Consists of: o Working capital management  Production  Inventory  Marketing  Human resource planning

 Working capital management is concerned with making sure we have exactly the right amount of money and lines of credit available to the business at all times  Working Capital is the money used to make goods and attract sales

 Cash Management  Receivables Management  Inventory Management

Cash Management Identify the cash balance which allows for the business to meet day to day expenses reduces cash holding costs Receivables Management Money which is owed to a company by a customer for products and services provided on credit Identify the appropriate credit policy Inventory Management Identify the level of inventory which allows for uninterrupted production

 A company's merchandise, raw materials, and finished and unfinished products which have not yet been sold. These are considered liquid assets, since they can be converted into cash quite easily.company's merchandise, raw materials, a products wsold. Tliquid assets, scash

 ABC  JIT  FSN  BILLS OF MATERIAL  BIN CARDS  EOQ-ECONOMIC RE-ORDER QUANTITY  INVENTORY/TURNOVER

 Plant location  Plant layout  Product design  Production design

 The locations where firm set up their operations is called as ‘Plant Location’. The choice of plant location should be based on following considerations

 It refers to the placements of departments, workgroups within departments, work situations, machines and so on Capacity Planning ‘Capacity Planning’ is the process used to determine how much capacity is needed in order to manufacture greater product or begin production of a new product

 ‘Long range capacity’  Short range capacity’

 Standardization  Maintainability  Reproducibility  Product simplification  Product value  Reliability  Servicing and sustainability

 Scheduling  Project inspection

 Before any production/ service is offered for sale to market, several decision need to taken in regarding marketing. Ex: price of product has to determined, the methods of marketing has been identified and the channels of distribution have to be worked out

 It is a place where the sellers and buyers assemble to exchange their products for money. Concept has been change time to time  Traditional approach focus on the needs of the sellers (Buyers Beware).  Modern approach focus on the needs of the buyers. (sellers beware).

 Competition with modern sector  Lack of sales promotion  Weak in bargaining power

There are number of techniques available for forecasting demand.  Survey Method  Statistical method  Leading indicator method

Basic of Market segmentation Geographic variable Demographic variable Education variable Income variable Marketing Mix (7 p’s)

Economic and non- economic  Product characteristics  Product cost  Objectives of the firm  Competitive situation  Demand for the product  Customers behavior  Government regulation

 Cost plus method  Skimming Pricing  Penetration Pricing  Market rate policy  Variable price policy  Resale price Maintenance

 Zero level Channel: producer to consumer  One level Channel: Producer (to) retailer (to) consumer  Two level Channel: producer (to) whole seller (to) retailer ( to) consumer.

 What kind of people we need?  How many people we need? Job Analysis:  Job Specification  Job description

Start-up: It refers to the birth of a business enterprise in the economy. The production takes place in limited scale. The enterprise is not faced with any competition during this stage. Profits may not be earned during the start up stage.  A. Growth stage B. Expansion stage  C. Maturity stage D. Decline stage

 Internal growth:- These imply that enterprise grow their own without joining hands with other enterprises.  Expansion  Diversification. (FMCG to Heavy vehicle manufacturing.)

It means enlargement or increase in the same line of activity. It is natural growth of business enterprise taking place in course of time  Production strategy  Marketing development strategies  Expansion through product development / modification

Approach to growth by adding new products to the existing product line is called “diversification” Advantages:  effective use of its resource  minimize risk involved  competitive strength

Horizontal diversification:-  The same type of product / market is added to the existing ones. Vertical diversification:- Complementary products or service are added to the existing product or service line of the enterprise.

Concentric diversification An enterprise enter into the business related to its present one in terms of technology, marketing or both.

Conglomerate diversification:- It is just contrary to concentric diversification an enterprise diversifies into the business which is not related to its existing business neither in terms of technology nor marketing inter into unrelated to its present one.

External growth:- Enterprises grow by joining hands with other enterprises.  Joint ventures  Mergers  Sub-contracting

Franchising  Product franchising  Manufacturing franchising  Business format

 An entrepreneur starts a business with 2 choices;  By “choice”  By “compulsion”

 It refers to bringing into circulation of various types of resources like materials, finance, labor, etc. which are essential for operating the business.

 Cash flow statement  Income statement  Balance sheet

 Outsourcing: In business, outsourcing in the contracting out of a business process to a third-party.contracting Outsourcing includes both foreign and domestic contracting, and sometimes includes offshoring or relocating a business function to another countryoffshoring  Material resources: Assets in the form of material possessions assets - anything of material value or usefulness that is owned by a person or companyassets