SDM CASES

TOTAL TO BE PRESENTED :7

CASE 1: EVALUATE SALES PERFORMANCE HARI AND RAM*#

CASE 2: PI FOODS$/

CASE 3: HARIHARA*

CASE4: O BRIEN *#

CASE 5: PANTALOONS/

CASE 6:HURRICANE$ /

CASE 7: MONITOR AND REVIEW*#

CASE 8:ABBON SALES

CASE 1:O’BRIEN

Facts of the case:

 O brien s company is a firm that manufactures and sells wide range of luggage which mainly
consists of two different segments I,e: consumer and industrial. Consumer division is handled by
retail markets and direct selling is used for the industry
 Has two range or executive brief cases with variying features and prices
 company derived policy for discounts based on quantity of sale made
 potential customer is MR bRain forbes who is the managing director of a medium sized
erringeering company has staff around 60 people
 Acquaintance of us works for a machine tool company visited by mr forbes earlier this year.

PPT REF:PUT FACTS AS IT IS

Q1 What are your sales objectives? What extra information would be useful

Ans: The main objective for a sales person that is appointed to deal with industrial accounts would
be to make Mr Forbes and his company a key customer of the o brien company ensuring they will
buy executive briefcases for their employees and be a long term consumer.
PPT REF: ONLY PUT THE MAIN OBJECTIVE TO MAKE MR FROBES A CUSTOMER AND
ALSO IF POSSIBLE A LONG TERM ACCOUNT
Other objectives :
1. To sell atleast over 70 suitcases to mr forbes
2. To reduce selling expenses and cost
3. To sell more of deulex version suitcases since more profitable
4. To best align our company suitcases with mr forbes business ‘
5. To gather more business accounts
6. Increase the sales numbers for this year

PPT REF- OBJECTIVES AS IT IS

Additional information that could be used is

1. By the acquaintance who worked as a salesperson before in dealing with mr forbes, getting
information on what kind of a customer is mr forbes how does he deal with prospective sellers
will be really crucial and help us as sales managers to present and position our product to
persuade them.
2. Other information required could be the company structure of mr forbes, employee relation
their mission and vision so we can align our product to math their business and also understand
their needs to customize the luggages
3. Their previous supplier of luggages and related information

PPT REF- SHORTEN THE FIRST AND SECOND POINT IF POSSIBLE

Q2. Prepare a sales presentation for the brief cases

Ans: versions features

PPT REF- JUST TWO SKETCHES COPY PASTE FEATURES FROM CASE TO THIS DOCUMENT

Q3:Prepare a list of possible objections and your responses to them?

Ans:

1. WHY CHOSE YOUR BRAND SUITCASES?

Ans: ans flexibility of product customization, experience in the field and discount provided also
the quality of the suitcases along with companies mission and record of prev performance

2. Can we trust the quality?

Ans:Demonstrate the suitcases and also provide after sale services

3. Any more discounts or offers

Will state the discount policy and provide warranties for around 5 yrs depending upon
purschase

4. Customization possible?
Ans yes

PPT REF- ONLY PUT QUESTIONS

Case 2:evaluate hari and ram

Facts:

 Shyam is a manager of the firm with sales potential of rs 5000000 per month with 5 sales ppl to
perform activites
 Relative ability index metrics calculated by shyam is give
1) Mohan-0.7
2) Sohan -0.8
3) Gopal -0.8
4) Hari- 1.0
5) Madhav-0.9

 Wieghtages for each selling activity given along with the performances of hari and ram

PPT REF-NO NEED TO PUT RELATIVE ABILITY TABLE

Q1. Effectively divide territory ensuring an optimal return. Why according to you is the method you have
selected the best method for territory allotment

Ans: To divide the territory that ensures a optimal return we can choose the breakdown method whose
objective is to equalize sales potential od territories.

It involves the following: first you estimate companys sales potential for total market

Forecast sales potential for control units

Estimate sales volume expected from each sales person

Develop final territory

*ANOTHER METHOD- BUILDUP

The reason for choosing this method is kind of data provided in the question. This method is best
suitable for such a data because it divides the territory on basis of sales potential
 The sales territory should be divided to 5 sales personal assuming equal potential of territories

5000000/5=1000000

Assuming we get 100% profit if met with the whole potential then

5000000-100

?-20 =1000000

This shows that choosing and dividing the territory according to this method would ensure us an optimal
return

As for assigning the territories to sales person, area or region filled with large accounts can be assigned
to hari who has high relative ability whereas the minor accounts can be assigned to mohan who has the
least relative ability

PPT REF- QUESTION AND THE KIND OF APPROACH WE ARE CHOSING AND TWO REASONS Y IS ENOUGH

Q2. Given the performance of Hari and Ram analyze the performance Using a point quota system and
state whose performance is better?

