Sales and Operations Planning Strategies

This assignment delves into the crucial field of Sales and Operations Planning (S&OP), examining its significance for businesses. It analyzes various S&OP models, exploring their applications and benefits in optimizing production, sales, and inventory management. The assignment emphasizes understanding how effective S&OP strategies contribute to improved profitability and competitive advantage.

SALES PLANNING AND OPERATION

TABLE OF CONTENTS
TASK 2............................................................................................................................................1
a) INTRODUCTION.......................................................................................................................1
b) Sales strategies in line with corporate objectives....................................................................1
c) Importance of recruitment and selection procedures...............................................................2
d) The role of motivation, remuneration and training in sales management...............................4
e. Organizing of sales activity and control by sales management...............................................5
f. Database management in effective sales management.............................................................5
g. Developing a sales plan...........................................................................................................7
h. Opportunities for British Gas in a new international market...................................................8
i. Opportunities for British Gas from exhibitions/trade fairs.....................................................10
j. CONCLUSION..........................................................................................................................11
REFERENCES..............................................................................................................................12

TASK 2
a) INTRODUCTION
A sale planning is the foremost step of initiating a business. Without making an effective
plan, it is impossible to make future growth and beat the competencies. It provides the company
to work in a proper direction, which together reduces the formation of risk into the business. It
also promotes innovative ideas which too reduce the overlapped and imprudent work (Burrows
III, 2012). British gas is a part of Centrica group which is among-st the largest supplier of gas
and electricity in UK. Presently it is serving around twelve million homes, leading the energy
supplier market of UK. Thus, it has been considered as the biggest energy and home service
provider in UK.
The present essay is in context to the sales strategy of British Gas industry. The success
of a company lies on its earning profits. For which, the company is liable to build certain plans
and objectives to work upon. Also, to continue onto the path of success in today's competitive
world, it is important to strategically deal with the areas of sales and marketing. Strategic
planning not only defines the way of being profitable, but also works as on how to accomplish
the goals by timely meeting the objectives of the company. Therefore, the stated company too
focuses on it and believes to play strategically. In order to which, the company has developed
some set of goals and in order to accomplish those, it is successfully working on managing and
controlling its sales procedures (Ivert and Jonsson, 2010). It includes organizing various sales
activities by making an evaluation of its sales processes to effectively match the present and
future needs and demands of the consumers. One more important aspect is to build an effective
sales and marketing team to meet the stated targets. It requires a proper recruitment and selection
of skilled candidates.
b) Sales strategies in line with corporate objectives
In an organization, it is important to meet out the corporate strategies of the business.
Corporate strategy refers to the goals and objectives of a company. It defines the purpose of the
business and the way or direction in which the company wants to grow. It states the company's
growth by holding on more customers, increasing its market shares and revenues, reducing costs,
etc. However, the sales strategy shows the path to reach and meet out the corporate strategies of
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the business. It determines the procedure to achieve those set objectives. Therefore, the
alignment of these strategies is of topmost importance, which can be done by heading the sales
force and corporate priorities into the same direction(Rudberg and Cederborg, 2011). A fruitful
corporate strategy is the one which itself defines the sales force as its own function. It also helps
in reducing the conflicts among funds, procedures, preferences and especially clients, who
suffers the most on attaining a mismatched plan. In the current scenario, I am ought to meet Mr
John for offering the service of central heating and representing myself as the heating sales
adviser of British Gas. My primary objective is to make an effective presentation of our product
with its numerous and profound benefits, together depicting our valuable services to him. It
concludes that how British Gas always believe in being quiet indifferent from others and thus
treats its customers with justice. The achievement of my primary objective will be shown, only if
I successfully manage to convince him and as a result, he agrees to acquire our services. In case,
if he doesn't appreciate it, then I will be following the secondary objectives. It concludes offering
a discount in the price of the product with guaranteed quality and superior services to the client.
It is among the corporate objectives of the stated company, where they strictly aim at building
relationship with the customers and always keep in touch with them to provide a lifetime service
(Usui, 2011). They too provide simple payment options, ensuring an accurate bill to the
customers.
c) Importance of recruitment and selection procedures
Recruitment and selection is the primary focus of the business, where placing the right
candidate at the right place is of utmost priority. A firm can have all kind of modern automation
to effectively accomplish its work, however not carrying suitable amount of skilled people will
be the biggest disadvantage that will lead to make struggles in achieving the desired result
(Johnston and Marshall, 2013). Therefore, employees are considered as livelong assets of the
business and the whole organizational success depends upon making an appropriate choice of
people. To achieve a remarkable victory in this process, British Gas always believes in
implementing a strategical approach for recruiting and selecting people into the organization. Its
workforce planning emphasis on making use of varied action plans. It mainly needs to recruit
people with an education in engineering. It also prefers to choose people from various
backgrounds and cultures to serve people in all areas of the country with different language
preferences. They also induct more women engineers to easily attract the female customers.
