As the Vice President of the Sales, it is his responsibility in the first place to handle sales management leadership and sales compensation program according to David J. Cichelli (p. 38) and not the products being sold in the market. Therefore, it is inappropriate for a new Vice-President of Sales to discuss defective wrenches before a CEO meeting especially that he is unaware of the ethical guidelines being practiced by the organization. In this case, he has to take extra care to discuss the matter to the group without appearing discourteous or impolite.
In the first place, the newly hired CEO (Vice President of Sales) has the idea of communicating the concept of customer satisfaction that is vital in the growth of sales as well as important in his role as sales management leader to provide the utmost satisfaction. He also wants to ensure that collaboration among members of the team is practiced as he assumes his duty as part of the CEO team. Evaluating the scenario, he has to look into several avenues and prepare materials to support his argument.
First, he has to review the policies of the organization as well as a survey on customer feedback of the product conducted previously, from where he will base his argument. Any information about the company’s structure, ethical guidelines, and procedures will help him shape his analysis and proposal to redirect the company’s concept of customer satisfaction. Tactfully, he may present the problem as part of his initial report using the SWOT analysis from there he may initiate actions essential to the growth of sales.
SWOT analysis according to Robert Price is helpful in the “analysis of the external environment… and internal situation” to see the whole scenario of the problem (p. 104). Second, he may suggest innovation of the product to be introduced as a new model through which the customer may perceive the product having good quality that will “solve critical customer problem” (Rafinejad, p. 208). Product innovation should be carefully planned to attain the best improvement of the product because as Rafinejad stated, “…too many revisions to a product are disruptive to customers’ business operation and create confusion” (ibid).
Third, the company may notify the public through a well-developed notification plan which may includes “customers’ reaction to the planned changed” (Rafinejad, p. 210). Once the customers’ wants finally established, a formal change notification may take place; this involves e-mail notification, advertising, and other public relation tasks. The need for strong sense of business ethics rooted on customer satisfaction must also be emphasized. This generally requires internal streamlining.
Bjorn Andersen stated that business ethics has “a strong motivational effect that can spur individuals and indeed entire organization to unheard-of peaks of performance” (p. 7). This creates basically a true sense of dedication on the part of the employees in the delivery of products to the customers. To realize this goal, the company has to redefine corporate culture and restructure the organization in such a way that supports the objective of the company as part of the innovation process.
Redefinition includes identifying corporate social responsibility approach with hands on business practices through transformation process on the operation level. Andersen mentioned that the process involves policy setting, overall image creation, and pointing out direction for the organization’s ethics endeavor (p. 28). To support the endeavor, the company has to evaluate its structure in a way that accountability for success and/or falling is determined. Likewise, certain business activities must be redirected through assigning corporate ethics program.
Linda K. Trevino and Gary R. Weaver suggested to “formalize company values and expectations” in which multiple elements has to look into such as “dedicated staff, supporting structures and policies, and extensive employee involvement” (p. 91). Conclusion: The new Vice President of Sales with his expertise in the field of business may share his knowledge that will help the business grow. The defective wrenches may cause the business to fall due to customer complaints that are not dealt with properly.
Assigning tasks that will save the image of the company will be realized through initiatives for change in products and corporate ethics. This will be done by means of undertaking strategic planning based on research that may include adapting new policies for the company. Reference Andersen, B. (2004). Bringing Business Ethics to Life: Achieving Corporate Social Responsibility. USA: American Society for Quality. Cichelli, D. J. (2003) Compensating the Sales Force: A Practical Guide to Designing Winning Sales Compensation Plans.
USA: McGraw-Hill Professional. Price, R. (2007) The Eye of Innovation: Recognizing Possibilities and Managing the Creative Enterprise. USA: Yale University Press. Rafinejad, D. (2007) Innovation, Product Development and Commercialization: Case Studies and Key Practices for Market Leadership. USA: Ross Publishing. Trevino, L. K. & Weaver, G. R. (2003). Managing Ethics in Business Organizations: Social Scientific Perspectives. USA: Stanford University Press.