Business Applications

Q.1 . Factors to be considered while formulating a Sales Budget ?

Ans : Sales Budget would be a part of the marketing budget which in turn would be a part of the organizational budget. A sales budget can be said to be a plan of action or a program designed for a stipulated time (generally a year) that specifies and highlights the anticipated sales and selling expenses, quantitatively and in value terms.

·        Factors to be considered while formulating the Sales Budget.

The following factors should be taken into consideration while preparing the Sales Budget.

1.     Past Sales Data

2.     Past Market Data

3.     Past / Emerging trends

4.     Sales Force estimates

5.     Business Environment / prospects  

6.     Order on Hand

7.     Market Potential

8.     Seasonal Pattern / fluctuations

9.     Emerging Markets

10.                        Business Strategy

11.                        Proposed addition / deletion of products

12.                        Plant Location

13.                        Raw Mataerial availability

14.                        Supply Chain Management

15.                        Logistics

16.                        Financials

17.                        Existing and emerging competition (credit/pricing/interest rates etc)

18. Government policy

 (roles/regulations /controls)

Q.2. Explain the functioning of the Enquiry Management System.

Ans : An enquiry means seeking information about the availability of certain goods and the terms at which they are offered for sale. Buyers write letters of enquiry to the sellers asking for details of the quality, varity, the price  and the other terms regarding the goods.

     Customer’s enquiry’s are an important part in the companies working, Enquiry’s  may be vague or to the point, profitable or non profitable, company may be in a position to take care of it or not whatever be the case it is important from the business point of view to take notice and address the enquiry that has been made with the company. This is a very time consuming process. This has lead to the advent of the Enquiry Management System which makes the work of handling the enquiry’s a lot easy.

Enquiry Management System :

Enquiry Management System is nothing but an organized way of managing sales enquiries in an organization. An enquiry is the most prominent source of business instigation. An excel sheet maybe an easy option but an Enquiry Management System is an automatic management of the complete system of receiving an enquiry and dealing with it. In order to enhance business one has to implement an EMS tactfully.

Need :

·        Proper maintenance of enquiries received

·        History of enquiries for future reference

·        Automated service to ease out performance

·        Time saving and efficient

EMS is a very important service helpful in tracking enquiries for proper planning and setting of business goals.  An efficient EMS can be of very good help to such wasted enquiries. The EMS is based on a simple formula and a step by step procedure.

a)       Enquiry  b) Follow-Up  C) Closure

a)       Enquiry :

1.     An organization can receive an enquiry in various forms. Such as –

-Enquiry form on the company’s website

-Telephone enquiry

-E-mail

-Direct entry of client

          2. When an enquiry is received the operator registers that and it is passed on to the Enquiry list.

         3. An executive can pick that up and contact to the customer.

Example

ABC Stores                                                                                                                                                                      A2,500,M.G.Road,   Pune,   01/01/2011 M/s. XYZ Ltd; Pirangut, Pune. Sir, We intend to add our stock of winter clothes for meeting the demand in the coming winter season. Please send us your latest quotations for the following : 20 dozens sweaters (Gents) 10 dozens sweaters (Ladies) The said material is required for immediate delivery. Your’ s faithfully, For ABC STORES Proprietor

 

b)      Follow-Up :

1.     The company’s executive assigned to take these enquiries gets back to the clients based on the enquiry asked for.

2.     Any number of of follow-up’s are recorded to keep track of what has been discussed and what needs to be done next for each particular enquiry.

3.     Each follow-up is very important for analyzing and learning as to how the executives approached the customer and what their performance was.

c)       Closure :

1.     The executive executes the enquiry as per the company’s norms in order to close the enquiry.

The company has a record of every enquiry in the EMS for reference in future use.

Q.3.  Write a note on the functioning of the

various modules of the Customer Order  Processing System.

Ans : The next step in the sales lineup is the processing of the order that has been received by the company. Customer Order Processing involves the complete organization and therefore is a very complex process. Every department within the company is involved in the process.

·        Customer order processing is a transaction processing system. Proper processing of the customer order  is important for any business organization. Service to the customer is the motto of most of the companies.

·        The first step of COP is the speedy registration and implementation of the customer order.