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Hence, by targeting these key points, the stated firm together follows a certain set of procedure,
which includes-
1. Specifying needs- It is to determine the necessity of conducting recruitment in the
organization, which requires forecasting the present and future need of the employees or
workers (Kennedy and Avila, 2013).
2. Advertising- Once after considering the need, company focuses on recruiting efficient
people into the organization. For this purpose, it makes advertisement in various channels
like newspaper, etc specifying the job profile and its requirement. British Gas also update
the career column in its website on a regular basis to state job vacancies.
3. Handling Application- Just after receiving the application from candidates, company is
liable to schedule an interview. The prime focus of the company is to select the gas
engineers of an appropriate rank. However, the company arranges an initial screen test
based on a significant questionnaire to check candidate's skill and evaluating the
suitability. It consists of total 90 questions and the candidate's responses are rated in red,
amber and green. These colors show the right attitude of a candidate to fit in the
company. Red represents an exit remark, whereas the candidates receiving an amber or
green color are called for a face to face round of interview, where the final assessment is
made and the selected candidates are required to show their legal evidences like ID
proofs, etc.
These procedures have numerous advantages to the company, especially in controlling
the cost by avoiding any financial losses to the company (Hall and Tewdwr-Jones, 2010).
Improper selection can easily mislead the company's set objectives resulting in not achievement
the goals and targets on time. It also helps in finding out the loyal candidates for the firm, who
feels dedicated towards their work and thus proves to be more productive.
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d) The role of motivation, remuneration and training in sales management
For managing sales of an organization, it is necessary to direct certain operations which
would help in increasing the sales proportions of the business, they are motivation, remuneration
and training the staff of the organization. These activities enhance the abilities and efficiency of
employees and workers for performing better functions which would eventually develop the
sales and increase profits for the business ((Burrows III, 2012). The importance of these
operations in the context of Britain Gas is:
 Motivation – it is the process that develops a goal oriented behavior in an individual
working in an organization. It also helps in initiating desired behavior of individual
towards attaining organizational objectives. . The responsibility of management team of
Britain Gas responsibility is to motivate other staff by using theories of motivation like
◦ Herzberg two factor theories – It defines the factors for developing the working
environment for an individual.
◦ Goal-setting theory – To set certain needs and aspirations for an individual.
◦ Expectancy theory –Motivating through perceiving actions made by an individual. Remuneration –An individual's pay scale or monthly income plays a critical role in
influencing his performance and capacity to work and thereby individual’s productivity.
However, employees have different and high level of pay scale which tends them to
perform well in the selling job which will result in increasing productivity. Britain Gas
team should focus on developing proper remuneration and compensation plan which
allows the average and low level workers to perform in a comfortable state with
appropriate income level (Ivert and Jonsson, 2010).
 Training – For an organization, it is expense but in positive way it is an investment that
helps them in developing their quality for making an environment of sustainable and
competitive mechanism. However, sales training also inspire the individuals engaged in
selling purpose for developing and practicing the skills they require in increasing their
level of confidence. Benefits of training for Britain Gas are:
◦ Improving communication skills and tactics.
◦ Overcoming the limitations and inabilities.
◦ Developing the administrative skills.
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e. Organizing of sales activity and control by sales management
In an organization, the duties of an individual engaged in the sales department not only
limits to the operations of selling the products and services to the clients. The sales-person has to
manage and control sales plan specified by the management for which he requires organizing
sales functions to ensure its achievements (Rudberg and Cederborg, 2011). It is the responsibility
of sales manager to organize sales activity and control sales for maximizing sales and income. Sales activity – It refers to the structure of functions or activities that helps in managing
sales and income of an organization. This structure consists of factors like product,
customer and type of customer as well as area of sales that helps in achieving the desired
results. The process of sales activities start with:
◦ Estimation and targeting the customers – It refers to the function which is to estimate
the number of customers available in the market. However, management should first
target their particular efficient customers or group which would promote their sales.
◦ Designing the area – Next step of sales planning is to allocate the area to start the sale
activity. The organization has to design the map of area in according to its targeted
customers (Silva and et.al., 2012).
