Answer to Question #188203 in Management for TAM

Question

a) Coordination and controlling of sales efforts plays significant role in the business success. Evaluate the statement with suitable examples ( Please answer in 200 words)

b) Discuss both formal methods and informal methods of sales control. ( Please answer in 200 words)

Answer 1

a. For proper progress of business organizations close supervision is required to enhance smooth running of the institution. The main goal of any business institution is to make profit and thus this is achieved through coordination and monitoring of sales that are made by these business institutions. Most large business organizations have a person designated as a controller whose main role is to oversee the sales made per day and ensure that they all strive to make profit each day, besides the controller is the chief financial officer who is responsible for external reporting, treasury function, general cash flow and financing the management. The chief financial officer therefore helps in liable management of the sales since proper cash flow is enhanced, through this the sales is realized. Coordination is also important in the business since employees in an organization will be able to observe ethics and smooth progress of the institution will be achieved, coordination of the business is done by the manager who is responsible for administering all or part of the company. In business, sales are always the main source of revenue that are made by a business organization and this therefore validates the importance of controlling and coordination.

b. However, acquaintance concerning the structural factors that can encourage salespeople to involve in those behaviors are limited. Contrary to this contextual, we develop a well-ranging model that explains the influences of formal and informal sales controls on AS and COS and, through them, on sales unit effectiveness. There is some new evidence based on a sample of some sales managers in a major European Union country that formal and informal sales controls employ disparity on salespeople’s AS and COS behaviors, AS directly and positively influences on sales unit effectiveness, COS affects sales unit effectiveness only indirectly and finally results and cultural controls directly improve sales unit effectiveness. Informal sales control is therefore unwritten behavior that influence behavior through utilizing values, norms and cultures to promote a good behavior while formal sales control refers to the behavioral norms practiced by organizational members based on interpersonal relations outside the hierarchy of the institution.