Poor key account management of salespeople at thanh an – ha noi

UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Thi Thanh Nhan

POOR KEY ACCOUNT
MANAGEMENT OF SALESPEOPLE
AT THANH AN – HA NOI

MASTER OF BUSINESS ADMINISTRATION

Ho Chi Minh City – 2019

1


UNIVERSITY OF ECONOMICS HO CHI MINH CITY
International School of Business
------------------------------

Nguyen Thi Thanh Nhan
ID: 22170032 – MBus 8.2

POOR KEY ACCOUNT
MANAGEMENT OF SALESPEOPLE
AT THANH AN – HA NOI

MASTER OF BUSINESS ADMINISTRATION

SUPERVISOR: Assoc. Prof. TRAN HA MINH QUAN

Ho Chi Minh City – 2019

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SUPERVISOR’S REPORT ON THE THESIS PROPOSAL SUBMITTED
FOR DEGREE OF MASTER of BUSINESS ADMINSTRATION

The thesis final title:
POOR KEY ACCOUNT MANAGEMENT OF SALESPEOPLE
AT THANH AN – HA NOI

Student Name: Nguyen Thi Thanh Nhan
Supervisor: Assoc. Prof. Tran Ha Minh Quan
1. General comments
 Remarks on the student’s attitude:
...................................................................................................................
...................................................................................................................
 Remarks on the assignment’s academic quality:
...................................................................................................................
...................................................................................................................
2. Overall assessment:
Meet requirement for submitting
Not meet requirement for submitting
3. Other remarks:
-

Did the student follow the report schedule?
Yes

No

Other ………………………………

- The Turnitin plagiarism percentage:
Supervisor’s signature

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Table of Contents
Executive Summary .................................................................................................................................4
Chapter 1: Introduction ............................................................................................................................5
1.1

Company overview .................................................................................................................5

Chapter 2: Problem identification ........................................................................................................8
2.1

Symptoms analysis .................................................................................................................8

2.2 Initial cause-effect map ............................................................................................................... 10
2.3 Updated cause-effect map ........................................................................................................... 14
2.4

A discussion to eliminate some potential problems and focus on a central problem .... 16

Chapter 3: Problem justification ........................................................................................................... 17

3.1 Problem definition ....................................................................................................................... 17
3.2

Problem existence ................................................................................................................ 18

3.3

Problem importance and problem consequence............................................................... 18

Chapter 4: Causes Validation ................................................................................................................ 20
4.1

Causes informed by the theory .......................................................................................... 20

4.2

Causes validation ................................................................................................................. 24

Chapter 5: Solutions .............................................................................................................................. 28
5.1 Alternative solutions ................................................................................................................... 28
5.2

Implementation.................................................................................................................... 29

5.2.1

Compensating ............................................................................................................... 29

5.2.2 Action plan the solution ..................................................................................................... 30
Chapter 6: Conclusions ......................................................................................................................... 37

Chapter 7: Supporting information ....................................................................................................... 38
7.1 Methodology: .............................................................................................................................. 38
7.2

Interview transcript ............................................................................................................ 38

7.2.1
7.2.2

Mr. Ngoc – Sales Supervisor – four of five losing key accounts…………………38
Mr. Thien – a Salesperson – one of five the failing key account ............................. 40
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7.2.3

Mr. Vu – Sales Manager of Spinal Team .................................................................. 42

References ............................................................................................................................................. 46

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List of tables
Table 4.1: Operationalization of Constructs and Reliability
Table 5.2: The incentive policy currently
Table 5.3: The compensating policy
Table 5.4: The extra suggested compensation 1
Table 5.5: The extra suggested compensation 2
List of figures

Figure 2.1: The revenues of three year 2016, 2017, 2018
Figure 2.2: Average of revenue per a case
Figure 3.3: The revenues of five key accounts in failure
List of diagrams
Diagram 1.1: The functional structure of the company
Diagram 1.2: The functional structure of spinal department
Diagram 2.1: Initial cause-effect map
Diagram 2.2: Updated cause-effect map
Diagram 4.1: Model of KAS effectiveness
Diagram 4.2: Final cause and effect map

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Executive Summary
In the context of this essay, it helps to have a more objective view of the issue in
the organization. For resolving the problems to improve the business
performance, we have identified what is the real problem, limiting mistakes when
identifying problems, namely a perception problem, and a target problem. In
order to identify the real problem, we must collect from many data sources as
well as in-depth interviews with relevant people. Furthermore, to determine
where the problem comes from, considering all the ongoing company or
department symptoms or potential risks are happens firstly. Like this essay, the
symptom is that sales of the five key accounts are reduced while total revenue
still increases for three consecutive years from 2016 to 2018. Then, six factors
have caused this symptom. One of the six issues that can be solved during this
time is poor key accounts management of salespeople. This problem is currently
present in the spinal team, and it will cause two serious consequences if not
resolved soon. Therefore, finding out the causes of the problem is the next step
before there are comprehensive solutions. Thanks to the theory, the two main

causes of the weakness of business staff are identified, including intrapreneurial
ability and poor communication. Next, there are three alternative solutions like
recruiting, training, and compensating that were identified for resolving this
issue. Nevertheless, compensation is the roof of cause in this situation. Finally,
the detail plan for a complete solution will be designed to suggest. Because if the
problem is not resolved thoroughly, it will not only that will this problem spread
to other major units if not resolved early. Thanks to this essay and the theories in
this course, I have learned many ways to approach and identify problems in my
actual business so that I can come up with appropriate solutions in each
circumstances and times.

4


Chapter 1: Introduction
1.1 Company overview
Thanh An Limited Company was found in 2001, which the headquarter is located
in Hanoi city. Besides, there are three offices in Ho Chi Minh, Da Nang and Can
Tho with more 300 persons in 2018. Thanh An has distributed the equipment,
devices and implants. The strategy is that providing a complete system solution
in Orthopedic, Neurosurgery departments, and Operating room in high
technology medical equipment field to almost hospitals or clinics in Vietnam,
like ICU; Imaging diagnosis; Medical training equipment.
The company divides the structure according to the product in charge, including
groups of tools and equipment provided to the Orthopedic Trauma department;
group of goods supplied to Neurology; endoscopic product team, and project
equipment business.
Thanh An has over 15 years experienced up to now, which is one of the first
firms in VN which bring the spinal technology to Vietnam from 2005. Many
leading professional who had sent for training oversea by Thanh An, so a lot of

advantages can gain in this field. Although the market has been developed
quickly, many another brands approached the hospital for giving more various
products for the doctors choices not only quantity of products but also quality of
implants.
For better the company understanding, the overview diagrams and functional
personnel structure is showed below:

5


Thanh An HN
(310 persons)

Ha Noi office
(135 persons)

Da Nang office
(50 persons)

Ho Chi Minh office
(90 persons)

Can Tho office
(35 persons)

Head of Branch
HCM

Admin & HR
Dep.

Project
Dep.

Accountant
Dep.

Orthopedic
Dep.

Sales
Department

Technical
Support Dep.

Spinal
Department

Instrument products
(2 persons)

Endoscopic
Dep.

Implant products
(14 persons)

Diagram 1.1: The functional structure of the company
I am working in Spine Department buying implant of Medtronic brand as a

Salesperson about 4 years. These products are high-tech goods. Almost huge
hospitals or specialize center are my customers through tenders or contracts or
even quotations every year. The Specialist spinal surgeons use these products to
treat of patients by inputting to into a body in a cervical or a back vertebral.
In this project, the spinal team will be conduct to analysis. The spine products are
made by Medtronic – USA, and Thanh An is an exclusive distributor that sell to
the hospital via the tender or contracts. Moreover, ones are classified high-tech

6


by Ministry of Health, so some big hospitals or specialize Clinics just have
conducted this method such as Cho Ray, HTO, 115, Nguyen Tri Phuong,…
In terms of personnel, there are 14 persons in the implant team including 1 sales
manager, 4 salespeople, 8 clinical supporting, and 1 sales admin.
Diagram 1.2: The functional structure of spinal department

Spine team
(17 persons)
Sales Manager (1)

Instrument
Salespeople (2)

1 Sales Supervisor
(5 Key accounts)

Implant
Salespeople (4)

Salesperson 1
(5 Key accounts)

Clinical
Team (9)

Salesperson 2
(4 Key accounts)

Sales
Admin (1)

Salesperson 3
(4 Key accounts)

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Chapter 2: Problem identification
2.1

Symptoms analysis

This is an industry which has a lot of affected by the policies of Government for
tender laws and insurance regulations beside market situation. Moreover, these
laws have changed every years, thus the result of business is also affected. Before
determining problems, we should scan the business’s outcome of this department
in the last 3 years 2016, 2017 and 2018 via total revenue in the following figure
2.1.
Figure 2.1: The revenues of three year 2016, 2017, 2018

No.

