ABM 1 Midterm Reviewer PDF

ABM 1 MIDTERM REVIEWER your work will have no line margins on By: JUELA (Wela) from 5D them. NOTE: In some cases, universities and A BUSINESS PLANNING MANUAL...

ABM 1 MIDTERM REVIEWER your work will have no line margins on By: JUELA (Wela) from 5D them. NOTE: In some cases, universities and A BUSINESS PLANNING MANUAL colleges require their students to use their own official thesis papers. Jorge H. Cuyugan 8. The textual materials of your work PART I should be typed double-spaced, except for very long lists of items/materials 1.0 TYPING GUIDES which you could type single-spaced 1. Use only quality bond paper: 8-1/2" x 9. As much as possible do not divide 11", and preferably substance 13 to 16 words at the end of the lines. However, bond (by weight) a few run-over spaces could be 2. Lighter paper could be used for accepted succeeding copies in case you will need 10. Direct quotations of at most three additional drafts typewritten lines are usually enclosed in 3. Use only one side of the paper for quotation marks. Quotations of more typing than three lines must be separated from 4. Use large type (pica) letters and black the text and indented about four spaces to medium black ink for your texts from both the left and right-hand 5. In case some letters or symbols are margins of the page and typed single unavailable in your typewriter or spaced computer, they should be carefully 11. Type postscripts after the last word of hand-written and inserted in your work your sentence. When you have to using black ink mention several references in a 6. Your report's margins (but not sentence, place their superscripts necessarily visible) should follow these instead after each name reference. spacings. If you're using a computer, you could set these margins in the 2.0 STEPS IN WRITING YOUR STUDY "page setup" before starting your work: 2.1 Your First Draft ✓ A psychological enumeration is 1” needed o Write your report directly and continuously like your thoughts 1.5” 1” ✓ If not sure with the words / phrase / sentence needed you can use temporary w, p, s 2.2 Revisions / Additions / Insertions ✓ Reconciling your outline with your 1” draft 2.3 Your Final Editing ✓ Is your entire work idea smoothly 7. If you are using a manual typewriter, prepares? use a simple guide sheet with bold ✓ Are your transitions to succeeding black lines inserted after the first paper topics and chapters well-worded? for your guide. It is usually the case that MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  ✓ Does the Body of your work contain all the needed important items? ✓ Is your conclusion in line with your 4.0 DEVELOPING PROJECT IDEAS 1. Consider the “Business Environment” objective/s, and does it blend with Philippine society is usually classified your texts? into various market groups. For 2.4 Proofreading example, if your target market is ✓ Reading letter-by-letter composed mostly of young people, a ✓ You will need an eagle’s eye good business idea is one that relates ✓ Final draft should be checked to the "needs of the young community" against the original texts like toys, pocket books, or other "youth" needs. 3.0 YOUR PROJECT TEAM 3.1 Your Project “Team” as Course 2. Consider "Import and Export Figures" Requirement Through the National Statistics Office ✓ Group of three is most ideal for a project (NSO) publications, you could easily feasibility team get figures of these. The study of import ✓ Choose a team leader to lead the figures could inspire a business planning involving local substitutes. Export ✓ Team leader = in charge of outside figures on the other hand could inspire experts and speacialists a business involving the development ✓ Course adviser = most important of local resources. ✓ OUTSIDE EXPERTS AND SPECIALIST: 3. Consider “Available Skills" a. Lawyers: provide legal info and The availability of local skills is also a advises good source of business ideas not of b. Corporate Managers: help similar businesses, but of "related" propose operations and ones. For example, a proposed management strategies agricultural product may lead to a (marketing, production schemes, & business site noted for producing viable proposal designs) food processing business venture. c. Engineers and Contractors: help make construction estimates and 4. Consider “Local Raw Materials and technical expenses Resources" d. Accountants: helpful in proposal, If a probable business site is known design, and management for its forests, minerals or marine strategies of the project’s financial resources, why not identify related requirements and management processing projects? If the site is near operations. an industrial dam where electricity is e. Extension Officers: provide direct obviously cheap, why not consider assistance in the reqs of the power-intensive businesses? project’s socio-economic repu. 3.2 The project “Team” for 5. Consider “New Technology and Entrepreneurs making actual Developments" Feasibility Studies A number of government and private organizations have already done some ✓ Project feasibility study is a researches for different industries for requirement for a bank loan public dissemination. These could be MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  borrowed to come up with suitable Old proposals, which have not projects where your proposed business materialized before because of certain site may be located. For example, if may now prove feasible. For example, your business site is in a low-lying area, strict import restrictions before that why not inquire from the Bureau of obstructed the growth of processing Fisheries for possible business factories requiring imported raw ventures in the locality? materials may now prove feasible with the easing of import regulations. 6. Consider “Inter-Agency Opportunities" 10. Consider "Business Periodicals" Growing industries usually carry with Many business magazines have them the establishment and need information of new products, processes, related ones. An example of which is and contain valuable economic the rise of packaging firms near of food information regarding other places. manufacturing and processing plants, Newsweek, for example, has a regular or the increase in the number page for new products. vulcanizing plants, along newly built of eateries, gasoline stations, and 11. Consider “Industrial Lists” highways. The “Philippine Standard Industrial Classification” contains a list of all 7. Consider “Industry Studies" Philippine products, which could be The Department of Trade and used as a checklist. Industry (DTI), the Private The Securities and Exchange Development Philippines (PDCP), and Commission (SEC) yearbook, as well the National Economic and Corporation as other SEC- published materials of the Development Authority (NEDA) could also be good sources of have made several "Industry Studies" information and ideas. which could be reviewed for possible The Bureau of Investments (BOI) business ventures on a particular publishes “The Philippines Investments industry. Priorities Plan” which contains a list of projects that are given priority and 8. Consider “Development Plans" incentives by the Philippine The construction of roads, power government. facilities and other industrial and/or infrastructure concerns in an area by 12. “Follow Experience Elsewhere” both government and private entities Knowledge of economic activities I may convert an otherwise dull other places having the same community into an active business conditions in your particular project site district. The first place to go to in this may suggest similar business ventures. case is your local government unit, or For example, “kapok” (silk-cotton trees) the nearest National Economic products command a very high price in Development Authority Regional Office. the United States and Canada in the You could think of almost any manufacture of baseball bats. Similar pioneering businesses in these areas. tropical countries especially in Indonesia, but not in the Philippines 9. Consider "Old Projects" extensively exploit kapok. MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D 5.0 DIFFERENT STUDY POSSIBILITIES a more detailed project proposition. 