MGN572

Individual Dynamics
and Leadership
CA3

Submitted to : Akashdeep Joshi

Submitted by : Monika Yadav (12000379)
INTRODUCTION
Reliant is a rapidly growing mid-seized company. Reliant produces
‘Perfumes’ a special product which couples as deodorant and
Perfume.
Last year the product sold 10 million (or 1 crore) units at an MRP of
rupees 500/-. The margin paid to retailers was 30% on MRP with
another 30% of MRP being cost of production.
The company spent about Rs. 100 million on R&D and Rs 100
million on marketing activities. Employees cost has two components-
fixed being rupees 500 million and variable being sales commission at
rupees 0.10 per rupees of retail sale.
The sales were rapidly growing at 20% YOY with healthy PBT
margin of 18%. In the last year due to downtown in the economy, not
only the growth in company was stopped at 10%, worrying margins
also shrank to 16 percent.
I was given the responsibility to increase the growth of the company
and bring the growth of the company to 40 percent and I had to
increase the profit margin as well.

ROLE AND STRATEGIES

I was a sales manager wherein I had to increase growth of the
company. Since the growth of the company had fallen due to
downtown in the economy, I had to increase the growth to
40% percent. Profit margin had also fallen by 2 percent.
Initially it was 18% and declined by 2 percent reached to 16
percent. In case I increase the growth of the company, I
would be given some points on the basis of growth. These are
some measure which I took to increase the sales of the
company as well growth.
As a sales manager, I was given the responsibility to enhance
the growth of the company to 40 percent. I took some
corrective measure to do so.
• First, I started to cut the priced of the product and started
working on the cost-cutting, stopped incurring
unnecessarily expenditure over the things.
• Provided some discount rates and other benefit in order
to sell the product more quickly and can also be a good
move to retain more consumer and would be able to
increase the growth of the company.
• Started increasing sales channel, retail stores, distribution
channel and retain outlets.
• Going out in the market to find out new consumers
whom I find can be retained and improved relationship
with the clients.

CASE UNDERSTANDING AND

DISCUSSION
• By implementing some remedial actions, I was able to
boost the company's sales and profit margin to 40%. I'd
also get some bonus points if I was able to enhance the
company's revenues. The issue I faced while making
budget decisions was determining how much I needed to
 spend on things like distribution channels, retail outlets,
and suppliers.
• By consulting with my team and understanding their
budgets, I was able to determine how much I needed to
spend that would not have a significant impact on
reserves and other factors.
• The finance manager plays a crucial role in this, as he or
she is responsible for all financial resources while
making sound decisions prior to incurring expenditures
that are not detrimental to the firm.
• While discussing with all the teammates where they
agreed with all the decision which we took and helped to
perform some remedial action which helps to increase
the growth of the company and profit margin as well.

LEARNING OUTCOMES
Corrective efforts I took to promote the company's growth and
growth helped the company grow by 9%. The profit margin
has climbed to 15%.
The methods I devised were important in the company's 9
percent growth. I would not be able to expand the company's
sales to that level, but I did manage to increase sales, which
benefited the company despite the economic downturn.
I'd be able to tell when you're in charge of anything, such as
increasing the firm's growth, where I employed a variety of
ways to get the company out of a bind.
I learned a lot about how to cope with situations by dealing
directly with the issues that would assist the firm perform
better following the economic downturn.
I would be able to boost the company's sales as well as the
profit margin.