Ans: performance of hari

S.No Activity Quota/Month Actual Percent weight Percent

quota Quota
*e=weight
1 Selling 6500000 4500000 69.2 3 207.3

2 Market research 40 hrs 28 hrs 70.3 1 70

(Time to be spent
)
3 Customer 25 hrs 20 hrs 80 1 80
relationship
management
4 Calls to the 40 40 100 2 200
customers

TOTAL POINT SCORE= 557.6/7=79.6

 S.No Activity Quota/Month Actual Percent Weight Percent A
quota quota*weight
1 Selling Rs 385000 Rs 290000 75.32 3 225.9 R

2 Market research (Time 20 hrs 28hrs 140 1 140 2

to be spent)
3 Customer relationship 30 hrs 25hrs 83.3 1 83.3 2
management
4 Calls to the customers 50 35 70 2 140 3

Total point score= 589.2/7=84.17

According to the point score quota system the performance of ram is better compared to performance
of hari. However the quotas given to them differ, ram managed to meet his quotas well and close while
hari had more difference compared to ram.

PPT REF- ONLY PUT TABLES

CASE 3: MONITOR AND REVIEW CASE

Facts:

3.1 Below is a simple financial report detailing the actual and budgeted results given-

Line item Budget Actual

Revenue 25,000 24,650

Wages 5,000 6,200

Delivery expenses 1,500 1,600

Advertising 500 650

Sundry expenses 700 550

PPT REF- DIRECTLY PUT THE SOLUTION TABLES DON’T PUT THE QUESTION TABLE

1. Calculate horizontal and vertical variances. Take percentages to two decimals

 PPT REF- LEAVE ANALYSIS DON’T PUT IT IN PPT
2. Which item has the greatest unfavorable monetary variance?
Ans: According to the horizontal analysis wages has the most unfavorable variance
standing at 1200
3. Which item has the greatest unfavorable percentage variance?
Ans: According to the horizontal analysis in terms of percentage advertisement has the
greatest unfavorable variance by 30%
4. What areas would you investigate for improvement if your tolerance
limit was 22%?
Ans:if the limit was 22% then the areas that require further
investigation according to me would be wages and advertising which
stand at 24 and 30 percent respectively as unfavorable variances.
5. Suggest actions you may take on significant variances?
Ans: significant variances for us would be wages and advertising since the nature of these
two variances is internal firstly I will start with looking at the causes and take action to
manage deviation
Actions include :
Reviewing pay policy of workers and also measuring its efficiency
The cost of implementing such a policy
Staff morale and motivation and training costs
Also try and invest in machinery which would benefit in the long run
Advertising would mainly focus on cutting costs, evaluate advertising efficiency using
dagmar, cut advertising and promotion in low sales areas or territories, stick to basic ads
 6. On investigation, you discovered a new financial commitment for
advertising to the value of 80. What action do you need to take? How would
you communicate this change? Does the value of the variance change?
Ans:would include this commitment in the budget report, yes it effects the
value od variance changes since there will be a whole new budgeted figure
The purpose of the report is such so will add
7. What relevant information would you collect and record to assist
with future budget preparation?

Ans : info on wages pay policy etc also on advertising, any trends that would effect sales
should be considered. Will review the delivery channels and focus on cutting down daily
sundry expenses.

PPT REF- ONE WORD ANS FOR 2 3 4 QUESTIONS

SOME MATTER FOR 5

6 JUST YES IT IS INCLUDED AND EFFECTS IS ENOUGH

7 AS IT IS

Case 4: pi foods

Facts

Ramesh kulkarni manager of pi foods that deals with dairy products containing milk powder, ghee
chocolates and confectionery relies on distribution for making its products available. Which is taken care
by both retailers and its own sales force .

Has a set policy on visit frequency and sales territory which covers all types of retail stores.