5.1 Opportunity Studies Examples of these are “investment Opportunity studies may be made by profiles" that are made for stimulating analyzing: the necessary responses from a. Natural resources with particular interested businessmen. potentials for processing. (ex. Lumber, Metalcraft etc.) 5.2 Pre-Feasibility Studies b. Existing agro-industrial patterns in your Structures of pre-feasibility studies are locality similar to detailed feasibility studies but c. Future demand for some consumer contain certain limitations. goods or some newly developed ones Pre-Feasibility are needed to determine: that may become feasible as a result of a. If the opportunities presented will really say, an increase in population be viable for further (detailed) studies d. Imports for identifying local substitutes b. Whether the project concept justified a e. Manufacturing industries that are more detailed project feasibility study successful elsewhere that are suitable c. Whether any aspect that is critical to locally the feasibility may need any support f. Possible inter-linkages with locally investigations first in the form of existing industries functional or support studies g. Expansion and diversification d. If there are any information obtained possibilities for existing industries in from the project idea that is enough to terms of new product lines and/or attract investors. production capacities h. The general local investment climate 5.3 Functional or Support Studies i. Industrial and manufacturing policies in These stdueis cover one or more, but your locality not all aspects of investment j. Costs and availability of certain The content of functional studies production factors in your area varies and depend on the nature of the k. Export possibilities studies contemplated, and may become part of the detailed feasibility Opportunity Studies are generally vague in study if considered. nature as the final research output rely more on statistical estimates. 5.4 Project Feasibility Studies Opportunity Studies may be: 5.4.1 Importance a. General – studies that are made Provides investors with the viability and especially in developing countries all the vital information they need in through their governments and local deciding the extent of their exposures institutional agencies with the prime to a certain business proposal. purpose of pinpointing specific Financial institutions normally require investment proposals. They may be project feasibility studies from loan Area Studies, Sub-Sectoral Studies, or applications borrowing beyond a Resource-Based Studies that seek to certain loan ceiling. identify opportunities in these areas. FOR STUDENTS, PFS is usually b. Specific – these are studies derived referred to as their undergraduate from general economic indicators that “thesis”. serve as attraction for investors. These studies transform a business idea into MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  Usually, the main gauge for justifying 6.0YOUR RESEARCH FORMAT the viability of a business feasibility The format: study is its ROI. 1. The Preliminary Section 5.4.2 Scope a. Title Page Includes nearly all these aspects: b. Approval Sheet o Pre-Operating c. Preface o Management d. Acknowledgements (if any) o Marketing e. Table of Contents o Production / Technical f. List of Tables (if any) o Financing g. List of Figures (if any) o Financial & Socio - Economic h. List of Annexes (if any) feasibilities Completeness of final study should 2. The Main Body of the Report atleast assure the project a. The Executive Summary implementers: b. Project Background and History a. Putol ang pagkascan c. Management and Personnel ampucha so idk kung ano Feasibility laman kani d. Marketing Feasibility b. Determination of the best e. Production or Technical Feasibility alternatives on the f. Financing Feasibility Management, Marketing, g. Financial Feasibility Production, and Financial h. Socio-Economic Feasibility operations of the project i. Project Implementation and c. Knowledge on how to divide Timetable the project into “functional components” for easier and 3. The Reference Section faster calculation of costs. a. Bibliography d. Determination of activities that b. Appendix could be implemented as “sub- c. Index (if any) projects” rather than as direct part/s of the entire project. 5.4.3 Nature Gauging the “correctness” of the fial work is its practicality of being implemented in a specified future time. All aspects of the study should be consistent and must blend harmoniously with each other. MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  PART II Machineries and Equipment Uilities Raw Materials Requirements 1.0 THE GENERAL FORMAT Manpower Requirements A generalized format of the topics of a Wastes and Waste Disposal detailed Project Feasibility Study Method/s (Topics may be modified) Production Costs System and Forms Design I. Introduction / Preface VII. Financing Feasibility II. Executive Summary Total Project Cost Highlights Financiers Conclusions to Feasibility VIII. Financial Feasibility III. Project Background Major Assumptions Used Projected Financial Statements Project Proponents Financial Analysis Proposed Name of the Business System and Forms Design Type of Business Organization Location of Head Office and IX. Socio-Economic Feasibility Factory Your Project's Employees IV. Management and Personnel Feasibility (Personnel) The Government Personnel (Administrative) Other Beneficiaries Management Proposals System and Forms Design X. Project Implementation Gantt-Chart of Activities V. Marketing Feasibility Program Evaluation and Review General Market Description Technique - Critical Path Method Demand (PERT-CPM) Supply Budgeting and Costs Demand-Supply Analysis Assignment of Activities General Marketing Practices Proposed Marketing Program XI. Annexes, Supplements, others Projected Sales System and Forms Design VI. Production or Technical Feasibility The Product/s (Service/s) Production Process Alternative Process/es Materials Handling Design/s Technological Assistance/s Building and Facilities Floor Plan MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D 2.0 THE EXECUTIVE SUMMARY 3.0 PROJECT BACKGROUND 4.0 MANAGEMENT AND PERSONNEL FEASIBILITY 5.0 MARKETING FEASIBILITY 6.0 PRODUCTION OR TECHNICAL FEASIBILITY 7.0 FINANCING FEASIBILITY 8.0 DDD 9.0 SOCIO-ECONOMIC FEASBILITY 10.0 PROJECT IMPLEMENTATION AND TIMETABLE 11.0 CONCLUSION MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D LIST OF ANNEXES WITH CHAPTER Minimum legal restrictions DEETS Ease of discontinuance Tax advantages DISADVANTAGES: CHAPTER 3.0 PROJECT BACKGROUND The owner’s possible lack of ability This Chapter now presents the details of your to manage (experience) project’s proponents, and your choices of Limited opportunities on the part of name, type of business organization, and the employees project location. These topics are essential The owner’s possible difficulty in before going to the major aspects of your raising capital Study. Limited life of the business The proprietor’s unlimited liability B. Partnership defined as a