The Hospital

Cases
2016

Revenue in
2016

Cases
2017

(Thousand VND)

Revenue in
2017

Cases
2018

Revenue in
2018

1

Cho Ray

222

4,927,873

635

20,923,015

669

23,462,025

2

Xuyen A

137

5,049,000

160

6,083,435

493

19,894,430

3

Nguyen Dinh
Chieu

19

917,300

113

5,937,300

159

8,226,600

4

HTO

207

4,923,100

212

6,514,670

206

7,699,700

5

115 People

180

7,023,035

161

5,795,974

126

4,763,471

6

Trung Vuong

45

1,920,850

100

4,436,560

111

5,354,600

7

175 Military

34

1,320,795

51

2,118,600

83

3,466,500

8

EXSON

105

2,658,140

90

2,214,645

115

3,146,965

9

Gia Dinh

55

1,555,380

45

2,071,860

70

2,641,995

10

Khanh Hoa

210

2,955,350

173

2,533,100

135

2,366,850

11

Pediatric 2

35

1,892,810

25

1,597,832

24

1,526,195

12

Tien Giang

0

0

-

26

1,311,825

13

Dong Nai
Union

93

2,341,258

37

1,207,928

22

699,712

14

N.T.Phuong

86

3,382,540

54

1,802,755

29

1,037,560

15

120 Military

16

1,003,000

16

INH

17

District 2

18

UMH

4

34,400

0

19

7A Military

0

-

23

20

FV

3

210,000

3

21

Others
Total

19

-

399,500

41

1,467,750

23

994,565

0

-

18

739,000

9

571,000

1,101,850

9

536,100

160,500

11

522,500

-

5,508,435

2,038,209

5,953,775

47,019,766

68,005,983

95,918,368

8


Looking at the figure 2.1, the revenue had been grown continuously in three
years. To be more precise, the overall growth of the southern office is 45% in
2017 and 41% in 2018. In general, the revenue is in a good growth. To know
where the revenue was rising from two sources like increasing in the number of
operation cases, and going up in value per case as the below figure 2.2
Figure 2.2: Average of revenue per a case

Revenue of 20
hospitals
(Thousand VND)
Total
Average of revenue/
1 case
(Thousand VND)
Growth (%)

Case
2016
1,613

Year 2016
47,019,766

Case
2107

Year 2017

2,038 68,005,983

Case
2108

Year 2018

2,593 95,918,368

29,150

33,370

36,990

14%

45%

41%

Seeing the figure 2.2, because new techniques are constantly being applied,
average value per case was augmented 14% in 2017 from 29,150,000 VND to
33,370,000 VND and 11% in 2018, and total revenue increased in this 3 years.
Seeing the table 2, because new techniques are constantly being applied, average
value per case was augmented 14% in 2017 from 29,150,000 VND to 33,370,000
VND and 11% in 2018, and total revenue increased in this 3 years. However, five
big hospitals has been decreasing revenues continuously in 2016; 2017; and 2018
such as 115; Khanh Hoa; Pediatric 2; Dong Nai; and Nguyen Tri Phuong hospital
that units had contributed nearly 36% revenue in 2016. In contrast, they had just
down to 12% in 2018. In particular, both the number of surgeries and revenue in
these five accounts dropped sharply in 2017 especially the biggest decreasing
was Nguyen Tri Phuong hospital with nearly 1.6 billion Vietnamdong with the
highest reduction rate approximately 48%. The next is People 115 with a
reduction of more than 1.2 billion VND with a rate of 17%. Dong Nai Union also
fell with a high of 48% in 2017 and 42% in 2018. Similarly, Khanh Hoa and
Pediatric 2 had a lower reduction of only 14% and 16% in 2017 respectively, and
9

there was an increase 7% and 4% in 2018. We can see in figure 3 for clearly
overview:
Figure 3.3: The revenues of five key accounts in failure
Revenue
(Thousand
VND)

