Question

Vandana Industries produces produces a wide variety of beauty
products. Their range of skin polishing scrubs, shampoos, face
washes and acne masks, and health drinks aids in promoting natural
beauty is very promising and impressive. Since they were new in
the Market, they decided to sell their products through wholesalers.
They appointed one wholesaler in each district and promised them
that they will remain the exclusive dealers in that area. After few
years, during one of the general meeting Sophia, newly appointed
sales manager suggested that if they sells the product directly to
retailers they will be able to offer competitive prices which will
increase the sales turnover and eventually the profits. Sophia was
directly supporting the elimination of wholesalers.
Do you agree with Sophia suggestion? Give reasons in support of
your answer.(any five points)​

Answer 1

Answer:

Mohan Ltd. is producing different lines of products viz. cosmetics, medicines, confectionary items, etc. All activities of the company like purchase, production, sales, accounting, etc. share common Purchase, Production, Sales and Accounts departments. As a result, there, is chaos and ineffective working of the organisation. No department is able to set specific targets related to each type of product and is unable to give justice and full concentration to each product line. Moreover, employees remain confused regarding provision of their focus and attention to a particular product line. Identify the principle of management violated here.