PPT Nov.

7 Four Main Domains of FM (Aleks

Sheynkman):
●​ Gantt Chart (Henry Laurence Gantt) 1. Supporting People - desk arrangement,
- organize workload in planned managing employees and leading
schedule “time is gold” management plan.
2. Establishing process - processes use work
●​ Critcal Path Method order requests.
- eval. critical and non critical task or act. 3. Facilities upkeep and improvement -
(James Kelly and Morgan Walker) effective management of vendor contracts,
repair and maintenance (of equipment,
●​ Program Evaluation Review machine, fixtures, tools and supplies of
Technique (PERT) building/branch), cleanliness and sanitation of
- enable planners to identify schedule dates the workplace and property management.
4. Technology integration - use technology
●​ 4 Kinds of PERT (Financial Institute)
○​ 1. Idealistic time - slightest Some terminologies used in business for
sum of time to complete task maintaining resource are:
○​ 2. Pessimistic time - Greatest 1. FIFO (first in, first out) used in storing and
○​ 3. Most likely time - no issue, using items. One example can be the tools or
finest time supplies with the same expiration date.
○​ 4. Expected time - most
excellent assessment to 2. FILO (first in, last out) – used in storing
complete task and using items. One example can be the
tools or supplies with the same expiration
●​ Environmental Management date.
- consideration of effect of decisions to
environment. 3. FEFO (first expired, first out) – used in
prioritizing goods with expiration date like dry,
●​ Law Applied to Environment: wet goods, household and the likes.
1. Republic Act 9003 Ecological Solid Waste
Act of 2000- best eco-waste 4. LIFO (last in, first out) – used in
merchandise. However, some countries
2. Republic Act 9275 Philippine Clean Water discourage this because of tax issues. This
Act of 2004- water bodies free contamination may be used in the context of tools machines
and equipment.
3. Republic Act 6969 Toxic Substances,
Hazardous and Nuclear Waste Control Act 5. LILO (last in, last out) – used in storing
of 1990 - Air Quality Guidelines merchandise. An example is consumption of
perishable items such as vegetables, fruits,
4. Presidential Decree 1586 Environmental meat poultry products and fish.
Impact Statement (EIS) Statement of 1978-
forbids the importance, fabrication, 6. CAYGO or CLAYGO (clean as you go) –
preparation deal, dispersion, utilization and used in the food industry especially in the fast
transfer of chemical substances. food chain and restaurant as part of their
operating procedures. Before exiting duty, the
●​ Facilities Management (FM)- employee must clean the area of the
integrated management of place, workplace. In the canteen of the school and
people and technology. (Effect: safety, offices, this procedure may also be practiced
efficiency, comfort and functionality) as part of corporate initiative
 ●​ Project Management- successfully
achieving goals by specified time and ●​ Marketing research - focuses on the
criteria through managing tasks of the growth and development of a
team. company, brand and customers.

