Coordinating multi-business sales through management simulators
AbstractMulti-business corporations are used to face complex decision-making problems. Among these, one of the most complex one is that of managing their Sales Force so as to balance and exploit their multi-business portfolio. The case outlined in this paper explores the cross-selling approach to sales management; this approach aims at aligning, controlling and enhancing the sales performances of a multi-business company. Such a complex environment offered an interesting playground to see whether the system dynamics methodology could help the managerial decision-making process. The paper therefore pinpoints a simulation work carried out at Siemens Turkey, which includes the analysis and simulations of the current sales structure and the re-design of the sales management policy. The developed simulation model claims to be the most detailed market growth model in Siemens. In February 2005, the model was turned into a management game, which has been played by 22 managers to enhance organisational learning. Some months later, in October 2005, it has been presented as a benchmark application at the company headquarters (Germany), to show that the company was suffering from its own order processing mechanism, which was acting as an aging-chain, and that the cross-selling policy would outperform the current method in terms of larger sales figure and less severe oscillations. The paper presents both these research and learning experiences, and discusses executive business recommendations (to reduce the delays in the order structure, to modify the salesmen bonus schemes for cross-selling and the frequency of Siemens ONE Training programme) as well as it proposes further suggestions for model development and implementation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Production Economics.
Volume (Year): 121 (2009)
Issue (Month): 2 (October)
Contact details of provider:
Web page: http://www.elsevier.com/locate/ijpe
Cross-selling System dynamics Multi-business organisational learning;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Holweg, Matthias & Bicheno, John, 2002. "Supply chain simulation - a tool for education, enhancement and endeavour," International Journal of Production Economics, Elsevier, vol. 78(2), pages 163-175, July.
- Potter, Andrew & Mason, Robert & Naim, Mohamed & Lalwani, Chandra, 2004. "The evolution towards an integrated steel supply chain: A case study from the UK," International Journal of Production Economics, Elsevier, vol. 89(2), pages 207-216, May.
- Larsen, Erik R. & Morecroft, John D. W. & Thomsen, Jesper S., 1999. "Complex behaviour in a production-distribution model," European Journal of Operational Research, Elsevier, vol. 119(1), pages 61-74, November.
- Zulch, Gert & Heitz, Max-Jurgen & Schindele, Hermann, 1995. "Use of simulation for planning of work organization in highly automated production systems -- Two case studies," International Journal of Production Economics, Elsevier, vol. 41(1-3), pages 429-436, October.
- Diehl, Ernst & Sterman, John D., 1995. "Effects of Feedback Complexity on Dynamic Decision Making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 62(2), pages 198-215, May.
- Simon, Herbert A., 1978.
"Rational Decision-Making in Business Organizations,"
Nobel Prize in Economics documents
1978-1, Nobel Prize Committee.
- Simon, Herbert A, 1979. "Rational Decision Making in Business Organizations," American Economic Review, American Economic Association, vol. 69(4), pages 493-513, September.
- Alstrom, Poul & Madsen, Per, 1996. "Tracking signals in inventory control systems A simulation study," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 293-302, August.
- Iassinovski, S. & Artiba, A. & Bachelet, V. & Riane, F., 2003. "Integration of simulation and optimization for solving complex decision making problems," International Journal of Production Economics, Elsevier, vol. 85(1), pages 3-10, July.
- Agrell, Per J. & Wikner, Joakim, 1996. "An MCDM framework for dynamic systems," International Journal of Production Economics, Elsevier, vol. 45(1-3), pages 279-292, August.
- Haapasalo, Harri & Hyvonen, Johanna, 2001. "Simulating business and operations management - a learning environment for the electronics industry," International Journal of Production Economics, Elsevier, vol. 73(3), pages 261-272, October.
- Laakso, Terho & Kleinhans, Stephane & Smeds, Riitta & Doumeingts, Guy, 1998. "Embedding the management of evolution into strategic learning," International Journal of Production Economics, Elsevier, vol. 56(1), pages 333-345, September.
- Verhallen, T.M.M. & Greve, H.J.M. & Frambach, R.T., 1997. "Consultative selling in financial services: An observational study of the mortgage mediation process," Open Access publications from Tilburg University urn:nbn:nl:ui:12-74113, Tilburg University.
- Disney, S. M. & Towill, D. R., 2003. "The effect of vendor managed inventory (VMI) dynamics on the Bullwhip Effect in supply chains," International Journal of Production Economics, Elsevier, vol. 85(2), pages 199-215, August.
- Evans, G. N. & Naim, M. M. & Towill, D. R., 1998. "Application of a simulation methodology to the redesign of a logistical control system," International Journal of Production Economics, Elsevier, vol. 56(1), pages 157-168, September.
- Don N. Kleinmuntz, 1985. "Cognitive Heuristics and Feedback in a Dynamic Decision Environment," Management Science, INFORMS, vol. 31(6), pages 680-702, June.
- Sterman, John D., 1989. "Misperceptions of feedback in dynamic decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(3), pages 301-335, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.