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Distribution & Logistics Management V2

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Assignment A (Answer any 3 questions)

1. Define Sales Management. What are the objectives of Sales management?

Companies use salespeople to find, sign, and service customers, and to build revenue and profits. Sales
management is the discipline of maximizing the benefits a company and its customers receive from the
efforts of its sales force.

A sales manager can have a narrow or a broad spectrum of responsibilities including the following:
estimate demand and prepare sales forecasts; establish sales force objectives and quotas; prepare
sales plans and budgets; establish the size and organization of the sales force; recruit, select, and
train the sales force; compensate the sales force; control and evaluate sales performances.
- Robert D. Hisrich and Ralph W. Jackson, Selling and Sales Management

Good sales management properly applied is the least expensive, most effective, way to increase
dollars of revenue and margins, market share, cash flow, return on investment, and net present value,
as well as to beat the competition and make yourself a hero. . . . It costs no more to properly hire,
train, compensate, motivate, and evaluate salespeople. Effective time and territory management,
forecasting, planning, budgeting, and good communication and control are no more expensive than
performing these same functions poorly.
- Robert J. Calvin, Sales Management

Sales management: The attainment of sales force goals in an effective and efficient manner through
planning, staffing, training, directing, and evaluating organizational resources.
- Charles M. Futrell, Fundamentals of Selling

Objectives of Sales Management

Sales management entails numerous objectives which are executed by sales managers. There are
mainly three such objectives

1. Sales Volume
2. Contribution to profits
3. Continuous Growth

The sales executives in this case are the ones who help implement these objectives. However it is the
top management who has to outline the strategies to achieve these objectives of sales management.
The top management should provide products which are socially responsible and are marketed in a
manner which meets customers expectations and does not break it. Thus sales management involves
a strong interaction between Sales, marketing and Top management.

Financial Results are another objective of sales management and are closely related and therefore
sales management has financial implications as well.

Sales Cost of Sales = Gross Profit

Gross Margin Expenses = Net profit.

Thus the variation in Sales will directly affect the Net profit of a company. Hence maintaining and
managing sales is important to keep the product / service / organization financially viable.

The Objectives of sales are therefore decided on the basis of where the organization stands and where it
wants to reach. It is a collaborated effort from the top management along with the marketing managers and
sales managers to provide with a targeted estimate.
2. Explain the AIDAS Theory of Selling with the help of suitable examples.

The AIDAS theory of selling is one of the widest known theories and is the basis for training materials across
numerous organizations. AIDAS stands for Attention, Interest, Desire, Action, Satisfaction. The AIDAS theory
simply states that a prospect goes through five different stages before finally responding satisfactorily to our
product, thus he should be led comfortably through all five stages.

Attention Gaining attention is a skill and and just like any skill, gaining attention can be improved
upon with practice. A common phrase applicable over here is First impression is last impression.
The initial attempt of the sales person must be to put the customer completely at ease. Casual
conversation is one of the best openers after which the sales person can gain customer attention by
leading him onto the sale. to know more about gaining attention read my post on how to gain
customer attention.

Interest Once you have gained attention, it is very important to maintain interest. Some sales
people are very good in the opening but as the technicalities take over, they become uncomfortable
while explaining the product. Whereas others who are strong in the product department might open
bluntly but create interest in the second stage. Maintaining interest is a crucial part of the sales
process and hence is included in the AIDAS theory. Read more on how to maintain customer
interest.

Desire Have you seen the commercials wherein you just have to get out of your house and get the
product? Perhaps a car, an ice cream or a house. The same has to be done by the sales person in
personal selling. He has to create enough desire in the customers mind such that he immediately has
to buy the product. Imagine an aquaguard sales man or a tupperware sales person. They highlight the
product in such a manner that you might be thinking Why didnt i buy this product before. Thus
kindling that desire becomes an integral part of the AIDAS selling theory. Read more on how to
create desire for the product
Action Although there may be desire for the product, the customer might not act on it. He might
want to buy the product but he might NOT buy it. In such cases the customer needs to be induced.
There are various ways to induce the customer such that he buys the product. It is important for the
sales person to understand whether to directly induce the customer or whether to push subtle
reminders that you are there for a sales call. Both methods work, but you need to know your
customer.