Cases
2016

Revenue
2016

Cases
2017

Revenue
2017

Growth
2017/

Cases
2018

Revenue
2018

Growth

2018/

2016

2017

Nguyen Tri
Phuong

86

3,382,540

54

1,802,755

-48%

29

1,037,560

-42%

115 People

180

7,023,035

161

5,795,974

-17%

126

4,763,471

-18%

Dong Nai
Union
Khanh Hoa
General

93

2,341,258

37

1,207,928

-48%

22

699,712

-42%

210

2,955,350

173

2,533,100

-14%

135

2,366,850

-7%

35

1,892,810

25

1,597,832

-16%

24

1,526,195

-4%

Pediatric 2

Therefore, revenues’ reducing of five accounts is huge issues in these situation
that have to warn urgent to prevent continued along tend to occur in other
potential units in the near future.
2.2 Initial cause-effect map
To determine problems, some interviews were conducted with two salespersons
being in charge of 5 accounts having reducing to find out the detail reasons
causing symptoms.
(1) Having more rivals
First, in the personal interview with Mr. Ngoc who managed 4 of 5 hospitals like
115, Nguyen Tri Phuong, Khanh Hoa and Pediatric 2 said that the reasons why
decreasing revenue were reduced using of doctors. Due to the number of rivals
approached this field, so the surgeons have more choices the new suppliers.
Furthermore, competitors have offered a lot of attractive program for doctors
such as training courses, devices investment, conference trips and finances
supports for doctor's department. Besides, doctors don’t want to depend on one
or two companies to get more assured, so surgeons have shared the cases with
others competitors.
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(2) Decreasing customer’s needs
Second, Mr. Ngoc also mentioned that the reason is customer’s needs are

decreased owing to lack of surgeons. Particularly, doctors are sent to universities
for higher studying leading to without enough human resources for operating or
even some situations they left their jobs moving other hospitals. The most
prominent was in the Dong Nai Union that newspapers mentioned a lot in recent
times when many international private hospitals have built and had good
remuneration policies to attract talented people or experienced. On the other
hand, the status a quantity of patient declining at Pediatric 2 also made
decreasing needs buying since it is often passive in attracting pediatric patients
and depends on operating program of charitable donations.
(3) Changing laws of Ministry of Health & Insurance, and changing of
hospital’s BOD
Third, Mr. Ngoc gave the causes of reducing revenues at 115 in that it failed in
tenders that the major reason was a board of director change such as duty director
and chief of equipment department who will takeover bid. When the board of
directors is replaced, the relationship with the decision makers has not yet been
strongly established, as a result, the tender didn’t win all the items as in previous
years.
An other hand, apart from another interview Mr. Thien who is tasking Dong Nai,
he said that failing of tenders was just in some kinds of products is the main
reason during changing the methods in bid laws of The Ministry of Health.
Specifically, the Pharmacy department tended to choose products having lowest
price in tender evaluation instead well-known goods. Nevertheless, the company
didn’t agree the lower prices owing to long-term effect on other hospitals. In
addition, limited of strict insurance’s regulations lead to decline number of
operation cases. The users have to do their professional work as well as comply
with complex insurance procedures. This also causes mental fatigue for doctors
and reduces the focus on the surgeon's expertise.

11

(4) Changing strategy and Internal’ HR of manufacturer
Fourth, at the same time, both of him has a few common comments that reasons
generated by the manufacturer like changing strategy and leaving their job which
greatly affected plans. Manufacturer without enough providing instruments and
goods by lack of experienced staffs to make a forecast and prepare ones that lead
to higher cancel or delay cases as well as arising the doctor’s complaints. On the
other hand, lack of goods or instruments come from the system warehouse
management software, then it is hard to follow a number using history.
(5) Expand market
Fifth, expanding markets still put a heavy pressure for Mr. Ngoc who is also a
sales supervisor in 12 provinces of the South. Furthermore, he also explained
that the lack of tools or goods due to pressure for reaching target, team have to
earn more income along with expand new markets as well as boost market share
and maximize turnover on the current markets. He supposed that company’s
target was set 20% every year on actually sales of a previous year, so that they
have to try improving the number of cases due to cannot raise prices. When the
number of operations increases, but the number of instruments is not
supplemented making some cases postponed or canceled. In some situations,
they had to deal with surgeons about changing operation’s time to another date or
later generating complaints of doctors owing to depending on a lot of issues of
their operating team. Hence, it led to reduce customer’s commitments as well as
using of doctors lower.

