Untitled

Small and Medium Enterprises (SME)

• SMEs operate in the private sector.
• The annual sales turnover(total receipts of the business) is not more than $100 million.
• SME employment size is not more than 200 workers.

Multi-National Companies (MNC)

• MNC operates in at least one other country, compared to its home country.

Volunteer Welfare Organisations (VWO)

• A VWO is a non-profit organization which provides welfare service and/or services that benefit the community at large.

Public Sector

• Comprises Government Ministries.
• Includes Statutory Boards.
• Includes organs of states.
• Works with the elected Government to shape the future of Singapore.
• Forges a common vision among Singaporeans.
• Transforms the vision into reality.

Private Sector

• It is the enterprise for profit, and it is not controlled by the State.

All organizations can be divided into

• Public Sector
• Private Sector

The public sector may comprise

• Ministries
• Organs of State
• Statutory Boards

The private sector can comprise

• For-profit organizations
• Non-profit organizations

For-profit organizations examples

• SMEs
• Non-SMEs

Non-profit organizations examples

• VWOs

Organizations - Public Sector

• Are government-run organizations.
• Serve the public interest and provide services.
• Are funded by taxpayer money.
• Are accountable to the government and public.
• Examples include government ministries and statutory boards.

Organizations - Private Sector

• Private sector organizations are run by private individuals/groups.
• They generate profit for owners/shareholders.
• Are funded by private investments and sales.
• Are accountable to owners and shareholders.
• Examples include corporations and small businesses.

Vision

• States what the organization wishes to accomplish in a long-term future.
• Inspires employees to be passionate in their work.
• Provides directions on what the company aims to achieve.
• An end Goal

Mission

• Describes what business the organization is in now as well as projecting into the future.
• Focuses on empowering every person and organization to achieve more.

Value

• Describes the desired culture in the organization.
• Includes respect, integrity, and accountability.

Strategy

• The art and science of formulating, implementing, and evaluating decisions enabling an organization to achieve its objectives.
• Is action-oriented.
• It builds best-in-class platforms and productivity for a mobile-first, cloud-first world.

Organisation Charts

• Aspects include division of labour, line of accountability and decision making process

Division of Labour in Organisation Charts

• Is the specialization of cooperating individuals who perform specific tasks and roles.

Line of accountability in Organisation Charts

• Each unit has a set of responsibilities and is accountable to another unit above it in the Org Chart.

Decision making process in Organisation Charts

• Many organizations decentralize decision making authority.
• Managers of individual units in the organization make decisions relating to their areas of responsibility.
• The top leaders in the organization sets the broad strategy and makes major strategic decisions.
• The execution of these strategies is delegated to the managers who make decisions in their area of responsibility and to achieve these strategic goals.

Cost

• Cost is the amount the company has to pay for the goods/services received from another party such as employees and suppliers.
• Smartphone manufacturer Apel Ltd's costs include major raw materials such as touchscreen panels and batteries.
• Its costs include miscellaneous materials such as screws and glue.
• Its costs include salaries of the smartphone production workers.
• Its costs include rental fees for the factory housing the production lines.
• Its cosnts include the CEO's salary.

Depreciation

• Depreciation is the systematic allocation of the cost of items that can be used for several years over its estimated useful life.
• To calculate the depreciation per year using the Straight-Line Method, the cost of the item is needed.
• You'll need an estimate of the number of years of useful life.
• You'll need an estimate of the salvage/scrap value of the item at the end of its useful life

Depreciation calculation

• Depreciation per year = (Cost - Salvage Value) / No. of years of useful life

Example depreciation calculation

• An IT server has a cost of $500,000.
• IT server has a useful life of 5 years.
• Its salvage value at the end of its useful life is $100,000.
• The depreciation per year is ($500,000 - $100,000) / 5 years = $80,000 per year.

Manufacturing Costs

• In a typical manufacturing environment, the manufacturing costs are grouped into 3 categories.
• These categories are direct materials cost, direct labour cost, and indirect manufacturing cost.

Direct Materials Cost

• The cost of materials readily traced to the product and typically forms a significant part of the cost of the product.
• In Apel Ltd, an example is the cost of touchscreen panel and battery.

Direct Labour Cost

• The cost of labor that is readily traced to the product and typically refers to employees working directly on the product.
• An example from Apel Ltd is the salary of the production workers assembling the components.

