this is a case study question from sales management - shaping future sales leader textbook. Please submit a case analysis over the following case study. Thank you.

CASE STUDY 9 High E Heating & Air Systems Ron Johnson is vice president of sales For High E Heating & Air Systems, headquartered in San Diego, California. When Johnson joined High E as a territory salesperson in 1995, he was one of only 10 salespersons. As of January 1 this year, High E employed more than 105 salespersons in the United States, and had partnered with firms that employed more than 200 heating, ventilation, and air conditioning salespersons in Europe and Asia. He had earned a Bachelor's degree in marketing from San Diego State University, and then spent six years as a U.S. Naval officer who managed the installation and maintenance of heating and air conditioning systems on ships and ashore. The myriad experiences he gained at sea and on bases in California, Hawaii, and the Philippines provided a solid technical knowledge of heating and air conditioning systems. Between 1998 and 2001. Johnson earned an M.B.A. in international marketing from Chapman University in Orange, California. He even completed an independent study course on cross-cultural marketing taught by a professor who specialized in this area. High E specializes in high-efficiency heating and air conditioning systems that are easy to install and do not employ chemicals or substances that are harmful to the environment. This innovative marketing strategy was conceived by the engineer owners, Jim Miller and Gary Palin, when they founded the company in 1986. High E's focus on environmentally friendly refrigerants was years ahead of the requirements set by the Environmental Protection Agency (EPA); the company gained a slow, but steady customer base in Southern California, and then expanded nation-wide. High E designs and builds heating and air conditioning units that can be added to existing buildings by running small tubes from an outside condenser through the walls to a blower unit mounted high on a wall. The High E air conditioning unit's temperature and fan speeds are controllable by a handheld device. These units have become extremely popular for updating older homes and condominium units in Hawaii, Arizona, Texas, and Florida, since there is no need for internal ductwork that would require demolishing walls and floors. Sales growth has been steady for High E in the U.S. and overseas. Johnson helped the firmexpand globally in 2003 by traveling to Osaka, Japan: Shanghai, China: Manila, the Philippines, Kuala Lumpur, Malaysia; Bangkok, Thailand: Jakarta, Indonesia; as well as to Hong Kong, S.A.R.; and the Republic of Singapore. In each of these cities, he met with owners of heating and air-conditioning contractor companies to earn their partnership selling and servicing the High E brand. In 2004, Johnson and co-owners Miller and Palin traveled to London and negotiated with Thomson Ltd. to represent the High E line of products in the European Union (E.U.) countries. As a result of their efforts, High E has eight smaller partners in Asia, and one large partner who sells and services customers in the initial 16 E.U. countries. As might be expected, sales levelsvary across countries. High E's majorcompetitors are located in Japan and Germany, and it is viewed by buyers as an overseas brand that competes directly with Mitsubishi in Japan and Siemens in Germany-which have the advantage of a longer history in their respective markets than does High E. Rumors have circulated that both foreign firms give kickbacks in the form of "rebates to their partners. Siemens and Mitsubishi offer similarly designed units that do not require internal hardware when installed in existing homes or buildings. High Es principal product advantage is that the units are higher in efficiency and environmentally friendly. This means that the units cost less to operate and are less likely to harm the environment However, Johnson recently read a statement in The Chally World Class Sales Excellence Research Report that "world-class" firms are identified through their strong desire to provide a highly qualified, customer-centric sales force. World-class firms devote time and effort to recruiting, training, and supporting their sales teams. He had originally asked why? The answer was that any product can be copied or improved, but sales force quality and capability can be a "differential advantage." As vice president of sales, Johnson wants to propose a "world-class" training program for his 100+ U.S.-based salespersons, and parallel programs for partner firms in Asia and Europe. He feels that he has an accurate understanding about the training needs of the U.S.-based sales team, but he feels less certain about the needs of salespersons within the multiple cultures and languages that are found in Asia and Europe. For example, while many of the Asian-based salespersons speak English, their ability to successfully complete a technical class that explains high technology air-conditioning principles is doubtful. Also, it is expensive to translate all technical bulletins into Japanese, Mandarin, Pilipino, Thai, Malay, British English, French, Italian, German, etc. Likewise, he understands that the selling process varies across cultures. How business-to-business buyers purchase in Hong Kong differs from how customers buy in Hawaii or Le Havre, France. For example, Johnson had read and learned through visits that guan xi or personal relationships remain paramount in China. Conversely, selling in Germany requires the salesperson to present well- thought-out, logical documented sales proposals. Most training programs focus on five areas: product knowledge, sales skills, market information, company information, and technical skills (CRM). First, the sales executive must determine the level of knowledge and attitudes possessed by current salespersons. Then, he must calculate how much time it will take to make the trainees competent in each area. Next, he will have to decide which training should be taught locally and which can be standardized. Johnson also needs to determine whether it is necessary to call all salespersons to a central location to receive training or delivered it in an asynchronous fashion. For example, is it cost-efficient to make a DVD and send it out to salespersons? How could the digital option be handled across multiple cultures? The current initial program at High E for new salespersons is structured in three phases. The new hire initially works in the office for a month and completes three CD instructional blocks that teach product knowledge, company information, and the local CRM system. The trainee then travels to San Diego, California, for a week-long formal training session at the company headquarters. This formal training week costs High E about $5,000 per salesperson for travel, hotel, food, and training, and does not include lost productivity. The agenda includes meetings with company executives, product instruction by company technical specialists, marketing presentations about competitive products and sales approaches that succeed in the marketplace, and team building. Once the new salesperson returns to the home office, the local sales manager coaches him or her on "ride-alongs" that last a week or more, depending upon the salesperson's abilities and demonstrated expertise. All in all, the training session lasts from six to eight weeks and costs about $30,000 per salesperson! Johnson feels that, in order for High E to offer an effective training program, several decisions have to be made: On Friday night. Johnson was driving north on Interstate 5 to meet a major customer and attend the Los Angeles Lakers playoff game; he was listening to satellite radio in his Lexus. He silently shook his head as he thought about the complexity of designing and implementing a global sales training program. Offering an outstanding national sales training program in the U.S. required a lot of work, but providing sales training to international partners might best be described as a nightmare! Just outside of Rancho Bernardo, north of San Diego, the sales executive thought of one alternative that would simplify things. Why not let the overseas partners 402 PART SEVEN CASES design and offer their own training programs? Such an approach would simplify High E's efforts if partners could successfully manage a "local approach to a global effort. Finally, as he passed the El Toro Marine Corps Air Station exit, it dawned upon him that High Ewould still need to provide significant support in regard to sales training objectives, training materials, and technical expertise. Either way, he knew that implementing this training program was going to consume a tremendous amount of his time over the next year or so. Questions 1. What would be the major benefits of conducting a global sales training program? 2. Would it be feasible to have a single training program for all locations? Why or why not? 3. Which of the questions must Ron Johnson answer first? Why is it so important to answer this initial question correctly? 4. What basic areas of sales training can be standardized? What areas can be taught by using technology? 5. What role does culture play in designing and implementing a sales training program? 6. Would you evaluate the training program? What levels should be in focus? 7. The benefit of allowing partners to train their salespersons is that it would be easier for High E. Is this really a benefit? What are some disadvantages of allowing partners to design and offer their own training program