IPad Hungary Kft is looking for investors for the introduction of IPad on the Hungarian market. Invest and Co. has shown interest in the investment, and the leading investment manager asked for a summary of the human resource management strategy focusing on a reasonable plan how the company is planning to set up the sales team within the organization that is going to introduce the new device on the market. This request arrived to IPad Hungary Kft on 1st April, 2010 with a deadline of 1st May, 2010.
1. Analyzing the sales activity
The sales team was i nterviewed to find out and understand how their activity is processed and built up and also to have a clear picture about the sales channels.
The step-by-step sales process is as per Appendix 1.
Sales can happen on different channels and IPad Hungary realizes the following channels as successful sales points based on their previous experience with other devices that they introduced on the Hungarian market:
- Web Shop: online interface on the web where customers can register, order and pay for the IPad which will be delivered in the next few days to their home address. Open from 24 hours a day and 7 days a week.
- Moving Sales Team/Person: travelling sales representatives who visit customers on different shows, events or even at home upon special requests. Working on weekdays.
- Store: shop opened in common places, such as shopping centers, shopping streets that are open for the public during daytime.
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Based on market research results, the sales team is going to concentrate on customers currently using other Apple products and they are going to emphasize the attractiveness of the IPad to raise their interest in the new device. The number of people targeted is about 400.000 individual customers.
2. Defining roles and responsibilities
According to the sales process the following roles were found to be essential to maintain an effective sales activity in IPad Hungary. HR Departments also shared findings on how many employees are required to reach out to 400.000 individual customers effectively.
- Sales Managers: manages a team of 8-10 sales representatives who interact with customer and also interacts himself with customer in case of group-buys. Required number of people: 3
- Sales Representatives: interacts with customers either as a moving sales person or in one of the stores of the company. Required number of people: 25
- Sales Support Assistants: forming a central body within the organization specialized in supporting sales activity, mainly dealing with sorting out delivery of orders coming from sales representatives and via web shop and also managing advertising and guarantee requests. Required number of people: 5
3. Assessing and evaluating the current organization and staff
The HR Department evaluated the current situation in all current departments of IPad Hungary Kft and considered that other teams are being reorganized and stated that the current organization has the capability to provide the IPad Sales Team with the following human resources within the next 2 months:
- 3 Sales Managers who are trained professional with at least 5 years experience in selling similar devices on the Hungarian and international market as well
- 10 Sales Representatives who are trained professionals with enthusiasm and great motivation in the ages of 22-35
- 3 Sales Support Assistants who are supporting current sales teams working on the Hungarian market, but will be able to provide support to new teams as well, due to not having tight schedules at the moment
- The main conclusion of the findings is that there is a possibility to establish three channels of sales: online web shop, moving sales team and stores.
- Another important conclusion is that a huge sales team needs to be set up to maintain the sales process effectively and to be able to reach out to as many potential customers as it is planned to be targeted (over 400.000 people). Also a new function, a support team needs to be established centrally to provide help and assistance to sales.
- The third conclusion of the report is that there is a vacancy for 15 sales representatives and 2 sales support analysts at IPad Hungary to fill in.
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Based on the findings and conclusion, the main recommendation of IPad Hungary Kft is to build up a sales team as described in the organization chart in Appendix 2 that is containing sales managers, sales representatives and sales support assistants as well all reporting directly or indirectly to the managing director of the company. Sales Representatives will be motivated and coordinated by their managers and support by the sales support team.
HR Department suggest to introduce a bonus system for sales managers and representatives based on their performance (how many devices they sold). The proposed organization structure supports the existence of such a system and it also helps to boost up sales.
HR Department also recommends to send the sales representatives to fast and effective customer-handling and sales training due to the fact that they probably need to handle lot of request daily to be able to reach out to 400.000 individual customer within a reasonable timeframe.
As a final recommendation HR Department would like to start hiring of the additional 15 sales representatives and 2 sales support analysts.
High-level step-by-step process of the sales activity was created to understand the human resource needs:
Recommended organization chart by HR Department for the sales team and support: