Henry Butler, Zenith's vice president of sales, has con person or the regional manager can fly in and out of the sistently said "no" to redesigning sales territories. "Re state. Bill wants to transfer or not replace salespeople designing in other companies has resulted in firing who quit in the Dakotas, Nebraska, Kansas, Iowa, Wis people, demoting managers, and all sorts of unprofes consin, and Arkansas (see Exhibit 1). He will use those sional things." Henry said in a meeting with Rob people in arcas that have higher sales potentials (see Ex- Zwettler. These regional managers are my friends, Rob. hibit 2). Bill said he's so tired of people quitting, hiring I'm not going to see them hurt." new ones, and training them that he really would like to "Henry, Rob said, as the assistant to the president, I stop replacing people. He mentioned three people he'd know Juan is concerned about the west central region's like to fire," Rob said. performance. We're having too much turnover. When I hate to hear that." Henry said. "We've always been a sales dropped, salespeople's commission also de family. A great company to work for. But if we don't do creased. Between you and me, Henry, in the past three something soon, there's not going to be a company." months salespeople have left faster than we've been Rob suggested, "What if we do this: Let's redesign all able to train new ones. This is really happening all over regions so cach regional manager could have approxi the country mately equal sales, budgets, and people. We can use Bill's "What can we do? Henry asked suggestion." "Your hunting buddy, Bill Cron (the cast central re "That sounds like we'll have to fire some salespeo gional manager in Dallas), wants to handle some of our ple," Henry said. present customers in those states by telephone. If a cus "We may" Rob replied, "but if Bill fires his 3. and we tomer is big enough or we get a hot prospect, a sales don't replace the 2 that quit in the west central region A M C Colorado Nched Nevada New Hampshire New New Mexico ITS North Ca Henda Georgia 35 25 headed South Carolina South Duke Teus Maryland Nawach M Virgin ge West Virgin M Mini Moet 20 agers to be treated fairly and equally, no matter what your plan. last week, we're down to 19. I can call all managers and tell them there is a freeze on hiring. We would have to reduce our selling costs some way." "Yes, but sales are going to be hurt!" yelled Henry who was now getting emotional. "OK, OK, do what's needed, Rob. Redesign our sales regions. Use the sales forecast of $9.500,000 to determine sales arcas. Maybe once we get past this crisis we can begin to expand again. But remember, Rob, we want all regional man Redesign Zenith's sales territories following Henry's and Bill's guidelines. 2. What are the advantages and disadvantages of the new design? Trading areas Henry Butler, Zenith's vice president of sales, has con person or the regional manager can fly in and out of the sistently said "no" to redesigning sales territories. "Re state. Bill wants to transfer or not replace salespeople designing in other companies has resulted in firing who quit in the Dakotas, Nebraska, Kansas, Iowa, Wis people, demoting managers, and all sorts of unprofes consin, and Arkansas (see Exhibit 1). He will use those sional things." Henry said in a meeting with Rob people in arcas that have higher sales potentials (see Ex- Zwettler. These regional managers are my friends, Rob. hibit 2). Bill said he's so tired of people quitting, hiring I'm not going to see them hurt." new ones, and training them that he really would like to "Henry, Rob said, as the assistant to the president, I stop replacing people. He mentioned three people he'd know Juan is concerned about the west central region's like to fire," Rob said. performance. We're having too much turnover. When I hate to hear that." Henry said. "We've always been a sales dropped, salespeople's commission also de family. A great company to work for. But if we don't do creased. Between you and me, Henry, in the past three something soon, there's not going to be a company." months salespeople have left faster than we've been Rob suggested, "What if we do this: Let's redesign all able to train new ones. This is really happening all over regions so cach regional manager could have approxi the country mately equal sales, budgets, and people. We can use Bill's "What can we do? Henry asked suggestion." "Your hunting buddy, Bill Cron (the cast central re "That sounds like we'll have to fire some salespeo gional manager in Dallas), wants to handle some of our ple," Henry said. present customers in those states by telephone. If a cus "We may" Rob replied, "but if Bill fires his 3. and we tomer is big enough or we get a hot prospect, a sales don't replace the 2 that quit in the west central region A M C Colorado Nched Nevada New Hampshire New New Mexico ITS North Ca Henda Georgia 35 25 headed South Carolina South Duke Teus Maryland Nawach M Virgin ge West Virgin M Mini Moet 20 agers to be treated fairly and equally, no matter what your plan. last week, we're down to 19. I can call all managers and tell them there is a freeze on hiring. We would have to reduce our selling costs some way." "Yes, but sales are going to be hurt!" yelled Henry who was now getting emotional. "OK, OK, do what's needed, Rob. Redesign our sales regions. Use the sales forecast of $9.500,000 to determine sales arcas. Maybe once we get past this crisis we can begin to expand again. But remember, Rob, we want all regional man Redesign Zenith's sales territories following Henry's and Bill's guidelines. 2. What are the advantages and disadvantages of the new design? Trading areas