Stringent Market and Sales Plan for Cognizant Company - Paper Example

For Cognizant to become successful in its operations, then a stringent market and sales plan should be designed to guide the operations within a given timeline. A good financial analysis should put a lot of emphasis on key areas that are necessary for the success of the venture. Cognizant Inc. start-up cost of $39710 should be injected in the various departments of the company where core operations are necessary for the company to operate successfully (Ter Braak et.al. 2013)

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The companys competitiveness will depend majorly on the product modifications. The allocated budget of $3000 will ensure that the company will do an in-depth analysis on the customers tastes and dislikes. The research will enable the company to be able to stay on top of their competitors in terms of product sales and market share..

The companys distribution system will be allocated a budget of $2000. Distribution expenses are important since it connects the products and services to the customers and suppliers in the supply chain. The companys product accessibility and sales will depend on how the company will perform in marketing and advertising. As a result, a budget of $8000 should be put in place to enable the company to market the company successfully.

A highly competitive market place requires more pressure exerted on the sales teams to move an extra mile. The right employee rewards and incentives programs can transform the sales operation and keep teams motivated. The sales incentive program should be allocated a sum of $1500. Sales teams should be happy and more hard working for remarkable measurable improvements in the business and hence incentives in the sales program should be stipulated and promoted. The sales incentive will incorporate disparate working locations and variable objectives (McDonald, et.al. 2006).

The company should also allocate a sum of $4000 to cover the fees and rate expense when setting up a business in the country. Such costs entail licenses for operations especially in segments that require certifications before operations. The company building will operate on a financial lease that will extend to at least five years. Cognizant Inc. plans to pay a monthly rate of $1000 with a rent deposit of $2000 that will be refunded after the end of the financial lease.

The company operations costs are budgeted to be $644,000. The amount will cover mainly the salary and associated costs that are necessary for the companys operations to be successful. The organizational chart has formulated the chain of command from the Cognizant CEO and the budgeted amount is displayed on the chart.

In essence, the companys operation costs and start-up costs are different and are therefore computed differently. The expenses are estimated and projected over a three-year time-frame. Aside from the start-up cost discussed above, there are back-office costs that are added in the computations as shown below:

Year Year Year

1 2 3

9. Supplies and Postage $1,000 $900 $800

11. Delivery Expense $500 $600 $700

12. Bad Debt Expense $1,500 $1,500 $1,500

13. Travel $2,000 $2,000 $2,000

14. Legal and Accounting Fees $1,000 $1,100 $1,200

15. Vehicle Expense $600 $700 $800

16. Maintenance Expense $400 $600 $800

17. Miscellaneous Expenses $2,000 $3,000 $4,000

D. TOTAL VARIABLE

EXPENSES $9,000 $10,400 $11,800

Less: Fixed Expenses

19. Utilities (Heat, Light, Power) $1,000 $2,000 $2,000

20. Insurance $3,000 $3,000 $3,000

21. Other fixed expenses $6.000 $6,000 $6,000

22. interests $2,500 $2,500 $2,500

23. depreciation $5,000 $5,000 $5,000

24. Telephone $1,000 $1,000 $1,000

25. Tax and licenses $1,500 $3,000 $3,000

E. TOTAL FIXED EXPENSES $20,000 $22,500 $22,500

F. TOTAL OPERATING EXPENSES $29,000 $32,900 $34,300

The companys start-up expenses are clearly different from the operation expenses as shown in the organizational chart. The two estimated expenses vary in the amount and use clearly as their name suggest. The companys estimated start-up cost suggests that Cognizant Inc. will have a strong foundation as it starts. The operational expenses vary greatly with the start-up expenses (Cannon et.al. 2014). The company has ten departments that is well budgeted for in its first year of operations. The Information Tech department director is allocated with a sum of $68000 that will play a crucial role in the research of tech business in Bangladesh. The HR department will concentrate on the hiring of both temporary employees and permanent employees and the director are budgeted to use $61000. There are other crucial departments in the company that has directors specified to receive a certain amount as their salaries. The departments are allocated a budgeted amount which they will use to do their activities.

The financial analysis of the start-up costs reveal that the company can be properly directed to achieve the required mandate if only the company follows the analysis attached. The analysis deeply covers the costs associated when starting the company as well as operation of the company. It is hence important that Cognizant Technologies management follows the plan as stipulated.

References

McDONALD, M. A. L. C. O. L. M., & Brown, L. (2016). 5 Strategic marketing planning. The marketing book, 86.

Johnson. A, Cannon. J, & Cannon, M. & Koksal (2014). Marketing simulations and customer transaction costs: Modeling a new relationship marketing approach. Developments in Business Simulation and Experiential Learning, 41.

Ter Braak, A., Dekimpe, M. G., & Geyskens, I. (2013). Retailer private-label margins: The role of supplier and quality-tier differentiation. Journal of Marketing, 77(4), 86-103.

van Helden, J., & Alsem, K. J. (2016). Journal of Accounting & Marketing.