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Sales planning and Operations Promotional Mix and Sales Presentation (LO-3)  Prepared by: MD. Ismail Hossain (id- 2012121010) Adnan Ahmed (id-2011421027) Nazia Akter (id- 2011202018) Muniar Rahman Rainum (id- 01-02-10106) MD. Saddam Hossain Soikat (id-2012121026)  Prepared to: Mr. Irfan Jahangir Faculty, Marketing, School of Business  Submission date: 09.03.2013

Sales planning and Operations Promotional Mix and Sales Presentation

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Sales planning and Operations

Promotional Mix and Sales

Presentation(LO-3)

 

Prepared by:

MD. Ismail Hossain (id- 2012121010)

Adnan Ahmed (id-2011421027)

Nazia Akter (id- 2011202018)

Muniar Rahman Rainum (id- 01-02-10106)

MD. Saddam Hossain Soikat (id-2012121026)

 

Prepared to:

Mr. Irfan Jahangir

Faculty, Marketing, School of Business

 

Submission date: 09.03.2013

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Task 5 (lo-3.1): Explain how sales strategies are

developed in the line with corporate objective.

 

SF sweaters LTD started its operation in 1999 at Gazipur, Dhaka,

Bangladesh. The management team employed by SF sweaters ltd has

been involved in the ready-made apparel industry since the last

decade. SF sweaters ltd employs over 1200 skilled workers &

managerial staff. Our factory is approximately 125,000 sqft areas with

all the modern facilities. The operation plant is built on our own land.

We have all the major departments including marketing, planning,

procurement, finance, and shipping. Our corporate head office is

located in the capital city, Dhaka.Our production team is comprised of skilled labors who have been

successfully contributing to SF sweater ltd As well as our country’s

economy as a whole. Our company vision is to provide products and

services of high consistent quality ensuring maximum value and

satisfaction to our customers, thought effective utilization of time and

adoption of superior design and appropriate technology.

Sales Strategy

When an order is placed by a buyer, the first task for the sales people

is to give them an estimate for how much their order would cost to be

processed. This would be based on many factors such as the type of 

yarn, the design of the product, accessories that are required for

making the production, etc. The style is send to the sample house

where the product is made to make a same to same sample. They

weight is taken lastly to make the final price for the product. A profitcharge is also applied to the product and 20% wastage is added to the

product and finally the prices are given to the buyer. Finally, the buyer

also comes with a price and an appointment is made on which the

buyer wants to process the products. The final price may also come

down or up based on the quantity of the production. After the order is

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confirmed, a license or credit is placed to the company from which, SF

Sweaters LTD orders the accessories and other elements that are

required for this production. Finally, the sales manager has to keep a

full check if everything is going fine.

Corporate objective of SF Sweaters LTD

SF Sweaters LTD corporate objective is to provide products and

services that are of unfailing top quality ensuring maximum value

and satisfaction for our customers guaranteeing efficient utilization

of time, adoption of superior design and latest technology.

How SF Sweaters LTD’s the sales strategy helps to develop the

corporate objective

SF Sweaters LTD’s main work is to find orders. Without marketing or

a sales team of their own, it would be very risky to do business

because they can go off anytime if they don’t find work and it’s very

important for a firm like this to keep working throughout the year.

 Their corporate objective is to provide products and services that

are of unfailing top quality ensuring maximum value and

satisfactory for their customers.

A survey is always processed after every order where they want a

feedback from their buyers. They influence the buyers to point out

what SF Sweaters LTD has done wrong and how can they improve their

services. The buyers are all happy when they eventually realize that

how professional SF Sweaters LTD applies for their work starting fromprocessing the order till the end of production. SF Sweaters LTD ends

up developing a great relationship and eventually proceeding with

more orders which SF Sweaters LTD can do or other works that can be

done through SF Sweaters LTD in other garments.

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Task 6 (lo-3.2): Explain the Importance of recruitment andselection procedures.

