Alternate Courses of Action and Their Evaluation for Spectro Company


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Every institution may have problems but there will always be opportunities. It is important to take care of all of the institution’s employees, respect and follow the company’s leaders. They should also know as well as proactively cater every current and prospective client so the operations would continue as well as flourish. Even if the sales performance of the group appears great, it may require some more improvements.

There were issues involving Spectro’s existing strategies. The company’s sales may have been good but they were not as strong as expected. There may have been a lot of repeat contract but nothing new comes in. Since their growth strategy doesn’t work, the company would have to look for new ways to move ahead.

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  1. Improve your Acquisition Strategy.
  2. The acquisition strategy eventually got a boost from an unusual source in 1996. After the US Department of Commerce entered a ruling in antitrust against Electrosource, one of the main competitors of Spectro, it forced Electrosource to remove some of their sales staffs. Spectro acquired five of these individuals in vital areas where they want to improve their presence. These places had the staff merged with the existing staff of Spectro.

    Acquisition initially be rough since there are usual frictions among newly acquired and long-standing employees involving their titles, salaries and benefits. Aside from this data, these two institutions possess cultures that didn’t go well together. Spectro’s corporate structure had too much red tape that was not good for the rapidly moving supply chain management business.

    Six months after the acquisition, resentment waned and everyone worked well together. This allowed the company to have a new energy that eventually translated into a growth in sales. Some newly acquired employees residing in the southeast of USA signed a remarkable contract of $100 million for three years. It was 6 to 10 times bigger the normal contract size but it increased the operating profit of Spectro from $40 to $65 million. These people had a real killer instinct that Spectro needed. Improvements in Acquisition Strategy can really help in improving any institution.

  3. Make sure that the salespeople’s structure matches the business’ life cycle.
  4. Lots of institutions allot an enormous amount of money and time in the management of their salespeople. Despite this, only a few consider what needs to get changed in the life cycle of their business. Because of this information companies would need to create changes in the structure of the salespeople whenever the group is aiming to get more clients. Institutions may need to revise the structure over time: ways salespersons differentiate their endeavors in various activities, consumers, products, the salesforce’s degree of specialization, the roles that the salesforce and allies may participate including their size. These are essential variables in determining the salespeople’s speed in responding to every market opportunity, how these can influence the company’s expenses, revenue and profits including the sales team’s performance.

    Brilliant startup institutions usually target on having their own sales team or depend on certain sales partners. Whenever they choose to make sales teams, these institutions would be attentive on how they accurately size them. Whenever companies expand, concerns in size are essential. Aside from that, managers should determine when they need to supply a special sales force. Whenever a business becomes mature, the emphasis may shift to having a more effective sales personnel by appointing account managers, improving the allocation of the salespeople’s resources and forming highly economical groups through minimally expensive personnel like telesales staff and sales assistants. Lastly, when the organization eventually goes into a recession, sales administrators should shift their concentration in the use of economical ways to cover the markets and minimize the size of their sales group.

  5. Make the right moves ahead of time.
  6. New companies including the new departments of existing institutions may be anxious to capitalize on every opportunity in the market that they eventually become burdened to achieve success immediately. Start-up institutions may constantly despair about the cost of trading and a fresh segment may get a significant amount of the company’s finances and human resources. Despite that, because the salesforce needs the production of awareness about the new products so they will generate sales faster, the organization may eventually go through the same structural problems.


Lots of new business may need to check if they can sell their products directly or through partners. Entrepreneurs may usually outsource this function but it may not be the right decision. It is important to review the Code of Ethics. It is a guide of principles designed to assist professionals in conducting a business with honesty and integrity. This document outlines the business’ mission and values as well as how their professionals need to approach problems and ethical principles based on their standards and core values.

Having tie ups with any existing and reliable company can make sure that this will work. It may allow new ventures to save when the creation and maintenance of the salesforce is involved. Partnerships may also assist in managing risk since startups often just pay commission on sales. Every time the products never sell, the costs may be low. Besides this, new businesses may quickly enter the markets whenever they are in partnership with companies that already have sales expertise, influence on different sales channels and relationships with any potential customer. Siebel Systems is one of them. In the 90s, they utilized consultants like Accenture in system integration so they can immediately have a business in enterprise software. Similar to what Jim Snelling did, acquiring some of your competitors existing staff and spreading them all over the country really helped in the improvement of the business. Since these people had a competitive instinct, they did everything to make sure that they will sell in their respective areas. Spreading them all over the country also helped in maximizing the reach and sales output of the company.

However, outsourcing may make any business become dependent on their sales partners over time. Whenever a company outsources their sales function, they don’t have any control over the selling activity. They will have minimal power over the salespeople, no relationships with any customer and no more power in channeling. Over time, it may become harder for any company to lessen their dependence on their selling partners. Companies who were dependent on this got stuck in a relationship that had minimal growth. One of them is SonoSite. After the launch of the first handheld ultrasound machine in 1999, the company utilized a known distributor so they can sell it in the USA. Since the ultrasound device is technologically complex, the distributor needed to inform their potential customers about the multi-step process that the distributor didn’t use in their current products. Because of this, SonoSite had to let go of the distributor and do the selling on their own. In a year, they had a full sales force and a 79% increase in revenue.

Even if outsourcing may be popular nowadays, companies should only utilize selling partners if they will gain strategic benefits and advantages. Lots of partners may turn any product into a solution that can eventually generate an increase in sales. Value-added resellers may create systems in combination with their hardware and software from various manufacturers. Start-up companies may also access the customers whenever the products become a part of an assortment that their partner offers. One example could be a computer accessories manufacturer tying up with a distributor that provides a range of computer equipment to lots of companies in the USA. Relationships are more likely to endure whenever partners give strategic advantages.

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