Royal Dutch Shell

Managing the Multinational Sales Force

Project By: Aya AhmedLara Azzam

Mostafa HashemAmira Zeyada

MKTG 4401Dr. Omar Ramzy

Founded in 1886 Started as oil refining and lubricant production Merger with Royal Dutch 1907 International operations with multinational employees Employs over 24,000 office workers with $2.1B

revenue in 2008 Main products: Helix Ultra, Rimula and Gadus

The Company

Looking at the Main Article“Managing the Multinational Sales Force” by John Hill & Richard Still

Looked at 14 companies in the general consumer, pharmaceutical, industrial and EDP Industries

Companies mostly selective about the sales policies they influenced

Usually:

How involved are MNC’s when it comes to influencing their overseas sales

departments

International Planning done in head office

Plan, administer and control sales forces.

Factors that affect the transferal of sales practices over seas

Geographic Dimension

Degree of Market

Development

Political/Legal Environment

Cultural Aspects

Local Marketing Circumstances

Looking at the Main Article

Looking at the Main Article

Specialized responsibilities

Distributed by territory, product or customer

Large MarketGeographic Dimension

Small Market Split up geographically Representatives

responsible for a broad range of products

Degree of Market Development

Must consider development of technology and human resource education level

Compensation packages are always affected by the programs set by a company

Political & Legal Environment

Looking at the Main Article

Cultural Norms Training programs, recruitment techniques and selling

techniques are adjusted to suit the reality Dialects

Local Market Circumstances Societies habits affect how things are managed

Centralization Decentralization

"International Salesforce Management: a Relationship Perspective" by Jeffery Lewin & Wesley Johnston Exporting

to a Third PartyBetter and

faster penetration of

market

Cost Efficient

Developing a

salesforce

Inefficient when entering a new market

On the long-run, gives

more control

• HQ Decisions: Which sales channels to choose and how to structure the salesforce?

• Local Office Decisions: Decisions of recruitment compensation, training and organizing the sales activities.

• Shell Egypt: • Long history in Egypt Decisions have long

been decentralized in favor of national office• Only basic strategic decisions left to HQ

Organizational Structure Decisions

Determinants of Decisions

Industry-based Factors

Corporate-based Factors

Environmental Factors

"Organizing the Overseas Sales Force: How Multinationals Do It"

Article ‘Sources of Effectiveness in the Business to Business Sales Organization

• Geographic and physical dimensions• The degree of market development• Salespeople and their methodology in managing

sales

Cultural norms should be taken into consideration Aligning with the other articles, MNCs must consider

the local reality needs Tailor the training to suit the education level and needs

of society

“Sales Training: Comparing Multinational and Domestic Companies”

Should sales training be standardized or localized?

Shell’s Practices and the Article Content

• Establishing and managing a sales force in a foreign market

• The potential problems in the Egyptian Market

• Geographic selling technique

• The political issues • The recruiting, training, and deploying of salespersons• The culture of the foreign country they operating or

intending to operate in

The Selling Approach - SPANCOP• Suspect

• Prospect

• Approach

• Negotiate

• Order

• Payment

Key Accounts – Handled by Shell’s Salesforce

Diamond Platinum Gold

Shell’s Practices and the Course Content

3-4 members extended, multi-level selling team International members in team for international

accounts Post-Purchase and Technical Support activities as part

of CRM increase chances of cross & up-selling Organizational Structure: Geographic – Customer

Oriented Structure

Egypt’s Office

Helix & Rimula (Consumer and

Transportation Vehicles)Gadus (Industrial

Uses)

Recommendations

Outsourcing Analysis

Organizational Effectiveness

ModelTrainings

Reconsider outsourcing of Silver + Bronze – broaden horizons

Upselling All customers are dead in the long run Scouting for customers - keep customer database

updated for potential upgrades

RecommendationsOutsourcing

Analysis

Salesperson Characteristics

RecommendationsOrganizational Effectiveness

Model

Recommendations

Sales Management Control & Salesforce Behavior and Outcome Performance

Improving Management Result: Best Possible Candidates Leading Salesforce

Monitoring Directing Evaluating Rewarding

Recommendations

Behavioral Motivations Outcome MotivationsSpend time with salespeople in the field.

Producing a high market share for your company.

Make joint calls with salespeople.

Making sales of those products with the highest profit margins

Regularly review call reports from salespeople

Quickly generating sales of new company products/services

Monitor the day-to-day activities of salespeople.

Identifying and selling to major accounts.

Determine type of employees to cater to their motivations:

Recognizing who’s doing well and who needs training: Salesperson Characteristics:

Are the salespeople motivated, and if so, by what? Which salespeople strive for long-term accomplishment

and which ones focus on the immediate future? Which salespeople enjoy facing challenging environments

rather than staying in their comfort zones?

Recommendations

Sales territory design: Salesperson effectiveness about more than skill:

Territory needs selling potential Put most skilled salespeople in areas with most selling

potential maximum effectiveness

Recommendations

RecommendationsTrainings

Extensive behavioural training Sales personnel – first line employees Weekly/Biweekly trainings

Thank You!

Questions?