 

Importance of Recruitment and Selection

Recruitment is the process of identifying that the organization needs to

employ someone up to the point at which application forms for the

post have arrived at the organization. Selection then consists of 

the processes involved in choosing from applicants a suitable

candidate to fill a post. Recruiting individuals to fill particular

posts within a business can be done either internally by

recruitment within the firm, or externally by recruiting people

from outside.

The advantages of internal recruitment are that: 

1. Considerable savings can be made. Individuals with inside

knowledge of how a business operates will need shorter periods of 

training and time for 'fitting in'.2. The organization is unlikely to be greatly 'disrupted' by

someone who is used to working with others in the organization.

3. Internal promotion acts as an incentive to all staff to work

harder within the organization.

4. From the firm's point of view, the strengths and weaknesses of 

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an insider will have been assessed. There is always a risk attached

to employing an outsider who may only be a success 'on paper'.

Recruitment process:

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External Recruitment:

External recruitment makes it possible to draw upon a wider range of 

talent, and provides the opportunity to bring new experience and ideas

in to the business. Disadvantages are that it is more costly and the

company may end up with someone who proves to be less effective in

practice than they did on paper and in the interview situation.

There are a number of stages, which can be used to define and

set out the nature of particular jobs for recruitment purposes.

 Job analysis is the process of examining jobs in order to identify the

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key requirements of each job. A number of important questions need

to be explored:

1. the title of the job

2. To whom the employee is responsible

3. For whom the employee is responsible.

4. A simple description of the role and duties of the employee within

the organization.

 Job analysis is used in order to:

1. Choose employees either from the ranks of your existing staff orfrom the recruitment of new staff.

2. Set out the training requirements of a particular job.

3. Provide information which will help in decision making about the

type of equipment and materials to be employed with the job.

4. Identify and profile the experiences of employees in their work tasks

(information which can be used as evidence for staff development and

promotion).

5. Identify areas of risk and danger at work.

6. Help in setting rates of pay for job tasks.

 Job analysis can be carried out by direct observation of employees at

work, by finding out information from interviewing job holders, or by

referring to documents such as training manuals. Information can be

gleaned directly from the person carrying out a task and/or from their

supervisory staff. Some large organizations specifically employ 'jobanalysts'. In most companies, however, job analysis is expected to be

part of the general skills of a training or personnel officer.

 Job Description:

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A job description will set out how a particular employee will fit into the

organization. It will therefore need to set out. A job description could

be used as a job indicator for applicants for a job. Alternatively, it could

be used as a guideline for an employee and/or his or her line manager

as to his or her role and responsibility within the organization.

 Job specification:

A job specification goes beyond a mere description - in addition, it

highlights the mental and physical attributes required of the job holder.

For example, a job specification for a trainee manager's post in a retail

store included the following:

'Managers at all levels would be expected to show responsibility. Thecompany is looking for people who are tough and talented. They

should have a flair for business; know how to sell, and to work in a

team.'

Recruitment procedures of SF Sweaters

 There are two types of recruitment that are involved in the recruitment

of SF Sweaters LTD. Since SF Sweaters is a manufacturing firm, its

main task is to make productions as suppliers and send it to their

buyers. The major employees that are recruited are labors.

 There are about 800 employees working down here. On the other

hand, many office works are required to process this work. There are

about 50 employees who are recognized as office employees.

Recruitment for both of the type of employees are different. For

instance, the office workers are based on qualifications and experiencewhere as the production labors are recruited as long as they are over

the age of sixteen.

For the recruitment of the office workers, there are many processes

which need to be followed.

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 There are around six departments. Every department has a top

manager and the directors of the company are in charge of all the

managers. The managers are in charge of how they would want to get

their work done. All the top level managers have been with SF

Sweaters for more than five years at least so they have a great

knowledge of their work and who could be the right people for their

work. The departments that are there are marketing, commercial,

human resource management and production. There are many

departments that are involved in the production team such as

merchandising, store in charge, yarn in charge, production of 3gg, 5gg,

7gg and 12gg and sample in charge. The office workers are mainly

involved in commercial, merchandising, production management andhuman resource management. This employees requires a graduation

degree and a good knowledge of communication, language and

management skills. Their recruitment is down by the directors and with

the department heads.