grouping of two or more persons to carry-on as co-owners of a business for profit. The business is base on a Partnership Agreement, which is known as the “Articles of Co-Partnership”. In the absence of this agreement, all profits or losses are usually divided equally among all partners unless there are special arrangements made and previously agreed. ADVANTAGES: Ease of organization Annex 3.1: TYPES OF BUSINESS The combined talents, judgements ORGANIZATION and skills of several or all of the A. Single Proprietorships partners A business owned and managed by a More capital available for the firm single person. from any or all of the partners The owner and the business in most Maximization of personal interests instances are the same. of the firm All assets of the business are the Definite legal status of the company proprietor’s ownership. Tax advantages ADVANTAGES: DISADVANTAGES: Simplicity of organization Unlimited liability not only of one The owner’s freedom to make all partner, but also for those decisions contracted by the other partners The owner’s enjoyment to all Limited life of the firm profits made Possibility of divided authority MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  Possible danger of disagreement 4.2 defines each of these of major decisions and issues management terminologies for your convenience. State your administrative personnel's C. Corporations proposed salary rates and benefits. an artificial legal person, created by an Annex 4.3 presents a selected list of approval of its founders an “Article of specific books and topics from the Incorporation”. Labor Code of the Philippines on this As specified by law, a Corporation can item. exercise only its rights as governed by Name any professional firms you may the laws of the state and powers as hire on a retainer's basis relative to expressed by its“By-laws”. your project's administrative Ownership of a Corporation is often by operations. State also these firms' transferable stock certificates. responsibilities, retainer's fees, and The Stockholders elect the members of your reasons for choosing them. the Board of Directors of the Present any proforma contracts with Corporation. In turn, the Board of the above firms, if possible. Directors normally appoint the officers Show availability and source of who will manage the business. administrative personnel to be hired. ADVANTAGES: Limited liability to stockholders 4.2 Management Proposals Perpetual life (50 years, in most State and define your Management instances and renewable) Style To run your administrative Ease of transferring ownerships workforce. Ease of expansion Annex 4.4 presents a guide Applicability to all sizes of firms State the functions of each administrative department/section of DISADVANTAGES: your project with emphasis on their Bound by government regulations individual policies. State Trainings, Seminars, and Staff May be expensive to organize Development Programs you may wish to conduct to your administrative personnel (if any), and your corresponding budget for such. CHAPTER 4.0 MANAGEMENT AND Enumerate the facilities, equipment PERSONNEL FEASIBILITY and machineries you will need for your project’s Admnistrative 4.1 Personnel (Administrative) Department, stating also their State here, your proposed number of description, sources, quantity, and administrative personnel. costs. Present your proposed Organizational Chart in detail. Please refer to Annex 4.1 for your guidance 4.3 System and Forms Design on this item. State your project’s administrative State your administrative personnel's flow of operations and standard job requirements, specifications, operating procedures, clearly responsibilities and functions. Annex MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  showing internal and external D. Committee Type Organization relationships to other parts of your This type of organization has no single entire organization. State also an person in-charge of the business explanation of your proposed operations but its members as a whole system. formulate its decisions. Present your project’s Flow Chart Usually found in specific department illustrating your proposed system of or sections of an organization. These administrative operations. are the so-called Executive Present some sample designs of Committees, Finance Committees, etc. Administrative Forms you will use in ADVANTAGES: the operations of your project. If possible, state also their description, Fosters Cooperation use(s), channel/s, who and how will Balance views on business or they be accomplished. Refer to project decisions Annex 4.5 for a short list of these DISADVANTAGES: forms. You have to deal with a group, rather with only a single person Annex 4.1: Organizational Charts Hard to fix individual responsibilities A. Line Type Organization If the organization is too large, there may be a tendency of coming up with too slow or an unwieldy group. This results to time consuming activities on some projects. Hard to produce clear cut decisions. Annex 4.2: Job Terminologies in Personnel Management ADVANTAGES: A. Job Analysis Simple The process of studying and collecting Highly Efficient information related to the operations and Versatile responsibilities of a specific job. Fast Decision-Making The immediate products of these are job descriptions and job specifications. DISADVANTAGES: Autocratic B. Job Description Tendency to be too centralized These are organized, factual statements Tendency to overload of the duties and responsibilities of a responsibilities to top specific job. management They tell us what is to be done, how it is done, and why it is done. They define Impractical for big corporations MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  the appropriate and authorized contents Annex 4.4: Theories of Management of a job. C. Job Specifications A. Theory X These are statements of the minimum Most managerial principles are derived acceptable human qualities necessary from this theory. The assumptions by which to perform a job properly. this theory applies are: They set a standard for personnel and designate the qualities required for their 1. The average human being has an acceptable performance. inherent dislike of work and will avoid it if he can D. Job Classifications 2. Because of this human characteristic of A grouping of jobs on some specified dislike of work, most people must be basis such as the kind of work or pay, coerced, controlled, directed or etc. threatened with punishment to get them It can refer to a grouping by any to put forth adequate efforts toward the selected characteristic but probably is achievement of organizational used most often in connection with pay objectives and job evaluation. 