Satisfaction What would you do after the customer has given the order? Will you stand up, Point
at him and shout Fooled ya. I dont think so. The customer has just parted with his money. Just like
you part your money and expect good service, he expects the same too. So even after he has bought
the product, you need to reassure the customer that he has made the right decision. The product is
good for the customer and you only presented the product. It was his decision and he is right about
it. These small cues post the sales process really give confidence to the customer and he then looks
forward to your product rather than thinking whether or not he has made the right decision. Learn
more about measuring customer satisfaction.

3. What is the purpose of a Sales Organization? What are the steps you will
take for setting up of a Sales Organization? Explain with the help of suitable
example.

4. What are the different sources of Sales Force Recruits? Illustrate with
the help of suitable examples.

5. Write short notes on:

a. Requirements of a Good Sales Compensation Plan

b. Quantitative Performance Standard

c. The emergence of global retailing

d. Planning Sales Training Programs

a. Requirements of a Good Sales Compensation Plan

It is the duty of a sales manager in every organisation to get the best results from each of his sales
executives. To motivate employees, organizations use a number of different tools, some financial
while others non financial in nature.

All these tools put together constitute a Sales Compensation Plan.


Elements of a Sales Compensation plan can be classified into - Fixed,
Variable / Incentive based, Expense Allowance / Reimbursement &
Fringe Benefits.

Secure Income - The plan should provide a living wage preferably in the form of a secure
income.
Fit with the overall scheme of things - The Compensation plan should fit in with the
organization's overall motivational programme. There should not be any conflict between other
motivational factors such as the intangible feeling of belonging with the overall sales team.

Fair - Plan should be based on equal pay for equal work (performance). Sales personnel should not
be penalised for factors beyond their control.

Simplicity - A compensation plan should be simple to understand and follow so that Sales Executives can
calculate their own earnings.

Adjustments - A sales compensation plan should adjust to changes in performance, as and


when that happens.

Economical - Lastly, the compensation plan should be economical to administer and should
support the overall objectives of an organisation.

b) Quantitative Performance Standard

Some of the quantitative standards against which performance can be measured are:

1. Time standards:

The goal will be set on the basis of time lapse in performing a particular task. It could be units
produced per hour, number of pages typed per hour or number of telephone calls made per day.
Managers utilize time standards to forecast work flow and employee output. Standard employee
output also determines the extent of financial incentive plan.

2. Cost standards:

These standards indicate the financial expenditure involved per unit of activity. These could be
material cost per unit, cost per person, and cost of distribution per unit and so on. Budgets are
established to reflect these costs and they provide monetary check-points for comparing actual costs
with budgeted costs.

3. Income standards:

These relate to financial rewards received for a particular activity. Examples would be sales volumes
per month, sales generated by a sales person per year and so on.

4. Market share standards:

This goal would be oriented towards the percentage of the total market that a company wants to
retain or further acquire. For example, a company may want to increase its share of the market by
four percentage points per year for the next five years.
5. Quality standards:

These standards express levels of quality expected of a product or service. There are quality control
programs which monitor the level of quality of a product. These may be tolerances within which the
quality may be accepted. For example, the space shuttle and aircraft manufacturers have zero-defect
production requirement while other products may have less stringent quality standards.

6. Productivity:

Productivity or quantity standards are expressed in numerical terms as the expected number of items
produced per man hour or per given activity. These goals are the key to operational efficiency and
are set on the basis of past performance, degree of mechanization, employee skills and training
required and motivation of employees.

7. Return on investment (ROI):

Return on investment is comprehensive and useful standard as it involves all facets of the business
such as turnover, sales, working capital, invested capital; inventory levels at given times, production
costs, marketing costs and so on. It is a ratio of net income to invested capital. It is superior to
market share as a standard because a large market share does not necessarily mean higher profits.

8. Quantitative personnel standards:

The worker morale and dedication can be measured to some degree by some quantitative standards.
These standards may be the extent of employee turnover, number of work related accidents,
absenteeism, number of grievances, quality of performance and so on.