Whenever there is a vacancy, it is posted on various newspapers. A

last day is mentioned on the newspaper as well a CV s are checked by

the human resource manager mentioning if the requirements are

achieved or not. They are in charge of deciding if the CV can go

through or not. After that, the selected people are called in for an

interview and the process can take up to three days. The directors and

the department managers are there during the recruitment and many

people are screened out in the recruitment process. The ones that

makes in through are called in the next day for another interview. And

finally, its confirmed in the next day if the person is recruited or not.

 The process of the production labors is completely different.

Whenever there are vacancies, it’s announced in the gates of SF

Sweaters LTD and also announced in a recruitment agency in Gazipur

and almost anyone who wants to can join in. They need to have few

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requirements which are that the employees need Notary Cards where

SF Sweater can have security checks. It’s easy for anyone to find work

in Gazipur because the process is the same almost every other

factories and Gazipur is filled with factories. Whenever an employee

presents their CV to the Human Resource manager, they are given a

date when they are called in for training. Even having experiences

won’t help employees escape this training. In the training, the

employees are justified and employees who take very long time to

learn how to learn the work aren’t recruited or recruited in easier work

like in finishing.

Recruitment process of sales persons of SF

Sweaters

 The sales or marketing manager and the directors are in charge for the

recruitment of the sales persons. The sales persons are required

to consult buyers within Bangladesh and outside Bangladesh.

 Therefore, English is a must and languages like Chinese,

French, German, etc are a plus point. Firstly, the CVs are

screened in by the human resource management to see if the

minimum requirements are met. Then they are processed to the

managers who are in charge of calling and booking an

appointment for the recruitment. In the interview, many points

and skills are checked though different tests and questions. Thequalified employees are called in the next day and SF Sweaters

finally fix up a day when he or she may join in for their work.

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Task 7 (lo-3.3): Evaluate the role of motivation,

remuneration and training in sales management.

 

Organization and management structures OF

SF Sweaters

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Training plans of SF Sweaters

Training plays an important role in the success of SF Sweaters.

Unfortunately, small businesses of ten can’t afford to give staff 

time away from work to attend training during work hours.

Similarly, business owners of ten find the available training is too

unspecific and not appropriate to the individual needs of their

business.

 The best return on your training investment will be achieved by

identifying your company’s training needs, taking a systematic

approach to sourcing suitable training, and enrolling your employees

on the right courses for the job.

For training SF Sweaters follows these steps: Identify training needs

Involve employees in training decisions

Developing training plan

Assessing training

Next steps

Identify training needs

 You should focus training efforts on areas where you can reap the

biggest, fastest and easiest rewards. But before you can do this, you

need to identify the skills gaps or training needs in your company and

priorities them. Some training needs are obvious.

SF Sweaters Answers the following questions to help identifying

the training for employees might need:

• Is business experiencing problem or being held back in some

way?• Do they receive customer complaints?

• Is part of team or business underperforming?

• Do they have a shortage of a particular set of skills, or a likely

future skills shortage?

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Involve employees in training decisions:

Once they have identified their business training needs, the next step

is to ask their employees what relevant skills they want to improve

through training. They may give some good ideas. Ask your employees

what training they think would improve their productivity and how it

will benefit your business.

Developing training plan:

Once they have identified their skill or knowledge gaps, the next step

is to find the best form of training to achieve the results they want. Try

to avoid finding training first, and then fitting this to their employees.

For optimal results, try to match selected training option with the

needs of business and the way employees learn best. They followed:

1. In-house training

2.  Job shadowing

3. Conferences, seminars, workshops and courses (Prothom Alo

trainings).

Assessing training:

 They ask employees to review their training experience. Try to find out

if the training is relevant to the job and appropriate to their

level of expertise.

 Training assessment forms may help them discover more about the

course and establish what worked and what didn’t. Be aware that what

your employee sees as a positive training experience might not

necessarily be valuable to business.

