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Guinness Anchor Berhad (GAB) was formed in 1989, with the merger of Guinness Malaysia Berhad and Malayan Breweries (Malaya) Sdn Bhd. Following the merger, GAB was listed on the main board of Kuala Lumpur Stock Exchange during the same year. Besides, GAB is also the first and only brewery in Malaysia to receive the Hazard Analysia Critical Control Point (HACCP) certification and ISO 9001:2000 Quality certification from Malaysia's Ministry of Health (www.gab.com.my, 2008). The recent Chairman of the Board of Directors, Tan Sri Saw Huat Lye, is also the Executive Committee, Audit Committee, remuneration Committee and Nomination Committee of GAB Berhad. The vision of the company is respected the world over for delivering exceptional growth in people, brands and performance.
GAB is the market leader in Malaysia beer and stout industry, with 55% of the market share (www.gab.com.my, 2008). The brands of beer and stout under GAB are Tiger, Guinness, Heineken, Anchor Smooth, Anchor Strong, Kilkenny, Anglia Shandy and Malta. Their total annual sales are RM 976,013,000 (fiscal year ended June 30th,2006)(www.gab.com.my, 2008). Until 30th June 2006, they have a total number of 507 employees nationwide. While until todays, their main competitor is Carlsberg beer in Malaysia.
2.0 Sales Manager's Background
Calvin Siow Yik Keng, is the Area Sales Manager of GAB Berhad that in charge in around Negeri Sembilan in Malaysia. Calvin has been in the field of sales for more than 10 years, starting by a salesperson in a small company in Kuala Lumpur. Therefore, he was very experienced in sales and also the needs and wants of his customers. Calvin joined GAB Berhad in year 2001, as a sales executive in Seremban. After five years working as a sales executive, he had been promoted to become the area sales manager.
According to Calvin, he used to visits around five customers in a day to understand their needs and wants. After that, he success to achieve his target for continuous 2 years. All the customers like him because of his intelligence of handling and also his attitude. "Punctuality is the most important during making sales", added Calvin. Follow up after the sales are also one of the key points for the customers to consume again in the following month. Calvin never disappointed his customers when handling complaint, fast and accurate. Therefore, the payment that his customers make also on time and never delayed.
3.0 Recruiting and Selection Process
According to Calvin, he will inform his manager if there is a shortage of salesperson. He will in charge of the interview session for the salesperson for his own area. The amount and type of salesperson that been hired will be inform also before the interview session. During the recruiting process, there is no any specification for him. It means, he will be fully in charge in recruiting his salesperson. The GAB Berhad will recruits through internet, newspaper and referral from existing most of the time. This is because these tools work most effective after their pre-testing. Calvin will decide to hire the salesperson through the candidate's result in existing company, working experiences, and also others specification. Those candidates that pass the interview session will have a three months time of pre-test period. Only those candidates that pass the three months period will be the actual salesperson of GAB.
For my opinion, GAB Berhad should have a list of job specification, job description and also personnel specification to be use during the recruiting session to avoid any avoidable mistake. First of all, we as a human, easily to be influences by the first impression included the looks of the candidates, the way they present, and also their attitude. Once the first impression towards the candidates had been influences, then the wrong judgment may appear. Then, initial screening also can be used during the recruiting session. It may start with an application blank, an interview, or some form of test. This is for purpose of eliminate undesirable recruits quickly and inexpensively. Other tools also should be used together to evaluate a candidate's qualification but must be fit the particular needs of the company. However, experienced panels of interview also play an important role in assisting selecting the qualified candidates.
The sales manager does have training to new recruits. New recruits have to attend a training camp for one week time once they are recruits. They have to attend some seminar about the right attitude of a good salesperson, what a salesperson have to do and also cannot do and also some of the techniques to persuade consumers to consume from them. All these training will be in charge by human resources department from the head office. After the training, those new recruits will be leading by a senior salesperson each for the three months time. In this three months time, all the new recruits must be obeying to all their senior salesperson to assist them to do sales.
For my opinion, this training camp is considered as effective for the salespersons. This is because it included all the topics on how the salesperson should serve the customers and also the attitude of the salesperson. But it may opened to some of the senior salesperson that voluntary to join it again to gain more knowledge and also the company may arrange those salespersons that failed to get a good sales results to retrain them. This may help the company to increase the sales productivity and also build higher morale from the sales force of the company.
5.0 Morale and Motivation
According to Calvin, he will visit all their customers twice a year. Then, he will try to get feedback from the customers about the salesperson. Besides, some customers that not satisfied with the salesperson will make a complaint to the company themselves. Calvin added, most common morale problem seem to be such as the punctuality of the salesperson, the promise that made been break, and also the after sales services. Therefore, Calvin will keep remind his salesperson about their attitude and these problem during the meeting. Some of them that make a big mistake will be given a warning letter. Once the situation had been changes and some of the customers praise them during the visits, Calvin will pay them for a dinner as motivation.
