Case Analysis on On Time Package Delivery

Case Summary

During the first year of the establishment of On Time Package Delivery Inc. they were very prosperous in terms of the number of sales and revenues. Their services were used by many of the large firms in Philadelphia, Boston, New York and Washington DC. They believe that their asset is their Sales Force. Their Sales force is composed of tow category of sales people, one of which is the sales representatives who’s main function are to generate new business and to maintain good working relationship with their customers.

The second category of the sales force of the company is the Key Account Managers. These key account managers are the one responsible for the largest accounts of the company. But after a few decades, a lot of other delivery company emerged in the market. Some of which become more popular and incurred most of the customers in the market than with the On Time Package Delivery like FedEx, UPS and US Postal Service (" Package Delivery Services - Company Profiles," 2007). The existence of these competitors serves as a threat for the company. Because of this, OTPD’s senior vice president for sales Wayne Jacobson conducted a research on the possible reasons of the continuous acquisitions of flat sales from the major branches of the company.

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But as his research move along, he discovered that aside from the existence of the competitors there are other factors that contribute for the stagnation of their sales as well as their revenue. Jacobson made conversations with his key account managers from their major branches to hear their comments and opinions from the recent stagnation of their key sales managers. Moreover, Jacobson did also consult the viewpoint of the sales representatives so as to have a birds eye view of what is really going on to the operation of the business. Aside from consulting the employees of the company, Jacobson also conducted interviews with some companies that contribute much to the total revenue of the company. After all the information was gathered, Jacobson analyzed the problems that were raised by both the client and their employees.

Issues Uncovered

Jacobson first consulted Dan Gunther, district manager in Boston and a 15-year veteran with OTPD. This is the reason why Gunther is a right person to ask for some comments and suggestions regarding the current turmoil in the company. Gunther’s performance has been great until a few months back. Jacobson found out that the stagnation of the sales of the Boston branch is mainly due to the unreasonable demands of their client. He still wants to make sure if the problem in Boston is the same with the rest of the branches of the company. From this reason, he also made contact with Carol Klein, the key account manager in Philadelphia, Carol told Jacobson that the reason of her flat sales was due to personal reasons. Klein believed that the job was getting difficult due to her bigger responsibility in the company as well to her family. The next person that Jacobson consulted was Mike Wagner, the sales representative in Washington DC.

Wagner told Jacobson that he is having a hard time on having information regarding the present condition of the competition in the market. After interviewing the company personnel of the company, Jacobson did also conducted an interview with one of the clients of the company. He chose the Strawn, Night and Squires [SNS], the largest law firm in the Northeast and company’s biggest contributor in sales and revenue. And this was the company where he was assigned at before he becomes a vice president and he is also close with one of the employees of the said company, Carmella Stringer. Stringer gave a comment on the quality of the services that OTPD gave to them. She told Jacobson that one of their clients had waited 5 hours for the package which is supposedly 2 hours as OTPD told them. The said performance of the company really alarmed Jacobson that he right away called Lynn Attaway of the New York branch regarding the incident. Attaway told Jacobson that it was her fault because she forgot to tell Stringer to indicate that the type of deliver is an “express delivery”. She also told Jacobson that she’s not aware with the changes in their “package expedite form”.

REFERENCES

Package Delivery Services - Company Profiles. (2007). Retrieved July 21, 2007, 2007, from http://www.business.com/directory/transportation_and_logistics/small_package_and_parcel/companyprofiles.asp

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