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Anticipating Risk

uncertainties in nature, in the economic system and in human nature.

Product is King

a company’s succes is the product itself.

Product Failues

Business Failure

What are the 2 Stages of Market Research?

Preliminary Survey and Intensive Market Study

Preliminary Survey

determine the potential demands.

Intensive Market Study

used for the basis of production plans and sales campaigns. Typically used after Preliminary Survey

Forecasting

practice of predicting what will happen in the future, taking consider of past and present.

Risk

company’s exposure to factors that may lower the profit/sales or fails.

Forecasting Risk

prediciting potential uncertainties.

What are the 3 sets of forces or influes

Seasonal Influence, Long Term Trends, Business Cycles

Seasonal Influence

Regular changes in the system occure within a year. Ex Holiday, Climate

Long Term Trends

Structural changes in the economy, occuring in slow and cumulative way.

Business Cycles

pattern where a business experience upswing and downswing. 2 extreme phase, Prosperity and Depression.

Business Barometers

Metric/ set of indicators used to see the overall health and direction of the business.

Methods of Forecasting

techniques used to predict future events or trends by analyzing historical data and patterns

what are 2 types of Forecasting Methods

Qualitative and Quantitative Methods.

What are the types of Qualitative Forecasting

Delphi Method, Market Research and Sales force composite

Delphi Methods

set of series of questioners used to gather opinions

Market Research

conducting a survey or focus groups to gain insights,

Sales Force Composites

Combining sales team forecast to predict future sales

Subjective Methods

heavily rely on personal opinions, intuitions

Objective methods

Relies on historical data and mathematical computations.

Examples of Objective Methods?

Time Series analysis, moving average method, exponentioal moving average method, correlations analysis.

Types of Quantitative Forecasting

Time Series analysis, Moving Average, Simple Linear Regression. Multiples Linear Regression

Time Series Analysis

analyzing historical data pattterns to identifty trends

Moving Average

calculating average of average recent data points

Simple Linear

identifying linear relationship between 2 variables to predict future values based on 1 variables.

Multiple Linear Regression

analyzing relationships of multiple Independent variables and dependent variables to make predictions

Stage of Product Development

Development and Introduction, Rapid Growth and Mature State

Specific Risk in Industrial operations

refer to the hazards tp some sectors or workplace

Risk Survey

process of identifying, assessing and responding to potential Risk

Technological Assesment

new field of study where its intent to examine the consequences of introducing new technology

Insurance

financial arrangement that offers financial protection from losses or potential rosk

Capital

resources like lands, buildings. machinery used in production

KInds of Capital

Fixed Capital, Working Capital. Pain In Capital. Equity Capital

Fixed Capital

assets used in production over a long time

Working Capital

Funds required for daily operations

Pain in Capital

money pain for the stock sold

Equity Capital

total assets minus debts

Sources of Savings

Individual, Businesss, Goverment Savings

Capital Pool

Fuel the Economy

Money Market

Financial Segment where short term borrowing occur

Types of Stocks

Common and Preffered Stocks

Bonds

Promises to repay loans

Reserves

setting aside money to keep a business stable

Budgetting

Function to plan that profit or return picture

6 Basic Budgets Needed

Production, Materials, Plant and Equipment, Maintenance, Manufacturing and Labor Budget

Examples of Variable Cost

Raw Materials, packaging, Production Supplies, Delivery cost, Labor cost

types of Bonds

Corporate, Goverment, Municipal, Convertible and Zero Coupon bonds