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Management Control

Presented by -

Mahendra Dhenak – 17 ,
Amol Kulkarni – 40 ,
Rakesh Acharekar – 06 ,
Santosh Jaiswal – 59 ,
Amir Ansari - 36
Management Control System
Retail Management
Meaning of Retail Management

A Retail management is about departmental store retailing

and shopping mall retailing business.

It aimed at improving the performance of retail outlets.

Retail management involves running a store where

merchandise is sold
RM - is a process of facilitation.

Depending on the business , management can be conducted .

It is the way business is lead in the retail sector - with

retail being the delivery of goods and services to end user .

As a job sector, Retail Management offers positions with

names like Retail Store Manager, Retail Area Manager ,
Retail Assistant Store Manager.
India Retail Industry
India retail industry is the largest industry in India, with an
employment of around 8% .

A booming US$ 300 billion retail market in India

contributing to over 12 % of the country's GDP

5.5 retail outlets per 1000 population .

Top Retailers in India

• Shoppers' Stop
•Westside (Trent)
•Pantaloon (Big Bazaar)
•RPG Retail (Foodworld, Musicworld)
•Wills Lifestyle
•Piramals( Pyramid & Crosswords)
•Ebony Retail Holdings Ltd.
Top Retailers in World
Retail Formats in
Meaning of Management control system

It is plan assuring that resources are obtained and used

effectively and efficiently in the accomplishment of the
organization's goals .

It include the plan of organization, methods and procedures

adopted by management to ensure that its goals are met .
Functions of Management control system in
Retail Management

Sales generation

Division of responsibility

Hiring, training and development

Visual merchandising and inventory control

Responsibility Centres in Retail Management

A responsibility centre is an unit that is headed by

store manage who is responsible for its activities.

A responsibility centre is an autonomies business unit

for which a manager is responsible for Cost, Revenue
and Aquisation and disposals of an assets.

A well-designed responsibility accounting system

should clearly define responsibility centers in order to
collect and report revenue and cost information by
areas of responsibility
The responsibility centres may be classified as

A -Revenue Centres

B- Expense Centres

I - Profit Centres
II - Investment Centres
A -Revenue Centres

a responsibility center for which a manager is accountable only

for the generation of revenues and has no control over setting
selling prices, or budgeting or incurring costs.

The main focus of management control system will be on

revenue generated by it.

Distinctly identifiable department, division, or unit of a firm that

generates revenue through saleof goods and/or services.
B- Expense Centres
Alternative term for cost center.

It is the lowest level of responsibility centre in an organization .

A cost center is part of store that does not produce direct profit
and adds to the cost of running a company. Examples of cost
centers include research and development departments, marketing
departments, help desks and customer service.

Total performance of store manager depends on how effectively

and efficiently an expense centre is operated
I- Profit Centres
A store or department which is treated as a distinct entity enabling
revenues and expenses to be determined so that profitability can be

A profit centre is an organizational unit responsible for both

revenues and costs.

Profit centre’s performance measured in terms of profit.

It enhances profit consciousness
II- Investment Center

An investment centre is responsible for the production,

marketing and investment in the assets employed in the

Department or an area of responsibility, where a manager

controls revenues and associatedcosts, assets, and liabilities
. His or her performance is assessed largely on the basis of
return on investment (ROI) achieved .

store manager responsible for profit in relation to amounts

invested in the division.
AUDITING in Retail Management

Audit is the activity of examination and verification of

records and other evidence by an individual or a body of
persons so as to confirm whether these records and
evidence present a true and fair picture of whatever they
are supposed to reflect. Audits are most commonly used
in the accounting and finance functions .
Transfer Pricing in Retail Management

A transfer is referred to the movement of goods from a store

to another, within the same company.

deciding on the price of goods or services that are exchanged

between various store of a decentralized organization .

The technique of transfer pricing plays an important role in

the smooth functioning of responsibility structures in such

 Book on Retail Management
 Book on Management Control System
 Indian Retail report