●​ The forefathers of project ●​ Marketing mix - also called the 4Ps

management are Henry Gantt ( the (stands for Product, Place, Price and
father of planning and control promotion).
techniques) and Henri Fayol (creator ○​ E. Jerome McCarthy is the
of five management functions). author of the 4Ps.
○​ The other 3Ps of marketing
The four (4)Ps of Project Management: mix are physical evidence,
1. Plan – is the setting of plans and projected process and people. In 2007,
activities. ○​ another 2Ps were born and
2. Process – is the setting of methods and included are partners and
ways to conduct different tasks and presentations. The author of
governance on the project. 9Ps is Larry Londre.
3. People – is the synergy of the team by
good communication and collaboration. ●​ Marketing mix - set of actions that
4. Power – is the authority protocol of the introduce and sustain products in the
organization with corresponding market
decision-making activities and policies ●​ SWOT (Strength, Weakness,
●​ Work Breakdown Structure - Opportunity, Threat) analysis
breakdown activities and make it a framework or TOWS (Threat,
detailed task to make work more Opportunity, Weakness, Strength)
manageable. was created by Albert Humphrey. It
aims to reinforce business strategy
PPT NOV. 28 through assessment of internal
(strengths and weaknesses) and
●​ Marketing Process cycle (MPC) - set external ( opportunities and threats)
of activities of researching, analyzing, capabilities, issues and resources
planning, monitoring, evaluating and ○​ Internal - perspective of
learning from performance and company ( competitive
strategies in satisfying customers. advantage, resources, product
offer, improvement matters,
●​ Market research - starts from lacking resources, strongest
studying the target market to asset, detractors and low
consumer behavior. performing products.)
○​ External - consumer trends,
●​ Consumer behavior - the attitude and new target market/ segment
preference of customers towards to tap, competitors and its
buying products. There are three market share, new
phases (preliminary, during and post) regulations, new technology
to study the behavior. and expansion of core
operations.
●​ Marketing research - the process of
studying strategies on how to market ●​ SWOT - the analysis starts from
the product to customers internal then goes to external
○​ SWOT advantage maximizes
●​ Market research - simply focuses on the potential to grow by
the target market or customer planning
 ●​ BCG Matrix (Bruce Henderson)-
●​ TOWS - starts from outside then review portfolio product’s
goes to the inside assessment. performance. Purpose is to help the
○​ TOWS is good for marketing company with their strategic planning
intelligence as well as ●​ Market Share - the percentage of
benchmarking because it sales of the company over the total
tackles first the strategies and industry sales
the situation on the outside ●​ Market Growth - the increase of
premises to create action customers’ product demand.
plans.
Relative Market share:
PPT Dec. 5 1.​ STAR – high market share and high
market growth
●​ Five Forces Model (Porter’s Five 2.​ QUESTION MARK – low market
Forces of Competitive Position share and high market growth
Analysis” is Michael E. Porter.) 3.​ DOG – low market share and low
used for the assessment of a market growth
company's positioning and strength 4.​ CASH COW – high market share and
in the market. The framework is to low market growth
analyze the competitiveness of the
company. It is used as business Recommended Action Plans:
strategy in increasing competitive 1.​ STAR – continue effective strategies.
advantage. Be ready for contingency plan in case
1. Supplier’s power – supplier’s negotiation fo future challenges.
power to increase prices by criteria such as 2.​ QUESTION MARK – improve
number of suppliers on per product. pipelining and allocation of products.
2. Buyer’s Power – buyer’s negotiation power There is a possibility of coverage
to decrease prices by criteria such as number expansion of branches or outlets in
of buyers. some areas where products are not
3. Competitive Rivalry – competition dictates present. Conduct advertising and
strategies to reduce and increase prices. sales promotion activities. Build good
4. Threat of New Entry – progressive relationship and offer to distribution
business and trading on specific kind of channels.
industry or opportunities to open business 3.​ DOG – apply repositioning of product
will invite the entry of competitors. and strategies. Break even strategy
5. Threat of Substitution – because of the may also compliment depending on
price increase in the market, the customers the situational objectives. Apply both
might look or purchase for substitution. push and pull strategies. Make sure to
look for the cost benefit effect.
Steps in Doing Porter’s Five Forces Model: 4.​ CASH COW – offer variety (depth and
1.​ Conduct research. breadth) of the product and apply
2.​ Use this model if at least 3 are cross product selling techniques.
competing in the same industry; Provide advertising and highlight the
SWOT or TOWS, marketing mix if 2 competitive advantage and benefits of
companies are competing. the product.
3.​ Place the company in the middle of
the gravity of discussion. PPT Dec. 10
4.​ Be specific, timely and objective in
writing. ●​ Product Life Cycle (Raymond
Vernon) - period or timeline of the
product in the market.
 The 4 Stages of PLC: ●​ 3. Fishbone Framework – is used to
1. Introduction - phase of low sales, negative identify the causes of a problem. The
profit and probable high cost on per customer problems are dissected into different
transaction. During the period, the business issues and accordingly address it.
enterprise may also offer basic product and
use cost plus based pricing. Heavy sales ●​ Performance analysis is the current
promotion to attract prospects is also a performance characteristics of a brand
strategy in this period. or product. In the perspective of
marketing, performance analysis is
2. Growth - the sales and profits are rapidly used in describing the situation of
increasing. Customers are early adopters marketing mix. It may vary depending
while competitors are growing in the market. on the indicators and responsibilities
of personnel in the organization.
3. Maturity - Sales and profit are at the peak.
Market share is at the leading stage, but the ●​ Advertising creates awareness
cost on a per customer basis is low. “Right product with the right ads at the
right time” is the principle in placing
4. Decline - Sales and profit are declining. advertisement.
Customers are at laggard’s mood. The
company may phase out products with low Print media advertising are measured in:
turnover rate. 1.​ Per Agate Line – according to Angie
Beal, “an agate line is one column
The primary factors that determine the PLC wide by one agate in depth, or ¼ of
are: an inch.” It is usually used in
1. Sales newspaper classified ads.
2. profit 2.​ Per column Centimeter – one
3. time centimeter height and centimeter
width. It is used in the magazine
●​ Gap Analysis (GA) is the comparison
analysis of performance versus the Television and Radio advertising are
expectation. measured through:
●​ also called needs analysis, needs 1.​ Cost Per Rating (CPR) - cost divided
assessment and need gap analysis. rating. The higher the CPR means the
In marketing, product gap is the better. The cost is the advertising
positioning gap. expense price.
●​ It is the current position of product 2.​ Cost Per Thousand or cost per mile
or brand versus the targeted (CPM) - cost divided number of
segment. people reached. The lower the CPM
means more efficient result.
Examples of GAP Analysis: 3.​ Thirty seconder airtime rate or per
●​ 1. Mckinsey 7s Framework – hard thirty seconds (30s) – the rate is
frameworks included are structure, based on the airtime hour, day and
strategy and systems. Soft other considerations. The company
frameworks are skills, style, staff and usually requests to broadcast them on
shared vision. ads on the time it could be seen or
heard by more audience.
●​ 2. Nadler Tushman Model – under 4.​ Household Using Television (HUTV)
the transformation process, the model – the number of household viewers in
includes informal organization, work, the community. The higher number of
formal organization and people. people in household means more are
watching television.
Some measurements used in TV, radio, “Business is all about sales”
website, outdoor media and other forms of ●​ sales used to be under the umbrella
media: of the marketing department.
1.​ Cost per Click (CPC) – the company ●​ The Goal of business is to convert
will pay for every ad that the customers into loyal customers..
consumer clicked. More clicks means
that the readers had the interest to Sales are projected using the most useful
read or watch the ad. formulas in the industry:
2.​ Cost per Conversion (CPcon) – the 1. Using traffic count conversion used in
investment expenses for every forecasting conversion of walk-in into sales
customer once they buy a product applying the multiplication formula. It is often
from the company. The higher the used in the retail industry.
conversion over the cost means better
Formula: Traffic Count x Walk In % x Engage
PPT Dec. 17 % x Buy % x Price

