Leasing Ventures Corporation was involved in leasing of manufacturing equipment to textile manufacturers. It has 7 salespeople who cover 8 states in the Northern and Western parts of the country. When the company first designed territories, LVC sought to make territories as equitable as possible. Changes in the state laws have made the territories far from equitable. For example, one state has liberal tax write offs thus attracting a large number of firms. Another adjacent state has stringent environmental standards and there are few such firms. This has led to quite an imbalance in salesforce compensation; one salesperson made over Rs. 12,00,000 and another made barely Rs.700,000 last year. There has been pressure to redesign territories but the salespeople with large pay checks maintain that they have put in efforts to develop the accounts and deserve the commissions for these accounts. What could be the reasons for this situation of inequitable territories? What should LVC do? If you choose to redesign territories, how will you deal with those salespeople who stand to take a cut in pay?