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qualitative method #2

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OVERVIEW OF QUALITATIVE METHOD THAT
USED IN MY ORGANIZATION
Nourhan Ahmed Mohamed Ibrahim
Operations’ Management
Dr. Bassam El-Ahmady
November 27, 2021
Introduction:
I work at Best Choice for property investments, in the department of sales, Our
salespersons team have to change the plan every quarter to reach and achieve the
sales target and that is depending on the forecasting of the changes in market by
using the qualitative method approach, because of the vague and unstable real estate
market specially nowadays.
As a sales manager I receive daily the CRM leads’ report which is generated by
several sources like: Google ads, Facebook campaigns, referrals, OLX, Property
finders etc. these data make me easily forecast the sales on internet and enable me to
direct the sales power to which path to maximize the profit and achieving the target
and that is depending mostly on the intuition and experience.
We need the Sales Forecasting in order to reach organization profit objective which is
mainly the projection of customer demand for the services and properties needed
over a period of time. In other words, it is the process that involves the estimation of
sales in a physical unit that a company expects within a plan period. There are a
variety of methods available to the firm for forecasting sales or demand of a
company; but in Best Choice for property investments we depends mostly on Sale
Force Composite Method which is simply forecasting method wherein the sales agents
forecast the sales in their respective territories(new capital- new Cairo – OctoberZayed- North coast- Ain el Sokhna), which is then consolidated at area level, after
which the aggregate of all these factors is consolidated to develop an overall company
sales forecast.
The sales force composite method is the bottom-up approach where the sales force
gives their opinion on sales trend to the top management in our company. Since, the
salesmen are the people, who are very close to the market, can give a more accurate
sales prediction on the basis of their experience with the direct customers.
Reasons for using this method:

The intimate knowledge and experience of the sales force in their respective
territories can be used efficiently.

The responsibility to forecast sales rests on the shoulders of the sales agent and thus
could be held accountable if anything goes wrong.

Since the sales agents forecast the sales by themselves, put more efforts to achieve
them.

This method is more reliable because of a large population sample and moreover, it
can be readily broken down into product-wise, month-wise, area-wise forecast.
The drawbacks of using this method:

Since the sales agents are not the experts in forecasting, they cannot employ the
sophisticated forecasting techniques properly and neither have they to complete data
to have a fact-based forecasting.

Also, the salesman often gets heavily influenced by the conditions existing in his
territory, due to which he either becomes more optimistic or more pessimistic about
the future sales.

The sales agent might be well informed about all the conditions prevailing in his
territory, but may not be well equipped with the complete information about the
economic environment and the industry as a whole.

Sometimes, the sales agent intentionally gives fewer sales forecast, so that they can
fetch more incentives or bonus from the management on exceeding the sales targets.
…………………………………
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