Management Processes revision

• Coordinating key Business functions and Resources

  What does interdependance mean?

Interdependence refers to the mutual effect that different business functions have on each other and how they work together to achieve common goals

Interdependance: If operations want to expand what would they have to do?

Work with Finance in order too see if the business has funds to expand. Work with HR to see if the business has the employees to expand

• Operations

All activities in which managers engage in to produce a good or service

● The production process

Transformation process (Inputs/Outputs)

Inputs are resources used by a business in the transformation process

Outputs are the final goods or services produced by the business.

Transformed VS Transforming resources

Transformed resources (Resources that are changed to make the good or service) e.g Materials, Information , customer feedback

Transforming Resources: Human resources (employees), Facilities used by business

• Quality Management

Strategy used by a businesses to ensure products meet customer expectations

Quality Assurance

Systematic = sets standards in production

Prevents defects and problems

Quality Improvement: Continuous

Constant evaluation of improvement of the way things are done

Quality improvement: Total

Total improvement in all aspects of business operations

Quality Control

Inspections at various points in production line

Reduces problems and defects

• Marketing

The total system of interacting activities designed to place, price, promote and distribute products to present and potential customers. Aims to find out what customers want and then attempt to satisfy their needs.

Traditional Marketing

Pushing product to customers without regarding needs

Contemporary Marketing

Customer centric approach to marketing factoring needs and wants

• Identification of Target Market

Mass market: Wide product range , mass producing , distributing and promoting

Segmented: Market subdivided into Demographic, Geographic and Physchographic

Niche: Small and generally caters for hobbies

• Marketing Mix

Price, Product , Place and Promotion

Product

Most important element: includes quality , packaging , design , name and labelling

Price

Amount charged for goods and services

Price: Penetration pricing

Pricing product at lower than the market in order to gain market share

Price: Skimming

Higher prices with established brand identity and quality

Price: phycological

Pricing at $99 instead of $100

Price: Bundelling

More likely to purchase more e.g milk and bread $1

Price: Discounted

Products that are harder to sell

Promotion

Personal selling: Sales people , direct to customers (most of the time free)

Sales promotion: Free samples

Publicity: Positive attention for businesses e.g from fundraising , Local News articles

Advertising: Wider audience however not free e.g printed or electronic : Billboards , flyers and TV

Place

Where product was made

Place Distribution Channels

Producer - Customer (Direct, Fastest)

Producer - retailer - Customer (Brand identity , e.g high end brands selling through Myer)

Producer - Wholesaler - retailer - customer (More wider accessibility e.g supermarkets)

Finance: Cash flow statement

Shows liquidity of business

Inflows: Cash and credit sales

Outflows: Payment for stock and expences

Finance: Income statement (Revenue statement)

COGS = opening stock + purchases - closing stock

Gross profit = Sales - COGS

Net profit = Gross profit - Expenses

Finance: Balance sheet

Assets = Liabilities + Owners Equity

Human Resources: Aquisition

Planning: identifying what job role needs to be filled

Recruitment: Process of finding individuals for position . Internal: Someone already in the business . External : Finding someone outside for role

Human Resources: Development

Training: Teaching staff to be able to perform their job more effectively

Development: Activities which prepare staff to be able to take on other roles

Human Resources: Employee contracts & Maintenance

Employee contracts: Legally binding documents which agree pay, working hours etc

Maintenance: bonuses (non monetary or monetary)

Human Resources: Separation (Involuntary vs Voluntary)

Voluntary (Choice)

• Retirement

• Resignation

• Voluntary redundancy with pay

Involuntary (no choice)

• Dismissal : Termination of contract

• Involuntary redundancy

Business Ethics

Corporate social responsibility:

Social wellfare of customers , employees and suppliers taken into business decision

Business Ethics: Tripple bottom line

Social , Environment and Profit