When employees complete any training, discuss how their learning willbe put into action. This will help to ensure new skills are implemented.

Next Steps:

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Identify new things and skills for business needs and meet with

their staff to develop a personal development and training plan

for each employee.

Allocate a budget for training.

Warning:

All managers and supervisors must buy-in to the concepts presented

and be trained themselves. Without the support and understanding of 

management, training programs run the risk of having little or no

benefit. Don't use training solely as a disciplinary action or when

problems arise. One of the goals of training is to prevent problems

before they occur.

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Role of  Leaders of SF Sweaters 

1. Required at all levels- Leadership is a function which is important

at all levels. In the top level, it is important for getting co-operation

in formulation of plans and policies.

2. Representative of the organization- A leader, i.e., a manager is

said to be the representative of the enterprise. He has to represent

the concern at seminars, conferences, general meetings, etc.

3. Integrates and reconciles the personal goals with

organizational goals- A leader through leadership traits helps in

integrating the personal goals of the employees with the

organizational goals. He tries to co-ordinate the efforts of people

towards a common purpose and thereby achieves objectives.4. As a friend and guide- A leader must possess the three

dimensional traits in him. He can be a friend by sharing the feelings,

opinions and desires with the employees.

5. Initiates action- Leader is a person who starts the work by

communicating the policies and plans to the subordinates from

where the work actually starts.

6. Motivation- A leader proves to be playing an incentive role in the

concern’s working. He motivates the employees with economic and

non-economic rewards and thereby gets the work from the

subordinates.

7. Providing guidance- A leader has to not only supervise but also

play a guiding role for the subordinates. Guidance here means

instructing the subordinates the way they have to perform their

work effectively and efficiently.

8. Creating confidence- Confidence is an important factor which canbe achieved through expressing the work efforts to the

subordinates, explaining them clearly their role and giving them

guidelines to achieve the goals effectively. It is also important to

hear the employees with regards to their complaints and problems.

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9. Builds work environment- Management is getting things done

from people. An efficient work environment helps in sound and

stable growth. Therefore, human relations should be kept into mind

by a leader. He should have personal contacts with employees and

should listen to their problems and solve them. He should treat

employees on humanitarian terms.

10. Co-ordination- Co-ordination can be achieved through

reconciling personal interests with organizational goals. This

synchronization can be achieved through proper and effective co-

ordination which should be primary motive of a leader.

Motivational Factors of SF Sweaters

 There are many type of incentives given to the employees of SFSweaters LTD.

 There is always Eid bonus for almost every employee.

 There is monthly bonus for production employees. This is only

available for production employees.

 The main work for the employees who work on 3gg, 5gg, 7gg

and 12gg are they are paid according to their production. So, the

employee who can produce more products gets added bonus for

their payments.

Emergency Holidays.

Sick leave.

Personal loans.

Heath and safety.

Life insurance Facility.

 Transport facility.

Food facility.

Two-factor theory

 The two-factor theory (also known as Herzberg's motivation-hygiene

theory and dual-factor theory) states that there are certain factors in

the workplace that cause job satisfaction, while a separate set of 

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factors cause dissatisfaction. It was developed by Frederick Herzberg,

a psychologist, who theorized that job satisfaction and job

dissatisfaction act independently of each other. The two-factor, or

motivation-hygiene theory , developed from data collected by Herzberg

from interviews with a large number of engineers and accountants in

the Pittsburgh area.

According to Herzberg:

 The job should have sufficient challenge to utilize the full ability

of the employee.

Employees who demonstrate increasing levels of ability should

be given increasing levels of responsibility. If a job cannot be designed to use an employee's full abilities,

then the firm should consider automating the task or replacing

the employee with one who has a lower level of skill. If a person

cannot be fully utilized, then there will be a motivation problem.

Hygiene Factors of SF Sweaters:

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In the job, all workers have given salaries, good working environment,

and security. These are the hygiene factors and condition of work.

Without these no one will work for the organization.

If all these are there, workers will not be dissatisfied or will not be

motivated. If these things are missing the worker will be dissatisfied

and demotivated.

