Greaves : An Analysis of Product Quality & Customer Satisfaction

5.1 BUDGET
The functioning & working pattern of Greaves is entirely dependent on the Budget prescribed by the company personnel. The personnel from Head office & Branch offices get together and prepare the budget for the coming year. The sales to be achieved for all the Business Groups are put down in the budget given depending on the following conditions Past performance of the company. ie The sales achieved by the company in the previous year. Future growth anticipated for the company ( For e.g. Greaves are going to add agricultural pump sets (Electrical) to their product line. So if the anticipated sales for the 1st year is about 100 units , & the price of the pump is Rs. 10,000 /- each then Rs. 10 lakhs will be added to the budget for Business Group 7 (Agro Equipments) The growth potential in that particular sector of the country. The market conditions & climatic conditions of that particular area (For e.g. Rainfall during the year is one of the major factors for sale of agro equipments. If more rainfall is anticipated then sales of the agro equipments will be more) The Budgeted sales set for the coming year will obviously be much more then the sales achieved for previous year. This is done in order to motivate the employees & make them work harder to achieve the prescribed targets. Also the employees have complete autonomy in making decisions & are so highly empowered. Such a method of functioning gives a tremendous boost to the employees & they also push themselves to the limit for attaining the targets. The financial year for Greaves is 1st July to 30th June. While the year for payment of income tax is 1st april to 31st march.

Given below is an example of the budget prepared for the Business Group 7. The actual sales achieved during the financial
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Greaves : An Analysis of Product Quality & Customer Satisfaction

year of 2002 03 is given alongwith the anticipated (anticipated because the below given budget was prepared in the end of May) sales for the year 2003 04 . Also the future projections for the year 2004-05 is shown.
Greaves Cotton ltd. BG - 7

( Rs. In Lakhs ) Actual 2002 - Anticipated Projection 03 2003 -04 2004 - 05 Product Quanti Rs. Quantit Rs. Quanti Rs. ty y ty PED/Reape 1767 138.2 1756 128.14 1900 149.22 r 2 Diesel Pump sets Power Tiller Electrical Pump sets Total 545 -1 87.00 -0.72 300 9 51.10 7.70 625 20 102.67 16.60

2311

224.5 0

2065

186.94

150 2695

8.89 277.38

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