Sales force Management

Questions: 1. If it decides to expand its sales force? 2. If it decides not to expand its sales force? Answers: 1. As it is evident from the case study, the very recognized Panacea organization is planning to launch a new Cancer drug in the market that is one of a kind, and thus has potential prospects in the drug market. However, since the product is still yet to receive approval for market launch from FDA, the organization is in dilemma if it should start expanding its sales force for upcoming launch of the drug. In case the organization decides to expand its sales force, it would able able to gain higher competitive advantage as the product would be a unique product for Cancer in the market. In this case, expansion of sales force would bring about greater diversification of market that in turn would inevitably lead to higher profit margins and greater brand recognition of the organization (Johnston Marshall, 2016). Besides with a greater number of employees belonging to various ethnic regions, the organization would be able to spread brand awareness in a much more effective way. Greater em ployees would also imply stronger employee base that would ultimately imply huge growth in revenue. As it is expected that the company world not be going to face any competition from rival brands in the next 20 years, the sales force can be hired on part-time and temporary basis. Once the sales force promotes the brand across the globe, the organization can restrict the number of sales persons retained for future purpose (Dutt, 2015). While the sales force hiring expenditure would be a capital expense, the company would be able to ensure a source of continual revenue for the next 20 years. 2. However, though expansion of sales operating by hiring fresh sales force does seem to be a highly lucrative idea, it should be remembered here that the product of the company is still seeking FDA approval, and hence it would be indiscreet to invest in expansion of sales force beforehand. Hence, the organization might also consider the option of not expanding its sales force. As for now, the existent sales staffs can be retained and motivated to accomplish the tasks. They will have to be provided with sufficient training so that their sales skills, along with soft skills and communication skills improve (Balan, 2015). This will help them interact with potential consumers of different ethnic regions. However, it is also possible that if the company does not expand its sales force, and compels its existent employees to execute the tasks expected to be done by the new sales force, the employees would lose motivation, unless are being satisfied with proper motivational factors. Hence, the organization would have to provide the employees with incentives, recognition and other financial perks (Lapoule Colla, 2016). Besides, in order to retain the employees for a longer period of time, the organization world also have to introduce work-life balance programs and different kinds of career development programs, that can keep the employees motivated. However, considering the above factors, it is recommended that the organization expands its sales force if it wants to ensure market growth and better profitability in future. References Balan, C., 2015. TO THE SALES FORCE.Pricing and the Sales Force,30(20), p.28. Dutt, R. (2015). Impact of motivation on effectiveness of sales force through training: a study of telecommunication sector. Johnston, M. W., Marshall, G. W. (2016).Sales force management: Leadership, innovation, technology. Routledge. Lapoule, P. and Colla, E., 2016. The multi-channel impact on the sales forces management.International Journal of Retail Distribution Management,44(3), pp.248-265.