3. The average human being prefers to be directed, wish to avoid responsibility, has relatively little ambitions, and wants security above all. Annex 4.3: A Selected List of Books and Rules from the Labor Code of the B. Theory Y Philippines on Personnel Benefits The development of human behavior has dared the soundness of Theory X that an opposite view came into being. The set of assumptions of this theory are: 1. The expenditure of physical and mental effort in work is as natural as play or rest; 2. External control and the threat of punishment are not the only means of bringing about efforts toward organizational objectives 3. Commitment of objectives is a (result of the) reward/s associated with their achievement 4. The average human being learns, under proper conditions not only to accept but also to seek responsibilities 5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population 6. Under conditions of modern industrial life, the intellectual potentialities of the MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  average human being are only partially 5. Job Analysis Records, which contain utilized. your employees' job specifications and job qualifications. C. Theory Z 6. Job Evaluation and Classification A third major theory that has cropped Records, which contain your lately in management circles is the employees' job classifications, and Japanese Theory of Management, or salaries and wages rates. Theory Z. 7. Merit Rating Records, usually for As proposed by William Ouchi, Theory Z your company's top management's adapts effective Japanese management direct evaluation of work performances styles whose distinguishing factors of subordinates, they usually contain include the promotion of closer, recommendations for such worthiness cooperative, and trusting relationships or unworthiness of your employees. between all working groups in the 8. Employment Tests, file of employees' company. examination results as part of your Its central thought is the creation of an company's screening process for industrial team and a stable, cohesive hiring/promotions. work environment where employees feel 9. Physical and Medical Exam affiliated and independent while sticking Reports, contains a file of your to the proper qualities and control of the employees' physical conditions and needs of the organization. medical history with the company. The typical features of this theory are: 10. Putol amputa 1. Lifetime employment 11. Termination and Retirement 2. Nonspecialized careers Records, contains a file of your 3. Individual responsibilities company’s past employees. 4. Concern for the total person 12. Company Legal Documents 5. Less formal control systems Records File 6. Consensus decision-making 13. Personnel Information Sheets, 7. Slower rates of promotion Individually, your source of knowledge of each of your company’s employees. These may be grouped in a folder that Annex 4.5: A List of Some Administrative include 2, 4, 5 -10. Forms and Records Samples obtained from an organization of a related business nature could be used as guides: 1. Employee Requisition Forms, for your company's hiring purposes. 2. Application Forms, which contain your applicants' personal circumstances when evaluating their employment worthiness. 3. Pending Application File, for your company's future references / use / hirings. 4. Attendance or Time Records MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D CHAPTER 5.0 MARKETING FEASIBILITY Present the supply situation of your intended product/s during these last This Chapter will pinpoint your project's five or ten years indicating your sources general to specific market feasibility. It will of information. Annex 5.4 will give you present your market and an analysis of the an idea on how to estimate supply past, present and future demand and supply figures. situations of your particular product/s. If the conditions found are feasible, then a check of the marketing practices of similar businesses is studied as a guide for you to design your project's marketing strategies. 5.1 Market Description Project these figures for the next five or State here, the general description of ten years. You can again refer to Annex your market: its size and composition, 5.2 and 5.3 for your projection geographical location(s), population, computations. age group, income level, job categories, family size, etc. 5.2 Demand State here, the demand situation of your product/s. Come up with an in-depth analysis and Present your product/s" demand for the conclusion from your projected supply last five or ten years indicating your figures. method or sources of information. Present a Sensitivity Analysis of the Annex 5.1 is a short lecture on demand projected supply values of your project. measurements. 5.4 Demand-Supply Analysis From the Demand and Supply figures obtained in 5.2 and 5.3, present the same past and projected figures taking Project these figures for the next five or note of their discrepancies thus: ten years. Annex 5.2 and 5.3 present a short lecture on projection methods and which to choose from among the methods computed. Present an in-depth analysis and conclusion from your demand projection figures. Present a Sensitivity Analysis of the From the above computed figures, projected demand values of your show that Demand is greater than project. Supply throughout or at most of the time frame involved. This will be one of your 5.3 Supply main reasons for your easy penetration Write here, the supply situation of your of the market. market. MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  Present a Sensitivity Analysis of your State also your marketing sales force projected Demand-Supply and budget allocations Lastly, present your proposed Product- Mix and Marketing-Mix Strategies like: 5.5 General Marketing Practices o Target Market o Sales Force State national and local government o Marketing Research and marketing policies that could affect and Development (R&D) Program assist you in the marketing of your o Product-Mix Strategies product/s. o Market Timing and Scheduling Present, if possible, the market share of Strategies your future competitors including their o Pricing Strategies geographical and demographical limits. o Terms and Conditions of Sales You can also present local and foreign Strategies market distributions of your product/s, if o Channels of Distribution applicable. Strategies Present then in detail, your future o Transportation and Delivery competitors' market and marketing Strategies strategies like: o Branding and Packaging o Incentives and Benefits Strategies o Budget Allocations o Advertisement and Promotions o Market Research and Strategies Development o Storage and Warehousing o Sales Force Strategies o Pricing Policies o Physical Distribution Strategies o Terms and Conditions of Sales o Channels of Distribution 5.7 Projected Sales o Transportation and Delivery Present a table showing your sales Strategies forecasts for the next five or ten years. o Branding and Packaging Please refer to the table: Strategies o Advertisement and Promotions Strategies o Storage and Warehousing Strategies o Physical Distribution Strategies 5.6 Proposed Marketing Program Present national and local government marketing policies and assistance packages and programs that will benefit your project. Come with a Sensitivity Analysis of your For your Market Conceptualization, Sales projections. state your proposed Marketing Philosophies and Tasks. Annex 5.5 will prove a helpful guide in this instance. MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D 5.8 System and Forms Design a. The National Statistics Office (NSO) State your project's marketing flow of b. The National Economic and operations and standard operating Development Authority (NEDA) procedures, clearly showing internal c. The Department of Trade and and external relationships to other parts Industry (DTI) of your entire organization. State also d. The Central Bank of the an explanation of your proposed Philippines ("BSP" for Bangko system. Sentral ng Pilipinas) Present your project's Flow Chart illustrating your proposed system of The first three have their own marketing operations. provincial and regional offices throughout Present some sample designs of To some market analysts, they use a Marketing Forms you will use in the computed "correction factor" that they operations of your project. If possible, multiply to the obtained figures. To them, state also their description, use(s), this somehow lessens the inaccuracies. channel/s, who and how