·        Various Customer Order Processing Systems are available and they vary as per the industry and the requirement of the company.

·        The process involved in the Customer Order Processing  of trading firm will be completely different from that of a manufacturing company.

·        The Customer Order Processing System has various interfaces. The basic objectives of Customer Order Processing System are as follows :

i)       Expedite the processing of the Customer Order.

j)       Execute the Customer order without any errors.

k)     Computerize the Customer Order Processing to minimize the human efforts.

l)       Generate information and reports which will Be useful to the organization at large.

Various modules of the Customer Order Processing Systems 

1.       Customer Master

2.       Product Master

3.       Trader Master

4.       Bank Master

5.       Order Processing Module

6.       Report Making Module

7.       Interfacing Module

8.       Database Administration Module

Customer Master

·        The customer master contains the basic information about the customer.

·        Every customer in an organization is assigned a unique code which is accessible and common to all the departments like the accounts, and the dispatch which need to use the information provided by the Custome Master.

·        The  Custome Master provides for the basic information like –

i) Customer Code,

ii) Customer Name, Address, Phone No, Mobile, Email, And Fax

iii) Details of the contact person

iv) Preferred Transport

v) Other Specific Information like excise Details, Octroi, Sales Tax etc.

     The information stored could vary from organization to organization depending on the nature and the information needed. This information is subject to change and needs to be updated on a regular basis.

·        Usually it is the customer code which is used to access the customer master. When the customer code is punched the pertinent information can be fetched from the customer master.

Product Master

·        Companies may have various products and it becomes imperative to maintain a product master. Each product of the company has a unique product code through which it can be accessed.

·        The information maintained by the product master is

i)                   product code

ii)                 product description

iii)               Unit of Measurement of that product

iv)               Applicable taxes

v)                 Packing Details etc.

The information maintained varies from product to product and organization to organization.

Trader Master

·        Companies may have different agents, dealers, sub dealers and agents as their customers. These customers are different from the regular customer. As a regular customer may be linked or come under the purview of these traders. 

·        Each trader in a trader master is assigned a unique code. The trader code is then linked to the customer code. Information about the trader like the one stored in customer master is maintained in the trader master.

Bank Master

·        Information on the bankers of the customer are maintained in this master. The Bank Master contains the code of the bank, name, branch, address, telephone number and other contact details.

·        This information is needed as the name of the banker has to appear on the order acceptance as well as the dispatch documents. Sometimes the documents are routed through the bank and the customer has to collect them from the bank on making the requisite payment.

Order Processing Module

·        It deals with the processing of orders. Now its complexity and scope would vary from organization to organization dependind on the number of products, customer, traders, etc.

·        A small organization would find the processing less complex as compared to a bigger organization with a large product.

·        However large the organization and complex the processing the Order Processing Module carry out the process with the following activities.

i)                   Validating the order

ii)                 Acceptance of the order

iii)               Communicating the details of the Order to the concerned departments.

iv)               Database updating and maintenance

v)                 Making appropriate Reports.

Report Making Module

·        This module of the Customer Order Processing System deals with the generation of Reports and on screen query replies.

·        The reports are generated to assist the management in its decision making.

·        The other imp. Use of this module is to enable the customer to know the status of this order. Reports generated are usually-

  Orders Accepted

  Order Status

Pending Orders

Delivery Orders

Interfacing Module

·        The Customer Order Processing System is interfaced with various departments within an organization.

·        The level of interfacing varies from organization to organization.

·        The interfacing is low in a trading organization as compared to a manufacturing organization.

·        Such interfacing is done through the interfacing module.

Database Administration Module

·        The last but the most important in the Customer Order Processing System is the Database Administration Module.

--------------------------------------------------------------------------------------------

    

    

    

Business Applications

 

Q.1. Write a note on the saving bank account processing.

Ans : The Saving Bank Account is designed for those who want to deposit their small savings in a bank,which they need to withdraw only occasionally and not everyday or many times a day.

Saving Bank Account is allowed certain interest. The rate of interest is decided and periodically reviewed by the Government of India. Presently, the rate of interest is 3.5% p.a.

Saving Bank Account can be opened in the name of an individual or in joint names of the depositors.