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Diagram 2.1: Initial cause-effect map
Problems

Symptoms

Having more
rivals

Decreasing using
of Doctors

Decreasing
customer’s needs
Growth target

Increasing the

Lack of goods and

Increasing the

Decreasing

pressure

number of cases

Instruments

complaint of

Customer’s

doctors

commitments

Decreasing
revenue in 5

Changing strategy

(4)
and Internal’ HR
of manufacturer

Changing laws of
Ministry of Health or
Insurance, and
changing of
hospital’s BOD

Manufacturer without

big hospitals

enough instruments

continuously

and goods providing

Failing of tenders

(some kinds of
products)

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2.3 Updated cause-effect map
(6) Poor key account management of Salesman
To know more the potential problems along with having an objective views, an
interview with Mr. Vu - Sales Manager of spinal department was conducted. He
supposed that the crucial problem formed from the pretext of Salesperson. Because they
are poor key account management, then failing of tender when salespeople cannot adapt
quickly in new Ministry of Health & Insurance laws changing as well as without strong
relationship with customers in replacing of hospital' BOD. In some cases, salespeople
was not also sensitive to capture as well as pre-action for decision-making leaders so
leading to passivity and failing to build the next leader generation relationship.
Moreover, without sensitive to meet the needs of customers made reducing of doctor’s
commitments along with less using implants. On the other hand, Mr. Vu mentioned to a
reason why made lack of goods or instruments caused the operation being postponed or
even canceled. Each salesperson not only knows customers’ needs to make a more
accurate ordering and know how to cooperate with other parts such as tool management,
warehouse management, import and export department to forecast annual tools. Thus,
when the account manager lacks the management of the area, the complaint of doctor
will rise and decline the commitment of surgeons. These things can indirectly reduce the
use of the company's products and services selection that led to decrease revenue in
these hospitals.
Lack of goods or instruments come from less cooperation between persons in the
internal firm, no accurate forecast of goods. Furthermore, they also explain that the lack
of instruments or goods by expanding market and increasing target causing lower
services qualities. It was the same idea with Mr. Ngoc.

After all, the information collected from interviews of three people - two salespeople
who are in charge of those five hospitals & one manager and data quoted from my
organization, an initial cause-effect map is built as below to see the problem of the firm
as well as the causes clearly.

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Diagram 2.2: Updated cause-effect map
Problems

Symptoms

Having more
rivals
Decreasing using
of Doctors

market
Decreasing
Customer’s need

Growth target
pressure

Changing
strategy and
Internal’ HR of
manufacturer

Increasing the
number of cases

Changing laws of
Ministry of Health or
Insurance, and
changing of hospital’s
BOD

Increasing the
complaint of
doctors

Decreasing
Customer’s
commitments
Decreasing
revenue in 5 big
Hospitals
continuously

Manufacturer without
enough instruments
and goods providing

Lack of co-operation
with others
Poor key account
Salespeople

Lack of goods
and Instruments

A wrong forecast of
goods/foresee market

Salespeople without
strong relationship
with customers
Salespeople without
adapt quickly

Failing of tenders
(some kinds of
products)

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2.4 A discussion to eliminate some potential problems and focus on a
central problem
As in the first introduction, I am working in Spinal Department as a Salesperson
who is one of four them in nearly 4 years. Hence, some problems belong to the
side of objective customers, or manufacturer, there are some alternatives that
cannot be implemented. Furthermore, other issues will not probably solve due to
lose control of the spinal department.
Based on the potential problems, these components can be created into six issues
to validate. First, the number of rivals along with more competitive pressures is
vital facing in this field. Second, decreasing customer’s need depends on the state
and policies of neurosurgical department at this time, thus the company cannot

intervene in this situation. Third, expanding market to gain growth target
required of strategy’s firms is indispensable development, so it is unavoidable in
the plant's growth. Fourth, although changing strategy in HR of Medtronic Spine
at Singapore had also caused lack of goods or instruments led to cancel or delay
operating cases, it is impossible to fix. Likewise, changing the laws Ministry of
Health & Changing BOD of Hospitals is the same thing. Final, salespeople
without strong relationship with customers as well as without adapt quickly is
major causes decreasing revenue in five big hospitals continuously.
On the whole, accordingly to results of a data and interviews, a conclusion that
poor key account management of salespeople is a central problem that can be
solve to improve the effectiveness along with prevent spreading to others
accounts in the future that is a key vision.

