Explain the major activities involved in the physical distribution of products.
The physical handling and movement of goods from place of production to the place of distribution, is called physical distribution. It covers all the activities required to physically move the goods from the manufacturing to the customers.
The major activities involved in the physical distribution of products are:
Order processing: A good physical distribution system should provide for an accurate and speedy processing of orders. In the absence of this, goods would reach the customers in wrong quality or quantity, resulting in dissatisfaction of customers.
Transportation: It means carrying raw materials and finished goods from one place to another. It helps in creating ‘place utility’, by making available the goods where they are required.
Warehousing: It refers to the act of storing and assorting products in order to create ‘time utility’. It helps in proper placement of goods and providing facilities to store them, so that they can be made available as and when demanded by the market.
Inventory control: An important decision in physical distribution is deciding about the level of inventory. Higher the level of inventory, higher will be level of service and cost of carrying the inventory and vice-versa. Various factors which are considered for determining inventory levels are:
i. Firms’ policy regarding level of customer service.
ii. Degree of accuracy of sales forecast.
iii. Responsiveness of distribution system.
iv. Cost of holding inventory.
A good inventory decision aims at timely fulfillment of demand at minimum cost.
What are the factors affecting determination of the price of a product or service? Explain.
A marketer of colour TV having 20% of the current market share of the country aims at enhancing the market share to 50 per cent in next three years. For achieving this objective he specified an action programme. Name the function of marketing being discussed above. (Ans. Marketing planning.)
What is marketing mix? What are its main elements? Explain.
For buyers of consumer durable products, what ‘customer care services’ would you plan as a manager of a firm marketing new brand of motorcycle. Discuss.
How does branding help in differential pricing?
Discuss the role of intermediaries in the distribution of consumer non-durable products.
Distinguish between convenience product and shopping product.
What are industrial products? How are they different from consumer products? Explain.
What information is generally placed on the package of a food product? Design a label for one of the food products of your choice.
Product is a bundle of utilities. Explain.
How does planning provide direction?
What is meant by staffing?
Identify the network of social relationships which arises spontaneously due to interaction at work.
What is informal communication?
State the meaning of controlling.
What is meant by capital structure?v
What is meant by management?
What is a Treasury Bill?
What makes principles of management flexible?
Under which consumer right does a business firm set up consumer grievance cell?
What is the common name for Beneficiary Owner Account, which is to be opened by the investors for trading in securities?
Coordination is the essence of management. Do you agree? Give reasons.
Ramnath is into the business of assembling and selling of televisions. Recently he has adopted a new policy of purchasing the components on three months credit and selling the complete product in cash. Will it affect the requirement of working capital? Give reason in support of your answer.
Name the principle that is an extension of the ‘harmony, not discord’.
Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave ovens, refrigerators and air conditioners. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining return on investment and bad marketing. State the quality of management that the company is lacking? What quality of management do you think the company is lacking? Explain briefly. What steps should the company management take to bring the company back on track?
Give an example to show that a business firm operates within numerous inter related factors constituting the business environment.(Hint: example highlighting the inter relatedness of dimensions of business environment).
Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organisation? What are her basic functions?
Explain the qualities of a good leader? Do the qualities alone ensure leadership success?
Give any two standards that can be used by a company to evaluate the performance of its Finance & Accounting department.
Name the component of product mix that helps the consumer to exercise the right to information.