◦ Team building – The management has to build a team whose duties is to cover up the
defined area of the targeted market. The team is responsible to manage and organize
sales activities in that particular area.
 Sales control – The main purpose of this process is to operate the activities of sales
within the defined budget. It also helps in controlling financial spending of the
organization over the sales operations. It advance the performance standards and
encourages the performing levels of an individual and organization. The technique of
sales control allocates the targets which are to be achieved from the sales operations. It
defines and controls financial sources of the company, volume to be produced, setting the
prices for the products and appraisals of the individuals (Islam, 2013).
f. Database management in effective sales management
By using the database management for storing and managing the data is although
expenditure for the organization but still it has some advantages too. The main advantage of
maintaining a database is that it allows the management to access and use the same data while
managing the data integrity. In this type of structure, the data is protected and maintained in a
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manner to secure the information. However, it provides a central area of storing data that can be
controlled and accessed by multiple users (Kjellsdotter Ivert and Jonsson, 2010). The process
would be useful in controlling and maintaining information about the customers, sales,
remuneration, production etc. The database management can direct an effective sales
management by:
 Data security – it helps the management in securing information of the organization's
clients, relation, system, policies, etc. It would be useful for managing the sales efforts of
the employees by storing a variety of data, forms, reports related to the accounting
system, their customers, operations, activities performed by them to increase the level of
sales. It develops faithful and credible system of determining the information about
customers and the stakeholders (Thomé and et.al., 2012). Through database management
principle, organization can make a periodic analysis of regular transactions of clients.
 Database is used to generate incremental business and stimulate repeat purchase - It is
used to select records that meet user requirements based on information contained (or not
contained) in their fields. For example, in using an inventory database, the user can
check the availability of a product that meets certain criteria—such as style, color, and
additional features—each of which are defined in the fields. A retrieval request may be
made for a single, specific record or for multiple records. This method of maintaining the
information helps in identifying interest rates and costs for producing goods in a bulk
amount (Olhager, 2013). It is an advantage for the retail sector by database management
system to invest the capital for right amount of production of goods and services.
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g. Developing a sales plan
Sales plan is a statement of intent which is describing, qualifying and phased over time, it
generates the structure of functions and operations which are to be performed by the organization
(MT Thomé, Soucasaux Sousa and FRRS do Carmo, 2014). It is beneficial for British Gas as this
would set out the strategy for managing and controlling the sales of its products and services in a
new market. For developing the sales plan is necessary for the management to ascertain the
following steps which are:
1. Introduction to the chosen service - The first step of British Gas's sales plan is to
introduce its gas and electricity services in India. The company is planning to provide gas
and electricity services to the Indian public.
2. Sales objectives - the next step is to identify the objectives of sales planning, which are to
be achieved by British Gas through its sales operations in India. It also focuses on the
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method of sales, targeted market and specified time scale. The objectives must be
SMART i.e. specific, measurable, achievable, realistic, time-sensitive.
3. Sales channels to be used - An effective sales management is only possible if the services
are reaching the right customers. British Gas should allocate advance channels for
distributing its services in the market. British Gas being as a manufacturer, might want to
sell its services through an agent or intermediary. This could be a retailer, or it could be
an agent in that area. The team should also identify the barriers and factors to remove
such barriers to sales rather than only focusing on increasing sales when the organization
is coming up with sales objectives (Keyhanian and Rabbani, 2015). Barriers to the sales
channel could be factors like from not making enough gas connections or customer visits
or the need of giving the sales team better training or the demand of recruiting more sales
person in the team.
4. Target customers - The management of the company should define its targeted market
and area where they would like to provide their services. Sales department should define
similarities and differences in order to create profiles of each types of clients available in
the market (Rodriguez and Vecchietti, 2012). The management should also analyze the
costs of sales and make specific efforts to cut down the sales costs for unprofitable
customers. This function could be achieved by using an alternative distribution method or
cheaper sales channels.
5. Sales forecast - After completing all the above steps of sales planning, further
management should forecast the sales level for which the company is planning to achieve
within the time scale (Grunig, 2013). The sales team of British Gas would be responsible
to carry out the assumption of sales.
6. Conclusions – Coming to the end, it can be concluded that from the operations of sales
planning, that British Gas could attain an effective sales management through this
marketing and sales planning. However, the company should also focus on overall returns
on the investment from the desired sales project.
h. Opportunities for British Gas in a new international market.