will they be 1. Another method of Market accomplished. Please refer to Annex Demand Measurement is in terms 5.7 for a short list of these Forms. of "per capita consumption". The product of this and your target market) population will give you Annex 5.1: Demand Measurements your theoretical consumption of the This Annex serves as your review about target market of your product/s. the theoretical and analytical methods of 2. A second one is to ask for an measuring demand. estimate of the Total Demand from marketing experts based on a A. Theoretical Demand Measurements "percentage share" of your specific Philip Kotler defined Market Demand as: products to the total market. By multiplying this percentage share "Market demand for a product is the total to your specific product/s' market, volume that would be bought by a defined you can arrive at your theoretical customer group, in a defined geographical demand of your product/s. area, in a defined period, in a defined 3. A third method is to commission marketing environment, under a defined professional market analysts to marketing program" come up with theoretical market The eight (8) elements mentioned in this demand equations based on definition represent the factors to be computations using various market considered in the determination of data. This particular method market demand. involves making intricate computer So far, the easiest and fastest way is to programs and is very expensive, research for "published statistics" by not to mention the researches to specialized government and private be conducted in getting the agencies. necessary inputs to the project. Some of our government agencies This method if only done by very where you could get some market data big business establishments. are: All of the above methods are of course, very hard to make as a neophyte researcher. In MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D which case, the Analytical Demand with their own computer-aided formulas Measurements presented next are usually for their products' market demand that used in project feasibility studies. usually involve multi-factor equations. Consider this example: B. Analytical Demand Measurements 1. The Chain Method. If you want to estimate the market demand for dark beer, your estimated demand would be: "The total population x the population of your target market x your personal estimate of your target market's per capita income x your target market's average percentage of calculated income which is spent on food x the average of this amount which is spent on alcoholic beverages x the average percentage of this amount that is spent on beers x the average expected percentage of this amount that is spent on dark beers". Annex 5.2: Projection Methods 2. The Market Build-up Method Five Computational Methods This means identifying all the (putol ulit hayst) A. Arithmetic Methods 1. The Arithmetic Straight Line Method 2. The Arithmetic Geometric Curve Method B. Statistical Methods a. Statistical Straight Line Method b. Statistical Semi-Long Method c. Statistical Parabolic Projection Method 3. The Index-of-Buying-Power Method In estimating geographical potentials, ***See the book for this section, to many you may assume that your target tables and figures kasi. market potential is directly related to a single factor say, population. Therefore, if your particular target market represents 5.2% of the total consuming population, you may then assume that your target market would consume 5.2% of the total products sold in the market. Single factors are accepted for small company market estimates, but not for big companies, who usually come up MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D Annex 5.3: Standard Deviation C. Product Substitutes Computations as a Method for Those seemingly cheaper and usually Determining Your Project’s Projection inferior product substitutes could not be Figure taken for granted. Lately, many consumers resolve to these items because of certain economic factors. NOTE: Your project's future market share is computed from your supply figures as follows: ***See the book for this section, to many tables and figures kasi. Annex 5.4: Supply Measurements Annex 5.5: Marketing Philosophies and The existing and past supply of your Tasks intended products in the market could be Various marketing demand situations obtained by each of the following: from which you could come up with your A. Local Production Capacities project's proposed marketing philosophy and tasks program: Your future competitors rated capacities could be summed up together to A. Conversational Marketing, if your estimate the total supply of your potential market does not like your products in the market. products. Sometimes, it would also be good to o you must conceive an effective know their production and marketing marketing strategy that will produce programs which you could consider as a potential demand based from this part of your market analysis in your negative situation. study. B. Stimulational Marketing, when you have so many products but there is no demand. B. Importations o your target market is indifferent or is Importations by other companies could simply not interested in your provide your other source of supply for product/s. A good strategy here is to your intended product/s. create (stimulate) people into Since importations usually come from having a need for your product/s. undetermined company sources, and C. Developmental Marketing, if your target therefore unknown relative strengths of market is looking for a product that does suppliers, it may help if you will consider not yet exist their legal duties. o you may want to develop a new Knowing your approximated delivered product that would satisfy this (landed) costs, quality standards, etc. demand. could be helpful for your analysis of the D. Remarketing, when the demand for your imported supply of your future product declines. competitors. o you should make remedies to stop the (downward) trend by devising a MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  more revitalized marketing program ✓ Consider the Geographical Limits of that will create a "new life" for your your market area: national, regional, product's demand. provincial/city, municipal; climate; E. Synchromarketing, if your market suffers population density. from a very irregular pattern. ✓ Consider also, the Demographical o To offset this, why not devise a Limits of your market area: age; sex; marketing schedule that will family size; family status; income; "synchronize" your customers' occupation; education; religion; race or orders? culture; social level. o Synchromarketing will help you ✓ Lastly, consider the Psychographic offset your company's over- Limits of your market area: lifestyles; utilization and under-utilization of personalities; benefits sought; user production capacities. status; usage rates; Loyalty, F. Maintenance Marketing, when your awareness; market sensitivity. market is already at full demand. B. Sales Force, o You should carry out a more vigorous marketing program that ✓ Consider your Budget Limits. will keep up (maintain) the market C. Marketing Research and Development demand and sales of your (R&D) Program, product/s. G. Demarketing, when the demand for your ✓ Consider your R&D Budget Limits. product/s will far exceed your supply ✓ Update yourself on: capacities. o Business Analysis: sales o One way to solve this is to try to estimates, marketing costs and reduce your market demand on profits, and market tests some of your products and focus o Sources of Information trade and your strategies on some of your economic