Case Study 01

ABC Pvt. Ltd.

Prepared by: Arun Mishra, Assistant Professor, VNS Business School, Bhopal

INTRODUCTION
ABC Pvt. Ltd. is a renowned company in India known for its water purifiers and cleaning equipments. The
company is having pan India branch network presence, this branch network is used for providing installation
facilities, after sales services, handling customer queries/complaints and awareness & sales of various products
of the company. The products like water purifier and vacuum cleaner are well established products but the price
of the products is comparatively higher than from the competitors products. Company is not having any
dealer/retailer network for making the product available to its customers. It only sells its products through its
sales force available at every branch HQ. To ensure the maximum coverage of the market, the company has
established its branches on every district HQs of the country.

THE ORGANISATIONAL STRUCTURE OF THE BRANCH

Branch
Manager

Office
Executive
(Counsellor)

Service Sales Sales Sales

Engineer Executive 1 Executive 2 Executive 3
The Sales Executives are responsible to make calls to the prospective customers and generate sales. Service
Engineer is responsible for Installation and services of the products. The Office Executive/Counsellor (Female)
is the front desk officer responsible for handling the walk-ins, telephonic calls, queries and record maintenance
of the branch and assisting the branch manager in day-to-day operations. The Branch Manager is responsible for
overall operations and performance of the branch and he reports to Area Manager situated as Area HQs. For
day-to-day expanses of the branch the Branch Manager is provided with patty cash on monthly basis and he is
required to submit the accounting report to the Head Office on monthly basis.

ISSUE AT DAMOH BRANCH

In the year 2012 company inaugurated the branch office at Damoh in M.P. Since its inception the branch
performance was up to the mark and branch was running in profit. After 1 year the Branch Manager Mr.
Prakash resigned as he got another opportunity with higher position and pay. After 3 months one executive and
the Office Executive also resigned due to some personal reasons. Now the branch is only having 1 sales
executive named Manish Singh Rajput and a Service Engineer named Vishal Hunka. After 1 year non
performance of the Branch the management decided to promote a sales officer from other branch and appoint
him as branch manager of Damoh Branch.

The new Branch Manager Mr. Ashok Shrivastava when joined Damoh branch he noticed the branch expanses
including salary and overheads are Approx. 1.20 Lacs and the branch business is Zero since 6 months. After
detailed analysis he learned that Manish is the non performer since his joining. His Salary is Rs. 12000/- PM
and he receives conveyance exp. of Rs. 1500/- PM. Since his joining till date he has only generated the business
of Rs. 22000/- for the branch that to 6 months back.