Harvard business reports (1930)

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Pathe Exchange, Incorporated1 producer and distributor — motion pictures Sales Organization — Reorganization of Product and Territorial Sales Functions. A producer and distributor of motion pictures wished to strengthen its sales organization, which had recently been changed from a decentralized organization to a highly centralized home office control of exchange operations. A reorganization of the sales department was effected, in which the division of responsibility between product and territorial managers was eliminated by discontinuing the position of product managers, and the exchanges were regrouped into four territorial districts in accordance with the amount of supervision required by each. (1929) Pathe Exchange, Incorporated, a producer and distributor of motion pictures for domestic and foreign exhibition, wished to strengthen its sales organization. In May, 1929, therefore, the executives of the company considered a proposed reorganization of the sales department. Pathe Exchange, Incorporated, operated a national exchange system with exchanges in 31 key cities of the United States. Foreign distribution was carried on by subsidiaries of the company, except in Canada, where Regal Films, Limited, distributed Pathe pictures. The offices of the sales department were located at the executive headquarters in New York City. In addition to its own product, the company distributed films of other producing companies on a percentage arrangement, usually receiving 30% to 40% of the gross revenue. The company was also the largest American distributor of films of educational value to the nontheatrical market. The company's gross sales, in 1928, were approximately $18,000,000. The Pathe product was sold in groups of pictures of varying numbers, depending upon the requirements of the exhibitors and the sales ability of the salesmen. Feature pictures were offered as a single group consisting of an entire season's output; the company endeavored, by all fair and reasonable inducements, 1 See also Pathe Exchange, Incorporated, pages 349 and 359. 364