magazines, trade and other products. consumer organizations, surveys, H. Countermarketing, if you have products economic reviews, business that are undesirable for vour consumers. institutions, and market research o Examples of this are the so-called and advertising firms. "vice products" o Product Develonment brand naming (labeling) o Research Activities; advertising Annex 5.6: Market Planning and research, business, economics Strategies Considerations and corporate research, corporate responsibility research, This Annex contains a checklist of product research, sales and things to consider in coming up with your market research. Product-Mix and Marketing-Mix Programs and Strategies. D. Product-Mix Strategies, In considering your: ✓ Consider your budget limits. ✓ Know your: A. Target market, o Product-Mix Width: "How many ✓ Answer the questions: WHAT needs different product line will be sold by are to be served and WHOSE needs the company?" are to be served. MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  o Product-Mix Depth: "What will be o Promotional Allowances: free the average number of items to be samples, free deliveries, etc. offered by your company per H. Channels of Distribution Strategies, product line?" o Product-Mix Consistency: "What ✓ Consider your budget limits. will be the relationship of your ✓ Select your Channel's Level: company's different product lines o two-level (manufacturer- to your over-all marketing consumers); program?" o three-level (manufacturer – retailer – consumers); E. Market Timing and Scheduling o four-level (manufacturer – Strategies, wholesaler retailer – ✓ Design Marketing Strategies for your consumers); Product/s': o five-level (manufacturer- o Introduction Stage wholesaler-jobber-retailer- o Growth Stage consumers). o Maturity Stage ✓ Select also your Flow Types: physical o Decline Stage flow, payments flow, promotions flow, title (ownership) flow, and information flow. F. Pricing Strategies, ✓ Consider also horizontal and/or vertical growth possibilities. ✓ Consider the following: o legal pricing laws I. Transportation and Delivery Strategies, o consumers' behavior ✓ Consider your budget limits. o clientele dictates ✓ Determine what type of transportation o competitors' policiesmarket factors delivery method/s you will use: rail, served/unserved by your water, highway, air, pipeline, etc. competitors o manufacturers' suggested prices J. Branding and Packaging Strategies, o types of products handled ✓ Consider your budget limits o seasonality ✓ What kind of Branding Strategies will o price limits you use: o target pricing and alternative o individual brand names for each pricings of your products o mark-ups o common (family) names for all of o availability of product's your products o different names for a family of your products G. Terms and Conditions of Sales o your company name mixed with Strategies, individual or family names for all ✓ Consider: of your products o Discounts and Allowances: quantity ✓ “Brand Extension” Schemes. (eg. New discounts, trade discounts, cash Improved!, etc) discounts, seasonal discounts, ✓ What will be your packaging strategies? forward dating (out-of-season ✓ What will be your labeling strategies? selling). MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D K. Advertising and Promotions Strategies, o The economics of a single plant, multiple markets ✓ Consider your budget limits. o The economics of multiple plants, ✓ Would you consider personal selling? multiple markets ✓ Will you give suppliers' promotional assistances? ✓ Determine your publicity strategies: will you use/join: Annex 5.7: A List of Some Marketing o space advertising Forms and Records o the mail From among the following list, select o the internet which are applicable to your project and o sales presentations design them to suit your project's needs. o trading stamps or coupons, o catalogues Samples obtained from an organization of a o trade exhibits related business nature could be used as o endorsements guides. o free samples, gifts, etc. 1. Sales Invoice – used to invoice o market demonstrations merchandise sold to customers either o contests in cash or charge basis. o posters, show cards, streamers, 2. Delivery Receipts – issued along with etc. the Sales Invoices and used as o films posting references on your stock o sales conferences cards. o print and/or visual advertisement 3. Receiving Receipts – are used to o EVENTS record stock purchases from suppliers. ✓ What Mode will you use? 4. Official Receipts – are given to o Television customers who make direct or full o Radio payment of their purchased items. o print media: newspapers, 5. Promissory Receipts – are given to magazines, etc. field collectors when the purchased o outdoor print advertising: posters, merchandise is not fully paid, or paid billboards, etc. with postdated checks. o through the internet, e-commerce 6. Check Vouchers – used in the L. Storage and Warehousing Strategies, preparation of payments to suppliers and vouching of expenses. ✓ Consider your budget limits 7. Petty Cash Vouchers – used to ✓ Consider your capacities' (inventories') record petty (minimal) disbursements. limitations. 8. Subsidiary Customers' Ledger - ✓ Consider also your project's: used to control your receivables and to o materials handling determine the flow of payments by o expansion possibilities customers and their respective o physical distribution account balances. M. Physical Distribution Strategies, 9. Promissory Notes - which are given to customers who buy on installation. ✓ Consider your budget limits. 10. Credit Memos – issued to customers ✓ Try: who purchase on discounts or those o The economics of a single plant, who are given rebates. single market MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D CHAPTER 6.0 PRODUCTION OR period of your study that will affect your TECHNICAL FEASIBILITY project's budgeting, if any. 6.1 Product/s (or Service/s) 6.3 Alternative Processes Present here, a detailed description of State here, alternative production your intended product/s: its dimensions, processes that you will use as compositions (mechanical, chemical contingencies in case of sub-normal and/or physical properties), quality conditions of your operations. specifications, etc. For agribusiness State the advantages and disadvantages projects, their common and scientific of each of these alternatives. names, specie (breed), color, size, weight, State your preparatory plans for etc. For service projects, the specific implementation of these alternatives in service you intend to do. case of application. Present some drawings, pictures, or 6.4 Materials Handling Design photocopies of your intended products. State any product segmentation Present your project's Materials Handling proposals, if any. Proposals if possible, per department, State any modifications: differences or section or subdivision. A list of questions improvements of your intended product/s that will guide you in the design of your over similar or related products from your proposal is given in Annex 6.4. competitors, if any. Prove that your proposed proposal is better than other possible 6.2 Production Process State any costs that will be incurred as a For manufacturing projects, Annex 6.1 will result of your proposal be a helpful guide. 