C) The emergence of global retailing:

The growth of international retailing business has been a field of study by the academic researchers
for the past four decades. Various academicians like Alexander and Kacker have been trying to
understand the factors that led to the development of internationalisation of retail business since
1990s. By international retailing we are referring to both the two major categories of international
grocery retailing as well as fashion retailing segments.

One school of thought has established the factors that have encouraged the companies to look
at foreign shores for expansion of their business. The factors identified include Unique Ownership
advantages where in proven brand, specific and unique style as well as factors like trademark
ownership on fashion design and brands etc can push the Company to make use of the situation and
extend its business into new markets {in the absence of new and increased opportunities in domestic
market} and thereby gain from increased business activity. Alternatively location specific
advantages in terms of attractiveness of the foreign markets as well as supplier base is said to induce
the retailers to consider setting up international operations.

Yet another group has studied the development of international retail wherein European Companies
made their entry into American markets and built successful businesses. Accordingly it has been said
that a host of pull and push factors have lead to the internationalisation of retailing. The lack of
growth in the domestic market and the new opportunities in growing markets abroad pushed the
European especially British firms establishing operations in American markets. The domestic market
in Europe being under Government control and regulation did not provide sufficient opportunity for
growth while the American socio-economic climate was conducive for phenomenal growth in the
retail sector.

Despite several viewpoints being put forth by the researchers, the growth of the major
international retailers like Wal-Mart, Carrefour, Ahold and Tesco seem to point out to the fact
that the internationalisation of business was a part of strategic initiatives taken by the
Companies and not necessarily a turn of events that pushed them to look abroad for their
business survival.

Internationalisation of retailing business is not as easy to set up when compared to the other kinds of
businesses. Internationalisation of operations which is the most important aspect of the business is
faced with several challenges in terms of local socio economic environment coupled with political
and lifestyle as well as cultural environments in the foreign markets. The international retailers have
had to understand the local dynamics and respond to the challenges in a bid to be successful.
Therefore it may also be said that internationalisation of retailing grew with experience and the
process of internationalisation evolved over a few decades.

International retailers in the initial stages have chosen to expand and set up business in the foreign
markets which are geographically closer and in the neighborhood. Over the period of a few years,
they have understood the market dynamics and the challenges and accordingly developed market
intelligence as well as the processes and operational methods suited for foreign operations. These
then have been internalised and helped the Companies develop an international operations strategy
and understanding that enabled them to make entries into culturally diverse and geographically
distant markets. With time and experience the Companies gained experience and expertise which
gave them the confidence to explore unchartered territories and set up business operations. Another
point to be noted is that the internationalisation of retailing turned out to be the long term and
strategic direction that these companies chose to take. Internationalising therefore became a part of
the engine that fuelled future direction and growth of business for most of the successful
international retailers.

d) Planning Sales Training Programs:


Sales training programs are the backbones of the sales force. Without a thorough program, your sales
team will be unprepared, confused, and unsuccessful. When a new hire goes through the pre-
screening interviews, gets hired, and goes out to a celebratory dinner, the last thing they expect is to
go in on the first day and sit in human resources for 8 hours. Then they are told to go over product
catalogues and manufacturing information. Many new hires spend the first few weeks caught up in
tasks that take the wind out of their sails at one of the most critical points in the training process.
In order to maintain that enthusiasm and motivation, companies should have a formal arrangement
for every new hire. Here are some tips for setting up a sales training program at your company:

1. Expedite the paperwork


Instead of boring your new salesperson and wasting an entire day of work, send all of the
paperwork to the new employee two weeks before they start and let them complete it at
home. Many times, the spouse helps them fill it out and they have to make important
decisions about medical, dental, 401K, and other benefits that they are better prepared for at
home. This information is not confidential, so sending it out early only helps you both save
time and energy. On their first day, they can turn in the paperwork to the HR department and
then get right to work.
2. Make Sales Reps prove value from their very first day
Remember that every person brings all of their background onto the jobsite. Start a contest
for new hires that utilizes who they know for your companys benefit. For example, maybe
they have a cousin who works for an IT company that you have been trying to get your
salespeople into. If they provide a name and the company successfully closes a deal with
because of that contact, the new sales rep should be rewarded. Encourage them to step
outside of their job description and seize every opportunity possible to benefit increased
revenues for the company.
3. Take the load off
The Sales Manager should not have to do all the day-to-day sales training and it shouldnt all
be done in a classroom. That will take the enthusiasm out of your new hire, as well. Training
should be a company effort where every department shares in the load. Let the product
development team teach about the products. Let the maintenance department explain the
strengths and weaknesses of the product. Clarify the roles that are imperative to the success
of a sales person and make them available during training the first week they are onboard.
4. Rep to rep training
Let the other, more experienced sales reps share in the training. They can help the new hire
train on unfamiliar software, take them out on some calls, take them to lunch with the CEO,
and introduce them to key internal personnel. It is also important to go on a few key external
sales calls with several different sales reps to get the sales pitch down during the first week.
5. Mentoring your way to success
Personalities are unique and different, so it is critical to let your new hires choose their
mentor. To ensure success for your reps, pre-approve some experienced, qualified sales reps
and make sure they are up to the task. Make it clear that mentors are chosen on the basis of
their skills and success. Or give them monetary rewards. Mentoring should be a positive
experience for both teacher and student.
6. Create a competitive atmosphere for new hires to grow in
In uncertain economic times like these, many sales reps worry about helping new hires
because they make them look bad if they are very successful. To eliminate this competitive
attitude, put the mentoring in the context of team competition. "My trainee will beat your
trainee" is a great way to transfer knowledge from mentor to mentee. This both motivates and
teaches because reps tend to begin sharing secrets they would not normally have divulged.
And the company is the big winner because they are growing their sales reps quickly.
7. Build tactical teams
Sales reps shouldnt be left alone to prosper; they should have support teams. These teams
are comprised of people who help them get their job done who work well together, are
always helpful, and get things done quickly. For example, a realtors tactical team might be
comprised of a title company, a mortgage company, an appraisal company, and a termite
inspection company. In IT, the team may include a project manager, product development
specialist, and a technical operator. Let the sales reps pick their teams to make sure that the
team works well together. Now your reps are ready to start making serious sales
presentations.
8. Create a 90-Day Action Plan
Have your new hires put together a plan for the first 90 days after they are hired. Help them
fine tune their ideas so that they meet the companys needs, are properly prioritized, and set
realistic goals. For an example of a 90-Day Action plan, visit my website listed below.
9. Keeping Track
All new sales hires should learn what documents are needed to track their activities (sales
calls, demonstrations, proposals), commissions, and forecasts. The first week they should
start to utilize this practice. Someone should be assigned to proof read their first proposal
prior to presentation to the customer. Weekly sales conferences or one-on-one meetings with
their manager, is essential for the new hire to get off the ground very quickly.

These ten steps should help every new hire get off to a great start. And, your company will
immediately have productive members of the sales team rather than struggling reps. Keep their
excitement and enthusiasm high and your sales team will really soar.

e) Sales Quotas and Sales Territories.

Sales Quotas: A quota, or sales goal, is a set amount of selling that a salesperson is expected to meet
over a given time frame. Nearly all companies set quotas for their salespeople, as a quota both
ensures that a salesperson knows what is expected of him and is the easiest way to determine what
commissions are due for that salesperson.

While quotas are widespread in the sales industry, the form they take can vary considerably from
company to company. A small business with a handful of salespeople and one or two products to sell
will probably set a very simple quota for example, the goal might be for each salesperson to sell
$100,000 worth of products per calendar quarter. On the other hand, a large company with thousands
of sales reps and many different products or services may set a very complex quota consisting of
different targets for different products 100 units of product A, 50 units of service B, $1,000 worth
of add-on services such as warranties, and so on. In the case of a large company with offices spread
out over a wide geographic area, goals for each office will probably differ based on their perceived
potential. In other words, an office that traditionally makes a lot of sales and has lots of market
potential will have higher goals for its salespeople than one in an area with few potential customers.