16


Chapter 3: Problem justification
3.1 Problem definition
It's a matter of the great strategic importance for a supplying firm is a key
account (5). Key accounts are considered separate business accounts with another
accounts managed by the company, and are not similar from regular sales
accounts, resulting in significant profits over a number of years through business
activity repeated (35). Offerings to the accounts can include service or product
adaptations, high-up management involvement, and especial pricing terms (6).
KAM has targeted on standard practice of key B2B buyers long ago by providing
them goodwill policy in areas such as service support, marketing, and
administration Key accounts - KAs also called national or strategic accounts, are
partners in the B2B market which are important, huge, and have committed
resources available for them that aren’t offered to the company's average
accounts (8). In the recent years, a quantity of firms carrying a KA program has

redoubled and, nearly 15% account that KAs report for over 50% in their
turnover across these enterprises. Overall, a rapid rise and high value of dollar
associated with actions of the new KAM plans supports, and the possible
implication for such income relying are clear (10) argument that one of best ways
basic improvement in marketing is a making emphasis upon KAM.
Furthermore, according to (11), KAM is strategies of a supplier in reaction to
main account’s sale needs, and changes of the environmental. KAs features
purchasing process coordinated a centralized, large purchases, and needs to
special services. KAM study could be separated up three focuses like the dyadic
key account relationship, the individual key account manager, and the design of
key account programs (8). Getting the individual key account managers like the
analytics unit, it seems to personal selling research (8). The recent documents on
KAM provides new insights to the structural factors that make up the
effectiveness of KAM but emphasize needs to research more about cross-linking
17


connections of the major account managers. Workman at el. (12) realizes that as
KAM is chiefly about coordinating and managing the activities that main account
manager has the informal power, more studies are needed to know how the key
account manager can best achieve their targets and get the necessary resources.
KAM is placed in the context of personal selling or personal key account
management contributing to solving these problems.
3.2 Problem existence
There are only 20 key accounts for 4 salespersons in which Mr. Ngọc having 12
years worked for Thanh An, takes care 4 of 6 key accounts fall down the revenue
continuously while others accounts have still grown. As a result, it is great issues
that should careful consider solving urgent for avoiding continuously spreading.
Implants in spinal surgery are classified as prosthetics & orthopedic instruments.
According to BMI, the medical equipment market, the market revenue was only

about 800 million USD in 2015 and before, but in 2016 this figure exceeded 1
billion USD (17). As StoxPlus, in the period of 2011-2015, the import turnover
of prosthetics and orthopedic instruments was 8.3% in medical equipment
industry (17)... Besides, the orthopedic and prosthetic group accounted for 6% in
2019 from 5% in 2015 in the Vietnamese medical equipment market (18). In
addition, Vietnam Medi Pharm also calculated 10% growth in the spinal implants
market in 2018 (19). This shows that this spinal field is still in the growth stage.
Hence, declining of revenues of these accounts are enormous issues in the growth
market that we should alert to happen out of control.
3.3 Problem importance and problem consequence
Key accounts representative is one of the most important chances for building
successful partnerships. To create these key accounts firms employ committed
managers and align their resources with the needs of the customer. Besides
negative impacts of poor key account management mentioned on initial cause18


effect map, some consequences of this problem can be found based on the
literature to determine the important of one. In the theory, poor KAM affects
two things.
First, according to (20, 21) the key account managers is called as sales managers
who are responsible for communicating to huge complex strategic important
buyers in one voice representing the full abilities of a department. The key
account manager is likely to encounter for meeting consumer demands and
maintain long-term relationships (21). In spinal team, even sales supervisor or
salesperson, they have complete making-decision at their accounts management
but they cannot meet need’s customer and retain durance relationship. As the
interview Mr. Vu – Sales Manager, he said that Mr. Ngoc who directly these key
account without strong relationship with customers, so leading to decreasing
using of Doctors as well as reducing revenue in ones continuously.
Second, James at el. (21) also gave intra-organisational, interpersonal conflict.

