Zain Pirzada
Professor Keun Lee
Case 4
Japanese Salespeople
Japanese Salespeople
Situation:
In this case study, we are introduced to several situations where we see the beauty of mergers and acquisitions. In this case, we are told of National Office machines in Ohio who manufactures cash registers, electronic data processing equipment, adding machines, and other small office equipment. This company had domestic sales over 1.4 billion dollars and foreign sales of $700 million. Although NOM is rather immense in the United States, in the scope of global sales, they don’t make much of an impact. They have a qualified presence Western Europe, the Mideast and some parts of the Far east. Their presence in Japan has been non-aggressive to say the least. How does a company create a foothold in a foreign company in the realm of globalization? Merging with an already established company that are hoping for a boost in their sales as well. Sales forces in all businesses are extremely and undoubtedly extremely competitive. One such company that is highlighted is Nippon Cash Machines. A cash register manufacturer in Japan, they are the gold standard for cash registers in that area. Unfortunately, their sales were on a decline (at around 15%) from the prior year. At around 9 billion yen for the year and decreasing, their competitors such as IBM and Unisys are not letting up.
We also know from the case study itself that the Japanese salesforce compensation system aren’t as incentivized as U.S salesforce compensation schemes and therefore rely on more salary-based programs. To actually implement this type of program would be more complex than it looks. When conducting business, its mostly on the tenant of servitude and repaying debts. For example, “the owner of large Western-style apartments, hotels, or developments buys his beds from the supplier to whom he owes a favor, no matter what the competition offers.” With that being said, the Japanese market is increasingly becoming more competitive, and the need for an incentivized program has become more prominent than before. The different motivations and the incentive expectations between the young Japanese salespeople and the old ones needs to be highlighted to a greater extent. Instead of the traditional salary given to the old sales people and the workers in general, a sales quota needs to be met. A combination of keeping servitude and competitive angst should always be highlighted.
Problem:
The problem therein lies with salesforce management. “Besides the problem of motivation, a foreign company faces other different customs when trying to put together and manage a sales force. Class systems and the Japanese distribution system with its penchant for reciprocity put a strain on the creative talents of the best sales managers, as Simmons, the U.S bedding manufacturer, ...
