1. Situation Analysis
The “leading producer in plastic forming machinery industry,” presided by Will Houston, father of David Houston who is the marketing manager of PlastiForm Mfg., Inc. David wants to increase sales by hiring sales reps, but is conflicted, as his father Will wants to do something else. PlastiForm has flaunted it has the best quality in terms of build, serviceability, and durability. Being on the west coast, PlastiForm encounters little to no competition. They list their prices competitively, even though they are the best in the industry. Will wants to expand his sales by absorbing the extra cost to ship his equipment to further parts of America. David wants to hire new company reps and establish them in the Midwest and Eastern regions rather than hiring manufacturers' agents. Competition from those regions do not have any reps or agents on the west coast, or haven't received any business. Will would rather be ready for the latest and greatest event in plastic forming, but still aware of David's points.
2. Problem
There is one common goal – to increase sales, but there are a couple of options to explore. Either hire hourly/salaried employees and pay for all their expenses, while still only getting a chance of a return. Or rely manufacturers reps, who work on commission and are only guaranteed any form of compensation when there is a sale. So far, there has not been any direct competition, and so David is worried that this will stir up some competition if Will chooses to go with his plan to absorb the cost of shipping.
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