Battlefield_Furniture_Case_Exercise_Ver_4.pptx

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Battlefield_Furniture_Case_Exercise_Ver_4.pptxCase Facts Furniture Industry - Large number of regional producers & limited variety - Low Capital Intensive - Low Ad Spends ( 2% of Revenue) & low ... awareness - 25000 retailers - Giant discount shops, full line department & furniture stores, small neighborhood specialty shops - 10 large retailers - 14% of industry volume Batlefeld - 1998 - 2000 period sales grew by 9% (ahead of industry average) - Sales up from $ 140 mn (1998) to $ 160 mn (2000) - Change in strategy - Sell ‘out of the catalog, High quality / High Margin, No inventory (for Retailer) - 48 Agents – 5% Commission on sales & 6 Employees – Considered Management trainees - Major challenge with agents (40+ Yrs old) – converting them ‘from furniture peddlers to retail consultants’Frank O’Brien Background Furniture Salesman for 40 yrs & with Battlefield for 25 yrs (Age 68 yrs);retiring in 2 years Territory - Florida / Alabama / Georgia Sales (2000) - $6.1 Mn (mostly Florida) Rhoads reading of situation Territory potential - $7.2 Mn (2000) Reluctance of O’Brien to follow new strategy of program selling to select accounts Low Penetration / Distribution within neighboring territories (Alabama, Georgia & the Carolinas)Frank O’Brien Rhoads Solution: Territory realignment He believed current sales volume in the underperforming territories could be doubled  President – approved of arrangement Wanted Rhoads to handle the situation (O’Brien) delicately in a way that it does not affect Battlefield’s reputation and Sales For O’Brien – Loss of prestige would upset him more than loss of income [Show More]

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