CASE 1: Phillips Company
Sam McDonald, vice-president of sales of the Phillips Company, was concerned with the potential of his sales force in correcting his company’s image in the electric utility industry. The Phillips Company, one of the leading manufacturers of steam power plants in the United States, was located in Philadelphia. The company was started by Aaron Phillips, who began manufacturing small steam engines in Philadelphia in 1846. Currently the company had annual sales in excess of $200 million and sold power plants to industrial users throughout the world. McDonald was concerned because public utilities, important users of steam power equipment, only accounted for 12 to 15 percent of Phillips’ sales.