Group 1: Sample: 500 people who have seen or who

passed by the store, then 10% of 500 entered
●​ Sales Management is managing sales to the store, then 20% were buyers, then the
process on different levels of business average product price of Php 1000 were
activities which involves customer bought.
engagement and satisfaction.
500 x 10% x 20% x Php 1000 = Php 10,000
Phases of sales conversion are preliminary,
during, and post. Note: The percentage conversion shall be
based on data, research, and observation.
1.​ Preliminary phase involves tasks
such as researching, planning, 2. Using engagement forecasting based on
prospecting, qualifying, and inviting number of engagement and often used in
future clients. sales account management.

2.​ During Phases and Post Phases are Formula: Number of Prospects x Number of
implied but not elaborated upon. Engagement x Lock In % x Price
●​ During phase includes
executing of profitable Rule: "The more quality engagement, the
negotiation and sales better". Engagement is building professional
techniques and friendly relationship with clients. Some
●​ Post phase is the examples of engagement are product
after-service effort by the presentation, birth celebration, holiday
company that involves post greetings, funeral visit, coffee drinking
interview. warranty guarantee session, team building invites, and other perks
repair services, and other that customers may receive.
loyalty program activities.
Definitions: Engagement >> Conversion >> Sales
●​ Suspect means possible looking for
prospects. 3. Using categorical forecasting based on
●​ Prospects means target customers. the historical sales performance of products.
●​ Customers are buyers or users of a Plus-minus percentage is used and products
product. are itemized during the computation.
 setting activities, it should include both push
and pull strategies of marketing.

●​ Pull strategy (pull promotional

strategy). The goal is to encourage
customers to look and avail the
product offered. Some strategies
under pull strategy are advertising,
word of mouth, and sales promotion.