There are many opportunities for an organization, like British Gas, while expanding its
business boundaries in an international market. It is an essential task for British Gas to analyze
the whole market of India, in order to attain the level of available opportunities. Such sources
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helps in business functions and operations like production, selling, distribution, marketing,
training, etc. This also helps the organization in reducing its cost of manufacturing the products
or services which would eventually reduce the cost of services provided to the customers. It all
depends on the targeted area, region or territory where the company is planning to perform their
business (Blank, 2013). For increasing the international selling there are several opportunities
available in the markets of India which includes:
 Local sales personnel – The organization has the chance of using the local manpower as
their sales personnel for promoting their level of sales. The local sales individual is
known and familiar to the local market and hence would be advantageous for sales
strategies (McLeod, 2010). British Gas has many sources for identifying and appointing
such local sales personnel which would work for them and generates better outcome. It
can use sources like interviews, audition, vacancy advertisements etc to attract such
individuals. They should select the appropriate candidates which are efficient in
becoming an agent and distributors for selling the gas and electricity services provided by
British Gas.
 Local demands – These are the opportunities which lies in the local market of India, they
are like the local public, business persons, individuals, etc. They would generate the level
of demand for the gas and electricity services provided by the British Gas. Similar to this,
they are the factors which affect the elasticity of demand.
 Contracting agents and distributors – This would be a new market for British Gas
industries to perform the functions of business and to provide gas services to the markets
of India. In order to achieve this task, the organization could use the sources like
contracting or appointing the agents and distributors for providing and distributing their
services in the local market.
 Adaptive market – In India, they are fewer barriers on the entry of new industries and
thus it becomes an opportunity for British Gas to establish its position in a developing
marketplace's. It makes it easier for the organization to mark its presence in the market.
 Advantageous exchange rates – Exchange rates can greatly work in company's favor if
the currency of the country, the company is selling into is stronger than its own country
(Dowd, 2013). Hence, from the current rate of currencies prevailing in the both the
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countries, the difference between them can result that the exchange rate factor is
favorable for British Gas.
i. Opportunities for British Gas from exhibitions/trade fairs
Similar to the above specified local opportunities in the international market, there are
many other sources related to the market which could promote the efficiency of sales
management for British Gas.
 Identify a trade fair – In India, there are many trade fairs which are organized to
encourage and promote the local and international organization, but the biggest fare being
organized in India, at an international level is India International Trade Fare (IITF)
promoted and set up by Indian Trade promotion Council (ITPO).
 Setting the objectives for trade fair – Company has to set some objectives before
participating in the trade fair. The desired objectives must be specified and realistic, so
that they could be achieved from the trade fair. However, the main purpose of trade show
events is to present a wide range of options for attendees and business to engage and
interact with each other (Parinello, 2016). With a well-designed trade show booth which
could draws attendees’ attention towards a few promotional items, a contest opportunity
along with giveaways and sales related promotions. British Gas would have a well-
rounded booth experience that leaves an impression with a prospective customer for
months. However, main objectives of the company would be to increase engagement and
capture potential contact information. Consider having attendees enter a drawing by
submitting a business card or completing an action on social media (Selling
Internationally. 2016).
 Setting a tentative budget to participate in the trade fair
- the company should attend the trade fair in India but, before that it should maintain the budget
based on the following factors:
◦ Funds to cover attendance, display and other associated costs.
◦ Charges for participating in the trade fair and booking a stand or a stall.
◦ Facilities provided by the trade management over the stand and in the fair.
◦ Extra investment for capturing people's attention.
◦ Transportation charges for displays, demo products and machinaries.
◦ Requirement of labor, workers and helpers for setting up the stand.
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◦ Other expenses which could in occur while attending the fair.
 Presentation of the Stand – Trade fairs offer big benefits to the international business of
any size. Thus, for organization like British Gas, trade shows would offer an essential
experience which would impact the minds of local public and business in the country. For
this, they are required to set the stand which has an effective presentation and easy
understandable by the attendees (Hanks,2016).
 Evaluating the success of participating in the trade fair – The evaluation of the success
can be processed through the rate of respondent in the trade and after the trade gets over.
It can be generated from the methods like feedback forms filled by the attendees, emails
and calls made by the attendees, local business seeking for contracting, etc.
j. CONCLUSION
The above report states the importance of sales into a business organization and how
effectively it should be planned to timely achieve the targeted goals of a company. It also defines
the procedure of establishing a proper and efficient team. It together states the usefulness of
marketing strategies to be used in building out a set of objectives, especially into the organization
dealing with sectors like British Gas. In today's competitive world, success can be achieved only
when the company works distinctively and in a planned way. However, while developing plans,
one should majorly focus on the present market scenario in accordance to consumer needs and
demand.
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