Conflict is a potential consequence of all interdependent relationships, occurring
from the highly the divergent need of two or more disagreements, parties,
misalignment, misunderstandings of resources or any of a lot of intangible a
factor. Conflict can arise between cooperating parties working towards similar
objectives or between disputants targeting to achieve opposing objectives.
However, this does not exist the conflict in my team, the role of salesperson for
propose the strategic was in power and free.
In general, salespeople are often required to manage a variety of complex
relationships both internally and externally. Therefore, discover an aspect of the
internal sales role of the main account manager has not been resolved before,
namely how the main account manager handles multiple conflict issues
simultaneously while actually show their internal selling duties (21).

19


Chapter 4: Causes Validation
4.1 Causes informed by the theory
Firstly, KAS perceived effectiveness is explained as the level of which the KAS
has contributed cooperation and formed a worthwhile, productive, and enduring
the partner relationship with customers (22).
A key account salesperson - KAS is in charge of developing and maintaining
direct relationships with a few consumers units that cut across goods or
geographical boundaries. In the theory, the different term has been done to
describe this way of sales organization including big accounts, national accounts
(23), major accounts (24), strategic accounts, global accounts, and house or
corporate accounts (25). It is obvious that key account salespeople requires a
very large deal of investment in resources and human focused on some key
customers (7) Their action plan must be proven on an economic foundation.
The effective determinants of KAS are strategic intrapreneurial ability and

capabilities despite intermediate processes of customer confidence and
communication quality. Strategic competence is the capability of KAS to
examine organizational as well as business happens of customers, and focus upon
the long-term benefits. Internal ability is the ability of KAS to put individual or
other resources in the seller company and use effectiveness them to support
customer accounts. KAS Effectiveness sets up individual KAS capabilities like
internal capabilities, and strategic capabilities as a premise for structural
orientation of relationships, customer confidence, and communication quality.
The cognitive effect of KAS represents the results of KAS relationships.
Before analyzing each factor that makes KAS effectiveness, we look at the model
of the overall impact factors below:

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Diagram 4.1: Model of KAS effectiveness

Sources: Sengupta et al. (2000)
Individual Abilities consists of strategic abilty and intrapreneurial ability.
(1) Strategic Ability.
Strategic ability is the aware ability of KAS to study the organization and
business issues of customers and give attention to the long-term benefits, beyond
the needs of customers stated. Wide vision and good judgment synthesizing in
various information to reach higher order concepts characterizes strategic
capabilities.
This is the KAS as cognitive thinker as opposed to active doer. While similar to
the ideas of directed problem-solving (26) and trait competitiveness (Brown,
Cron and Slocum 1998) found to be important for all salespeople, strategic
ability is knowledge-based, inculcated by experience or education. Companies
are willing to pay higher salaries to key account salespeople, and have higher

expectations of their performance, because of their strategic ability (24; 27; 28;
29).

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(2)

Intrapreneurial Ability.

This construct is borrowed from the management literature. Pinchott at el. (30)
defined intrapreneurship as entrepreneurship inside the corporation. Intrapreneurs
pursue innovation while staying within the existing corporate umbrella. The
intrapreneur is the KAS as active doer as opposed to cognitive thinker. It
includes the KAS's ability to locate personnel or other resources within the seller
firm and deploy them to assist the customer account (29). KAS turns a plan into a
successful reality (30), even if these means accepting risk by doing against
conventional intelligences. While all salespersons need to self-determine,
participate and accept challenges (26), intrapreneurial cability arises from the
unofficial influence that KAS has gained and efforts in the company.
Relationship Process Constructs of communication quality and customer trust.
(3) Communication Quality.
Communication quality is levels to which contents of the communication is that
knew and received by another parties in a relationship. Mohr at el. (31) said that
communication is glues that keep a distribution channel together. This is similar
in contexts of maintaining and developing the key account relationship.
Communication between the account and KAS and takes place via phone calls,
meetings, letters, faxes or emails. These interactions can produce emotional
relationships, strong or they may still be related to function and business (7).
(4) Customer Trust.

Morgan at el. (32) conceptualized the belief as consisting when a party has
confidence in the trust and integrity of the exchange partner. In this context,
integrity is the client's belief that KAS will send what was committed. Beside
integrity, give another dimension of belief, patience from opportunism. These are
the belief of customers which the KAS will not deliver any actions to damage the
interests of clients. Connecting these perspectives, a buyer confidence in this
research refers to client’s trust about whether KAS has integrity and patience or
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