Olympia Machine Company, Inc.

Frank V. Cespedes; Benson P. Shapiro

Case | HBS Case Collection | February 2008 (Revised August 2011)

Olympia Machine Company, Inc.

by Frank V. Cespedes and Benson P. Shapiro

Abstract

The management team of an industrial equipment supplier is debating the company's method of compensating salespeople. Different executives have offered different alternatives to the current method of straight salary plus expenses. Each option has different implications for business strategy, organization, control systems, and sales management requirements. As a result, the case raises issues and analytics relevant to topics such as aligning strategy and organization, strategy implementation, and cross-functional incentive systems as well as sales management.

Keywords: Governance Controls; Compensation and Benefits; Mission and Purpose; Salesforce Management; Motivation and Incentives; Business Strategy; Industrial Products Industry;

Format: Print

12 pages

Educators Purchase

Citation:

Cespedes, Frank V., and Benson P. Shapiro. "Olympia Machine Company, Inc." Harvard Business School Case 708-490, February 2008. (Revised August 2011.)

Fred Shilmover and Sam Clemens prepared for their fourth quarter board meeting. They were excited to have scaled their software startup, InsightSquared, to $2 million in revenue and secured an $8 million round of venture capital. However, they disagreed on the path ahead, specifically on the sales and marketing plan. Shilmover preferred a sales-centric approach to growth while Clemens preferred a marketing-centric one. Which strategy was optimal for their venture’s next phase of growth?

Teaching Note for HBS Case No. 819-010. Shindigz sells party and celebratory items through its branded direct online channel, third-party retail and wholesale channels, and online marketplaces. Shindigz has for decades successfully executed a premium-priced branded strategy across its distribution channels. But market developments put this approach at risk. The teaching note discusses the impact of omni-channel buying processes on marketing requirements in an event-driven product category; the links between channel choice, pricing, and business strategy; and the requirements for change in response to market conditions that put pressure on established processes in a business model.

In August 2017, Cumplo’s Founder Shea and CEO Kirberg meet to discuss growth and strategy issues faced by this Chilean fintech startup. What sales and marketing strategy will best foster the compny’s growth? Are changes needed in the product lineup? How and when should Cumplo begin to expand beyond Chile, to other countries in Latin America? The company raised $1.4 million in its first three years, mainly from individual investors, and then issued new shares for $3 million in 2015. By June 2017, Cumplo was debt-free, had achieved break-even, and had raised an additional $2.3 million.

Faculty & Research

Olympia Machine Company, Inc.

Abstract

Citation:

About the Authors

More from these Authors