●​ Push strategy is communicating the

4. Using seasonal forecasting using seasonal product to customers as a form of
events like holidays and important events that awareness and to draw a crowd. It
may affect the business. If the product is includes strategies like personal
seasonal, good sales means an increasing selling, display of point of sales
percentage of forecast, but if the product is materials, trade show and exhibit,
negatively affected by other products, packaging design, and incentive
consumer behavior, and other barriers, then it program for employees.
may have slightly lower forecast or even have
a decreased percentage. Group 2:

5. Using geographical forecasting the sales Customer Satisfaction Rating

shall be forecasted based on location like per
country, per region, per province, per city, per ●​ Frequent purchase and brand loyalty
municipality, per barangay, and per street. of customers are the main goals of
any business entity. .
6. Using event's forecasting activity event ●​ One of the greatest tools to seek for
such as marketing activities has good impact the feedback of customers is the use
to company's revenue by having incremental of customer feedback survey form.
sales. When creating marketing plan for ●​ . Some companies use jargons and
specific activity, incremental sales should peg methods like:
into the plan. For example, a 3-day sale from ○​ LEAD - Listen, Empathize.
Feb 14-16 could generate incremental sales Acknowledge, and Deliver
of Php 100,000. How was the sales forecast result;
computed? The answer is by simplifying vis a ○​ HEAT: Hear them out,
vis promo mechanics. Here is the analysis: Empathize, Acknowledge,
and Thank the customer; and
many more.
○​ LUSTER (Listen, Understand,
Solve, Thank, Encourage,
and Relax) by Dr. Gina
Planes (The goal is to pacify
the customers and avoid
losing an affected customer)

Sales projection is not 100% accurate ●​ Customer satisfaction rating an

because of other factors that may affect the assessment tool based on finding the
revenue. Ideal projection will result in margin customer experience to the brand. It
of error of 5% to 15%. Now, it is important for may be used as part of performance
the management to have an accurate and indicator for the department or
reliable study of the revenue forecasting. In
 branch. It may serve as a tool for
recognition and improvement. DEFINITION AND PURPOSE OF
COMPETITOR ANALYSIS
●​ Market research is the process of
gathering feedback from potential • Competitors analysis is a studying the
target market about the feasibility of competitor's marketing mix, performance and
product and service and possible strategies
consumer behavior.
• A competitors analysis report helps
●​ Marketing research has three main understand the brand's position in the market,
parts: map competitors' strengths/weaknesses, and
a.​ business environment, discover growth opportunities.
b.​ Customers
c.​ competitors. KEY BENEFITS OF COMPETITOR ANALYSIS

●​ Business environment involves 1. Developing a strategy like creating unique

government regulations, market selling/value proposition
profile, market size, distribution 2. Creating competitive advantages
channels, and society's attitude and 3. Benchmarking best practices
way of life. 4. Identifying competitor's weaknesses
5. Spotting market opportunities and market
●​ Customer involves demographic trends
profile, consumer behavior and
expectations. Competitors includes ELEMENTS OF COMPETITOR ANALYSIS
study of competitor's strength and ●​ Competitor Profile
weakness, market share, pricing, ●​ Strategic Elements:
competitor's product and branding ●​ Marketing Mix Analysis:
strategy. ●​ Content strategy
●​ Product
●​ Market research analysis helps the ●​ Technology usage
business entity to set accurate ●​ Price
strategies by incorporating conducive ●​ Market share
data and relevant information to ●​ Place
formulate or draw conclusion ●​ Engagement levels
●​ Promotion
●​ AFTER the marketing research, the ●​ Advertising approach
business may apply the
TOWS/SWOT approach and other SWOT Analysis
models to provide action planning for
the company. METHOD OF ANALYSIS
●​ Marketing Intelligence gathering
Group 3: ●​ Customer feedback analysis
●​ Market research
Competitor Analysis ●​ Benchmarking studies

Competitors analysis can answer this CONCLUSION

question: Competitor Analysis is a critical component of
• How would you survive the competition and any business strategy. Business can identify
other barriers? oppurtunities to differentiate themselves,
• How sustainable is your product and address potential threats, and adapt to
company? changing market. An effective competitor
analysis provides a roadmap for innovation, 8. Royalty
growth, and sustainable success in a 9. Same tools, equipment, machine, fixtures &
competitive market. products
10. Other support systems
FRANCHISING a business model where a
company allows an individual or another THINGS TO CONSIDER:
business to use its brand name, products, and 1. Business Viability
business model in exchange for a fee and • Ensure the business has the necessary
ongoing royalties permits and a sustainable operational
capacity. Financial health indicators, like
FRANCHISING SYSTEM balance sheets, ROI, and payback periods,
reveal profitability potential.

2. Market Strength
Evaluate the business's competitive edge
through market share, brand recognition, and
how customers perceive the brand's value.

3. Sales and Location Analysis

Sales forecasts help predict future
profitability, while analyzing customer traffic
and location suitability ensures the franchise
can attract consistent business.

