Case Analysis – The Valley Winery The Valley Winery is the largest domestic producer of wine in the United States and one this nation’s largest privately held companies. Their recently hired sales manager of the San Francisco region, Pat Waller, has determined that the number one problem in the region, despite favorable sales results, was turnover which is nearly 100% a year with the average sales rep being with the San Francisco region winery for only 7 months before leaving or being terminated. Pat begun to analyze the effects of the turnover the company is experiencing, which consisted of first considering the costs of training and recruiting which was close to $33,000 per representative. Secondly, he believed that decreasing turnover would increase sales due to better customer rapport. Pat then decided to travel with sales representatives to better understand the day to day of the job to get a better sense of what may be happening while out in the field that may be adding to the high turnover. There seems to be many problems with the culture of this company, but not a single one with sales and profits. They’re consistently making high numbers, but the number one problem they seem to have at The Valley Winery is the high turnover problem. As mentioned above, the high turnover rate nears 100% on the year with the average sales rep staying a nearly 7 months. The sales manager of the company oversees two area managers, who collectively oversee 11 district managers, who then oversee 50 sales reps, which are nearly 50 new ones by the next year. The problem of turnover is affecting sales and profits by really only keeping it from growing more than it already is. With high turnover, you decrease customer rapport and it ultimately costs the company more to higher new reps for that region due to high training and recruiting costs. The problem of the high turnover,