Sales Territories: A sales territory is the customer group or geographic district for which an individual
salesperson or sales team holds responsibility. Territories can be defined on the basis of geography, sales
potential, history, or a combination of factors. Companies strive to balance their territories because this can
reduce costs and increase sales.
6. Explain Merchandise Planning and Control with the help of suitable
examples.

Merchandise planning and control systems can play a key role in increasing profitability, but how
do you cut through the hype to find out if they are right for you? John Hobson, Managing Director
of The Planning Factory looks at some of the key issues. This article was originally published in
1996 and was used as a source for the Financial Times Retail & Consumer publication
"Merchandising & Buying Strategies" in 1999. It was last updated in July 2008. Very little has
changed!

Merchandise planning systems have enjoyed a very high profile in the retail industry for some time
now. If you are contemplating implementing a planning system the first thing that you will have to
do is to make a business case for the project. Systems vendors have invested a great deal of time and
money in persuading retailers, quite rightly, that effective planning can have a pivotal effect on
bottom line profitability.

You should normally expect a Merchandise Planning System to be capable of providing a large
subset of the following:

pre-season analysis
normalisation of base data
plan seeding
strategic planning (3-5 year time horizon)
channel planning
category level plan
range planning
store grading
assortment planning
line level planning
store layout design (numeric and visual)
in-season control and re-forecasting.

Some systems on the market are focussed on the numeric side of planning and some concentrate on
the visual, qualitative side. It would be unusual to find a single system that encompassed the entire
list shown above.

Each module will consist of a set of inputs, processes and outputs. The overall process is linear, but
it is important that it should also be able to be re-iterated and the new results rolled downstream
through the system.
For example, let us assume that we are generating a seasonal value budget and that we are a 100
branch retailer with 100 categories. If we plan at an all branch total level we will have 100 category
plans to review. If we take the plan to individual branch level we will have 10,000 category/ branch
plans to review. A halfway house here would be to provide a mechanism for clustering branches
with similar performance profiles and then dealing with these together.

To some extent, however, the scope will be defined by the planning process that you select. If you
wish to plan using space by branch, then you will obviously have to maintain and store base data and
plan at an individual branch level. If your strategy is served well by your creating a seasonal budget
at an all branch level by category, then there is little to be gained by including gratuitous branch
detail.

You will also have to accept that there are certain factors that will always be outside your control.
These would include the economy, distortions in weather patterns and competitive activity. The fact
that these variables can have a strong influence on actual performance is a powerful argument for
coming to a realistic compromise relating to the level of detail at which you plan. After all, the one
thing that we can be certain of is that your plans will have variances to actual performance!

Regardless of the levels that you select you are going to be planning at a summary level. Even plans
at style/colour/size level are summaries of individual transactions. This means that you will have to
bring data into the system and store it at the same summary level to avoid having to recalculate the
values every time you bring them up onto a screen.

The main message here is that every time you increase the detail in your plan, you vastly increase
the amount of effort required to create the plan in the first place and then to keep it up to date. This is
a point we should bear in mind when we are looking in detail at the elements of a planning system.
The main elements of a planning system Preseason analysis

Analysis is often seen as a separate activity, but in reality it is the foundation on which effective
planning is based. Most systems will offer some form of category level analysis in the form of views
of actual data as it gets imported into the system. At a simple level, pre-season analysis can consist
of reviewing these actuals before the planning process begins.

However, in order to create effective strategies, you really need to get involved in micro analysis.
This is typically down at the SKU, Store, Week level and ideally should make use of attributes for
both products and stores to allow meaningful summaries of the data. For example we might want to
look at summaries within a category by supplier in concession stores (shop in shops).

Case Study

HIRING THE RIGHT PERSON

Andrew Pharmaceutical Limited was engaged in formulations and some bulk drugs
and had its factory and head office in Bangalore. The company has grown at
thirty per cent for the last three years and had a turnover of Rs. 26 c(ores
last year. The company employed 25 managerial and 150 non-managerial staff at
their factory located at Bangalore. A, sales force oI 65 sales representatives
was managed by 16 district sales managers, further reporting to five regional
managers of regional offices located in Delhi, Mumbai, Calcutta, Hyderabad and
Indore.

