Apart from that, Many companies have specific policies and guidelines on business operation ways. The working ways from the staff can mostly represent the organization culture and marked by the customer or business partner as reputation. Their employees are trained on ethical issues. They are many ways to let customers know the products well, however, going to the strip club is definitely meaningless and it is nothing to do with business, and it is for sure that customer wants to know the real value of the products which maybe they have not got too much chance to go through them. And in this case, OptiMotors has very good quality of product, as this main reason they can get many orders and no need to do things out of rules. Go to the stripe club may make bad impression on the clients and even deny business with OptiMotors. In another aspect, if the sales work very hard by flatter on customer can lead customer lose the confidence with the company and its product.
Secondly, It affects the morale of employees. In the aspect of the organization’s culture and value system, those give the sense of direction and passion for staff in their career life. Once the company has incorrect value view or uses some unusual tactic on business will affect the staff’s morale and confidence. OptiMotors might lose many excellent employees whose value system resist them going to strip club. The employees might also suspect the managerial decision when they learn that the company tolerates these behaviors. It will even have more impact on female employees who are likely to feel uncomfortable on lap dancers and sex. Also in the modern business, more people prefer a fair, open and no discrimination working environment as many company try to achieve this target.
In addition, it is likely to foster the unethical behaviors of the clients
In a normative business project, every participant has the equal status and should respect each other. As the representative gives too much flattering to the client will make a unfair situation. Such things always happen in the reality business. Clients ask the representative to pay for unnecessary fee and private expense. To develop the business need to use a clean and properly way. Galen’s behaviors are likely to divert clients’ attentions on the value that OptiMotors’ products could provide. The clients who make the decisions based on happiness rather than value of products might take it further to ask for other personal benefits. In additional, not every are interested in such kind of business but no choice as business routine.
Last but not least, It puts company into the risk of lawsuit. In recently year, the business scandal is always exposal to public. We consider the scandal in two areas. First, the worst effect of high level manager to have fun in stripe club. Second: the staff and public’s opinion of such behavior. And in many countries the law has certainly the policy about the business bribery and the relative regulations. For example, in China, the civil servant is not allowed to play golf, not allowed to be big share of business and go abroad for luxury product shopping. So as in business, each part of groups should have a bottle line of business customer entertaining. But how the money and gift is spending, legal or illegal, unethical or properly, those points should be taking account to the decision. And Does Galen thinking about the effect of taking the client goes to the stripe club? How others and boss will see this things. Going to strip club denying female employees the opportunity to earn a living commensurate with their contributions and capability violate the law and it likely to bring lawsuits to the company.
Experts’ opinion
After reading four of experts’ opinion, their views can be separate into two. Katherine Frank’s view and advice seems different from three of others which she thinks Galen was doing a good job whereas the other three are thinking of firing him.
John Brown, who is the director of institutional sales and customer relation at Fortis Investments in Boston, has mainly two points: The boss should outline the clear value and principle of business outgoing and how the value system of the organization integrates with employee and clients. He does agree with build business relationship and trust step by step by using acceptable tactic. There are many other ways can be used in business rather than do something unethical. And be aware the feeling of client for every process during the business, a special gift or sweet regards on the holiday helps the business gaining high marks. Also pay attention of what is the client’s religious beliefs or any special need and what may be downright offended of them.
Denise Rousseau is a professor in both Carnegie Mellon’s Heinz School and Tepper School of business in Pittsburgh. Both John Brown and Denise think that value system is very important and considerable factor in business. She advises the Bob to stop Galen’s job then find some new sale man who can follow the ‘rule’. She has also mentioned the aspect of female employee’s benefit. A good company should create a fair and positive environment for employee to work and do not feel any discrimination in the working. Other wise, sex discrimination can cause a risk of reputation of the company. We always can see that female employee go to the court with the company for their deserved right and benefit. Also the company will pay attention of this sensitive topic for the long term development. Another professor is Das Narayandas from Harvard business school in Boston. His idea is mostly similar with the previous experts. He looks the problem in a serious way that Bob has been holding as a hostage by Galen and Bob need to turn the situation into his way. He thinks the biggest mistake is from the CEO Bob. Also Galen may use the company money to satisfy his own need. I do agree with this view: all the problem is from the leader. Bob need to reform and set up new corn value system of the company and also pass his idea and organization culture to all the employees. And newest concept is the service is important as the product and buyer will focus on the other aspects of company also.
Katherine Frank thinks that things like go to stripe club is acceptable in business and two-person sales group would make everyone feel comfortable. She has also indicated that going to strip club can make some customer feel special and relax but not a useful way to generate business because no data can improve that any contract is signed in the club. And also makes some customer feel slightly aberrant and titillating environment. So she does not against to go to strip club but have some doubt of this business tool.
How should Bob Turn His Company around?
