MANAGEMENT PRACTICES AND SALES

Management Practices and Sales

Management Practices and Sales

Introduction

The study is related to management practices of firms, which in particular focuses on whether management practices differ according to type of firm and whether there is a link between management scores and sales. These aspects are important to study as it will facilitate in knowing the reasons why do management practices vary from firm to firm and also do the changing management practice affect the sales of firm.

Analysis

1.

Overall Mean Management Score

The above graphical representation indicates the trend of overall mean management score, which shows the increasing trend at start; however, it is found that the management scores for monitoring, target setting, incentives and reliability has been decreasing. This shows that the monitoring, target setting, incentives and reliability score of management of the firms needs to be increased.

2.

(i) Whether the firm is a multinational or not

The above shows the whether the firms are multinational or not, in relation to this, it is observed that most of the firms incorporated for the analysis are not multinational. The reason of this statement is that about 300 firms are not multinational, about 75 are domestic multinational and about 150 firms are foreign multinational. For that reason, it can be said that majority of the firms take into the consideration are not multinational firms.

(ii) Type of ownership

From the above chart that relates to type of ownership, it can be viewed that majority of the companies are owned by their founders that is about 150. Besides it, it is also found that about 140 firms are owned by 5 or more than five share holders and about 100 firms are owned by family members. Thus, it can be said that among different types of firms, most of the firms are owned by their founders.

(iii) Size of firm

From the above graphical representation, it can be observed that size of the firms' increases, as the average weekly hours worked per employee and the number of employees increases. The reason of this statement is that size of firm is measured through the combination of hours worked and number of employees. In this view, it is reflected that the as the hours worked by the employee increased, the number of employees also increases; thus, ultimately affecting the size of the firm.

3.

(i) Whether the firm is a multinational or not

Report

Overall Mean Management Score

Multi- national?

Mean

N

Standard Deviation

Foreign multinational

3.3750

144

.48581

Domestic multinational

2.7500

72

.59930

Not a multinational

2.6154

312

.81356

Total

2.8409

528

.78244

The above table presents the overall mean management score in relation to the type of multinational firm which shows that the mean score of foreign multinational firms are high that is 144 with the standard deviation of 0.48. Moreover, the mean value of domestic multinational and firms that are not multinational are 2.7 and 2.6 with the standard deviation of 0.59 and 0.8 respectively. Keeping this in view, it is noted that the firms which are not multinational have low management score because of high deviation in their performance in monitoring, target setting, incentives and reliability ...