4. Risk Management
●​ Franchisor Identifying and mitigating risks ensures the
The founder of a company or franchise can remain stable and grow even in
business enterprise who allows his challenging conditions.
creation to be imitated by another
potential businessman. 5. Franchise Terms and Conditions
Understand the royalty fees, payment
●​ Franchisees schemes, and distribution channels to gauge
The business partner who will their fairness and practicality for both parties.
purchase the franchise business from
the franchisor.

●​ Brand
Their biggest asset - and that applies
to both franchisor and franchisee

EXAMPLE OF FRANCHISING
Franchising Company Example: Jollibee Food
Corporation (JFC)

1. Brand Name & Logo

2. Franchise License
3. Site Selection & Development Assessment
4. Franchising Contract
5. Training of Franchisee 's Personnel
6. Marketing Support
7. Advertising Support
PPT Jan. 7

●​ Ratio Analysis is a tool used by

decision makers on how to maximize
the resources of a company and
address issues.

○​ Periodic review of the

financial performance of
entity is guaranteed as part of
agenda during strategic
planning and meetings.

○​ The result of ratio analysis

could help in deciding for
investment, cost cutting, high
productivity, rationalize
budgeting, costing, pricing
and forecasting. Poor results
in ratio analysis should be
analyzed by the decision
makers and conduct action
planning.

●​ Budgeting expenses for the

organization should be primarily done
by the Finance Department and
functional managers of enterprise.
○​ Reviewing historical results of
financial performance, past
budget report, current
financial performance and
current budget expense can
be considerations to be
analyzed.
○​ Dispensing of resources
should be done with
prudence. The goal of every
business is to ensure profit
while supporting business
activities like providing
budget to functional
departments.
○​ In casting budget expense,
budgeting is facilitated by the
 finance department with workers needed. If a new branch will
coordination from branches open this year, hiring of new
and functional departments. employees proceed
○​ Budget is approved by the
owners of business 4. Current Budget Expense – is the ongoing
enterprise. spending of a company towards procurement
○​ Budgeting may be done in and allocation of funds to business activities.
coordination of the costing, One way of budgeting is based on the effect
reading the history, opinion of of present financial standing on current
line and department budget expenses. Timing is essential in
managers, benchmarking, allocating budget to encourage productivity
quotation and survey and ensure profitability.
●​ Go with flow strategy is budgeting
Most Common Practical Ways on how to do based on the percentage allocated
Budgeting: budget for planned expenses. If
1. Historical results of Financial products are not saleable in one
Performance – getting the curve and average branch, these will be transferred to a
of financial standing for past periods would branch where products will increase
really matter on budgeting. its offtake.
●​ For example, last year the company
generated good sales for three days Time Value Money and Interest Rate
because of a sales activity. With that, “The value of money today is different from
the management would repeat and tomorrow”. Time Value of Money is the
allocate budget for a three-day sale process of present worth value of money that
on the following year. Low product has different values in the future. Money can
offtake of product will capture the earn interest in the future.
attention of the management and Formula of Time Value Money:
make wise choice. FV = PV x [1 + ( i / n ) ] (n x t)
Where:
2. Past Budget Report – would matter for the ​ FV = future value​ n = Number
decision makers to look into the set budget of compounding periods on per year basis
expenses. Looking at the past budget report, ​ PV = Present value​ t = Number
will serve as a basis in purchasing of supplies of years
and other assets. ​ i = Interest rate
●​ For example, one branch consumed
20 reams of bond paper. With that, Interest Rate
the store manager may propose is the amount or percentage of interest that
budget of same number of reams. the lender charges to the borrower. Interest
rate could be done using simple interest and
3. Current Financial Performance – knowing compound interest rate.
the updated financial performance of the Simple Interest Rate (SIR) or Straight Interest
organization will tell the real score or status Rate
of a company. It will address challenges and Formula:
make justifiable release of budget on a target SIR = Principal Amount x Interest Rate x
date or adjusted schedule. Time
●​ An example is capitalizing budget for
the production of products to sell. Interest Rate
Fast moving items should be
produced according to targeted Compound Interest Rate (CIR)
schedule. Another example is the Formula:
adjustment of required number of CIR = P ( 1 + r/n)^(nt)
 Where: ●​ Collection is the process of
​ ​ P = Principal amount balance gathering payments from the
​ ​ r = Interest rate borrower. Collecting payment from
​ ​ n = frequency of interest rate the borrowers will collate funds.
being compounded per period Credit and Collection (C &C) goes
​ ​ t = number of period hand and hand.