However, a sudden rise in the number of sales force created problems regarding
monitoring, coordination and administration of sales representatives, stockists
and dealers. A need was felt to revamp the system as the marketing director was
unable to handle the overall marketing function. It was felt that the general
management cadre must be introduced to take charge so that the marketing
director will be free to concentrate on the strategic and development
activities.

A high level meeting of directors discussed the issues and a decision was taken
to introduce general manager-marketing, and personnel department was asked to
initiate the process and one Mr. Ravi Saxena was chosen for the new position.
Mr. Ravi Saxena had a decade of managerial experience in marketing and product
development though his direct sales experience was negligible. However his
planning and execution skills were good and thus he was considered the best
option for developing systems of market information, dealer and representative
relations etc. His profile, as briefed io him by Marketing Director, Chandra
Mohan, included management of sales and distribution and product development.
Ravi made a six monthly plan and started the work and initiated an extensive
communication with dealers, stockists and representatives for an effective
market information system. Within six month's time, however, things began to
worsen at the marketing department. The interaction between Marketing Director
and Mr. Ravi Saxena was minimum and often ended in confrontations. Mr. Ravi
Saxena had in the past six months tried unsuccessfully to change some policies
and systems related to payments and training dealers and sales representatives.
Every time he proposed any such change, it was rejected by Chandra on the plea
that the systems had worked well in the past and hence no change is required. On
the other hand Mr. Ravi Saxena felt that he cannot be held responsible for
results, when he has no power or authority to improve the system. As a result of
such a conflict Mr. Ravi Saxena began

to withdraw from making plans, meetings were conducted with customary


interaction amongst two seniors and thus created an environment of confusion and
uncertainty for managers and representatives. M r. Ravi Saxena gradually became
more defensive as the initial work done on market information system also
suffered. In spite of lack of support from Mr. Chandra, Mr. Ravi Saxena made
significant improvements in the area of training for sales staff and product
development. The product launches, promotion and literature improved
considerably in quality and the regular training improved the motivation of
sales staff all around the five regions. The regional managers and sales people,
very subtly began to appreciate his efforts and he enjoyed a good rapport with
his people.

Mr. Chandra Mohan, however, was convinced that delays in decisions and
inadequate control of sales force were becoming major issues and blamed Mr. Ravi
Saxena for this, but he decided not to communicate with Mr. Chandra. As the time
passed, their 'relations worsened.

A regional manager created some troubles in the meantime. Mr. Ravi Saxena
insisted that some action against the manager will put forth the company's stand
but Chandra didn't care. As a result everything went out of control, the
coordination collapsed and fake medicines were recovered from a stockist in a
police raid. Later, an enquiry revealed that the regional manager in connivance
with a rival company had done some activities which led to the fake medicines
racket.

The company suffered a loss of name and its credibility in the market. The
Managing Director, Subhash Jain was anguished and ordered sacking of the
regional manager and also demanded explanation on how things went this far.

Q1: What are the major issues in this case?

Some of the major issues of this case are as follows:


1. a sudden rise in the number of sales force created problems regarding monitoring,
coordination and administration of sales representatives, stockists and dealers.
2. Mr. Ravi Saxena was chosen for the new position. He had a decade of managerial
experience in marketing and product development but his direct sales experience was
not there.
3. No proper allocation of power & authority.
lack of support between the two.
Q2: What reasons led to a conflict between Mr. Ravi Saxena and the Marketing
Director Mr. Chandra Mohan? Did these conflicts arise due to unclear policies of
the company?

Reasons led to a conflict between Mr. Ravi Saxena and the Marketing Director Mr. Chandra Mohan
are as follows:

1. Disagreement about strategy


2. Disagreement about execution
3. Diverse perspectives
4. Lack of focus
5. Unclear objectives
6. Poor planning
7. Dissatisfaction
Not completely, but yes to an extent these conflicts arise due to unclear policies of the company.
Q3: How can the conflict in these two positions be minimized? Give your
recommendations.

