Business Quantification and Implementation

Study Notes

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 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.

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

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)

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

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

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