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The economic basis of effective management
Effective management of the sales department of products – the center of marginal profit is based on the manager’s understanding of the content of the economic and accounting model of the relationship dynamics “Costs of an enterprise – Production volume of finished products (goods purchased) and its sales – Profit”.
In the name of the models under consideration, the phrase “The volume of production of finished goods (purchase of goods) and its sales” is used with the use of the union “and”, which means simultaneity. This phrase means that:
(1) the models under consideration are applicable both to an industrial enterprise producing and selling finished products (works, services), and to a commercial enterprise purchasing and selling goods; Continue reading
Effective management of the sales department of the enterprise.
Forecast revenue from sales of products for the item position is equal to the product of the forecast of the average consumer demand for the company’s products and the plan price of sales of products.
The production plan (purchase of goods) and its sales plan is set equal to the forecast of average consumer demand for products.
The production plan (purchase of goods) and its sales is a consequence of the forecast of the average consumer demand for the company’s products when the company uses the market approach to planning its business activities. The plan for sales of products should be equated to an accurate forecast of consumer demand for the company’s products, since in order to ensure competitiveness, an enterprise must be customer-oriented, and a customer-oriented enterprise must fully meet the needs of the target consumer in terms of quantity of products. Consumer demand for products under market conditions is a random variable, the instantaneous value of which for the future period of activity is impossible to predict or predict with 100% probability (accuracy). Continue reading