●​ Depreciation is the decrease of value ●​ Credit and Collection Department is

of a thing. the functional division that sets
●​ Price depreciation of products or policies about credit, screen
materials must be incorporated to the borrowers and collect payments.
financial structure of business Usually, the C & C is under the finance
because of its effect. Some department. It is headed by the Credit
depreciation impact may reflect in and Collection Manager.
budget, efficiency of equipment,
pricing, cost of goods, volume of ●​ Credit and Collection Policy
sales, frequency of sales, customer’s consists of written procedures and
profile or qualification and marketing policy about the supplier’s conditions
positioning. for allowing the credit, customer’s
●​ Depreciation may also reflect the profile and collection procedures.
customer’s capacity to pay. Could your
current customers avail the product Salient Points about the Credit and
that you are going to offer in the Collection:
future? What is the impact of 1.​ Credit must be according to timing
depreciation in income statement, and reality of life.
profit and tax? 2.​ Credit must be according to
percentage allowable by the
Formula: company.
Diminishing balance = Asset’s Cost x rate of 3.​ Credit must be allowed to borrowers
depreciation/100 who are deserving based on
Straight Line = Asset’s Cost – Residual qualification, integrity and capacity to
Value/ Asset’s Useful Life pay.
Product Unit = Asset’s Cost – Salvage Value/ 4.​ It is recommendable to have collateral
Units Useful Life especially for high risk.
5.​ Amount of credit must be based on
Overall, depreciation guarantees decrease of the customer’s capacity to pay.
value of thing that needs asset cost 6.​ Collection is guided by terms and
condition
Credit and Collection 7.​ Collection follows legality and norms.
●​ Credit is a way to purchase, capitalize 8.​ Collection practices professionalism
and invest on a product. It is also a and understanding of the customer’s
way to convince customers to buy and company’s roles.
products. It is to be paid depending 9.​ Collection practices good customer’s
on the agreement between the debtor service.
and the creditor. Credit is the act of 10.​ Both credit and collection are critical
borrowing money and loaning of sections of business that possesses
products and usually significant in character of patience and wise
allowing borrower to purchase decision making.
products. 11.​ Credit and collection activities are
both mutual understanding of the
debtor and borrower
●​ Acquisition - buying fo assets and cycles are in need to diversify
shares of another company. their cash flows to avoid
●​ Merger is the combination or significant losses during a
unification of two companies. slowdown in their industry.
●​ Consolidation - the mixture of ●​ Tax Benefits – Acquiring a
companies while forming it into a big company with the tax losses
company. enables the acquirer to ​use
●​ Joint Venture - an arrangement the tax losses to lower its tax
between two companies to join liability. However, mergers
together and share their resources. are not usually ​done just to
●​ Amalgamation - the joining of avoid taxes.
companies and forming into one
company. Assets and liabilities are PPT- Jan 9
jointly shared and formed into one
during amalgamation Supply Chained
●​ Mergers and Acquisitions (M&A) - a “ A product is useless when it was not
part of a company’s overall strategy delivered and consumed by the customers.”
to ensure the sustainability of their Supply chain is the process of production
growth in their industry/sector. This and distribution of products. The products
involves the combining, buying, and are created by the manufacturer, service
selling of companies or assets to center and retail production outlet or unit.
boost financial power, market share Quality is maintained by the organization from
and expand business operations to creation of product until delivery to the
potential new market. customers. Each stop is anticipated by the
Acquisition, Merger, Consolidation, planner and managers. Standard operating
Joint Venture and Amalgamation procedures are reviewed prior to the
Mergers and acquisitions take place implementation. The maintenance of quality
for the following reasons: during delivery of products is also strictly
●​ Unlocking Synergies – This is prioritized to achieve good quality of goods
to create synergies in which until the channels (wholesale, retailer) and
the valuation of the combined end users (consumers), receive the products
companies is higher as
compared when they are still
separate companies. This is
also due to higher revenues or
lower costs.
●​ Promotes higher growth.
This is usually a faster way
for a company to achieve
higher revenues as compared
●​ Planning - alignment of strategic
with achieving this through
plans to supply and demand planning.
organic means.
Strategic plans involve the resources,
●​ Stronger market power. This
budget and goals.
may cause the attainment of a
○​ Supply and demand
higher market share and will
planning - involves
bring about a gain of power to
estimating the units to
influence prices or will cause
produce vis-à-vis demand of
more control to its supply
customers and industry
chain.
players. Price ​ also affects
●​ Diversification – The
companies that operate in
 the supply and demand equipment, machine, tools and
policy. supplies.
○​ Procurement - purchasing of
raw materials, supplies, tools, ●​ Physical Count - actual counting of
technology and equipment tangible assets. Some physical count
that will be used during the activities are done either daily, weekly,
production. Raw materials monthly, quarterly or even yearly.
are ordered and provided by Some companies conducted physical
the suppliers. count depending on their goal.​