Problems:

Sales people not visiting c and d

Effecting company sales and leadership position

Shortage of supply to distributors and poor forecasting

Class of stores Sales potential Rs per month Frequency of visit /wee

 D Class Less than 1000 units Once in 2 to 3 weeks

C Class 1000 to 2500 units Once in 2 weeks

B Class 2500 to 7500 1

A class More than 7500 2

Super A More than 15000 2 or 3

PPT REF-INCLUDE FACTS NOT PROBLEMS AND THE TABLE

Q1 Suggest Plan of actions to solve the problems

Increase frequencies of visits even for c and d and introduce stricter measures in terms of performance
evaluation

Set separate quotas for each class so that targets are meet which would help in performance evaluation

Track performance using technology though a cost but has benefits in long run

A super a can have direct distribution channel firms own retail outlet so focus can shift on b c d and
their improvement

Also include market research and give it some weightage for sales people performance evaluation

try to manage the transportation and logistics from warehouses to retailers

PPT REF- AS IT IS OR QUILL BOT

Q2 order of prioritizing issues and solving them: all the problems are interlinked

Poor forecasting :becuz forecasting kick starts the whole cycle of sales and selling process this should be
corrected first

Miss allocation of dispatches from warehouse to distributors due to lack of info

Shortage of supply

Sales people not attending c and d: due to lack of proper metrics and visit policy

Company losing leadership position : caused due to c and d ignorance considering how the products of
pi are fmcg they should be available everywhere and anywhere otherwise they have a high chance of
being replaced by competitors products which leads to reduction in market share

PPT REF- JUST ADD THE ORDER NO EXPLAINATION BESIDE

CASE5: PANTALOON PARADE

Facts:

Pantaloons a leading retail brand in india is facing attrition in some stores in bangalore

To counter the same they introduced a new hiring system.

The original hiring system had store manager recruit the retail sales staff,which is substantially the
cause for attrition

Baises and other malpractices could have existed.

Lack of proper job description and job analysis may also leadto attrition.

PPT REF- FACTS AS IT IS

Questions:

► Do You think Pantaloon Parade’s new hiring system is more reliable for recruiting qualified retail
sales force than the store manager’s method of interview and the paper and pencil method of
honesty test?

Ans: Yes its more reliable than sales managers radical hiring system in selecting qualified salesforce
because the new system eradicates stores managers bias and malpractices that might effect selection
process
 ► Is there a possibility that qualified people will be passed over by electronic screening process
WHY/WHY NOT

Ans: yes there is a possibility of qualified people passing the screening process but it should be
noted that this method is also prone to malpractices and cheating so it wont guarantee that
everyone who passes is qualified.

► Is it true that electronic screening is a better method to remove bias of the store manager and
stereo typing in the selection Process than the traditional method of personal interview?

Ans :Yes it is better method to remove the bias of the store manager compared to the radical
hiring system.

► How much has the electronic hiring system changed the role of the sales manager. Do You think
this change is better ??If so Why?

Ans: the role of the store manager drastically decreased in the electronic hiring system, as there
os a separate team dedicated to overlook the new hiring process which minimizes involvement .

Yes, the change is better as stated earlier it indirectly reduces the bias and stereotyping of the
managers.

PPT REF- QUESTIONS AS IT IS

CASE 6: HARIHARA sales effectiveness

GIVEN:

Column1 T1 RANK T2 RANK2 T3 RANK3 T4 RANK4

SALES 64 78 70 56
SALES QUOTA 66 75 67 45
104.477 124.444
%QUOTA 96.9697 4 104 3 6 2 4 1
PREVIOUS YEARS SALES 60 60 68 38
6.66666 2.94117 47.3684
%SALES DIFF 7 3 30 2 6 4 2 1
INDUSTRIAL SALES 250 240 230 135
30.4347 41.4814
%INDUSTRIAL SALES 25.6 4 32.5 2 8 3 8 1

Territory 4 is the best performing territory.

Territory 2 is the second best territory but requires corrective action in sales quota.

Followed by Territory 3 which showed very less improvement in previous years compared to this years
performance it should also improve its percent in industrial sales

Lastly territory 1 requires serious focus in both quota and industrial sales a little push in previous year
component will up its rank
PPT REF- ADD TABLE AND ALSO JUST RANK AS T4 1 ST

T2 SEC

T3 THIRD

T1 FOURTH EXPLANATION CAN BE DONE ORALLY

CASE 7: HURRICANE

Fact:

Hurricane performance bicycle company which is facing a loss of 160 000 dollars exclusively in its
Orlando branch.

The purpose of the case is to determine the exact possible reasons of losses

PPT REF- INSERT SC OF ADVERTISING

INSERT BY PRODUCT TABLE

Insert profitability analysis by sales person

Insert profitability analysis by tucker

Points to say presenting:pand l statement shows the highest expense after salaries is advertising so lets
talk abut that.