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Poor sales planning at service team at w vietnam company

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UNIVERSITY OF ECONOMIC HO CHI MINH CITY International School of Business NGUYEN TRONG DUC POOR SALES PLANNING AT SERVICE TEAM AT W VIETNAM COMPANY MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr TRAN PHUONG THAO Ho Chi Minh City – Year 2021 Table of Contents CHAPTER 1: PROBLEM CONTEXT 1.1 Introduction about W Group & W Vietnam (WVN) 1.2 Industry Overview 1.3 Business Symptoms 1.3.1 Pump sale decrease 1.3.2 Services revenue cannot hit target: CHAPTER 2: PROBLEM IDENTIFICATION 2.1 Preliminary analyzes 2.2 Potential Problems 2.2.1 Poor sales competitiveness 2.2.2 Poor sales planning at service team 2.3 Problem Validation 2.3.1 Poor sales competitiveness 2.3.2 Poor sales planning at service team 2.4 Main problem: 9 11 14 CHAPTER 3: CAUSE VALIDATION 16 3.1 Cause analysis 16 3.1.1 Unclear goal 16 3.1.2 Lack of market information 17 3.1.3 Inappropriate allocated resources 21 3.2 Cause validation 3.2.1 Unclear goal 24 24 3.2.2 Lack of market information 24 3.2.3 Inappropriate allocated resources 26 3.2.4 Main cause validation 27 CHAPTER SOLUTIONS SUGGESTIONS 30 4.1 30 Alternative Solution 4.1.1 Training market research skills for service employees 30 4.1.2 Assign marketing role for someone who responsible for the information systems between sales & services team 32 4.1.3 Find outsourcing for market information gathering 34 4.2 Solution Selection 37 4.3 Action Plan 38 4.3.1 Methodology 39 4.3.2 Design for WVN’s service team 41 CHAPTER 5: SUPPORTING INFORMATION 47 5.1 Timeline’s Interview 47 5.2 Summary of Interview Transcript 47 APPENDIX 54 REFERENCES 64 LIST OF TABLES Table : WVN’s total revenue Table : WVN company’s report 2020 Table 3: Services products and tasks Table 4: WVN company service department reports Table : Action plan’s timeline for WVN’s process (Prepared by author) 46 LIST OF FIGURES Figure 1: preliminary cause & effect tree ( consolidated by author) Figure 2: the determining factors of diamond model( Porter,1990:127) 10 Figure 3: Service claim reports sample 12 Figure 4: preliminary cause & effect tree ( consolidated by author) (Updated) 15 Figure 5: Updated Causes & Effects Map 16 Figure 6: Relationship Between Business Performance, Collaboration Between Sales and Marketing, and Market Orientation(14) 21 Figure 7: Market Orientation(15) 21 Figure : Fishbone ( consolidated by author) 23 Figure 10 : S/O matrix from W Global 24 Figure 11 : Service’s Team Model (Company’s Data) 27 Figure 12 : An integrated model of the operations strategy formation process (Source(22)) 28 Executive Summary Facing with the difficulty of cultural differences from the W group and its member companies, WVN constantly had to innovate and find its own way to fix with the group's development strategy In addition, the year 2020 was heavily impacted by the Covid-19 pandemic, making top-leaders even more resolute in innovating to diversify Specifically, the WVN’s technical services department must change to accommodate more extensive services The problem happened at the planning and affected the performance of the whole department The mentioned above finding is located by several qualitative in-depth interviews with directors, manager, and employees of WVN Combining with analysis from secondary data and related literatures, this paper is to step by step diagnose the most concerned symptoms with its consequences, identify the real problems, then explore the potential causes and main causes Applying theory-informed problem-solving in the organization to study and analyze the current services team of WVN, the author aims to support the management of WVN to understand about the real problem clearly and objectively Subsequently, this paper can suggest WVN the alternative solutions and action plans to gathering market information to resolve the real causes, symptoms and negative impacts on the department Then, they can evaluate and choose the best and most applicable solutions follow the 2020’s global strategy Acknowledge In the process of researching and completing the thesis, I have encountered many difficulties To complete a master's thesis, besides my own efforts, it