Академический Документы
Профессиональный Документы
Культура Документы
|
a) Improved Planning:
Action to be taken is described in
quantitative terms.
á
a) Improved Planning:
Action to be taken is described in quantitative terms.
b) Better coordination & communication:
All departments have budgets which give future course of
action ± interaction between departments.
Eg. Increased Sales Increased Production
Increased Finance Increased MIS /
HR
ë
Ñ
r
a) Sales Budget
[
r
a) Sales Budget
· Detailed Plan showing the Expected Sales for a
Future Period «.
· Developed based on expected revenue (S-
forecast)
· Gives sales by geographically location / product
service / sales people & customers
· First part of Master Budget; Usually forms the
basis for other operational budgets like finance &
production.
r
o
r
u
p
a) Affordability Method:
Management develops SB depending on
ability to spend on sales function;
usually fall short of sales dept¶s
requirements
b) Percentage of Sales Method:
Multiply sales revenue by a given %;
Sales revenue = Past revenue / forecasted
figure / weighted average of both
c) Competitive Parity:
Based on budgeted figure of competitors or
industry average; competitor comparable in
|
size and revenue is chosen
r
|
p
u Involvement & Support of Top Management
Support Budgeting & ensure all-round
participation; should not be viewed as a pressure
tactic but as an effective tool for performance;
ii. Flexibility in Budgeting
Should be adjustable to fast changing
environmental conditions
|á
£
p
|ë
£
p
|Ñ
£
p
Ñ. Allocation of resources
Selecting salespeople, tools of sales, financial
resources
6. Preparing the budget
Balance between sales force capability and
market opportunities
7. Approval for the budget
|[
p
|
|o
p
u
Maximum possible
sales opportunities in part. mkt. segment,
over a future period, assuring application of
appropriate marketing methods.
p
maximum possible sales
opportunity for specific company in part.
Mkt. segment over future period.
MP : Total Industry
SP : Part. Co.
|
p
u
i. Market identification
ii. Ability to buy
iii. Willingness to buy
Sources of Data:
a) Secondary: Environment Analysis
b) Primary: Customers spending patterns,
preferences
|
Why is SP different from SF?
Why is SP different from SF?
á
u
ë
p
u
i. Qualitative Forecasts
a) Judgment Methods
b) Counting Methods
Ñ
>
u
[
è
u
'
o
'
'
á
'
á|
O
a) Accuracy:
Quantitative better than qualitative,
short term: exponential method is accurate;
more than six months: exponential
smoothing and moving averages
more than one year: regression
b) Costs
c) Data availability
d) Software availability: models and
applications for forecasting need different
types of data
e) Companies experience in forecasting á
áá
a) Accurate
b) Cost effective
c) Comprehensible
d) Timely
e) Flexible
f) Plausible: Has to be done with sincerity hence
no manipulation of figures under pressure can be
allowed; Top Management has to be willing to
face accurate estimates even if they are not rosy.
g) Durable: By using quantitative techniques,
combining forecasting techniques; using
software.
áë