What Is the Current Sales Strategy at Efi? How Does It Effect the Outcome?

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3. What kind of structure, compensation and skills are required by the organisation to achieve the process as stated by you above?

Structure

As of now company is following Product division structure. This design decision increases horizontal differentiation within the organization. Each division has its own hierarchy headed by product division manager. The product division manager coordinates with the support functions like marketing to make effective use of their skills and thus enhances product development. It allows each team like marketing to specialize and become expert in managing the need of its own product group.

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Compensations

- As of now, targets are not set realistically, so managers as a part of the team are able to enjoy high performance bonus.

- Individuals are rewarded on the basis of group performance

- EFI OEM managers compensation was 70% fixed and 30% variable, where as SDM’s compensation was 60% fixed and 40% variable

- EFI PPA direct salespersons compensation was Salary + commissions(10% of their sales)

- Individual recognizition of $1000 for documenting and closing t least one software add-on sale

Skills required

- Technical expertise

- Presentation skill

- Meeting Deadlines and Time Management

- Planning, scheduling and coordinating resources

- Negotiation

- Analytical and strategic

- Good at developing relationship with customers

5. What is the problem that is faced by EFI on the above process?

Answer: - Problems faced by EFI

- Decrease in market share

- Cannot leverage the innovation and technology to build a brand image

- Threats from new players in same segment

- Cannot cater the lower segment of the market, as the product is perceived to be only for mid and high-end customers

- Loss for the first time due to improper forecasting of sales target

- High incentives to the sales representatives for meeting the sales target

- Individual performances cannot be identified

- 20% free riders in every group

- Overlapping of the customer base for more than one sales group