is impossible not to mention the help of those around me Therefore, I would like to express my sincere thanks for everyone's support during this research to be able to complete my master's program First of all, I would like to express my gratitude to my mentor Dr Tran Phuong Thao - who guided and mentored me during my master's research Her enthusiastic supports and advices helped me to complete my thesis well Without such guidance, the thesis could not have been carried out effectively The thesis is written about months, so it is impossible not to mention the enthusiastic help of the WVN's employees I would like to thank all of you for creating favorable conditions, supporting data and information to help me understand the relevant issues during the thesis research, especially Mr.Duc-Managing Directors of WVN Besides, I would also like to thank my parents, relatives and friends who have always supported and encouraged me in life as well as during the completion of my master's thesis Finally, my deep gratitude to all my friends during my time studying at ISB UEH because their kind, help, concern, motivation Their energy gave me strength and supported me to overcome all difficulties during my study In the essay, due to my limitations in terms of knowledge and professional qualifications as well as not having much practical experience, it is inevitable that there will be shortcomings I look forward to receiving valuable comments from teachers so that the topic can be more complete and meaningful in practical applications Sincerely thank! CHAPTER 1: PROBLEM CONTEXT 1.1 Introduction about W Group & W Vietnam (WVN) WGroup was founded in 1872 as Kupfer- und Messingwarenfabrik in Dortmund Today, the W Group is one of the world's leading premium suppliers of high-tech pumping systems for building services, water management and industry WGroup provide customers with innovative and energy-efficient products, needs-based system solutions and a variety of services With that foundation, W Vietnam Ltd (WVN) was officially established in July, 2011 (business license: 411043001659) under directly investment from WSE With experienced sales representatives and technicians and global in-depth development strategies, WVN offers not only pumping products but also technical solutions, installation and warranty, and good after-sales service WVN also offers testing pumping service at the workshops and this allows WVN to conduct large-scale projects that have high technological requirements WVN: Providing repair, maintenance and installation services for products/goods distributed by the Company to distributors in Vietnam in the following fields:  Building Services o BSR: Building service residential o BSC: Building service commercial  Water Management (WM)  General Industry (GI) Vision: WVN, the water solution leader for a smart and resource efficient world Mission: Inventing and managing responsible water solutions that benefit everyone, everywhere Values: Organization chart W Viet Nam 1.2 Industry Overview: The water pump system is critical to any manufacturing process or plant to function effectively Industrial pumps are used for various industrial applications such as power plants and petrochemicals, to directly support the production and power generation processes, and typically operate for long periods of time Base on the data collected by Research & Market’s reports, it is estimated that about 27% of the energy consumed by any industry is made up of motor-controlled equipment This gives industrial pump manufacturers the opportunity to improve efficiency and launch new & innovative products In the Asia Pacific (APAC) region, opportunities are open to factories and pump companies for the growth of the automotive, construction and industrial zones The water pump industry in APAC is expected to decrease 18% due to the Covid-19 pandemic, accompanied by fierce competition from low-cost factories is also a problem for industrial pump market development here 1.3 Business Symptoms This research is focused mainly on the profitable divisions for WVN As mentioned above, facing with the Covid-19 pandemic WGroup considers it as a challenge During in-depth interviews and information given from research, severely perceived symptoms attract