InterviewNotesInterviewDate:Feb.24,2000IntervieweeName:Mr.JiangLitangPosition:ViceGeneralManagerCompanyandAddress:FAWSalesCompanyYingChunRd.LuYuan,Changchun,130011InterviewerName:PaulGao,JaneXu1.KeychallengesfacingFAWSalesCompanyatthecurrentstageCurrentorganizationstructurecouldnotfitforthefurtherdevelopmentofsalescompanyCurrentorganizationcouldn’tfitforthemarket-orientedbusinesspractice.SalesandR&Dareinlessimportantpositionsinthewholeorganizationchart.Headofthesetwodepartmentscouldhardlyinfluencethetraditionalproductioncost-orientedbusinesspractice.(e.g.JieFangtruckpricesaredecidedbyitsproductioncostandsupposedmarginratherthantheproductlifecycle,marketconditionsandcompetition).Mr.An’ssenioritywithintheFAWhierarchyisbehindthePresidentsoftheHongQi,FAW-VW,andJieFangtrucksubsidiaries.SoeventhoughheistheDGMofFAWgroupinchargeofsalesanddistribution,hisinfluenceoverHongQIandVWproductsalesisnotverystrong.FAW-VWandHongQihavebecometworelativelyindependentsubsidiarieswiththeirownpurchasing,production,salesanddistributionfunctions,JieFangistheonlyFAWsubsidiarywhodoesnothaveanintegratedpurchasing,productionandsalesorganizations(thesefunctionsarelocatedindifferentpartswithintheFAWorganization:FAWGroupproductionplanningandpurchasingdepartmentshandlethepurchasingofcomponentsandproductionplanning,thefactoryisinchargeofproduction,whileFAWtradingcompanyisinchargeofproductsalesLackofefficientperformancemeasurementsystemPeopleinSalesCompaniesdidn’thavemotivationinlearningnewthings(e.g.attendtraining);theyareusedtosolvingproblemsmerelybyexperience.Thisisduetothefactthatperformanceevaluationisnotdirectlylinkedtoindividuals’performance(andthedifferenceincompensationfordifferentperformancelevelsisminimal)2.Sixkeyproblemsneedstobesolvedin20001)Turnaroundthesalesrationalefrom“waitingforthemarketdemand”to“seekingpotentialmarket”Keyactions1Establishsalesefficiencyrecorddatabasebyusing“SalesStaffBooklet”–Tooldkeyclient,setupascientificannualvisitingrate,keepgoodrelationshipwiththem;FAWSalesCompanyrecheckthevisitingrandomly--Topotentialclients,providethemwithupdatedproductinformationfrequently(atasetrate)ProvideSalesdepartmentanimprovedperformancemeasurementsystem,establishasetofmoreencouragingstimulationmeans2)DigoutthepotentofcurrentsalesnetworkKeyactionsSpread“ConsumerLoan”amongdealerstostimulatethesalesdemandofcustomers/end-usersNote1:“TruckConsumerLoan”couldbemorepracticalthan“PassengerCarConsumerLoan”,majorreasonscouldbe:Compensationfortheloanoftruckismorereliablesincethepaybackoftruckoperation(transportationbusiness)couldbehigherthanpassengercar(excepttaxi,mostofthepassengercararenotexpectedforgainingbackmoney)Someofthedealershasstarttoadopt“ConsumerLoan”intheirbusiness,workloadisbitheaviersincethedealersneedtopreparethedocumentforbank,insurancecompanies,etcNote2:20%oftheFAWdealersarecurrentlysell80%oftheJieFangtruckOver50%oftheservicecentersarenotoperatingwellthesedays3)Fullyleveragetheserviceopportunitytoestablishthegoodbrand/productimageamongcustomer/end-usersNotes:It’scustomer/end-usersbutnottheservicedepartmentinFAWwhocouldgivetheauthorizedcommentstotheservicequalityofservicecenters4)EstablishJieFangbrandloyaltyStatusquoDealersofFAWaremainlydoingthebusinessinfollowingway:SelltheautoproductsbelongstoFAWSelltheautoproductsbothfromJieFangandi...