In reviewing the evolution of their structure, top managers recognized that they had moved from a domestic functional structure to a geographic regional sales and marketing structure. They realized that each existing sales subsidiary was organized to develop and maintain a close relationship with the national telephone company of countries within its region, focusing mostly on its rural telephony needs.
Sales persons were not rewarded to develop new markets (such as industrial business or urban data transmission) because they were paid on the basis of meeting quarterly sales quotas. According to one top manager, “They could not focus oil such a diverse market as industrial because it is going to take two or three years of working closely with an industrial customer or a new telephone competitor to land a deal, and this just doesn't fit within our reward system of sales persons.”
In 1998, traditional Asian markets and telephone companies were beginning to suffer, and top managers anticipated that revenues from these markets would be flat or, worse, fall by the end of the year. There were opportunities to expand their presence in non-Asian markets with their traditional customers or to push for entry into other applications such as industrial and urban data.
Therefore, the top managers were focused on developing a structure to manage the tension within its wireless technology division (traditionally housed in the R&D area in Canada), its current regional structure (responsive to customers needs, cultural differences mostly in its current rural applications), and emerging new customer groups (such as the industrial and urban wireless data products).
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