Go Mobile: Aligning District Managers and Store

Teams
Management Accounting-ACCT 620
Desta Gelgelu
Tilda Bentho
Vinayak Narayana

Agenda
Introduction
Company Overview
Company strategy
SWOT Analysis
Compensation/Team Leader
Authority of Team Leader
Recommendations
Conclusion

Introduction
Go Mobile is about an organizational design and incentive choices
related to building management layer as a company scales up its
operations.
The company is faced with the challenge of motivating its district
managers to support the highly incentivized store teams.
The district managers are expected to drive a profitable growth by
supporting complex day -to- day operations at the stores.
They are also expected to instill a culture of a unique service and
honesty among Go-mobile employees.

Company Overview
The mobile retail industry in India was pretty much dominated by mom
and pops shops.
In 2006, India had 150 millions subscribers and three years later, the
number had doubled more than 525 millions.
In 2005, Modi and Young founded Go Mobile to take advantage of the
booming mobile market in India.
That same year, they opened the first store with their own money.
In 2007- they expanded their services by creating Phirbol with small
mom and pop.
In 2013- Go Mobile and Phirbols expanded so quickly with a total of 34
company and 584 Phirbol Franchise.

Company Overview Cont

The company used high power incentives to boost the entrepreneurial
spirit among Go Mobile employees.
Each store was staffed with a team leader, a cashier, and up to 11
sales promoters.
From 2006 to 2011, sales have increased from 69,705 to 202387.9
Founders mission was to have the company to become the 1st
mobile phone retailer in India.

Go Mobile Competitive Environment

Similar products are sold in the market which makes the market
highly competitive
Mobile devices, SIM card and recharge
Products and connection services are highly commoditized
Products and services are subject to extremely low margins
Retail chain is dominated goal oriented mom-and -pop shops with skill
of selling products

SWOT Analysis
Strength

Good incentive system

Strong IT system
Track stocks sold
Differentiated service
Quality service
Knowledgeable store employees

Weakness
Lack of competent district managers

Opportunity
Threat
Growing mobile market
High competition in mobile market
Effective, well focused local stores to work with

Company Strategy
High - quality , trustworthy service - Go mobile differentiate itself with
high quality product.
Motivated Staff- Go Mobile motivates its employees by providing
them with incentives, recognition, and opportunities.
Effective IT system- Go Mobile IT system provided employees with
timely information to run the business and enabled the employees
to control the company stock and cash needed at each store.
Opportunity to expand the connection and recharge business

SWOT Analysis
Strength

Good incentive system

Strong IT system
Track stocks sold
Differentiated service
Quality service
Knowledgeable store employees

Weakness
Lack of competent district managers

Opportunity
Threat
Growing mobile market
High competition in mobile market
Effective, well focused local stores to work with

Advantages - Team Leaders

Team leaders can enhance the performance of the stores

Excellent customer service
Training to cashiers and sales promoters
Feedback to district managers and head offices about local
demand

Disadvantages: Authority of Team Leaders

Team leaders are not educated and well trained
Success of team leaders depends on district managers
District manager should always be available for any assistance
team leaders may need
Any adjustment that exceed 3% can be a problem to team
leaders
Team leaders can not adjust price to match competitors price
that is lower than the store price by more than 3%
Discount of upto 3% can be misused to increase sales

Authority of Team Leaders

Training and managing cashiers and sales promoters at the store
Giving information to the district office about the products, services,
prices and promotions needed in the area.
Advertising: requesting live demos and dummies from the providers
Making price adjustment up to 3%

Limitations posed to Team Leaders

Not able to effectively utilize IT system
Update on product prices
Inventory Management
Utilization of feedback system is inefficient
Motivation lost overtime due to the limited functionality
Detrimental to Customer Satisfaction
Overall ability to provide quality service is limited

Improving the Performance of District Managers

Hiring district managers with good skills in managing HR
Limit district manager responsibilities so that they have sufficient
time to lead the stores
Clear expectations and evaluation methods

Recommendations
To ensure that districts managers provide sufficient support to team
leaders and their stores, must have the following:
Good communication structure in place, both in formal and
informational sessions.
Create a strategy map by mapping and identify the critical ingredients
that will drive the overall performance.
Implement a good balanced scorecard in place to measure/track their
performance in the market against competitors.
Training in place to increase the associates knowledge

District Manager Implementation

Introduce incentive plan for District Managers
Incentives based on gross profit

Create internal market for district managers through a district

manager- team leader matching program
Ranking of district managers
Preferences on who they would like to work alongside

Improving the Performance of District Managers

Hiring district managers with good skills in managing HR
Limit district manager responsibilities so that they have sufficient
time to lead the stores
Clear expectations and evaluation methods

Recommendations
To ensure that districts managers provide sufficient support to team
leaders and their stores, must have the following:
Good communication structure in place, both in formal and
informational sessions.
Create a strategy map by mapping and identify the critical ingredients
that will drive the overall performance.
Implement a good balanced scorecard in place to measure/track their
performance in the market against competitors.
Training in place to increase the associates knowledge

Strategy Map
.

Go Mobile Balance Score Card

.

Persp
ectiv
e

Objectiv
e

Measures

Initiative

Finan
cial

Increase
sales
Increase
profit

Sales per
store
Profit per
store
Cost per
store

Training
employees
Increasing
stores,
reduce cost

Cust
omer

Increase
customer
rating
Reduce
complaint
s

Customer
rating
Customer
complaint

Competitive
price
Improve
quality of
service and
products in
stock

Intern
al
proce
ss

Reduce
in store
time
Reduce
waiting

Average
time per
customer

Training
employees