Business Quantification and Implementation

Business Implementations and Forecasting

• Business implementations are crucial for achieving business goals and objectives.
• A strategic plan provides a clear direction, ensuring the attainment of goals and value to customers.
• Effective business implementation can be a powerful tool for gaining a competitive advantage.

Forecasting

• Forecasting involves using past and present data to make predictions about future events or trends.
• It helps businesses identify risks and opportunities and allocate resources efficiently.
• Factors to consider in sales forecasting include competition, macroeconomics, events, law, season, and employees.

Creating a Sales Forecast

• A sales forecast estimates the number of goods and services a business can sell over time.
• It includes the cost to produce and sell goods and services and the estimated profit.
• Formulas for sales forecasting:
  • Markup = Cost per unit x Desired Markup
  • Selling Price = Cost Per Unit x Markup Price
  • Projected Daily Revenue = Selling Price x Volume of Items Sold
  • Projected Items Sold Monthly = Items Sold Daily x 30 Days
  • Projected Monthly Revenue = Selling Price x Projected Items Sold Monthly
  • Projected Items Sold Annually = Items Sold Monthly x 365 Days
  • Projected Annual Revenue = Selling Price x Projected Items Sold Annually

Ratio Analysis

• A financial ratio compares two numbers from a company's financial statements to show their relationship.
• Types of ratios include:
  • Profitability Ratio (e.g., Return on Investments, Operating Income Ratio)
  • Financial Health Ratio (e.g., Debt Ratio, Debt-to-Equity Ratio)
  • Liquidity Ratio (e.g., Quick Ratio, Current Ratio)

Value Chain Analysis (VCA) Model

• The value chain represents a firm's internal activities when transforming inputs into outputs.
• The VCA model is applicable for both product and service types of business.
• Primary activities include:
  • Inbound logistics
  • Operations
  • Outbound logistics
  • Marketing and sales
• Support activities include:
  • Firm infrastructure
  • Human Resource Management
  • Technology Development
  • Procurement### Business Management
• Involves advertising, promotion, and pricing channel relations
• Includes service, installation, repair, and parts
• Consists of secondary activities such as firm infrastructure, human resource management, technology development, and procurement

The People Strategy

• A prioritized plan to attract, develop, retain, and inspire the workforce
• Enables a business to be successful by aligning with company-wide goals

The Eight (8) R's of Human Resource Management

• Recruiting: finding and attracting potential resources for filling up vacant positions
• Routing: assessing the potential of recruits to contribute to the organization in various functions
• Retaining: holding on to people by providing just wages and work-life balance
• Resonating: emphasizing employees' alignment with company goals
• Reviewing: measuring and evaluating employee performance
• Rewarding: compensating employees for their work, loyalty, and accomplishment
• Retooling: re-orienting employees to new directions and creating a healthier corporate culture
• Recycling: allowing employees to change jobs or careers

Business Model Canvas

• A plan that outlines a company's financial goals
• Consists of nine components:
  • Customer Segment: identifying target customer groups
  • Customer Relationship: establishing relationships with customers
  • Channels: ways to reach out to specific customer groups
  • Revenue Streams: aligning with the business model's cost structure
  • Key Activities: crucial actions to run the business smoothly
  • Key Resources: necessary resources for each business model
  • Key Partners: relationships with other people or organizations
  • Cost Structure: focusing on innovation and developing a value proposition
  • Value Proposition: meeting customers' needs or solving their problems

Business Permits and Licenses in the Philippines

• Bureau of Internal Revenue (BIR) Tax Identification Number
• Barangay Clearance: certifying compliance with barangay requirements
• Department of Trade and Industry (DTI) Business Name Registration Certificate
• Mayor's Permit/Business Permit: ensuring business safety and compliance with local ordinance
• Securities and Exchange Commission (SEC) Registration Certificate: for corporations and partnerships
• Additional permits required for businesses with employees, including Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and Pag-IBIG