Case Study 5.

1
BUDDYS SNACK COMPANY
Russell Casey, Clayton State University, and Gloria Thompson, University of Phoenix
Buddys Snack Company is a family-owned company located in the Rocky Mountains. Buddy Forest
started the business in 1951 by selling homemade potato chips out of the back of his pickup truck.
Nowadays Buddys is a $36 million snack food company that is struggling to regain market share lost
to Frito-Lay and other fierce competitors. In the early eighties Buddy passed the business to his son,
Buddy J r., who is currently grooming his son, Mark, to succeed himself as head of the company.
Six months ago Mark joined Buddys Snacks as a salesperson, and after four months he was
quickly promoted to sales manager. Mark recently graduated from a local university with an MBA in
marketing, and Buddy J r. was hoping that Mark would be able to implement strategies that could help
turn the company around. One of Marks initial strategies was to introduce a new sales performance
management system. As part of this approach, any salesperson who receives a below-average
performance rating would be required to attend a mandatory coaching session with his or her
supervisor. Mark Forest is hoping that these coaching sessions will motivate employees to increase
their sales. This case describes the reaction of three salespeople who have been required to attend a
coaching session because of their low performance over the previous quarter.
Lynda Lewis
Lynda is a hard worker who takes pride in her work ethic. She has spent a lot of time reading the
training material and learning selling techniques, viewing training videos on her own time, and
accompanying top salespeople on their calls. Lynda has no problem asking for advice and doing
whatever needs to be done to learn the business. Everyone agrees that Lynda has a cheery attitude
and is a real teamplayer, giving the company 150 percent at all times. It has been a tough quarter
for Lynda due to the downturn in the economy, but she is doing her best to make sales for the
company. Lynda feels that failure to make quota during this past quarter is due not to lack of effort,
but just bad luck in the economy. She is hopeful that things will turn around in the next quarter.
Lynda is upset with Mark about having to attend the coaching session because this is the first
time in three years that her sales quota has not been met. Although Lynda is willing to do whatever it
takes to be successful, she is concerned that the coaching sessions will be held on a Saturday.
Doesnt Mark realize that Lynda has to raise three boys by herself and that weekends are an
important time for her family? Because Lynda is a dedicated employee, she will somehow manage to
rearrange the familys schedule.
Lynda is now very concerned about how her efforts are being perceived by Mark. After all,
she exceeded the sales quota for the previous quarter, yet she did not receive thanks or
congratulations for those efforts. The entire experience has left Lynda unmotivated and questioning
her future with the company.
Michael Benjamin
Michael is happy to have his job at Buddys Snack Company, although he really doesnt like sales work
that much. Michael accepted this position because he felt that he wouldnt have to work hard and
would have a lot of free time during the day. Michael was sent to coaching mainly because his
customer satisfaction reports were low; in fact, they were the lowest in the company. Michael tends
to give canned presentations and does not listen closely to the customers needs. Consequently,
Michael makes numerous errors in new sales orders, which delay shipments and lose business and
goodwill for Buddys Snack Company. Michael doesnt really care because most of his customers do
not spend much money, and he doesnt think it is worth his while.
The company commission structure, so instead of selling to the warehouse stores and
possibly earning a high commission, Michael is now forced to sell to lower-volume convenience
stores. In other words, he will have to sell twice as much product to earn the same amount of
money. Michael does not think this change in commission is fair, and he feels that the coaching
session will be a waste of time. He believes that the other members of the sales team are getting all
of the good leads, and that is why they are so successful. Michael doesnt socialize with others in the
office and attributes others success and promotions to whom they know in the company rather
than the fact that they are hard workers. He thinks that no matter how much effort is put into the
job, he will never be adequately rewarded.
Kyle Sherbo
For three of the last five years Kyle was the number one salesperson in the division and had hopes of
being promoted to sales manager. When Mark joined the company, Kyle worked closely with Buddy
J r. to help Mark learn all facets of the business. Kyle thought this close relationship with Buddy J r.
would assure his upcoming promotion to the coveted position of sales manager, and he was
devastated to learn that Mark received the promotion that he thought was his.
During the past quarter there was a noticeable change in Kyles work habits. It has become
commonplace for Kyle to be late for appointments or miss them entirely, not return phone calls, and
not follow up on leads. His sales performance declined dramatically, which resulted in a drastic loss of
income. Although Kyle had been dedicated and fiercely loyal to Buddy J r. and the company for many
years, he is now looking for other employment. Buddys Snacks is located in a rural community, which
leaves Kyle with limited job opportunities. He was, however, offered a position as a sales manager
with a competing company in a larger town, but Kyles wife refuses to leave the area because of her
strong family ties. Kyle is bitter and resentful of his current situation and now faces a mandatory
coaching session that will be conducted by Mark.
Discussion Questions
1. You have met three employees of Buddys Snacks. Explain how each employees situation
relates to equity theory.
2. Describe the three needs identified by McClelland. How are they related to worker behaviour
in each situation?
3. Compare and contrast the three relationships of expectancy theory. To which employee
situation does each apply?