Presentation
On
Management Control
System
Presented by -
Mahendra Dhenak – 17 ,
Amol Kulkarni – 40 ,
Rakesh Acharekar – 06 ,
Santosh Jaiswal – 59 ,
Amir Ansari - 36
Management Control System
In
Retail Management
Meaning of Retail Management
A Retail management is about departmental store retailing
and shopping mall retailing business.
It aimed at improving the performance of retail outlets.
Retail management involves running a store where
merchandise is sold
RM - is a process of facilitation.
Depending on the business , management can be conducted .
It is the way business is lead in the retail sector - with
retail being the delivery of goods and services to end user .
As a job sector, Retail Management offers positions with
names like Retail Store Manager, Retail Area Manager ,
Retail Assistant Store Manager.
India Retail Industry
India retail industry is the largest industry in India, with an
employment of around 8% .
A booming US$ 300 billion retail market in India
contributing to over 12 % of the country's GDP
5.5 retail outlets per 1000 population .
Top Retailers in India
• Shoppers' Stop
•Westside (Trent)
•Pantaloon (Big Bazaar)
•Lifestyle
•RPG Retail (Foodworld, Musicworld)
•Crossword
•Wills Lifestyle
•Globus
•Piramals( Pyramid & Crosswords)
•Ebony Retail Holdings Ltd.
Top Retailers in World
Retail Formats in
India
Meaning of Management control system
It is plan assuring that resources are obtained and used
effectively and efficiently in the accomplishment of the
organization's goals .
It include the plan of organization, methods and procedures
adopted by management to ensure that its goals are met .
Functions of Management control system in
Retail Management
Sales generation
Division of responsibility
Hiring, training and development
Visual merchandising and inventory control
Responsibility Centres in Retail Management
A responsibility centre is an unit that is headed by
store manage who is responsible for its activities.
A responsibility centre is an autonomies business unit
for which a manager is responsible for Cost, Revenue
and Aquisation and disposals of an assets.
A well-designed responsibility accounting system
should clearly define responsibility centers in order to
collect and report revenue and cost information by
areas of responsibility
The responsibility centres may be classified as
A -Revenue Centres
B- Expense Centres
I - Profit Centres
II - Investment Centres
A -Revenue Centres
a responsibility center for which a manager is accountable only
for the generation of revenues and has no control over setting
selling prices, or budgeting or incurring costs.
The main focus of management control system will be on
revenue generated by it.
Distinctly identifiable department, division, or unit of a firm that
generates revenue through saleof goods and/or services.
B- Expense Centres
Alternative term for cost center.
It is the lowest level of responsibility centre in an organization .
A cost center is part of store that does not produce direct profit
and adds to the cost of running a company. Examples of cost
centers include research and development departments, marketing
departments, help desks and customer service.
Total performance of store manager depends on how effectively
and efficiently an expense centre is operated
I- Profit Centres
A store or department which is treated as a distinct entity enabling
revenues and expenses to be determined so that profitability can be
measured.
A profit centre is an organizational unit responsible for both
revenues and costs.
Profit centre’s performance measured in terms of profit.
It enhances profit consciousness
II- Investment Center
An investment centre is responsible for the production,
marketing and investment in the assets employed in the
dept.
Department or an area of responsibility, where a manager
controls revenues and associatedcosts, assets, and liabilities
. His or her performance is assessed largely on the basis of
return on investment (ROI) achieved .
store manager responsible for profit in relation to amounts
invested in the division.
AUDITING in Retail Management
Audit is the activity of examination and verification of
records and other evidence by an individual or a body of
persons so as to confirm whether these records and
evidence present a true and fair picture of whatever they
are supposed to reflect. Audits are most commonly used
in the accounting and finance functions .
Transfer Pricing in Retail Management
A transfer is referred to the movement of goods from a store
to another, within the same company.
deciding on the price of goods or services that are exchanged
between various store of a decentralized organization .
The technique of transfer pricing plays an important role in
the smooth functioning of responsibility structures in such
store
References
www.indiainfoline.com
www.google.com
Book on Retail Management
Book on Management Control System
Indian Retail report