6.5 Technological Assistances Present your operations' Flow Diagram showing the details of each section or Enumerate a list of offices and specialists activity of your production process whom you will coordinate with, or hire on including: a retainer's basis who will help you with o lead time external techno-managerial assistances o processing time during your operations period. A short list o materials and/or energy balances of government offices providing such (for Chemical related projects. assistances is given in Annex 6.5. You Please refer to Annex 6.2 for a can present these in the following table: short review of this topic) o production or activity flow o care and management program (for Agribusiness projects) Present your quality and monitoring Include pro-forma technical assistance standards and schemes (monitoring contracts, if any. control systems), if any. Annex 6.3 presents a short review on Production 6.6 Project Site Planning and Control Systems that you Present a list of fundamental data and can use as your guide. requirements for your project's site State any plans for automation and/or determination. A list of factors for computerization of your project at any consideration in determining your project site is given in Annex 6.6. MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  Describe your project's proposed location layouts (canteens, display room, etc.) of in detail. your project. State alternative sites for your project Present the detailed costs of lay-outing indicating the advantages and your project. disadvantages of each location. Your 6.8 Plant Size and Production Schedule project's choice location should prove to be the best alternative in this case. For your Plant Size Capacity Proposal: State also some possible obstacles that o Describe the factors that will affect you may encounter in your choice of your plant's production capacity. project location, and how you are going to Annex 6.8 lists some of these solve each. topics. For multi-plant locations, prove the o State all possible alternatives necessity of each project/plant site. including minimum, normal and State the current cost of real estate in the maximum limits to your proposed vicinity of your project site. plant capacity. Present State allocations for future expansion of advantages and disadvantages of your project. each. Present current site conditions and o From the above list, select the preparations. You may use the suggested most favorable choice for your format presented as follows: plant's capacity. State your reason/s for choosing it. o If possible, present your project's capacities by department or sections for each semi-finished products and of your entire operations. o Present your projected annual plant capacities for the next five or 6.7 Project Layout ten years. You may use the suggested format below: Determine data and alternatives in making your choices for coming up with your project's layout Annex 6.7 presents a checklist of questions that you may consider in determining your best choice. From among your suggested layouts, For your Production Schedule decide and select your best proposal and Proposal: state your reasons for choosing it. In case of franchises or subsidiaries where project layouts are normally dictated by Head Offices, present your detailed project layout as directed and Present your reasons for coming up with suited to your site's area dimensions. the figures in the above table. Show your choice layout's detailed Relate some possible changes in your drawings drawn to scale. schedule to suit your project's capacities State provisions for any underground during sub-normal and super-normal facilities and non-operational parts operations. State also the equivalent MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  quantities (increases or decreases) in to take into consideration the flowing your plant capacities during these periods. flows: Present any alternative production o functional flows schedules during off-season, and lean or o quantity flows peak months if you have a "seasonal" o transportation flows project. o communications flows If possible, present schedules for pre- Present alternative flow plans for possible operating or dry runs of your project for consideration during sub-normal and seasonal or cyclic operations if these are super-normal operations during your warranted. operations period. State your reasons for List down you project's civil engineering coming up with your proposals. requirements for both building and non- If possible, include a detailed drawing for building facilities. A checklist of factors in each of your flow plans coming up with a sound engineering proposal of this topic is given in Annex 6.9. List alternative or contingency facilities 6.11 Machineries and Equipment you may need for your project. Present a detailed list of machineries and Estimate your project's civil engineering equipments you will need for your project. costs. You may use the table below as If possible, under the following sub- your presentation guide: headings: o plant (process) equipments and machineries o mechanical machineries and equipments Present a detailed drawing of each of o electrical equipments your structures drawn to scale. o process instrumentation and State the quality of construction materials control machineries and you will need for each structure of your equipments project. In case of construction materials o process conveying and transport not readily available within the locality of machineries and equipments your project, state their sources and other o auxiliary machineries and additional costs you will incur in their equipments purchases. o tools and spare parts State allowances of buildings and Annex 6.10 presents a list that could be useful on this topic. facilities you will need for future expansion of your project. You may present these items in the following table: 6.10 Floor Plan Present a detailed list of requirements for each of your project's floor plan per department/section. Note: You can subdivide the last columns of Describe in detail, your project's floor plan this table into local and foreign sources if layout for each department/section. necessary. Include your reasons for your proposals. In coming up with your designs, be sure MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  Present the terms and conditions of sale from suppliers of each of the machineries and equipments you intend to purchase. Insert some brochures and/or drawings for each of your machineries and Present some leaflets or brochures of equipments requirements. each of these items, if available. projection period. State their detailed State alternatives or substitute raw description and specifications if they have materials you may use during lean, peak not yet been described. or emergency months in case of sudden State alternative machineries and or temporary unavailability of any or all of equipments you will need in case of your raw materials requirements, and sudden breakdowns, unavailability of their source/s. choice machineries and equipments, etc. Present your total raw materials Present your Machineries and requirement purchases for the next five or Equipments Layout Design as suited from ten years. You may write these projected the preceding topic. figures using the tabular format below: 6.12 Utilities Present a detailed breakdown of the Present an explanation of any increase or utilities that will be needed for your project. decrease in values of the items in the Annex 6.11 contains a list of some factors table above during your projection years. for consideration on this topic. You may State the terms and conditions of use the suggested table below for your purchase, payment, and delivery of each presentation: of your raw materials requirements, including their availability from your supplier/s. Present a breakdown of the cost of each 6.14 Manpower Requirements utility for the next five or ten