For my opinion, Calvin doesn't even know what the expectancy theory means is. He doesn't know what his salesperson wants. He thinks that it is more than enough for him to pay them a dinner as a motivation to them. Besides, each salesperson is unique and has a different combination of needs. Once the salesperson doesn't get what he wishes to get, his effort will be decrease. Calvin should evaluate the wants of his salesperson first to motivate them through different ways. He should go through those three steps which are reward/effort, performance/reward, and effort/performance that transform a need into the desire to expand effort to satisfy the needs.
All the sales force in GAB Berhad compensated by combination of salary and commission. According to Calvin, there are both monetary and non-monetary rewards available in his company. The monetary rewards are the salary, the commission from sales, the bonuses for whole year performance, and also the fringe benefits included car and insurance for the salesperson. While for the non-monetary rewards, they are opportunity to get promoted by the company, job enrichment and support, and also recognition and Honour Awards by the annual dinner. Besides, The Company have one of their own in-house pub, The Tavern for their employees to enjoy the night after working hours of Friday with free drinks. Their staffs are also allowed to bring 2 guests twice a month to enjoy the facilities of the pub as well.
For my opinion, the compensation given by GAB Berhad is considered well enough for their employees. First, they are given their basic salary added by the commission from the sales. As we know, the quantity of their product sales is all in huge amount normally, especially those key accounts. Besides, bonuses will be given by the end of the year. From these compensations, a salesperson can get the enough monetary rewards for their sales. But the weaknesses are the company should consider for those employees in village territory, because the sales in village territory might be not as well as those in city. In city, the customers may order in dozens or even containers comparing with those in village, by twenty or thirty cottons.
For the non-monetary awards, the opportunity to be promoted, job enrichment and support like laptop, recognition and honour awards that given, and also the in-house pub facilities are enough also for motivate the employees that looking for non-monetary awards. The company may add up some free traveling also to motivate the salespersons.
The expenses that eligible for reimbursement are all the expenses that used during the function of the company such as the sales promotion but excluded those petrol fees and toll fees. This is because as mentioned just now, the monetary compensation is more then enough for the sales forces. The reimbursement process will be done in maximum one month time. GAB Berhad will use 20% of the total sales as sales expenses. Most of the expenses will be used at sponsorship such as the GUINNESS WORLD 9 BALL TOURS that held now, and also advertisements.
According to Calvin, his annual budget will include the petrol fees for salesperson, the toll fees and also the mobile charges for those salesperson that going outstations only. The reason that not for the salesperson in local is as mentioned above, the monetary compensation is more than enough for the sales force in local.
GAB Berhad do use the quotas to influences the sales forces behaviors. Each territory will have their own sales target to be reach by the salespersons. Once they reach their sales target, they will receive extra bonuses and commission compare with those that doesn't reach. According to Calvin, each sales forces annual sales forecasting will be done as the goals of the sales force. Sales manager of each territory will be in charge to do the annual sales forecasting. For Calvin and my opinion, both of us also agree that the current practice of sales forecasting work effectively. This is because their annual sales forecasting are increasing year by year and was agreed by the company.
Calvin supervises his sales force directly. He will follow his sales force to visit the customers weekly. He will assist his sales force if any problems occur during the visits. Besides, each of his salesperson are required to make a daily reports. He will read through those daily reports and advice his salesperson in improve the sales based on his past experienced.
According to Calvin, he will evaluate his sales force through the sales reports monthly. Besides, he will evaluate his sales force through the feedback from the customers also. After that, he will make an evaluation reports to be passed to the main office. This evaluation will be made twice a year which is on June and December based on each salesperson sales reports.
11.0 Own Opinion
Based strictly on the interview, for my opinion, Calvin like the most on receiving the good sales results from his salespersons monthly. Therefore, his salesperson may get promoted easier and also make himself proud. Actually he likes the most to have chance to promote his salesperson. According to him, all of his salespersons work hard to fight for the opportunity to be promoted. He has seen enjoying this position so much.
At the other hands, Calvin dislike the most is when his salespersons failed to get good sales results. According to Calvin, if his sales force failed to get sales result, the main office will added pressure to him and may make his salesperson lost their jobs. Therefore, he will always follow up his sales force results from time to time to make sure they are afford to have good sales results.
In not more than 100 words, describe what you have learnt from the interview and if you would like working as a sales manager.
I have learnt the way of a sales manager communicate with his salesperson, the technique to be a good sales manager, the responsibility that a sales manager should have, and also how to handle those problems that occurs. I would like working as a sales manager if I able to handle the problems above because this is an interesting jobs that need highly responsibility and quick react when problems occurs, and of course, high monetary compensation.