Indirect Manufacturing Cost

• All other manufacturing costs that are not direct materials or direct labor.
• Also known as Manufacturing Overheads.
• Examples include rental cost of the factory and cost of screws and glue.
• Examples include depreciation of manufacturing machines and IT systems.

Non-manufacturing Costs

• Includes research and development, marketing and administrative costs.
• Are indirect costs of producing the smartphone.

Recurring Cost

• A regular cost that incurred repeatedly.
• Examples staff salary, electricity bills and office rental.

One-Time Cost

• Incurred as a result of rare or once-off event or activity.
• Examples include purchase of a machine, losses due to heft and website development cost.

Revenue

• Also known as Sales Turnover, Sales Revenue, or Sales.
• Is the amount earned by the company for the goods/services it has provided to another party such as customers.
• The amount depends on the selling price of the product and the quantity of products sold.

Profit

• Profit = Revenue - Cost

Growth

• % growth from previous period = ((Xcurrent - Xprevious) / Xprevious) * 100%.
• Where Xcurrent is the value in the current period, and Xprevious is the value in the previous period.

Calculating with constant growth rate

• With a constant growth rate (r% per period) over several periods, the value at the final period can be determined by Xfinal = Xfirst * (1 +r%)^I
• I is the number of periods.
• Xfinal is the value in the final period.
• Xfirst is the value in the first period.

Porter's Generic Strategies

• The key categories are cost leadership strategy, differentiation strategy and focus strategy

Cost Leadership strategy

• Targets a large market size with the lowest cost in selling products/services at industry-average price or even lower.
• When negotiating with external parties/suppliers, it will use large size to bargain for the best deal/lowest price.

Differentiation Strategy

• The company can differentiate themselves that will lead customers to think that it is unique.
• Typically, the products/services are more expensive and customers are also willing to pay more for these unique products/services.

Focus Strategy (Low Cost)

• The company focuses on only a narrow segment of the market and achieves a low-cost advantage.

Focus Strategy (Differentiation)

• A company focuses on only a narrow segment of the market.
• The important factor is that it makes sure it provides unique products/services.

SWOT Matrix Technique

• This is a technique that works on matching internal and external factors that affect a company's performance and generate strategies for different situations.
• Includes internal factors: Strength (S) and Weakness (W).
• Includes external factors: Opportunity (O) and Threat (T).

SWOT Matrix Technique - "SO"

• The strategy applies the company's strengths to take advantage of the opportunities.
• This type of strategy is most likely to succeed.

SWOT Matrix Technique - "WO"

• This aims to improve the company's weakness to become a strength.
• The improved strength then is used to take advantage of opportunities.

SWOT Matrix Technique - "ST"

• The strategy applies the company's strength to avoid or reduce the impact of threats.

SWOT Matrix Technique - "WT"

• This aims to improve the company's weakness to become a strength so that it can avoid or reduce the impact of threats.

Performance measurement

• Is the process of collecting information to see the performance of an individual and organization.

Key performance indicator

• Measures the value demonstrating how effectively a company is achieving key business objectives.

Procurement

• Refers to all activities involved with obtaining items from suppliers.
• Example includes liaising with suppliers to check quality of goods to be supplied.
• Includes verifying delivered goods if what delivered as specified in the purchase.
• Includes Logistics planning.

Key functions of the procurement

• Vendor management
• Sourcing

Vendor management

• Consists of evaluating and selecting vendor and maintaining strong supplier relationship.

Sourcing

• Consists of developing sourcing strategies to identify reliable suppliers and negotiate favorable terms and conditions with the vendors.

Modes of Procurement

• Small value purchase (SVP)
• Invitation to Quote (ITQ)
• Invitation to Tender (ITT)

Small Value Purchase (SVP) Mode of Procurement

• Is for items less than $6,000.
• Commonly used for office suppliers, minor repairs or services.

Invitation to Quote (ITQ) Mode of Procurement

• Is for items between $6,000 to $90,000.
• A quotation notice is published on media platforms such as newspaper inviting suppliers to quote.
• The buyer will decide on best supplier based on criterion.

Invitation to Tender (ITT) Mode of Procurement

• Is used for high value items above $90,000.
• In Stage 1: Interested suppliers will be shortlisted based on their capabilities.
• In Stage 2: The shortlisted suppliers needs to submit their tenders.

