1. What is your action plan? Do you recommend that WESCO be proactive in Managing its NA program or would you prefer that WESCO adopt a passive approach?
Action Plan: WESCO should definitely adopt a proactive approach in managing its NA program.
A proactive approach in managing the NA program would definitely fulfill the company’s visions of becoming a $ 3 billion company with an average EBIT of over 5% by the year 2000 (from its 1996 figures of $ 2.2 billion company with an EBIT of around 3%.)
Though the current position was not conducive to continue the program further, because the company was already at a loss of complete 2% in their revenue as compared in the previous year, still looking towards a long term prospective this program can gain higher margins if a planned strategy and proper segmentation of customers is created by the management. This would require the management to look in to the technicalities of the various segments of customers and the values provided by the company to cater them.
? Key customer segment should be focused by the NA managers and the values provided to them should be effective and the customer should acknowledge them.
? In segments like focus and others were the company is providing values more than the actual profits should be redesigned .Emphasis should be given on serving this base of customers in the bracket so that an overall profit is gained in the deal. A reorientation of values provided by the company is essential.
? Effectively managing the sales team is also essential for the management because a substantial amount of cost is incurred in maintaining this force. Local sales representatives who are responsible for a particular territory should ...