Business Management Study (BES) - Gatchalian PDF

Key Points Business An organization or activity that produces, sells, or provides goods/services to earn profit or achieve economic objectives. Scope and Limitation Scope: Defines the extent of the study, including topics, timeframe, and objectives. Limitation: Identifies constraints like resou...

Key Points Business An organization or activity that produces, sells, or provides goods/services to earn profit or achieve economic objectives. Scope and Limitation Scope: Defines the extent of the study, including topics, timeframe, and objectives. Limitation: Identifies constraints like resources, methodology, or external conditions affecting the study. Service and Merchandising Business Merchandising: Buying finished goods from manufacturers and selling them to consumers (e.g., grocery stores, clothing shops). Retailing: Selling goods/services directly to consumers, bridging manufacturers and customers. Wholesaling: Buying bulk products from manufacturers and selling them to retailers. Service: Providing work, assistance, or benefits to fulfill customer needs, often for compensation. Business Scope Types Geographic Scope: Physical or territorial area covered (local, national, global). Period Scope: Timeframe within which activities or studies occur. Functional Scope: Tasks or responsibilities involved (e.g., marketing, operations, customer service). Business Plan A written document outlining business goals, strategies, target market, financial plans, and operations. Serves as a guide for business management and securing investment. Strategic Planning Setting long-term business goals and the steps to achieve them while considering competition and market conditions. Vision vs. Mission Vision: The company's long-term dream or goal. Mission: The company's current purpose, what it does, and how it serves customers. Goals vs. Objectives Goal: Broad, long-term target. Objective: Specific, measurable steps to reach the goal. Macroenvironment (PEST Analysis) Political: Government policies, regulations, stability. Economic: Inflation, exchange rates, economic growth. Social: Cultural trends, demographics, consumer behavior. Technological: Innovations, automation, digital trends. Purpose: Helps businesses assess risks and opportunities. Porter's Five Forces Model 1\. Threat of New Entrants -- New businesses increase competition, affecting prices and profits. 2\. Bargaining Power of Suppliers -- Limited suppliers can demand higher prices, increasing costs for businesses. 3\. Threat of Substitutes -- Alternative products force businesses to innovate or lower prices. 4\. Bargaining Power of Buyers -- Customers influence prices, quality, and service, pressuring businesses. 5\. Industry Rivalry -- Competition among existing businesses determines market dynamics. Microenvironment vs. Macroenvironment Microenvironment: Industry-specific factors affecting business directly (competitors, customers, suppliers). Macroenvironment: External factors beyond business control (political, economic, social, technological). SWOT Analysis Strengths: Internal advantages (e.g., strong brand, skilled workforce). Weaknesses: Internal disadvantages (e.g., poor customer service, high debt). Opportunities: External factors businesses can leverage (e.g., new markets, tech advancements). Threats: External risks (e.g., competition, economic downturns, regulation changes). Business Management Study Focuses on organizing a business through: Enterprise Form -- Choosing the right business type. Organizational Chart -- Defining team structure. Registrations & Licenses -- Completing legal requirements. Business Structures 1\. Sole Proprietorship Owned and controlled by one person. Full responsibility for assets, debts, and losses. Requires Department of Trade and Industry (DTI) registration. 2\. Partnership (At least two owners) General Partnership: Unlimited personal liability for debts. Full control over business decisions. Limited Partnership: Liability limited to investment amount. Less control over business operations. Requires Securities and Exchange Commission (SEC) registration. 3\. Corporation (5-15 incorporators) A separate legal entity with limited liability. Ownership through shares. Requires SEC registration under the Philippine Corporation Code. Management Planning Describes team roles, business ownership, and structure. Ensures each member's skills contribute to business success. Business Registration Requirements Sole Proprietorship → DTI Registration. Partnership → SEC Registration. Corporation → SEC Registration & Philippine Corporation Code compliance. Organizational Chart Definition: A visual representation of a company's structure, showing roles, reporting relationships, and responsibilities. Interpretation: Boxes represent different roles. Lines show hierarchy and reporting authority. Basic Concepts of Authority: Span of Control: Number of subordinates under a supervisor. Authority: Power to make decisions and assign tasks. Delegation: Assigning additional responsibilities to subordinates. Staffing Process 1\. Recruitment -- Finding and attracting candidates. 2\. Selection -- Choosing the most suitable candidate. 3\. Training & Development -- Enhancing employees\' skills. 4\. Performance Appraisal -- Evaluating employees\' work. 5\. Reward System Design -- Creating incentives for employees. Application Requirements for an Accountant Position Qualifications: 0-2+ years of accounting experience (preferably in shared services). Bachelor\'s degree in Accountancy or related finance courses. CPA or CMA certification is a plus. Experience with SAP or other ERPs is an advantage. Job Descriptions: Responsibilities of the position. Registrations & Licenses Government-Mandated Employee Benefits: Social Security System (SSS) Home Development Mutual Fund (Pag-IBIG) Philippine Health Insurance Corporation (PhilHealth) Business Activity Components 1\. Organizational Chart -- Visual representation of company structure. 2\. Organizational Structure Description -- Explanation of roles and hierarchy. 3\. Job Description -- Responsibilities, compensation, and wages. 4\. Salaries & Benefits -- Annual salaries, mandatory and voluntary benefits. 5\. Codes of Conduct -- Rules and ethical guidelines for employees. 6\. Hiring of Personnel -- Process for recruiting employees. 7\. Gantt Chart -- Timeline of business activities and strategies. Marketing Study Purpose: Develop and implement marketing strategies for a business. Scope: Focuses on target market identification, pricing, promotion, and distribution. Target Market Definition: A specific group of potential customers likely to purchase a product or service. Key Characteristics: Age, location, income, lifestyle, buying behavior. Market Segmentation Factors: Demographics -- Age, gender, income, education. Psychographics -- Interests, values, attitudes. Behavior -- Buying habits, brand loyalty. Lifestyle -- Daily activities, social class. Market Research Purpose: Identifies consumer needs and preferences. Methods: Surveys Experiments Observational research Product or Service Description Product: Tangible, physical goods with observable characteristics (e.g., aroma, color, texture). Service: Intangible offering that varies based on customer experience. Key Service Characteristics: Variability -- Service quality depends on who provides it. Inseparability -- Service production and consumption happen simultaneously. Perishability -- Services cannot be stored for later use. Pricing Strategies Cost-Oriented Pricing Cost-Plus Pricing -- Adds a fixed amount to production costs. Standard Markup Pricing -- Applies a fixed percentage markup. Target Profit Pricing -- Sets price to achieve a specific profit goal. Competition-Based Pricing -- Adjusts pricing based on competitors. Break-Even Analysis -- Determines the minimum sales needed to cover costs. Place (Distribution Strategies) Direct Distribution -- Selling directly to consumers (house-to-house, stalls). Indirect Distribution -- Using agents or intermediaries. Hybrid Distribution -- Combination of direct and indirect methods. Promotion Strategies Tools for Promotion Advertising Public relations Personal selling Sales promotions (discounts, complimentary gifts, extra units) Projected Sales Volume & Value Forecasted Volume -- Estimated product/service sales for a given period. Forecasted Value -- Sales volume × Price per unit.