The Sales Management of | Woolworths

Added on - Oct 2019

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SALES MANAGEMENTName of the student:Name of the university:Author’s note:
SALES MANAGEMENTTable of ContentsTask 1...............................................................................................................................................3Task 2...............................................................................................................................................5Task 3.............................................................................................................................................11Task 4.............................................................................................................................................14Reference.......................................................................................................................................17Appendix........................................................................................................................................20
SALES MANAGEMENTTask 1Gross profit marginCompany nameGross profit marginWoolworths (A)0.2%Tesco (A)0.05%Walmart (A)0.3%From the above table it is found that Woolworths and Walmart have earneda decent gross profit margin with their valuable contributions and their hard work.But, for Tesco it has dropped significantly (Kanapickienė & Grundienė,2015).They could not generate enough revenue through their sales which could haveresulted in a good gross profit margin. Tesco have earned $3018m gross profit.Net profit ratioCompany nameNet profit ratioWoolworths (B)38.7%Tesco (B)0.9%Walmart (B)3.7%Fromm the above table it can be seen that Woolworths have earned a decentnet profit through their effective sales strategy. They have generated enoughrevenue from their sales which is around $55475m. However, Tesco and Walmart
SALES MANAGEMENThave failed to earn a decent profit due to lack of their lower revenue generationproblem and high cost involvement during sale processes (Goy & Bhatia, 2016).Return on capital employedCompany nameReturn on capitalemployedWoolworths (C)0.4Tesco (C)0.1Walmart (C)0.2Mark upThe main difference in margin and mark up is summed up as the totalmargin of sales which is subtracted from the cost of goods sold. On the other handmark up is something used by the retailers to increase the cost of the product sothat the selling price of the goods is derived easily. Retailers needs to focus on thesetting of the price otherwise it may back fire and lead to heavy loss. This mark uppricing is used because it leads to changes in pricing over the margin based pricing.This is because the price on which the marked up price is relied upon varies fromtime to time and could lead to different prices at different stages of the product(Wong & Joshi, 2015). Thus it lacks proper pricing methods which could becharged by the companies to earn a healthy and decent amount of profit. Markedup price will always be higher than the marginal pricing.
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