Procurement Job Roles

• Procurement Specialist
• Procurement Manager

Procurement Specialist

• Tasks include prepare SVP/ITQ/ITT documents.
• Tasks include source for new vendors.
• Manages database of vendors.
• Coordinates between external vendors and internal users to ensure compliance of procurement rules.

Procurement Manager

• Sets up Standard Operation Procedure (SOP) for procurement
• Advises internal users on procurement strategies.
• Reviews procurement documents

Segregation of Duties

• Requires more than one person to complete a task; which prevents internal fraud and error.

Procurement: Key Measurements

1. Cost of running the procurement function/total procured items cost *100.
2. Cost of running the procurement function.

• Salary of procurement staff.
• Company tries to minimise KPL (key performance level)

Sales

• Is the communication between the company's representatives and customers which leads to sales order.

Sales cycle

• Prospecting
• Plan Sales Call
• Meet Prospect
• Presentation
• Overcome Negotiation
• Make Sale
• After Sales to follow up

Sales cycles

• Activities include Prospecting Planning a sales call Meeting the prospect Making sales presentation Negotiating and Overcoming Objections

Prospecting

• The process of identifying potential buyers via defining the target market.
• Involves using communication tools such as search engine advertisements and trade shows to gather leads.
• Is qualifying a lead such as finding out whether the customer has the money/ability to buy the products.

Planning a sales call

• Identifying the prospect's likes and dislikes, needs, preferences, habits, nature, behaviour, economic and social status etc.
• Preparation includes scripting and good understanding of the product.
• The result is an appointment with the potential customer.

Meeting the prospect

• Actively engaging the prospect by listening, observing the body language and seeking clarification to identifying the prospect's likes and dislikes, needs, preferences etc.

Making sales presentation

• Presentation includes visual aids (e.g. powerpoint, demonstration (e.g. how to use the product) and participation (e.g. getting the prospect to use the product).
• Involves soliciting a response (favourable or unfavourable) from the prospect.

Negotiating and Overcoming Objections

• Exploring the underlying reasons for the prospect's resistance to buy the products.
• Negotiating and developing an agreement with the prospect

Key measurements - Sales and Marketing functions

• Sales Revenue
• Customer Acquisition Cost
• Customer Lifetime Value
• Conversion Rate
• Customer Churn Rate

Sales Revenue

• Is the total value of sales made within a specified period.

Customer Acquisition Cost

• Total Marketing and Sales Expenses) / Number of New Customers(the lesser the better.)

Customer Lifetime Value

• Average Revenue Per Customer) x (Average Customer Lifespan).
• Understanding CLV helps businesses make informed decisions on how much to invest in acquiring customers and improving customer retention strategies.
• Is improved by focusing on improving customer experience, personalization, loyalty programs, and upselling/cross-selling strategies.

Conversion Rate

• Number of Customers Acquired) / (Total Number of Leads) x 100%(higher the better) Metric that shows how well a company is converting interest/leads into actual sales. Then, assesses the effectiveness of marketing strategies

Customer Churn Rate

• Number of Customers Lost in a Period) / (Total Number of Customers at the Start of the Period) x 100%
• Keeping churn low is crucial for maintaining a stable customer base and ensuring long-term profitability.
• Means that employee left the company.

Just-In-Time Inventory Management

• JIT inventory management aims to reduce inventory holding costs and improve cash flow.
• Achieves this by purchasing goods only when required.
• Enhances production flexibility and responsiveness to customer demand fluctuations by eliminating excess stockpiles
• Fortifies relationships with suppliers by fostering collaboration and ensuring timely deliveries to support production schedules.
• This ensures inventory levels reducing storage costs and risk of overstocking. The materials are ordered and delivered as close as possible to the time they are required.

Data Preparation

• Is the process whereby 'collected' data from one or more sources are 'prepared' before actual analysis are performed on the data.
• It will need to first - Clean data to remove data that is irrelevant, duplicate, out of range, blank or contains errors Second - Process data by combining information, recoding or reformatting fields. Followed by use of -Final 'consolidated' and 'cleaned' data for analysis

Accounting and finance

• It will be useful to - Remove Duplicates. -Validate data -Sort data
• It aims to record and report financial information to internal management. Accounting may help secure loans from bank

Account receivable Days

• Is the number of days the company takes to receive payment from its customers.
• Company tries to minimize.

