Evaluation of two companies’ sales teams with the BCG matrix using profit and contribution margin

Abstract

In this study, the BCG matrix method was adapted to evaluate the sales teams’ performance of two companies of different sizes and from different segments: a furniture manufacturer and a manufacturer of special yarns for knitting and decoration. Results show that both companies’ sales teams were classified into a matrix that relates their revenues to their respective contribution margins and profits. The sales teams’ classification was made in relation to company results. Its quadrant allocation illustrates the quantitative and qualitative performance of each sales team in relation to the company average. The results show the similarity of sales teams’ positioning, even when dealing with companies from different segments, as well as the distortions generated through the use of fixed cost apportionment in performance analysis.

Keywords:
Performance evaluation; BCG matrix; Sales team; Contribution margin