the attention of leaders, team leaders and researchers to find problems, causes, and solutions to the problem as soon as possible Through initial observation, two departments under the most pressure in WVN are also the two parts that bring profits to the company In addition, the paperwork or the relatively complicated process of the company when WVN is under the management of a foreign corporation is also a knot After first meeting with directors and study the secondary data from internal reports from WVN 2019 & 2020, it is found that there is one symptom: Revenue decrease in 2020 The symptom is diagnosed and analyzed in details as below Unit: Billions VND Total Revenue 160 140 120 100 80 60 40 20 Total Revenue 2018 2019 2020 129 145 77 Table : WVN’s total revenue The decline in sales through the annual report presented above is also the problem that WVN’s director is responsible for presenting to W Group The author had a chance to participate in an online meeting of the WVN director and the group noted that WVN sales in 2020, even decreasing in sales revenue but on the positive way is the innovation This is not only the water pump business but the 2020 annual report also record revenue from WVN's services department Based on this information, the author continued to analyze symptoms into parts as below 1.3.1 Pump sale decrease Unit: Millions VND 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 2018 2019 2020 Actual revenue 129000 145199 76364 Target 128000 148000 173000 Table : WVN company’s report 2020 According to the company's financial statements, pump sales are down by nearly 50% compared to the figures given above for the whole industry (- 4%) (Source: www.worldpumps.com) This symptom that needs to be studied and analyzed 1.3.2 Services revenue cannot hit target: At WVN, there are a total of products listed in the products catalog of the services department: Service products Maintenance & Operations Task Services apply for used products (annual checking) Installing & commissioning Installation and testing for the first time 52 More preparation is required in terms of logistics: increasing inventory to ensure customer needs, more variety of products and services Mr.Sy Chung Confirm the The phone call to confirm the information shared by Mr.Vinh above He also share : “a information political part affects the projects in the Northern region” Mr Dat Validate main Question: The director has an opinion that problem, find out the service department at the company is potential causes underperforming? Answer: I disagree on this as the reports that resolve customer issues are good Due to the nature of the work, we have to work directly at the project, so we always propose solutions to customers at that time Some related problems when customers not accept our solution For example, the cost of spare parts is higher than products floating in the market or sometimes the time to import parts is quite long, requiring customers to look for other substitute products I agree that the service department at the company is not focusing on receiving the sales target of the leadership But the lack of resources: no preparation time, lack of financial costs and organizational capacity are the reasons Mr Duc Validate problem main Question: Why does the department have sales target? technical 53 Answer: This is the decision from the corporation, the innovation and variety of services already in the market and in all competitors In the face of the worldwide situation of the Covid-19 pandemic and industry specificities: 2020 in Vietnam is a setback in the development of WVN However, this reinforces the innovation in the company's business model The service department also needs to improve their own capabilities to match the company's direction The drop in demand in the market is inevitable, the service department needs to be more prepared and I not have a detailed plan in implementing new services from Mr.Dat A meeting may be held to focus on improving this issue WVN Service 2020 Report & Forecast 54 APPENDIX 55 Antecedents and consequences of collaboration between sales and marketing BSR Marketing Budget BSR Segment New Distributor (………) Sieu Phong 50,000,000 50,000,000 Loc Phat 50,000,000 50,000,000 Vietbuild / Exhibition