The leader of Ohmeda, a wholly possessed company from the BOC Group, intends to grow the business's medical equipment sales from $95 million in 1985 to $158 million in 5 years by concentrating on the purchase of "high-tech" equipment. Simultaneously, the leader needs to market Ohmeda's medical supplies business ($22 million in sales) and also to transfer its medical gases business ($27.two million in sales) to a different business unit from the BOC Group. The alterations in Ohmeda's items combined with planned development in medical equipment make the leader to reflect on Ohmeda's marketing system. The brand new proper thrust requires him to examine the function of Ohmeda's network marketing and dealer sales coverage. By doing this he examines the financial aspects of three options: ongoing with Ohmeda's present system, getting rid of dealer sales coverage, and concentrating salesmen by product group.
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