Motivator Factors:

 The extra things are given to the workers are the motivator factors. As

example,

1. There is always Eid bonus for almost every employee.

2. There is monthly bonus for production employees. This is onlyavailable for production employees.

3. The main work for the employees who work on 3gg, 5gg, 7gg

and 12gg are they are paid according to their production. So, the

employee who can produce more products gets added bonus for

their payments.

4. Emergency Holidays.

5. Sick leave.

6. Personal loans.

7. Heath and safety.

8. Life insurance Facility.

9. Transport facility.

10. Food facility.

With these incentives, the workers are given extra facilities out of their

 job description. The workers get motivated by these extra incentives

and these are the motivator factors.

Limitation of Two-factor theory:

 The two factor theory is not free from limitations:

1. The two-factor theory overlooks situational variables.

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2. Herzberg assumed a correlation between satisfaction and

productivity. But the research conducted by Herzberg stressed

upon satisfaction and ignored productivity.

3. The theory’s reliability is uncertain. Analysis has to be made by

the raters. The raters may spoil the findings by analyzing same

response in different manner.

4. No comprehensive measure of satisfaction was used. An

employee may find his job acceptable despite the fact that he

may hate/object part of his job.

5. The two factor theory is not free from bias as it is based on the

natural reaction of employees when they are enquired the

sources of satisfaction and dissatisfaction at work. They willblame dissatisfaction on the external factors such as salary

structure, company policies and peer relationship. Also, the

employees will give credit to themselves for the satisfaction

factor at work.

6. The theory ignores blue-collar workers. Despite these limitations,

Herzberg’s Two-Factor theory is acceptable broadly.

Implications of Two-Factor Theory 

 The Two-Factor theory implies that the managers must stress upon

guaranteeing the adequacy of the hygiene factors to avoid employee

dissatisfaction. Also, the managers must make sure that the work isstimulating and rewarding so that the employees are motivated to

work and perform harder and better. This theory emphasize upon job-

enrichment so as to motivate the employees. The job must utilize the

employee’s skills and competencies to the maximum. Focusing on the

motivational factors can improve work-quality.

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Task 8 (l o-3.4): explain how sales management organized

sales activities and control sales outputs.

Every organization had to maintain their every task. So to manage sell

task every organization had to do some special thing. S.F

Sweaters/cardigans to maintain their sail management activities they

are doing sales budget and sales forecasting. This are explained

bellow.

Sales budget: A sales budget is a necessary component in everycompany's corporate backbone in order to predict accurate sales

forecast and profitability. Having an effective financial plan in place

helps management decide on inventory, pricing and allows them to set

future goals to promote profitability.

Sales budget of 

S.F Sweaters/cardigans LTDQuarter year

1 2 3 4

Budgeted sales

100,000 300,000 500,000 800,000 1,700,000

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selling average

price(per cardigan)

250 250 250 250 250

Total

25,000,

000

75,000,

000

125,000,

000

200,000,

000

425,000,

000

% of sales collected

in the period of the

sale

60%

% of sales collected

in the period of after

the sale

40%

Quarter year

1 2 3 4

1) Accounts

receivable

begging

balanced

10,000,0

00

10,000,00

0

2) 1st quarter

sales

 

15,000,0

00

10,000,0

00

25,000,00

0

3) 2nd quarter

sales

 

45,000,0

00

30,000,0

00

75,000,00

0

4) 3rd quarter

sales

 

75,000,0

00

50,000,0

00

125,000,0

00

5) 4th quarter

sales

 

120,000,

000

120,000,0

00

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6) Total cash

collection

25,000,0

00

55,000,0

00

105,000,

000

170,000,

000

355,000,0

00

 

Here I have prepared an assumed sales budget of S.FSweaters/cardigans. They are thinking that they will be able to sale

their product according to the budget with the average price. And they

think that they will receive 60% at the sale time and 40% after the

sales period.

Sales forecasting: Sales forecasting depends heavily on estimates.

