Ford Security Systems

Max Anderson has been employed as a sales representative for Ford Security Systems for the past six months. Prior to joining the firm, Max had worked for three years as a sales representative for a smaller company. Max had been extremely excited about working for a high- tech firm like Ford, which designs and assembles sophisticated security systems and leases them to small and medium-sized businesses. He was especially pleased to be assigned to the district managed by Beth Roberts, who had been the most successful sales representative in the firm prior to her promotion to district manager.

In his initial orientation at the corporate training center, Max received a great deal of information about the security industry, the history of the Ford organization, and details about the companys products and target customers. He also received a detailed sales handbook with extensive information on competing companies and their products, compiled by Ford's marketing research department.

When Max reported to his district office for the next stage of his training, he shadowed Beth on some actual sales calls. He noted that she expanded on his handbooks competitive information liberally inexplaining the shortcomings of competitors equipment, going well beyond the material developed by the marketing research department. Beth was very convincing in her arguments, and Max could see how she had become the top salesperson in the company. Over time, however, he came to wonder about the accuracy of the information she presented. On one occasion, he asked Beth how she came to know so much about competitors products. She abruptly changed the subject.

After his initial training and orientation period, Max began to make his sales calls independently. On several occasions, he called on prospects who leased their security systems from a Ford competitor. Intrying to close these visits gracefully, he would ask the prospective buyer how he or she liked the existingsystem. In no case did the prospective buyer indicate any defect or problem of the nature Beth had described in her discussions of these competitor's products. In rechecking the information provided by Fords marketing research department, Max was unable to find support for many of Beths claims. As a result, Max modified his sales presentation to exclude the questionable information.

As his six-month review approached, Beth visited Max in his territory to accompany him on some sales calls. On the first call of the day, Beth noted that Max failed to include certain key information in his discussion of competitors products. Beth eventually broke into the discussion to present her arguments on the weaknesses of other security systems. In spite of their combined efforts, the prospect indicated that she had no interest in the product and ushered them out the door. Immediately after the sales call, as Beth and Max got into the car, Beth expressed her annoyance with Maxs performance. Max, what on earth is wrong with you? It has only been four.

months since you finished your training, and you have already forgotten the basics. If you do not tell customers what is wrong with the competition, they will not feel ready to sign! What do you have to say for yourself?

Max sat there, stunned, trying to formulate a reply.

Questions:

1. Write a summary of the case.

2. What are the ethical concerns of consumers?

3. What are the key points of the case?