The conflict in these two positions can be minimized using the following ways:

1. Avoidance conflict style

Characterized by changing of or avoiding the topic, joking or even denying a problem exists. Conflict
avoidance style is used when an individual has no interest in dealing with the other party, when one
is uncomfortable with conflict and oftentimes because of cultural contexts. For example in Chinese
culture reasons for avoidance would be to sustain a good mood, to protect the avoider and because
of philosophical and spiritual reason (Feng and Wilson 2011). During conflict, these avoiders adopt a
wait and see attitude, often allowing conflict to phase out on its own without any personal
involvement (Bayazit & Mannix, 2003). Unfortunately, by neglecting to address high-conflict
situations, avoiders risk allowing problems to fester out of control.
2. Yielding conflict style

In contrast, yielding or accommodating conflict styles are characterized by a high concern for
others while having a low concern for ones own self. This passive pro-social approach emerges
when individuals derive personal satisfaction from meeting the needs of others and have a general
concern for maintaining stable, positive social relationships. When faced with conflict, individuals
with a yielding conflict style tend to give into others demands out of respect for the social
relationship

3. Competitive conflict style

Competitive or fighting conflict style maximizes individual assertiveness (i.e., concern for self) and
minimizes empathy (i.e., concern for others). Groups consisting of competitive members generally
enjoy seeking domination over others, and typically see conflict as a win or lose predicament.
Fighters tend to force others to accept their personal views by employing competitive, power tactics
(e.g., argue; insult; accuse; violence) that foster feelings of intimidation (Morrill, 1995).

4. Cooperation conflict style

Characterized by an active concern for both pro-social and pro-self behavior, cooperation conflict
style is typically used when an individual has elevated interests in their own outcomes as well as in
the outcomes of others. During conflict, cooperators collaborate with others in an effort to find an
amicable solution that satisfies all parties involved in the conflict. Individuals with this type of
conflict style tend to be highly assertive and highly empathetic at the same time. By seeing conflict
as a creative opportunity, collaborators willingly invest time and resources into finding a win-win
solution. According to the literature on conflict resolution, a cooperative conflict resolution style is
recommended above all others (Sternberg & Dobson, 1987; Jarboe & Witteman, 1996)

5. Conciliation conflict style

Conciliation or compromising conflict style is typical of individuals who possess an intermediate-level of


concern for both personal and others outcomes. Compromisers value fairness and, in doing so, anticipate
mutual give-and-take interactions. By accepting some demands put forth by others, compromisers believe
this agreeableness will encourage others to meet half-way, thus promoting conflict resolution (van de Vliert
& Euwema, 1994). This conflict style can be considered an extension of both yielding and cooperative
strategies.
MCQs

Question: 1
.. is not a part of order winners?
A: price
B: quality
C: delivery lead time
D: layout of the factory
Question: 2
Is not the element of quality concept?
A: Quality of service
B: quality of people
C: Quality of process
D: storage of materials
Question: 3
A company's channel decisions directly affect every..
A: marketing decision
B: channel member
C: customer choices
D: employee in the channel
Question: 4
A proprietary items is manufactured / supplied by ..
A: a manufacturer with in the country
B: many manufactures
C: only one manufacturer
D: a high quality manufacturer
Question: 5
Benchmarking does not helps in
A: Identify the key criteria important to a particular market sector
B: Evaluate importance of each factor
C: Score the companies and sector as a whole to identify the performance gap
D: Defining the shape of the product
Question: 6
Benchmarking does not helps us
A: To know our competitors better
B: Become proactive
C: Improve performance
D: In identification of source of supply
Question: 7
Cash purchasing is usually done for:
A: High value items
B: Items of high consumption during the year.
C: Small value items
D: Proprietary items
Question: 8
Comparative statement is necessary for selecting a vendor
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 9
Customer is the destination point in a supply chain
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 10
Deming's 4 step cycle for improvement is:
A: Plan, Do, Check, Act
B: Schedule, Do, Act, Check
C: Do, Act, Check, Monitor
D: Plan, control, act, sustain
Question: 11
Distribution channel is not related to:
A: Retailers
B: Wholesalers
C: Manufacturers
D: Recruitment agency
Question: 12
Which is not a part of delivery scheme?
A: direct shipment
B: pool point shipping
C: cross docking
D: fabricating
Question: 13
Distribution channel is not required for
A: Plant and machinery
B: Spare parts
C: Consumables
D: Strategy announcement
Question: 14
Distributor is the destination point in a supply chain
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect

Question: 15
EDI stands for:
A: Intensive distribution information
B: Electronic Distribution Interchange
C: Electronic Data Interchange
D: Electric Data Interchange

Question: 16
Integration of processes through the supply chain to share valuable information
does not include ..
A: demand signals
B: product development cost
C: inventory
D: potential collaboration

Question: 17
Five phases of benchmarking methodology may be scheduled as
A: Planning-analysis-integration-action-maturity
B: Planning-integration analysis-action-maturity
C: Planning-integration-action-analysis-maturity
D: Planning-analysis-action-integration-maturity

Question: 18
For economic transportation of materials use .
A: rail services
B: truck service
C: air transport
D: inter-modal transportation method

Question: 19
What is the limitation of e-purchasing?
A: Lower transaction cost
B: leveraging of prices
C: quality check of the item not possible before delivery.
D: Facilitates supplier selection.

Question: 20
In pull strategy, the flow of demand is ..
A: Customer to channel members
B: Producer to customer
C: Retailer to customers
D: Wholesaler to customer

Question: 21
In push strategy, flow of promotion is not linked to .
A: Personal selling to channel members
B: Advertising directing to customers
C: Direct marketing to consumers
D: Customer approaching the producer

Question: 22
Intermediaries transform the assortment of products made by producers into the
assortment of products wanted by ..
A: distributers
B: channel members
C: consumers
D: manufacturers

Question: 23
JIT
A: Just In Time
B: Joint Indian Tournment
C: Joint International Teretory
D: Japanese International Team

Question: 24
JIT brings reduction in ..
A: machinery
B: tools
C: inventory
D: inspection

Question: 25
Large quantity orders are placed for .
A: Standard items
B: Non-standard items
C: Items where technology changes very fast
D: High value items

Question: 26
Logistics Management is not concerned with .
A: Making drawings
B: transportation of materials from supplier to firm
C: storage of materials in warehouse
D: transforming the purchased materials into finished goods

Question: 27
Manufacturer is the destination point in a supply chain
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect

Question: 28
MIS stands for ..
A: Management Information System
B: Master in Science
C: Master Information System
D: Materials in Stores

Question: 29
Mode of transportation of material depends upon ..
A: manpower employed
B: type of machine in the plant
C: production plans
D: types of material

Question: 30
Negotiations are important in purchasing a costly equipment
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect

Question: 31
Negotiations between buyer and supplier does not include the
A: Technical specifications
B: brand name of various bought out items
C: Commercial terms and conditions
D: R&D projects undergoing

Question: 32
Negotiations between buyer and supplier does not include the
A: Price quoted by the vendor
B: discounts
C: delivery schedule
D: design secretes of the product

Question: 33
Ordering standard items takes less time
A: incorrect
B: incorrect to a great extent
C: incorrect to some extent
D: correct

Question: 34
Procurement time is low in the procurement of .
A: Standard items
B: Non-standard items
C: Items of perishable nature
D: Items involving security risks

Question: 35
Products that sell for a very small period of time but generate huge sales
volume within a short period are called:
A: Seasonal merchandise
B: Fashion merchandise
C: Fad merchandise
D: Staple merchandise

Question: 36
Purchase and operations management are closely linked.
A: Correct
B: Correct to a great extent
C: Correct to some extent
D: Incorrect

Question: 37
Purchase order is an agreement between purchaser and supplier for purchase of an
item
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect

Question: 38
Purchase requisition is the first step for evaluation of suppliers
A: Correct
B: Partially correct
C: Correct to a great extent
D: Incorrect
Question: 39
Purchasing department does not handle:
A: order writing
B: evaluating the performance of the suppliers.
C: Planning the quantity to purchase
D: stock taking
Question: 40
Purchasing is necessary for
A: inventory costing
B: production planning
C: to arrange the items in time
D: finalize the system arrangement
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