Jive Software Harvard Case Solution & Analysis

In order to formalize the core building blocks of sales function, the company needs to understand the business issue and to provide solutions for the sales process while applying the right tools and core competencies of a company. The company’s value proposition is achieved through the strategy implemented by the company which has been focused upon providing high quality products at low prices. Similarly, the company develops sales either through the website of the company or through phone. Therefore, the company would require sales representative who are well equipped with the latest technologies. This strategy may help the company in creating further value for its customers through high customer service.

The second building block of sales that could be highlighted for Jive Software Company is its focus on the target market. The communities which lie outside the firewall of an organization are considered as the target market for the company. These customers would include developers od the product and support innovative communities. However, these are the small and medium enterprises. However, the company needs to maintain relationship with big customers in all aspects of their product offering.

Marketing channel is the third building block for sales function for Jive Software. The company marketed its product offering through incorporation of ‘Powered by Jive’ symbol in public facing application which however, proved to be a good marketing technique. However, in order to sustain future sales, the company needs to hire a separate marketing team which shall be responsible for generating sales and providing awareness to the SME’s and as well as the big corporations.

Sales Quota are referred to as the sales goals which are set for each product line for the particular division of the company. The particular system could be assumed as the minimum sales target for an individual. Individual quota model and team quota model are the two types of sales quota model (Mullin, 2010). The individual quota system involves a single individual to meet the required sales target for a particular territory, while the team quota model is referred to as a collective approach to meet the sales target for a particular territory. Jive Software Company held meetings once a week to discuss the situation for each territory. However, conflicts had emerged between the two quota models and was not working well for the company.

Advantages for the team quota model involve integration and collaboration within team members so that the target shall be met within a required deadline. The knowledge is shared amongst the team members and helps in solving many problems. Furthermore, it also includes the advantages of division of work according to each members’ capabilities and core competencies. The disadvantages for the team quota model includes variations and preferences in ideas, which allows difficulty for the leader to reach to a concrete conclusion. There is a clash of different opinions due to different personalities of an individual. Lack of understanding could also be considered as a disadvantage for the model between the team members.

The advantages for individual quota model includes the freedom of making its own decisions due to the absence of a team leader. An individual does not have to be accountable to anyone but his supervisor. The disadvantages for the particular model includes burden of work upon a single individual which sometimes becomes hectic to meet the sales target offered by the company (Ingram, LaForge, Avila, Schwepker, & Williams, 2012).

The quota model that shall be proposed for the company includes the combination of both the individual and team based quota system. These quota system shall be decided according to the territories allocated by the company. The company shall adopt the team quota model for a larger territory, whereas, individual quota system shall be adopted for a smaller territory. The quota model shall be adopted by looking at the territory and the sales from the particular territory. Moreover, there shall be a strong integration of field sales team with engineers because this shall provide critical information to engineers that would help them in developing the particular software (Ingram, LaForge, Avila, Schwepker, & Williams, 2012).

It is also recommended that the company shall adopt fixed territory with variable quota system model. Different sales quotas will be allocated on the fixed territory.......................

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The case starts with Dave Hersh, Executive Director, Jive, calling all hands meeting. A year record revenue in 2007, Jive increased sales force too quickly and missed his third plan quarter of 2008. Hersh was forced to conduct a massive layoffs, in which 20 percent of the work force was let go. The company is facing increasing competitive pressures and the difficult economic situation, as well as venture partner, which is growing frustration. "Hide
by Mark A. Stevens, Mark Leslie, Claire Magat Raffaelli Source: Stanford Graduate School of Business 21 pages. Publication Date: December 16, 2009. Prod. #: E360-PDF-ENG

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