Eggsactly LTD Essay Example | Topics and Well Written Essays - 2500 words

Eggsactly LTD - Essay ExampleIt has cardinal departments viz. the sales department and the production department. Present scenario included the fact that the grocery had continued with the accepted enthusiasm exhibited in this machine and continued to demand more and more of such machines. However disrespect such a robust demand the company was not as profitable as evaluate due to certain cost considerations. There are two complimentary approaches to improve the profitability of the concern. matchless is to increase the funds position of the concern by inviting new capital into the company. This would automatically result in expansion of the production base of the company and hopefully, result in the spreading of most fixed cost on a higher production base thus improving the profits. Second approach is to catch careful budgeting process in the concern covering all of its operations. In fact budgeting process has been absentminded entirely at the concern with reported mismatch es in sales forecast and resultant carrying over of the entire goods inventories. Ideally the concern would benefit the most if the two approaches are taken in tandem as following second approach would not only help control the fixed costs but also the variable costs would be streamlined. In addition, the budgeting system proposed is likely to be responsibility link up budgeting system in which each executive would be designate the key budgeted figures and be accountable and trustworthy for variations if significant.gross revenue Function Merely an over enthusiastic top executive is no guarantee to a successful sales function. This enthusiasm is, in part, attributable to the fact that the product to be sold is a successful product idea in its present form and features and is well accepted by the market and there is not much need to take up conscious advertising and media campaign. Due to this fact, eyepatch it is conceded that normal marketing strategy can be reduced to sellin g function in field of study of Eggsactly Ltd even the vanilla sales function needs to be planned carefully and tied up with the production department. This can come through an integrated budgeting system where in the sales budget is think and integrated with the production budget. The Sales manager would be accountable for key budgeted figures in the sales budget. The Sales Manager can, in turn, pass down, the accountability down the line to his sales executives, who may be assigned this accountability according to distribution of sales targets to them. As part of individual initiatives the Sales Manager essential look into the aspect of high turnover in his department. Some staff retention incentives can be introduced which are linked with sales targets and accountability which would help reduce the high turnover of the staff in Sales department. After this entire budgeting process must be reckoned in all its possibilities for Eggsactly Ltd and end in he choice of the best alte rnative which suits contextual realities of the concern. Budgeting Process Budgets are drawn to assist in clarifying and attaining business objectives. These objectives can be varied but can be commonly listed as minimizing costs/controlling expenditures, increasing revenues, gaining a higher market share, improving spread/margins (through increased sales), etcetera Therefore, a statement of identified objectives becomes important at the commencement of