Sales Force Training At Arrow Electronics Harvard Case Solution & Analysis

Background:
This case is mainly dealing with a company with the brand name Arrow Electronics that deals in the retail business and distribution of radio equipment since 1935 and it started to grow by selling semiconductors and components of electronic items to the original manufacturers of equipment in the year 1950 to 1960. Moreover, the company started to grow at around 12% in year 1970, which made it easier for the company to be the fourthlargestelectric parts distributor in the US. Later on, the company started to achieve higher sales and achieved the target of selling in North America with the highest figure of around 2.5 million dollars in the year 1993 and in the year 1995, it was able to achieve sales of 5.9 billion dollars.Later on, the company achieved the position of the largest distributor of electric components in the world in the year 1997.
The company expandedits business by also selling its products to the young business and start-ups. It was having high bargaining power with the suppliers because the goods were easily accessible and it was receiving good credit terms from them. However, it was receiving cash from its customers at a short leading time, which shows that ithad enough cash to utilize in other projects and earn a handful amount of return. Company was able to get significantgrowth in its share price from 2 dollars to 21.5 dollars within a period of only five years.

Sales Force Training At Arrow Electronics Harvard Case Solution & Analysis

Key Issues:
The Arrow Electronics was performing very well but it was facing few issues with the passage of time, which created hindrance in the growth of the company.
• Lack of loyalty among employees
• Dependency of the sales over the personal reputation of sales force
• Poor behaviour and customer service of employees leading to the loss of key customers
• Scarcity of the sales force team and sales personnel
• Intense competition and hiring of the employees by competitors
• Trained sales force was hired by Arrow’s competitors
The above-mentioned problems led to the high turnover in employees due to lack of providing proper standard training and not clarifying the concept of selling to its customers by communicating in soft tone and with a gratitude in behaviour.
Analysis:
The company was striving hard to achieve its sales target due to the poor management of its sales team and its placement. The heavy expenditure and investment done to train its sales force was going all in vain because of the failureof the company’s higher authorities in retaining its employees. Company considered its sales force and had a great concern for people as skills of the people are essential for the growth of the company.
To overcome the above issues, company’s top management decided to enhance its sales force towards more enthusiasm and more creativity by the introduction of growth in Sprouts program. This would lead to the fulfilment of the need of employing around 300 more sales people in the team, which will be leading the major changes in the infrastructure of the company. Moreover, this program was chosen because this would be leading towards the injection of young blood and fresh graduates, who will require training for refining their academic knowledge and implementing it practically.........

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