Organizational Structure

Organizational Hierarchy
Managing
Director

Markeitng &
Operations

Area Sales
Manager

Field Force

Accounting
Manger

MIS

HR Manager

Distribution Setup - Chennai

Manufacturers

Warehouse

Distributors

Retailers

Hotels

Wholesale

Distribution Setup Upcountry TN

Manufacturers

Warehouse

Superstockist

Distributors

Retailers

Hotels

Wholesale

MM Agro Effectiveness
Sales Analysis

Cost Analysis

MM Agro
Effectiveness

Profitability Analysis

Productivity Analysis

Why Effectiveness
To grow rapidly
To perform better
Can be measured 4 scales
1. Sales Analysis
2. Cost Analysis
3. Profitability Analysis
4. Productivity Analysis

Sales Analysis
Effective sales tracking information system has
to present
What is sale Order that has been shipped
Sale is measured Volume sold
Sales analysis can be done on 3 basis:
1. Organization level of analysis
2. Type of sales
3. Type of analysis

Sales Analysis
Sales
Analysis

Organization
level of
analysis

Type of sales

Sales organization

Total Sales

Zones

Type of product sales

Comparison with in the

organization

Regions

Type of account sales

Comparison with forecasts

Districts

Type of distribution sales

Order size sales

Comparison with sales quotes

Territories
Accounts

Type of
Analysis

Comparison with previous period

Comparison with competitors

Organization level of analysis

Two basic reasons : 1.For evaluating sales

2.For Control purpose
To assess the sales effectiveness of the region and
sales contribution
To identify problem areas
Types of sales : 1. Product type or specific product
2. Account type or specific account
3. Type of distribution
4. Order size

Types of sales
1.
2.
3.
4.

Product type or specific product

Account type or specific account
Type of distribution
Order size

The different types of sale analysis helps to detect and

Define problem areas in sales performance

Type of analysis
This is to focus on actual sales results
Analysis has to be done based on
1. Comparison with in the company
2. Comparison with forecasts
3. Comparison with sales quotes
4. Comparison with previous period
5. Comparison with competitors

Cost analysis
To assess the costs incurred to generate the
achieved level of sales.
To compare the cost incurred with planned
cost as defined by selling budgets
To determine the lowest expenditure level
necessary to achieve the sales quotas
Cost analysis

% of sales
method

Objective and
task method

Cost analysis
Percentage of sales method calculates an
expenditure level for each category by
multiplying an expenditure percentage times
forecasted sales
Objective and task method is a type of zero
based budgeting. In this method a separate
budget is prepared that stipulates the
objective to be achieved, the task required to
achieve these objective and costs associated
with performing the necessary tasks.

Profitability analysis
Profitability
analysis
Full Cost
approach

Contribution
approach

Profitability analysis is done by income

statement analysis
Difficulty in this analysis some costs are
shared between the organisation level or sales
types

Profitability analysis
Full cost approach attempts the shared costs
to individual type of cost allocation procedure.
This results in a net profit figure for each unit

The contribution approach is different in that

only the direct costs are included. The net
contribution calculated from this approach
represents the profit contribution of the unit
being analysed. The profit contribution must
be sufficient to cover the indirect costs and
overhead and to provide net profit for the
firm.

Productive analysis
It is the ratio between inputs and outputs
Provides useful evaluative and diagnostic
information
Advantage of productivity ratio is that they
can be compared directly across the entire
organisation and with other sales organisation
The input unit is sales person
The output unit is particular sales situation
like sales, expenses, calls, demonstrations and
proposals

Productive analysis
Productivity
improvement
Increase output
with same level
of input

Maintain the
same level

Will begin the show

Sell with goodness!