Costs Seminar 100,000,000 Loc Phat 50,000,000 50,000,000 Sieu Phong 50,000,000 50,000,000 New Distributor (………) Costs 100,000,000 Light box Shopsign Costs Light box/Shop Sign Balo 100 90,000 9,000,000 T-shirt 100 270,000 27,000,000 Gift 56 Raincoat 200 88,000 Pen Notebook ( sổ da) Notebook ( sổ nhựa) 100 75,000 7,500,000 Sạc dự phòng Set Sổ+bút Thermos water bottle USB Set USB+ thermos water tank+ pen Helmet 200 100,000 Costs 20,000,000 81,100,000 Household 100 30,000 3,000,000 Company profile 100 62,000 6,200,000 500 17,000 8,500,000 450 17,000 7,650,000 250 17,000 4,250,000 Anti-counterfeiting stamps (Tem HG) Catalogues 17,600,000 Import seal (tem phụ) Warranty card (Phiếu bảo hành) Design Catalouge, Brochure Costs 29,600,000 Gift Tet 50 400,000 20,000,000 Gift Tet and Outing Outing with BSR dealers Costs PR Release 20,000,000 PR release 60,000,000 120,000,000 Costs 120,000,000 TOTAL 450,700,000 Other BSR Total 450,700,000 Water Management Marketing budget WATER MANAGEMENT Segment Seminar mobile at 10,000,000 40,000,000 Seminar 80,000,000 80,000,000 Vietwater 100,000,000 100,000,000 University Seminar/ Exhibition Exhibition Costs 220,000,000 57 Membership fee for VWSA (North, South, WM Associations fee 8,000,000 16,000,000 14,000,000 14,000,000 Central) GBA fee Costs Catalogue 30,000,000 Water management 50 50,000 2,500,000 Company profie 100 62,000 6,200,000 General Overview 100 50,000 5,000,000 Costs 13,700,000 Balo T-shirt 270,000 Raincoat 88,000 112,000 Pen Gift Notebook ( sổ da) 80 115,000 9,200,000 Notebook ( sổ nhựa) 100 75,000 7,500,000 Sạc dự phòng 40 400,000 16,000,000 Set Sổ+bút 80 297,000 23,760,000 300,000 Thermos water bottle USB Set USB+ thermos water tank+ pen Helmet Costs Gift Tet 56,460,000 Gift Tet 30 1,000,000 Costs Sponsor PR release 30,000,000 30,000,000 Sport Sponsor 50,000,000 50,000,000 PR release 60,000,000 60,000,000 Costs 110,000,000 TOTAL 460,160,000 Other WM Total 460,160,000 BSC & GI Marketing Budget BSC & GI Segment Technical seminars Seminar Small Seminars (Contractor, consultant) University (scholarship, training…) Costs 100,000,000 200,000,000 10,000,000 20,000,000 50,000,000 100,000,000 320,000,000 58 Exhibtion Vietbuild Costs General overview/ Design Catalouge, Leaflet, Catalouges 300 50,000 15,000,000 200 62,000 12,400,000 Brochure Company Profile Costs Gift 27,400,000 Balo 200 90,000 18,000,000 T-shirt 100 270,000 27,000,000 Raincoat 50 88,000 4,400,000 Pen 50 112,000 5,600,000 Notebook ( sổ da) 100 115,000 11,500,000 Notebook ( sổ nhựa) 300 75,000 22,500,000 Sạc dự phòng 100 400,000 40,000,000 Set Sổ+bút 150 297,000 44,550,000 Thermos water tank 50 300,000 15,000,000 USB 70 200,000 14,000,000 Set USB+ thermos water tank+ pen Helmet 50 100,000 Costs Tet Gift Gift Tet 207,550,000 120 1,000,000 Costs BCI info 5,000,000 120,000,000 120,000,000 61,600,000 61,600,000 BCI BCI event Costs Sponsor Sport Sponsor 61,600,000 65,000,000 Costs PR realease PR realease Costs Chatity Sponsor 65,000,000 65,000,000 60,000,000 60,000,000 60,000,000 Chatity sponsor Costs TOTAL 861,550,000 Other BSC & GI Total 861,550,000 59 SPEC-IN’s Job description: ABOUT PACE: PACE Institute of Management is highly respected for pioneer work through empowering businesses in their management and developing leaders at all levels so that businesses can grow strongly in local and global markets 60 PACE is well known for a global ecosystem of management with affiliated schools (specializations in the field of management, including general management, HR management, financial management, marketing management, sales management, production management, supply chain management, and project management), member companies (specializing in management areas), and global partners (the world’s leading organizations in management areas) PACE’s mission is “to develop high-performance leaders and professionals for business and society.” PROGRAM OBJECTIVES - Understand the sales profession; - Understand the psychology and consumption behavior of customers - Know how to establish processes and methods for effective sales; - Improve the communication skills and persuasive sales presentations - Improve skills of handling objections / rejection of customers THE COURSE CONTENT: No I THEMATIC Understand the sales profession Duration (Hours) hours What is an activity "Sales" meaningful and effective; The role, responsibilities, attitudes, knowledge and skills of a professional salesperson Method of self-improvement and development "sales profession" for each level II Customer psychology and consumption behavior Customer’s character and the psychological factors in sales; Motivation and consumer demand; The psychological stages of a procurement process; Active impact approach method to consumption behavior of customers in each period hours 61 III Processes and effective sales methods hours Sales plan and preparation for necessary information - The process of establishing sales plans; - Tools, forms and reports commonly used in the work of sales; - The necessary important information need to be prepared in the sales activities Professional sales process; Important key to succeed in sales - Develop the attitude and approach accordingly; - Carry out the access in proper methods; - Techniques of "listening" and gather information; - Technology identification, analysis and classification of customer needs; - Defining negotiation techniques; - End of successful business The important, necessary remarks in sales activities IV Several important skills in subsidiary to sales Communication skills and convincing presentation - The role of communication in sales; - The principles of effective communication in sales; - The barriers in communication, the close signal in communication; - Techniques to break the apathy, indifference and create openness for customer in sales communication - Persuasive presentation in sales Skills of handling objection / refusal - The most common causes as the client objection / refusal; hours 62 - The principles should be followed when handling objections / refusal; - Some technologies and tactics for handling objections / refusal in sales; - Practice on the situation TOTAL 12 ours About BCI ASI Since establishment, BCI Media Group has grown from country to country, region to region This growth has come from continued hard work and innovation, defined by our mission and guided by our values BCI ASIA Mission Statement To become the leading global, multi-platform, software-enabled pre-construction data service By combining our research expertise, industry knowledge and artificial intelligence To deliver transformative, industry-critical data products and software solutions BCI Values Boldness – we dare to go where the biggest challenges are Our entrepreneurial spirit means we are not afraid to challenge the status quo in order to pioneer new business in previously unrivaled markets or to have the courage to dig deeper and persist in finding new opportunities Commitment – we are committed to our mission as it relates to our members, our team and the communities in which we operate Our commitment extends to the quality of information we provide, to the level of service given, to being accountable to our team members and to the social and ecological welfare of our environment Integrity – we conduct ourselves with integrity in everything we and adhere to the highest ethical standards in every interaction This means we would rather forego 63 an opportunity; lose an order or part ways with a staff member than compromise our integrity BCI ASIA History BCI Media Group is the leading provider of building and construction information globally with 21 offices across 10 countries and reporting on construction projects across 14 countries Established in 1998, BCI Media Group has a long history in providing our members with quality project leads across a multitude of construction projects in each country Our dedicated team researches and reports on construction projects within the public and private sectors, from concept design and planning stages to documentation, tender, the awarding of contracts and commencement of construction Our complimentary business services combined with our core project leads product aims to provide marketing and sales alignment for our members by giving them the opportunity to find and engage with their target audience easily and at the right time We provide the avenues, services and tools for our member’s sales and marketing teams to work together efficiently and to take a collaborative and strategic approach