●​ Production - period of processing raw ●​ Product Movement Analysis (PMA) -

materials with the use of other process of instigating the
resources maneuvered by machines classification of product performance
and men while converting them into in relation to offtake. PMA stands for
finished goods. analyzing the movement of a product;
either the offtake is a good performer
●​ Warehousing - process of storing and or slow performer. Product movement
handling the goods ready ​ for is analyzed into the paradigm of
distribution. Warehousing involves classifying the movement then
movement of items by receiving, providing action to take.
putting away, moving, picking, storing,
packing and shipping goods

●​ Customer order - filling the

customer’s request to buy the
product. Customer order may be
ordered through channels such as
distribution to branches, wholesaler
and retailers.

●​ Fill in Rate (FIR) - percentage of

fulfilling the oder of customers by
supplying products. Good fill in rate
means higher percentage of providing
the request of the purchaser. The
planner, inventory personnel and
manager should carefully review the
basis of quantifying the order.Delivery
is the process of transporting of
goods to the recipient of products.

●​ Delivery - could be directly to the

channels or end user. Delivery is
scheduled according to the forecasted
demand of customers. The supply ●​ Product shelf life - period
must be available from time to time to that preserves the quality and
satisfy the needs of the customers other expected attributes of
products. The shelf life is in
●​ Inventory management - system of accordance to the standard of
ordering, storing, counting and
auditing of inventory like goods,
 the company and degradation PPT Jan. 14
of goods.
●​ Expiration Date - period that Economic Order Quantity and Lead Time
shows until when the product Analysis
should be consumed or used
prior to expiration. ●​ Purchase Order (PO) – an activity
used for ordering goods, supplies,
Ways to Avoid Expiration of Products and tools, equipment, machine and other
Maximize attaining the Product Shelf Life: assets used in business operation.
Some of the activities used in filling the
1.​ Store the products properly using product in the warehouse, stockroom and
FIFO (first in, first out), FEFO (first selling area are the following:
expired, first out) and LILO (last in, ●​ Restock – fill up of goods in
last out). The capacity will be based the stockroom and
on the periodic usage and demand of warehouse.
customers. ●​ Reorder – repurchase of
2.​ Use visual aid such as signages which goods and supplies
will remind the employee about the ●​ Replenishment – the
shelf life of products. restoration of goods in the
3.​ Use monitoring form for the product selling display area.
shelf life. ●​ Refill – filling again or
4.​ Use monitoring form for the expiration replacement of goods in liquid
date. The list should indicate form.
5.​ Display the product properly by
applying strategic visual merchandise ​ Ordering stocks will ensure good
display forecasting skills in anticipating the quantity
6.​ Conduct suggestive selling or sales to order and lead time. Leadtime is the period
talk of nearly expired items. of estimating the process, delivery and arrival
7.​ Conduct sales promotion like of ordered products or supplies in expected
discounting, bundling promo, freebies, time. Leadtime depends on the nature of the
incentives and the likes. products, supplier’s capacity to produce and
8.​ Forecast the product production and other factors that will affect the travel of
procurement based on supply products from the supplier to the company.
production, demand of customers and Other factors are management prerogative,
reality of business. barriers andunanticipated scenarios
9.​ Set alignment of target in production,
marketing, finance, logistics and ​ Ordering – Leadtime analysis varies
operation that address the production depending on the situation. The ordering
units and quantity to sell. activity will be controlled using Inventory
10.​ Handle the product properly to avoid Control Objective (ICO). Ordering Control
deformities that may affect the Objective is the mechanism of justifying the
condition, quality and performance of forecasting of order. ICO is also associated to
goods. lead time analysis. The purpose of ICO is to fill
11.​ Regularly update the sellers through the needed quantity that will be used in
meeting and setting individual or tem operating business and selling products. ICO
quota. varies according to the standard of the
company
PPT JAN. 16

