o Instructions: Read the following case carefully then and answer the attached questions. PRAGATI LIFE Q} INSURANCE LIMITED Mr. Mahabub is the National Sales Manager for Pragati Life Insurance Limited. Pragati oers life, hospitalization, and disability insurance to both small and large oompanies, primarily in the Dhaka city, through its company salespeople. Each salesperson works for commission that is paid on closed sales within a geographical territory. lDiver the past decade, the turnover rate of Pragati's salespeople has increased from around 2i] percent to over 5i] percent annually. lvlahabub has asked the nn's accounting department to pmvide him with information about the total cost of hiring new salespeople, including the cost of advertising to attract applicants as well as interview, train, and license them. He's surprised when the gure he receive amounts to over $5 million dollars per year! With a turnover rate of 50 percent, Mr. Mahabub knows there is a tremendous amount of waste associated with the nn's current sales stmcture. Consequently, Mahabub is considering partnen'ng with independent sales agents, located in all of the company's current sales areas, because of their marketplace knowledge, market status, similarity of goals and values, and ability to create winwin situations for all parties involved in transactions. Mr. lvlahabub also understands that utilizing this new independent sales agent would make Pragati's current salespeople unhappy because the independent reps would complete at least indirectly with them. Still, as Mahabub thinks about all the money Pragati could save and how the independent reps have strong reputations and sales histories in their hometown areas, he knows partnering with them is probably the way to go. Questions to Answer: |['Total' Marks 2 x 5 = Till] 1. What are the benets of partn en'ng with independent {outsourced} sales representatives, as opposed to a company sales 'iorce'il 2. Why would the tu mover rate be signicantly lower for Pragati it it hired sales agents