Using evidence, such as past results, expectations and other sales, you

can form a basis for your evidence. When doing a sales forecast, it is

usually best to err on the side of caution. Forecasting higher than you

are capable of throws off your forecast and can be discouraging when

you do not meet your expectations. Sales forecasting can be very

liquid, so you can change forecasts if results start to differ from your

initial expectations.

We can do our sales forecasting for three time periods and this are

1) Short term forecasting (less than 1 year): which forecasting

are prepare for a 1 years or less then 1 year this are called short

term forecasting.

2) Medium term forecasting (1 to 3 years): which forecasting are

prepare for 1 year or less then 3 years this are called medium

term forecasting.

3) Long term forecasting (3 years and above) which forecasting

are prepare for above than 3 years this are called long term

forecasting.

SF Sweaters LTD they used to export their Sweaters/cardigans in many

country of the world. But as we know that Sweaters/cardigans these

are the seasonal dress. Each and every time they did not get market

value. That’s way under processing this point they usually do medium

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term forecasting just because of that they can change their policy

and design with time and market demand.

Task 9(L o- 3.5): Explain the use of database in effective

sales management.

As we know we are living at the age of science. At that time most of 

the organization in the world they are using different kinds of database

system. To record their all sales related activities. There is several

kind of database. This are

Oracle,

Microsoft Access,

IBM DB2,

FileMaker Pro.

By using this database system any organization can record their any

database of their firm. There are lots of advantages if using database

management system.

Advantages:

By using database system any organization system they can

keep their record for a long time as long as they want. It can be update any time.

It can be changed any time.

No chance to committed any mistake.

It's save time.

Most secure process.

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 There is lots of data protection act avail able to protect data.

The same information can be made available to different users.

This reduces data redundancy, or in other words, the need to

repeat the same data over and over again. Minimizing

redundancy can therefore significantly reduce the cost of storing

information on hard drives and other storage devices. In

contrast, data fields are commonly repeated in multiple files

when a file management system is used.

Using a database management system, file formats and system

programs are standardized. This makes the data files easier to

maintain because the same rules and guidelines apply across all

types of data. The level of consistency across files and programsalso makes it easier to manage data when multiple programmers

are involved.

Data is easier to access and manipulate with a DBMS than

without it. In most cases, DBMSs also reduce the reliance of 

individual users on computer specialists to meet their data

needs.

Our cardigan factory they had to deal every day. They had to buy wool,

spin, and different kind of raw materials to their business purpose. To

avoid any kind of mistake, fraud they should use different kind of use

data management system. But they are not using any data

management system. Just because of that they are facing lots of 

problem this are.

Quit poor process.

75% chance to committed mistake.

Lengthy process.

Some time it is boring.

Any body can commit fraud.

 They are lagging behind from the present world.

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 These are not enough there are lots of problem to avoid a database

system. So from my point of view S.F Sweaters/cardigans they should

follow at lest any one database which is related or match with their

organization. Than they will able to avoid their unwanted problem.

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Reference: http://www.exforsys.com/career-center/process-

management/recruitment-process-and-its-importance.html

http://businesscasestudies.co.uk/cummins/using-effective-recruitment-

to-retain-competitive-advantage/the-importance-of-recruitmentand-

selection.html#axzz2MxH2vmSa

http://www.streetdirectory.com/travel_guide/183825/human_resources/

how_important_is_a_good_recruitment_process.html

http://smallbusiness.chron.com/developing-effective-employee-

training-program-1181.html

http://www.managementstudyguide.com/role_of_a_leader.htm

http://www.managementstudyguide.com/importance_of_leadership.htm

http://en.wikipedia.org/wiki/Two-factor_theory

http://www.netmba.com/mgmt/ob/motivation/herzberg/

http://www.managementstudyguide.com/herzbergs-theory-

motivation.htm

Definition of "Sales Budget" | eHow.com

http://www.ehow.com/info_7742672_definition-sales-

budget.html#ixzz2N17kyh3J

How to Calculate Sales Forecasting | eHow.com

http://www.ehow.com/how_6900522_calculate-sales-

forecasting.html#ixzz2N18nro16