Isa is in the process of reviewing his accounts. Isa classified his accounts using the single-factor analysis method and is now developing his sales strategy. What should he do?
A) spend most of his time attempting to develop B accounts into A accounts
B) divide his time equally among the accounts because each is as important as the other
C) allocate the greatest portion of his time to the A and B accounts
D) allocate his time to the accounts designated as weak competitive position but high opportunity

Question

Quizplus · Accepted Answer

The single-factor analysis method classifies accounts into categories based on a single factor such as sales revenue or profit margin. A commonly used categorization is A, B, and C accounts, with A accounts being the most important and C accounts the least important. To develop a successful sales strategy, Isa should allocate the greatest portion of his time to the A and B accounts because these accounts generate the most revenue and are the most valuable to the organization. Spending most of his time attempting to develop B accounts into A accounts may be useful, but it should not take priority over maintaining and nurturing existing A accounts. Dividing his time equally among the accounts may not be the most effective strategy because some accounts are more valuable than others. Allocating his time to the accounts designated as weak competitive position but high opportunity may be an effective strategy, but it is not specific to the single-factor analysis method and may not apply to all accounts. Therefore, choice C is the best option.

Isa Is in the Process of Reviewing His Accounts