●​ Productivity Cost Analysis (PCA) is

the study of making outputs to
become profitable by providing
accurate quantity of production.
○​ PCA implies the four
elements such as right
costing, feasible sales, right
pricing and right quantity to
sell. The goal of PCA is to
ensure profitable outcome to
every transaction. Right
costing is accurate
computation of costing of
products such as cost of
 goods/services, taxes and Distribution Channel with infusion of
expenses. Feasible sales is Internet and Courier Process:
realistic attainment of sales. ●​ Aside from using telephone, text and
Right pricing is setting the fax machine, digital platform using
price in balanced way that internet is already in the scenario of
will benefit the company and transporting products from channels
customers. Right quantity is to customers. The influence of
assuring the correct quantity technology has immersed into
of products to societal transformation from normal
produce/fabricate. to new normal set up. The presence of
courier businesses addresses the
●​ Production Cost Formula is the needs of customers to transport the
costing of finished products by adding goods from distribution channel
direct labor expenses, manufacturing directly to their doorsteps. Some
overhead cost and direct materials companies have their own
(raw materials). transportation delivery. The infusion
of channels, courier and technology
Production Cost Formula = direct labor + creates instant delivery to customers
overhead manufacturing cost + raw without leaving their houses and
materials hassle free
●​ Direct Labor - workers’ wages and
worker benefits. ●​ Placement analysis is the study of
●​ Overhead manufacturing costs - knowing the right decision for
polishing cost, rental expense and business to whom and where they are
security personnel wages. going to place their products.
Subsequently, placement analysis is
associated to the distribution channel.
The inclusion of criteria in determining
the right decision for placing the
products and other related concerns
will deter risks and prevent wrong
losses in the future. Placement
Manufacturer - factory or producer of
analysis also brings actual checking of
products. More often, branding of products
performance of internal and external
originates from the manufacturer. Wholesaler
environment as part of scanning
is the buyer of products that are voluminous in
process.
quantity. Retailer is the distributor who sells
products to the customers by retail units or
pieces. Consumer is the ultimate goal of
businesses or the last stop of product travel
until it is consumed.

Placement Analysis in Tabular Form:

●​ The criteria - done in analytic
approach. Indicators or key success
factors are criteria components that
will be measured and analyzed.
Standard or normal values are the
 expected results that may be Channeling Price Structure:
considered and approved by the ●​ Manufacturer’s Retail Price (MRP)
management in making decision. usually informs the customer about
●​ Standard or normal values - depend the SRP. MRP is offered to the
on the preference or perspective of wholesalers or retailers depending on
the company as well as the the agreement. The customers of
entrepreneur. manufacturer are B2B (Business to
●​ Result - the actual output or outcome Business). The price structure in MRP
fo the measurement. is lower because of the wholesaler’s
●​ Remarks - management may volume orders. Anaother strategy of
translate the results into a common lessening is through discounting.
language that can be easily
understood by the people in the ●​ Wholesaler’s price (WP) is the price
organization. released to the retailers plus mark-up
●​ Descriptors - will depend on the to cover cost, expenses and attain
companies. Some of the descriptors profit.
can be accepted, rejected, considered,
not considered, passed, failed, ●​ Retailer’s price (RP) is the released
competent, not competent and more price to of the retailer and bought by
the customers and consumers. RP has
Distribution Channel Pricing and Analysis also added mark-up from the
wholesaler’s price to cover up cost,
Suggested Retail Price expenses and profit.
●​ Broadcasting Suggested Retail Price
(SRP) on the television, radio and Time and motion study
social media means it is necessary to Followed Performance Criteria
implement the price. Unfortunately, Table (of) Performance Management
because of factors to br considered Economic Order Quantity and time
such as cost of distribution channel, Mismanagement of the liquidity
SRP may not be followed. Some Vertical Analysis
customers may misunderstand the Cash Ratio
word “suggested” in SRP. They might Receivable turnover
think that SRP is the standard price Debt Ratio
everywhere and could create Ratio Analysis
confusion to the customers Marketing Process Cycle
4Ps of Project Management
●​ Channel Pricing Analysis is the Marketing Research
assessment of price set by the Organization Development
channels, The goal is for the channel Learning Outcomes
to balance profit and for the Placement Analysis
customers to accept the price. The Receivable turnover ratio
sustainability of the business lies on Productivity Cost Analysis
the implementation of strategy. Inventory Management
Pricing has the most vital role in Product life Cycle
encouraging the target market to buy Growth, cash 🐄 , threat of substitution and all
the goods or services offered. about threats amalgamation
Nevertheless, if channels cannot set
the right price means it is considered
as pointing forward to loss of
opportunity to