to building their business CRM - Customer Relationship Management CRM Là phần mềm quản lý quan hệ khách hàng, chiến lược kinh doanh mà doanh nghiệp sử dụng để giảm chi phí tăng lợi nhuận cách củng cố hài lòng khách hàng, lòng trung thành Sự thật CRM tập hợp thông tin từ tất nguồn liệu tổ chức (và có thích hợp từ bên tổ chức) để cung cấp cho nhà quản trị (CEO) nhìn mẻ định hướng dựa liệu phân tích Điều cho phép khách hàng phải đối mặt với nhân viên lĩnh vực bán hàng, hỗ trợ khách hàng tiếp thị để đưa định nhanh chóng thơng báo tất thứ từ mơ hình "Cross-selling and upselling" hội để nhắm mục tiêu chiến lược tiếp thị mục đích tạo chiến thuật định vị cạnh tranh Được xem phần mềm chiến lược sử dụng để tìm hiểu thêm nhu cầu hành vi khách hàng nhằm phát triển mối quan hệ mạnh mẽ với khách hàng Sau tất cả, mối quan hệ tốt với khách hàng trọng tâm thành công 64 kinh doanh CRM chất sản phầm công nghệ suy nghĩ CRM sản phẩm công nghệ sai lầm CRM mang lại kết trình lưu trữ sử dụng nhiều mẩu thông tin khách hàng, bán hàng, tiếp thị đáp ứng, hiệu xu hướng thị trường "Nếu mối quan hệ khách hàng trái tim thành công kinh doanh CRM van bơm máu sống cơng ty" Như vậy, CRM thích hợp để giúp doanh nghiệp sử dụng người, quy trình cơng nghệ để đạt nhìn sâu sắc vào hành vi giá trị khách hàng nhìn sâu sắc cho phép dịch vụ khách hàng cải thiện, tăng hiệu từ trung tâm gọi, cải thiện dịch vụ bán hàng, bán hàng hợp lý, có quy trình tiếp thị, cải thiện hồ sơ khách hàng nhắm mục tiêu, chi phí giảm, tăng thị phần khách hàng lợi nhuận tổng thể References: Singh RK, Garg SK, Deshmukh S Strategy development by SMEs for competitiveness: a review Benchmarking: An 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Toward an integrative perspective on operations strategy formation Journal of Operations Management 2014;32(7-8):462-74 24 Glaser C everbody is a salesman 2013 25 Bryan J Training and performance in small firms International small business journal 2006;24(6):635-60 26 Lê BTMT, Khôi NĐ NGHIÊN CỨU CÁC NHÂN TỐ ẢNH HƯỞNG ĐẾN ĐỘNG LỰC LÀM VIỆC CỦA NHÂN VIÊN TRỰC TIẾP SẢN XUẤT Ở TỔNG CÔNG TY LẮP MÁY VIỆT NAM (LILAMA) Hà Nội 2014 27 Le Meunier‐FitzHugh K, Piercy NF Exploring collaboration between sales and marketing European Journal of Marketing 2007 28 Blenko MW, Mankins MC, Rogers P The decision-driven organization Harvard Business Review 2010;88(6):54-62 29 Kazi Y, Mitra SR Supply chain collaboration-next steps and beyond Journal of Supply Chain Management Systems 2017;6(3):1 30 Rouziès D, Anderson E, Kohli AK, Michaels RE, Weitz BA, Zoltners AA Sales and marketing integration: A proposed framework Journal of Personal Selling & Sales Management 2005;25(2):113-22 31 Evans KR, Schlacter JL The role of sales managers and salespeople in a marketing information system Journal of Personal Selling & Sales Management 1985;5(2):49-58 32 Cohen S Organizing for the future: the new logic for managing complex organisations, chapter New approaches to teams and teamwork Jossey-Bass Publishers, San Francisco; 1993 33 Kahn KB Interdepartmental integration: a definition with implications for product development performance Journal of product innovation management 1996;13(2):137-51 66 34 Buchanan D, Huczynski A Organisational Behaviour–Hertfordshire Prentice Hall; 1997 35 Cespedes FV Industrial marketing: managing new requirements MIT Sloan Management Review 1994;35(3):45 36 De Leeuw ED Choosing the method of data collection 2008 37 Stevens M, Norman R, editors Industry expectations of soft skills in IT graduates: a regional survey Proceedings of the Australasian Computer Science Week Multiconference; 2016 ... Problems 2.2.1 Poor sales competitiveness 2.2.2 Poor sales planning at service team 2.3 Problem Validation 2.3.1 Poor sales competitiveness 2.3.2 Poor sales planning at service team 2.4 Main problem:... detailed interview with managers and analyzing company data statistic, Poor sales planning is considered as the main problem of WVN Mr.Duc states that will lead to countless impacts on the service department... the calculation of work result As Ackoff RL(7) shared a management mistake “Managers who don't know how to measure what they want will turn to accept 13 what they can measure.” Or two authors
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