multiProducts_Chile

multiProducts_Chile - Multi-Products in Chile A Case Study...

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Multi-Products in Chile A Case Study by Corinda Bryant Corinda Bryant MGT 4190 – W02 Professor Robert Gnuse October 23, 2011 The American company, Global Multi-Products, was founded in the 1900s to manufacture abrasives. This innovative company manufactures around 50,000 products to solve their customers’ problems. The company is international in reach, with 53% of sales being international. Global Multi-Products has subsidiaries in 60 countries and has sales in almost 200. The company’s vision is to be the most innovative enterprise and the preferred supplier by focusing on technology, innovation, and customer focused supply chain.
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Bob Thompson is the global driver for the company. He previously was an executive in the Canada subsidiary. Thompson was sent to the operations in Chile while it was experiencing growth. Taking his model from his success in Canada, Thompson implemented several structural changes in the form of an integrated solution to align Chile’s operations with the company’s strategy. He added an integrated solutions manager to coordinate the sales teams and a national account leader for key accounts, reporting directly to him. The key account idea is for customers who have a huge potential to buy from the company and would create a long relationship. Sale representatives gained new roles and responsibilities to follow the integrated solution model. Their compensation changed and they had to learn to work in teams to sell the products. However, Thompson faced many barriers to implementing these changes due to the Chilean culture and business environment and the rapid and aggressive pace of changes. List of Key Issues pertinent to Case  Structural changes New roles and responsibilities for sales representatives Team work difficulty Difficulties in recruitment Compensation and New sales contest Chilean culture differences Analysis of Key Issues Customer and Distribution Channel Changes Bob Thompson came to the Chile subsidiary when profits were declining and improvement could  be achieved. He made changes to the current customer and distribution channel. He made changes  because the group of retailers and distributors that MP in Chile had usually served was rapidly changing.  America retailers were making a strong presence in the country.  The US stores’ presence in the Chilean  retail market changed its dynamic and increased the percent of superstores to roughly 90%. Retailers also  began demanding more from suppliers, like MP. Because the stores bought in such high volume, they did 
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not want to deal with distributors and instead deal directly with MP, the supplier. They needed lower prices  and cutting out the middle man helped. Retailers, however, wanted more than just lower prices. They  demanded a more inclusive relationship, for example, a “commitment to advertising support before they 
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multiProducts_Chile - Multi-Products in Chile A Case Study...

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