Stop Reset Start Terms

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Below are the Terms used in the book Stop Reset Start for which additional information is posted here:

BCP = Business Continuity Planning

What does it mean?

A system of procedures designed to make the business work in worst of the emergencies and disasters.

English, please?

Business functions normally due to various rules, procedures and the informal network of everyone in the business. But, if there is an emergency, for example, the server hosting your website is down, or the sales software stops working, most businesses come to a halt. The testing and emergency protocols for this is BCP.

But, BCP looks at not just emergencies but effectively what will make the business run smoothly, e.g., Do you have succession planning for your key executives? What happens if your competitor poaches some key sales people, does your business still run smoothly?

Distribution Coverage Ratio

Suppose you service 25 shops out of the 100 shops in your sales territory and generate sales volume of 100 units.

Suppose the total volume generated in the sale territory by all the 100 shops is 1000 units.

Now the total volume generated by the 25 shops (your products + competition) is 200.

Your counter share is 100 divided by 200 = 50%

So your distribution coverage ratio is 200 divided by 1000 = 20%

Implication?

Even if you increase your counter share to 100% (i.e. 25 shops sell only your products and sales increase to 200 units), your distribution coverage remains at 20%.

Sales is a constant dynamic between the counter share and the distribution coverage ratio.