisition of unrelated brands usually leads to a disadvantage asit contributes to increased costs and economies of scale. This is because the process limits the company’s ability to buy goods in bulks as well as produce large quantities of the same kind of goods in a single production cycle. Eventually, such a move will lead to decreased efficiencies and poor business performance. Merging and acquisition of unrelated products also affects customer satisfaction. This is common in an acquisition scenario where a larger company takes over a smaller company that sells a different brand of commodity.
As much as the larger company will have succeeded in reaching a bigger market, it may fail to identify the preferences and tastes of the consumers of the smaller brand, hence incur losses because they will fail to meet consumer demand. Question 2 Spectrum Organization currently serves a wide market as it sells an array of products ranging from consumer batteries, lawn, and garden care products, shaving and grooming products as well as pet supplies (Ingram et al.
323). In order to ensure that sales continue to increase and that business runs efficiently, Bob Falconi should first outline precise goals and objectives for the organization. In the case of the lawn and garden care product, as well as the specialty pet supplies, he should consider employing specialized personnel who will attend to that market effectively. Bob Falconi should be concerned about the required technology and expertise to ensure that work flows smoothly, hence constant supply in the case of consumer batteries. In addition, for the shaving and grooming products market, Falcon should ensure that the organization builds consumer loyalty and position itself well.
Above all, the manager should ensure constant monitoring of the implementation process. Question 3 The best sales-force structure for this company is the product- based sales approach. I decided to select this structure because Spectrum Organization was formed due to acquisitions of different companies, which were selling different brands of goods. In order to enhance sales, it is necessary for the company to have specialized personnel to deal with specific products. This will benefit the company since the personnel will have enough knowledge of the products as they market and hence, will be able to convince clients to make purchases. Question 4 Possible challenges with this type of sales force structure is that it may become expensive for the company to provide and ensure training for the staff.
Employing new professionals is also expensive just as creating own professionals through training. In addition, some employees may feel undermined when the company decides to look for people with better skills outside instead of just taking internally. They will therefore become demoralized and transfer their negative attitude to the consumers. Question 5 The implementation plan will proceed as follows: Set necessary goals Define the whole sale-force structure Ensure there is enough resources for implementation Convince the salespeople and stakeholders that it is the best structure Arrange for training of personnel Ensure good market positioning Regarding the human resource issues, it will be much easier to train the company’s staff to be professionals instead of employing new personnel hence cut on extra costs. Work Cited Ingram Thomas, LaForge Raymond, Avila Ramon, Schwepker Charles, & Williams Michael.
Sales Management: Analysis and Decision Making. M.E Sharpe, 2012.