Account payable Days

• The number of days the company takes to make payment to its suppliers after it has received goods/services.
• Company seeks to maximize payout

Errors in payment and Collection

• Number / amount / % errors in relation to total amount.
• Company tries to minimise such errors

Job roles in Accounting & Finance

Account Executive Management Accountant Finance Executive

Inventory and Logistics

Inventory is the stock of items used or produced by the company. Logistics refers to the exchange of material/resources between an organisation and external entity. Inbound: between the company and its suppliers Outbound: between the company and its customers Phase of order processing Order transmission Preparation Routing Preparing for picking Shipment documentation Invoicing Order Processing Order-Processing Cost per Order Order-Processing Reliability TEAM ACTIVITY #2: POP QUIZ inventory and logistics are Inventory specialist, Logistics Analyst, Flee Manager 6) Warehousing

• A hub in a logistics network where goods are temporarily stored in the network.
• Major activities involve receiving, preparation for storage, Picking; Packing

Key measures in warehousing include

• Storage Location Costs per month
• Capacity Utilisation

Transportation

• Transport Damage Rate
• Transport Reliability
• Transport Costs per ton to kilometre (km)

7. Revenue centre and cost centre: Revenue Centre- makes money for the company from product sales or service provided Cost Centre - maintaining the company that does not produce direct profit and adds to the cost of running a company.

Excel Functions

=VLOOKUP (B2:B68, Customer!A2:G68,2,FALSE) COUNTIF is an Excel function to count the number of cells that meet a criterion. Function will sort the key values and you can use the outcome to look for duplicate and remove extra spaces: =TRIM(B2) removes all spaces from text except single ones between words

Difference between logistics and procurement

• Procurement involves in the process of getting goods from the external supplier. It also involves an organization in terms of getting what the company needs from suppliers by maintaining supplier relationships
• Logistics focus is to find methods to move managed data all through the supply chain Human Resource & Administration Human Resource: includes -HR Strategy planning, Recruitment. Selection, compensation, and Benefits. Also includes performance management, training and development, The KPI for HR management Typical Measurements in HR resources are: Cost Pre Hr During a period No Training Hours per Employee Training Utilisation Typical measurements are: Employee turnover Human resource, is described in next slide

Employee Turnover rate formula

LNo .of employ ees leftduringthe year B+E × 100% Where: B = No. of employees at the beginning of the year E = No. of employees at the end of the year L = No. of employees who left during the year B+E is the average number of employees in the yea 2 Where= 554-82-69=541

Information Technology

1. is used for storing, retrieving, and sending information companies rely on it for the purpose of data processing, fast communications and acquiring market intelligence. • IT Infrastructure Management • IT Support Examples include:

• IT Security Management KP1: Total expense incurred the IT department divided by the total number of end users. . Job Roles include: IT security Engineer, Data Scientist, System Analyst Programmer Database administrator

2. Data Visualization:

• Data Visualisation types are Graph Type, Strengths Limitation, best used for

Human Resource

• At the beginning of the year 2019, a company has 554 employees.
• During the year, 82 employees left and 69 new employees joined the company.

Information System

Is the used for storing, retrieving, and sending information. Companies rely on IT for the purpose of Data processing, fast communications and acquiring market intelligence. Activities in Sales cycle Prospecting · The process of identifying potential buyers:

Just in Time IT

Just in time in inventory management aims to reduce inventory and it includes high levels and improve to cash flow by purchasing.

Order of cash process

• It records the data on sales performance and includes customer purchase.
• It records related to inventory details that the inventory has in detail in quantity, quantity, and unit cost

Process architecture

Components of process architecture and activities and buffers the steps that are information storage points are load activities to operate independently

Business performance management

• Is crucial for overall success of an organization.
• Involves designing. Managing and improving business processes to achieve goals and customer satisfaction.
• Streamlining work through this, reduce waste and it optimizes to the resource the utilization

Components of Process Architecture

• The Process involves Flow units, documents and information data or measures in an organization.
• Processes needs to adapt to stay aligned with goal in managing processes

Data

• the elements are Input and output. Has 3 important parts to be considered Input and output,

Human Resource

• At the beginning of the year 2019, a company has 554 employees.

Information System

• is a method for managing data all through logistics or management.
• It has 3 important steps to make it a process, Input Process and output