years. The table given below could be used for your Present your direct personnel presentation: requirements and organizational layout per department/section of your project. State the reasons for your proposal. State the skills and levels of training qualifications of your direct personnel Present an explanation of any increase or requirements per department/section. decrease in projected values, if any. State your direct personnel's Skills State substitutes or alternative sources of Development Program. each or all of your utilities in case of State your direct personnel's workloads, sudden or temporary unavailability. number of hours per shift, shifts per department/section, and all benefits due 6.13 Raw Materials Requirements them Present your direct personnel's labor Present a detailed breakdown of your costs per department/section. The table project's raw materials requirements. below could be used for your presentation: MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D  methods or facilities. Include all corresponding costs as a result. State increases or decreases in your 6.16 Total Production Costs manpower requirements over your projection years. State also your reasons Present a breakdown of all your projected for the changes. Production Costs itemized per State alternative manpower schemes for department/section as summarized from seasonal or sub-normal/super-normal all your past topics. You could use the periods. table below for this item: Present your direct labor costs for your entire projection years. You can use the tabular format below for this item. State your reasons for any increase or decrease in the figures of the above table. 6.15 Wastes and Waste Disposal Method/s Describe all wastes produced by your plant/project in detail and their effects to your operations. If possible, include their quantity, schedule of emissions, etc. 6.17 System and Forms Design State your means of disposal system: State your project's technical flow of your waste treatment machineries and operations and standard operating equipments; and waste disposal sites, procedures, clearly showing internal and treatment external relationships to other parts of State all costs your project will require your entire organization. State also an including designing and operating your explanation of your proposed system. waste disposal method, compensation to Present your project's flow chart neighbors, government duties and/or illustrating your proposed system of penalties, etc. Compute these over your technical operations. projection years. You can follow the table Present some sample designs of below for your presentation: production forms you will use in the operations of your project. If possible, state also their description, use(s), channel/s, who and how will they be accomplished. Please refer to Annex 6.13 Come up with a contingency program for for a short list of these Forms. sudden increases of wastes and/or sudden temporary or permanent unavailability of your waste disposal MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D Annex 6.1: Types of Operation Annex 6.2: Materials and Energy Processes and Design Symbols Balance This Annex is a refresher course of the This Annex is a review on how to different types of manufacturing processes. compute and present a materials and energy These are: balance flow chart. Simply stated, a material and energy balance is a graphical A. Intermittent Manufacturing representation of the inflows and outflows of type of production where one materials (in units) and/or energy per activity produces a product for only a per machine. limited period and which product will reappear in the schedule after An example of a materials and energy balance some time. flow chart is given below: Examples of companies that Consider a plastic bag-manufacturing plant require intermittent manufacturing equipped with the following machineries and processes are those that produce their % efficiencies. The project's materials products on a cyclical, non- and energy balance flow chart is given as: standard (e.g. made-to-order products), and standard products produced during off-seasons. B. Continuous Manufacturing type of production where a product is produced continuously, or for a specified long period of time. Companies that use this type of manufacturing process are those that "mass-produce" their products in quantity (volume) outputs. In presenting your project's production flow, the following Production Process Design Symbols are used: For Agribusiness projects, the machineries and equipments in this example may become pens, cages or ponds where the mortality rate Example: is used in lieu of the % efficiency. MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D Annex 6.3: Production Planning and E. S. Buffa illustrated a project's Control Systems operations' Planning and Control System This Annex is a review of how to present your project's production and monitoring program. Production Planning and Control, or PPC o enables you to carefully prepare (plan) your project's manufacturing (production) operations in coming up with your desired product/s, at the right time, and at the least cost and implementing these decisions according to your company's goals and specific standards. o In preparing your PPC, you must consider all your production aspect's topics. ✓ inputs/outputs ✓ operations process/es and measurements ✓ schedules and capacities ✓ work environment/opportunities ✓ production standards ✓ manpower (human factors) ✓ materials inventory and management Annex 6.4: A List of Questions to Guide ✓ quality controls and assurances You in the Design of Your Project's ✓ costs Materials Handling System ✓ forecasts ✓ information feedbacks and List of questions for you to consider in monitoring systems designing your project's materials handling ✓ economics of your operations system. and systems ✓ Is your inventory delivered on time, and ✓ machineries and maintenance does your storage arrangement needs vertical or horizontal racks, cabinets, etc.? ✓ Will it be all right to deliver incoming materials directly to the work areas? ✓ Will the deliveries of your materials come in single trips, or several trips? ✓ Are your processes requiring heavy materials placed near your receiving areas? MIDTERM REVIEWER IN ABM 1 BY JUELA (WELA) 5D ✓ Do you need conveyors to handle the ✓ Does your system reduces the flow of your materials? incidence of walking and results in ✓ Is your materials flow system a single- higher efficiency and quality of your line flow only, or does it need several products? flows or backtrackings? ✓ Why not use "gravity" for your materials flow if it is possible, and will this be Annex 6.5: A Short List of Techno- practical or convenient? Managerial (Production) Bodies ✓ Are all your manual handling operations minimized? A short list of government bodies where ✓ Will it be more economical for you to you could get some valuable technical enter into sub-assemblies, or into sub- information for your project study. Most of contracting? these agencies have Regional and Provincial ✓ Does your materials handling system offices within your reach: conserve space? 1. Bureau of Animal Industry ✓ Do your pathways get easily clogged- 2. Bureau of Fisheries and Aquatic up as a result of your proposed Resources operations flow system? 3. Bureau of Plant Industry ✓ Are your conveyors, machineries, 4. Bureau of Mines and Geo-Sciences equipments and facilities checked for 5. Department of Agriculture safety? 6. Department of Environment and ✓ If there are cenerated work areas are Natural Resources they placed "within reach" 7. Depa