Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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ABC Food Products Company was founded decades ago. The Company manufactures and packages
grocery, daily consumables other food products. The Company has its vast operations throughout the
country. The Company comprises of offices, branches and production units in almost all the important cities
of the Country. Annual approximate sale of ABC Food is 50 to 60 million rupees per year. Structure of the
company comprises of Five (5) Zonal sales (North Zone, East Zone, West Zone, Central Zone, South Zone)
offices with twenty five (25) District sales offices across the country.
About the hierarchy of the Organization, District Sales Office has one District Sales Manager under each
Zone. Product manager reports to Sales manager who then reports to Zonal Manager. Following are some of
the functions Product and Sales Manages, respectively:
• Functions of Product Manager include;
- Travel with the Sales Supervisors of various Districts; Advice the District Sales Manager and the
Sales Supervisors regarding steps to be taken for promoting sales in the districts; Study the market
for company’s product and competitive position; Monthly reporting on the sales activities of the
company to the Sales Manager; Propose an overall budget and set Product prices; Working with
sales and marketing departments to ensure revenue and customer satisfaction goals are met.
• Functions of District Sales Manager include;
- Select, train and supervise his sales supervisors; Make a study of the nature of consumer demand,
changing market condition, existing stock and formulate sales campaign, promotional methods; Fix
the sales target; Formulate the credit policies to be followed; Develop better team work among the
sales supervisors and salesmen; Customer satisfaction; Undertake other functions and duties which
are assigned to him by the zonal manager
It has been witnessed that there has been Conflict between District Sales Manager and Product Manager due
to;
1- Perceived loss of control over the sales supervisors because of too much interference from the
Product Managers.
2- The issue has been taken to Zonal Manger but due to wide span of control issue is unaffected.
3- Formal interactions and meetings among the groups of these departments have also declined.
4- Due to conflicts, focus on sales targets is badly affected.
5- Recently, two individuals of the Sales department have also been terminated on the advice made by
Products departments, due to poor customer dealings.
Questions:

A- You as a third party evaluator, place your suggestions to senior management, about how they can
overcome to this situation.
B- Do you think, such conflict may affect the individual’s behavior and culture of organization?

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