PARKIN LABORATORIES: SALES FORCE EFFECTIVENESS Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

PARKIN LABORATORIES: SALES FORCE EFFECTIVENESS Case Solution

The analysis of the case study in order to effectively and accurately identify the critical factors that are hampering the performance of the organization in terms of the operating margins that it generates from the market will evolve around various sub-segments which influence the performance of the company as a whole.

PROBLEM STATEMENT:

“The most critical problem for the management of the company is the declining sales per medical representative of the organization and the newly introduced drug pricing policy of the government of the country for the pharmaceutical companies.”

RATIONALE:

The comprehensive look of the case study reveals that the management of Parkin organization is facing critical challenges while sustaining the growth and operating margins of the company. This serious problem of the business constitutes upon three most critical dimensions that are causing this negative impact upon the business and it is very important that the management of the organization concentrates and focuses upon these dimensions to counter this threat of the business.

The first dimension of this problem for the management of the organization is the newly introduced policy of the government of the country of price regulation of the drugs that are being sold to the customers in the markets. The motive behind the introduction of this regulation by the government of the country is to bring all the necessary and critically required drugs under the purchasing power of the population of the country.

This is bound to have a negative impact on the performance of the company as 24 drugs among the product portfolio of the company are directly coming under this newly introduced policy of the government of the country. The enforcement of this policy will likely reduce the profitability of the theses products of the company by more than 50% which is a very significant figure and a cause of concern for the management of the company.

The second dilemma for the management of the company is the absence of a proper trained and skillful workforce in the sales organization of the company. It has been stated and identified from the case study that most of the sales team that the company has employed are below average or average employee without any innovative mindset or techniques that they could contribute towards the betterment of the working culture or increase in the performance of the company.

The case study also reveals that most of these employees of the company lack the skills and thoughts or failed to prioritize their goals for working towards achieving their target sales as per the budget efficiently and effectively.

The third dimension of this problem of the management of the company is the ever increasing operating costs of the organization which also contribute towards minimizing the profits and income of the company. This has led to immense frustration for the management of the company as the costs of operations are increasing at the same time when the operating margins of the company are declining.

It is critical that the management of the organization focuses on and counters these issues and challenges for the sustaining of the business interests and possibly to promote the growth of the company in terms of operating margins and market share.....................

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