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Case Study: Sales and Recruitment Strategy

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Case Study

Client: KI International
Industry: Manufacturer of office, commercial, institutional, educational Furniture
Country: Germany and UK
Project Duration: March - May 2006
Function: Strategy Consultants

Referees: Jonathan Hindle, Group Managing Director

Corporate Environment

Founded in 1941, KI manufactures a comprehensive and diverse line of office, commercial, institutional, and educational furniture.

With over 3,000 employees world-wide, KI`s corporate headquarters is located in Green Bay, Wisconsin. Turnover is several hundreds million USD. The corporation operates in Europe and is a worldwide supplier to the US government, in particular to the Armed Forces in EMEA.

The EMEA business is managed out of the UK wholly owned subsidiary.

Reporting was to the Group Managing Director.

Situation

After a necessary reorganization in Germany, the company had lost practically all its sales force and needed to start from scratch.

There were two separate challenges to be mastered:

1. Sales people for Germany had to be recruited. It was preferred to hire self-employed, commission based sales agents.

2. A strategy had to be developed to roll-out the corporations US government business across EMEA and sales people had to be recruited.

Issues

Analyzing the situation in-depth, several issues had been identified and needed to be resolved:

• Business culture and ethics in Germany are not campaigning for self-employment, so commission bases sales agent are extremely rare.

• German tax laws make it practically inefficient for sales agents to work for only one principal. Sales agents must –by law- work for a certain minimum number of principals. This leaves principals with only syndicated agents, it’s practically impossible to find a dedicated sales agent in Germany.

• The US government business required fluent English speaking sales people, which are extremely difficult to find in Germany.

• The US government business across EMEA is widespread and a strategy was needed to find the most efficient and effective way to start the roll-out.

Source:
http://www.scribd.com/doc/264600/Case-Study-Sales-and-Recruitment-Strategy?autod
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