Higbee Farm Implements one location,a rural Iowa area.Higbee has been experiencing slow sales of tractors and other expensive large agricultural equipment such as combines over the last few years because of the low profitability of the farms in its sales region.In order to increase its profits by increasing the sales of equipment,Higbee has announced that the salesperson who writes the highest dollar volume in sales contracts will win an all-expense-paid trip to Hawaii for two for a month.Naturally,this has motivated the sales staff.What is the likely result of this contest?
A) The Higbee sales staff will work together smoothly as a team to meet local farmers' equipment needs.
B) Higbee's salespersons will pressure farmers to buy machinery they do not really need.
C) Higbee's system for measuring performance is contaminated.
D) This is a "rank and yank" system and will result in Higbee's sales staff becoming demoralized.

Question

Quizplus · Accepted Answer

The sales contest encourages salespeople to write the highest dollar volume in sales contracts, and this could lead to sales staff pressuring farmers to buy machinery they may not need. The focus shifts from meeting the farmers' equipment needs to meeting the sales goals of the sales staff. This could result in the sale of expensive equipment that the farmers might not be able to afford, leading to dissatisfaction and economic hardship. Ultimately, this approach to encouraging sales could damage Higbee's reputation in the community.

Higbee Farm Implements One Location,a Rural Iowa Area