The OptiMotors Industry case reflects to several critical issues that manager must undertake sales management, especially heightening ethical selling. After reading experts’ comments and arguments and according to the professional reference, Several Advices have been given in below, includes reformation of sales department and improvement of internal competitive advantages.
According to The Harvard business review article ‘How low will you go’ (2006), and due to prevention of sell man Galen’s poisonous selling who had taken his client into a stripper club in order to make a important sale, three of four experts in the article think that he should be fired. As it is a serious ethical problem, and this kind of problem seems small at first, or even it brings profit for company, however if it happens in long term cooperation , it would be found one day anyway, and at that time, if the scandal is disclosed, it would be a disaster for Optimotor, which could lead company to a break down result. Therefore, we are taking the expertise (fire ethical seller Galen) as the first step for Bob’s auto parts company, in order to appease the debate among sale staffs and rebuild the morale of the sales team. Meanwhile, Bob Carlton, as a CEO of the OptiMotors industries, should recognize how important the sales department is in a successful organization.
Thus, the next step is selecting a sales manager over controls sale men. It is indispensable action, because the current sale leader Bob seems not really good at managing his sale people, according his background, he is born technician but had never been referring to too much marketing knowledge in most time of his life. Therefore, Hiring a good sales manager may result in a reduction of his workload and the CEO can spend more time on manufacturing or making big decisions for the firm rather than supervising his personnel sellers which could lead to a worse result.
- What should the sale manager do?
Within the company, sales managers have to be responsible for ensuring the sales effort and achievement, both internal and external companies. Internal organization, the sales manager should set up formal and informal relationship among personnel sellers. In an external organization, the sales manager should build effective distribution network.
- What kind of person can fit this sales manager position?
first he or she must be someone charming as a sale leader, which means the sale manager may need to have high education, clear judgment and prudential observation to make essential decisions. Besides, it will be very good if the sales management have full of experience within the same industry, as it helps the he or she to know colleague’s characteristics well, and become their ‘friend’ as quick as possible, once a leader becomes their friends, all the barriers between leadership and staff seems inexistent, and jobs can be done so much easier for sale managers themselves.
In the rough, these are the fundament element for selecting a sales manager that according to the Internal organization. In addition, another mistake Bob made was employed Galen without formal selection. So selecting a sale people also should follow the same rule as selecting a sales manager.
Making a good start of human resource innovation is to establish an official policy among sales management and even all the other departments in the firm. About the policy, above all, setting an adult entertainment standard, which is urgent for shifting OptiMotors’ embarrassing actuality. In the article, experts offer several simple guidelines for different types of clients adopting corresponding treatments. For example, for some advanced customers, personnel sellers are able to invite them to have upper entertainment.
Thirdly, setting a rational expenses standard. Build up a certain amount of company expense limitation so that company can not lose big amount of money in short time. It is also a good way to see whether the personnel seller is an excellent accouter. For employable sellers, they should measure if the entertainment is necessary or not. Take the ethical problem seriously and think about aftereffect before making a decision. E.g. taking customers to Red Ruby (strip club which is referred in the article) is absolute a serious unethical issue and unnecessary expense.
Fourthly, all the personnel sellers should hand in a performance report periodically, for manager can improve their working ability through evaluating their achievements, thus personnel sellers may work more and more effectively and efficiently for the firm in the future. In addition, in the performance report, sellers should note down clients comments to company, like how they think about products and services, also what else they want from company. It informs the positive and negative feedbacks for company and helps how the company should do better.
Moreover, all of potential customers should be discussed among the seller group. Decision of which method and approach that suit relative clients has to be made. To choose who has specialist for satisfying clients’ needs. “Different tactics work for different customers, and for different salespeople.” (Case, page36) Professional communication among the personnel seller is essential key to successful marketing management. The communication should be concerned with salesmanship. Salesmanship is one of the best behaviors of personnel selling: “it is the art of successfully persuading prospects or customers to buy products or services from which they can derive suitable benefits, thereby increasing their total satisfactions.” (Still, 1988), Thus, the salesman who has got strong selling ability get reasonably high wage within the organization however salesmanship’s precondition is it should be virtuous.
Finally, continuous education and retraining is also essential to achieve improved job performance. Through manager’s evaluation, Personal sellers will know which parts of their jobs need to be retrained. The training content identifies the product data, sales technique, industry’s market, company information and improvement.
Conclusion:
Personnel seller acts as the media role between firms and customers. Radically as Das said, all the customers want to buy value, not just products. (Narayandas, 2006) Bob can not ignore the significance of innovating new production, new technologies and more effective services. Improvement idea could trace back to personnel sellers’ feedback when they are having face-to-face communication with clients. Besides, information also can be gathered from their competitors. Timely and effective improvement in OptiMotors manufacturing capability influences the increasing benefits. In a word.Wide promotion of OptiMotors Industry makes world-class products for world class customers.
Bibliography:
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