The Global Computers, Inc. Compensation Scenario
Shipped with Oracle Applications is a database containing sample data you can use while learning the product. The Oracle Applications Demonstration User's Guide explains how to set up and use this database for various Oracle Applications. The sample data is structured around a fictitious computer corporation, Global Computers, Inc.
Throughout this guide we use examples that are based on Global's compensation strategy and compensation processing. This section summarizes this scenario.
What Is Global Computers, Inc.?
Global Computers, Inc. is a price-performance leader at the high end of the personal computer market. Global's flagship models, the desktop Sentinel and the laptop Envoy, appeal to GUI application developers, analysts, executives, and sales consultants who demand flexible configurations, ultra-high speed, superior graphics, high-fidelity and seamless communication. The company also supplies implementation consulting, customer training, support maintenance, and a line of computer peripherals such as modems, monitors, and keyboards.
Sales Organization
Global has four sales offices: one located at the company's headquarters in Sacramento, one in London, one in Stuttgart, and one in Singapore. The company sells its products through several distribution channels, including:
- A direct field sales force
- External agents on contract with the company
- Other equipment manufacturers (OEMs)
- Value-added resellers (VARs)
- Independent Software Vendors (ISVs)
Compensation
The company's direct sales force sells the full line of Global's products and services, and is paid compensation based on specific terms in compensation plans that pay higher compensation rates for better sales performance. Compensation is paid to the direct sales force at the time of invoicing. In contrast, an external agent receives a compensation payment for the class at the time the customer pays.
Other channels, such as VARs or ISVs, sell only the company's computer models and peripherals, and are paid a flat rate per unit of product sold. Compensation is paid to non-direct channels when the end customer pays.
Compensation Payment Cycles
Global pays compensation to its sales force monthly.
While the company's worldwide sales revenues have grown to $1 billion in five years, gross profit margins slipping as competition forces manufacturers into commodity pricing. More than ever before, Global's compensation strategy for all types of sales channels--including direct field sales--must be flexible and easy to change, reflecting changing business strategies.