The minimum balance to be maintained in an ordinary saving bank account varies from bank to bank.

It is less in case of public sector banks and comparatively higher in case of private sector banks.

In most of the public sector banks, minimum balance to be maintained is Rs. 100.

In saving accounts where cheque books are issued, a minimum balance of Rs. 500/- has to be maintained.

Saving Bank Account process

1.    Saving Bank Account opening

   When a person wants to open a saving bank account, he is supplied with a copy of the rules and printed form. ( This form now becomes KYC- Know Your Customer form )

   The person has to give all the details asked for along with documents providing Identity, Residential Proof, PAN, Ration Card, Photograph etc.

   The person desiring to open a new saving banking deposit accounts has to obtain furnish signature of an existing saving bank account holder of the bank/branch.

   After these facilities are completed the saving bank account can be actually opened by depositing cash, cheque or demand draft.

   After this amount is deposited/ credited, the savings account is opened and the accountholder it given an account number and a pass-book/ Cheque book.

2.    Cancellation / Closure of the Accounts

    The Savings Bank Accountholder can close the account by giving an application to the respective Bank/ Branch for closing of the account.

   If a cheque book has been issued, then the passbook and cheque book have to be returned along with the application.

   While closing the account, the balance, along with interest, would be paid either in cash or by pay order/ Demand draft/ Banker’s cheque as desired by the customer.

3.    Transfer

   If the accountholder is changing residence, then the account can be closed at one branch and is transferred to other branch of the Bank.

   The Account transfer also requires an application from the customer along with pass-book/ cheque book.

4.    Savings Bank Transactions :

   The minimum amount which can be withdrawn from or deposited into any saving account, shall be Rs. 100 or in the multiple of Rs. 100.

   Deposits in the account can be made by cash, or by transfer or by clearing .

   Cash deposit is generally made by accountholder depositing cash, after filing in the pay-in-slip.

   Money can also be deposited by transferring from one account to another or from any other Bank/Branch. Money can be transferred by mail transfer, telegraphic transfer on ECS/ RTGS.

   Deposit by clearing is when cheques drawn on other banks are deposited for credit of the account at the branch and the branch collects the money from other bank through the Clearing House Mechanism.

Savings Bank Account Rules :

1.    Object :

Savings accounts are intended to mobilize the savings of the community.

2.    Who can open :

   Savings accounts are opened at the discretion of the bank for persons who comply with the KYC norms.

   Accounts may be opened by :

-         a person in his/ her own name.

-         two persons or more than two persons in their joint names in anyone of the following forms :

  

      Saving account may also be opened in the name of the minors to be operated and they have completed the age of 14 and have powers and of understanding and discretion.

   Illiterate persons/ blind persons may also open savings accounts provided they are properly introduced and other formalities for opening accounts .

   Clubs, Societies or Associations, Schools, Temples, Mosques, Churches or other religious and charitable institutions which are approved by the Bank may also open savings account.

3.    Specimen Signature :

   

       At the time of opening the account, every depositor is required to give his/her specimen signature in duplicate for record, along with two copies of recent passport size photograph.

   Whenever there are changes or variations in the specimen signature, the depositor is required to inform the bank in writing the necessary changes in the specimen signature and give a fresh Specimen Signature Card.

   All withdrawal forms, cheques, and letters to the Bank must be signed strictly.

4.    Minimum Balance :

   The minimum balance for Savings Bank account in computerized, Metro and Urban branches is Rs. 500 for cheque operated accounts.

   Rs. 250 for ordinary Savings accounts without cheque book facility.

   Rs. 100 for non-computerised Semi-urban and Rural branches.

   Where the average monthly balance in savings bank accounts falls below the stipulated minimum, a service charge of Rs. 30 per month.

5.    Passbook :

   The passbook should be presented at the time of every deposit/ withdrawal except in case of withdrawal by cheques.

   It is important for the accountholder to get his passbook updated on regular basis. It gives information about deposits, withdrawals, payments, interest received, bank charges etc.

   If the passbook is lost or mislaid, it should be immediately notified to the bank.

   No entry or alteration of any kind should be made in the passbook by the depositor.