1. Why is operation management an important activity?
Who are qualified to become
operations manager? Operations management is an area of business based around the production of goods manufacturing, production planning and inventory are all part of operations management. The role of operations management is to ensure that the overall production process runs as smoothly and efficiently as possible, managing resources, dealing with suppliers and making sure that processes are effective and meet customer needs. An operations manager oversees many of the practical, everyday functions of a business or organization. This may include things like human resources, policy management, public relations, and logistics. An operations manager will usually supervise other department heads and is often the go-to person in the event of a company crisis. To become an operations manager, your best skill will be your ability to communicate well with people from all walks of life. The people working under you will need to respect you, but also feel that you are approachable. This can be a hard balance to strike.
2. Choose existing firm/company with an existing marketing unit and draw the organizational chart of the firm showing the marketing unit and its relationship with the other unit.
The marketing department is much more likely to be linked closely with the overall organizational planning process, in many instances helping to set the strategic agenda for the entire company and establishing key cross-functional milestones like customer satisfaction, share-of-customer penetration, and perceptions of quality. It is more likely to be speaking the same language as the rest of the organization revenues, operating margins, efficiencies, and process improvement. And the budgeting process for the fully integrated marketing department uses the companys overall sales and strategic goals as an input variable, not an afterthought. [2]
Internet Research 1. Example of the following: a. Advertising Message
b. Publicity Release
2. List down the best source of financing and explain each. 12. Angel equity If you must sell an ownership stake to get your company off the ground, start by finding a respected industry executive who is willing to invest a reasonable amount and give your venture credibility with other investors. The advice and networkingwithout all the heavy-handed demands of a VCcome in handy, too. 11. Smart leases Leasing fixed assets conserves cash for working capital (to cover inventory), which is generally tougher to finance, especially for an unproven business. Warning: Dont put so much money down that you end up spending the same amount of cash as you would have had you bought the asset with a down payment. The cost of a lease may be slightly higher than bank financing (see source No. 10), but the cost of the down payment you did not have to make is likely to be less painful than the dilution you suffer from giving away equity. 10. Bank loans Banks are like the supermarket of debt financing. They provide short-, mid- or long-term financing, and they finance all asset needs, including working capital, equipment and real estate. This assumes, of course, that you can generate enough cash flow to cover the interest payments (which are tax deductible) and return the principal. Banks want assurance of repayment by requiring personal guarantees and even a secured interest (such as a mortgage) on personal assets. Unlike other financing relationships, banks offer some flexibility: You can pay off your loan early and terminate the agreement. VCs and other institutional investors may not be so amenable. 9. SBA loans Of all the federally sponsored debt-financing programs, this is the most popular, and perhaps the best. It loosens the flow of credit by guaranteeing the lender against a portion of any loss incurred on the loan. Not to say that banks arent careful when making 7(a) loans: They are required to keep the non-guaranteed portion on their books. The interest rate can vary based on the size of the loan, with smaller amounts costing a little more. Shop around. Some banks reap servicing fees and nice profits by selling the guaranteed portion of the loan to insurance companies and pension funds; in those cases, a lender may be willing to offer you a better rate. 8. Local and state economic development organizations Economic-development organizations can charge tantalizingly low interest rates when lending alongside a bank. Say you need to raise $200,000 for a building. A bank may offer $150,000 on a first mortgage at a variable interest rate of prime, now 3.25%, plus 200 basis points, for a total of 5.25%. The local development entity might lend you another $30,000 on a second mortgage at a fixed-interest rate of 4%, without seeking equity shares or warrants. (Without the development corporations contributions, you would have to scare up $50,000 in equityexpensive.) If you dont have the cash flow to cover the interest, the development organization may offer extended terms. Some loans are interest-only for the first year or two, and even the interest payments can be accrued for a certain time period. Development groups may not agree to finance an entire operation, but they make snagging the remainder from other private sources a lot easier. Talk to your local chamber of commerce to find these programs. 7. Customers Advance payments from customersassuming the terms arent too onerouscan give you the cash you need, at a relatively low cost, to keep your business growing. Advances also demonstrate a level of commitment by that customer to your operation. About half of the world-beating entrepreneurs in my book, Bootstrap to Billions were funded by their customers. This strategy allowed them to grow faster and with limited resources, and to operate with relative impunity with respect to their investors. 6. Vendors Dick Schulze built Best Buy with financing from large consumer electronics firmsin other words, his suppliers. This way, your financiers do not control your growth; you do. Just be sure not to enslave yourself to a handful of powerful suppliers in the process. 5. Friends and family members If youre lucky, friends and family members might be the most lenient investors of the bunch. They dont tend to make you pledge your house, and they might even agree to sell their interest in your company back to you for a nominal return. 4. Small Business Innovation Research (SBIR) grants. Getting past the paper-intensive application process and SBIR grants can be a great way to turn your intellectual property into mailbox money. 3. Tax Increment Financing TIF subsidies are geared toward real estate development in targeted areas. Depending on the state, the subsidies can be as large as 20% to 30% of the cost of the project. Better yet, you may even be able to borrow against this subsidized value. If your own community does not offer a TIF program, look at communities that do. You may end up a little farther from your home or office, but it could be worth your while. 2. Internal Revenue Service No, the IRS does not lend money. But it does allow you to deduct expenses. If you are paying a heap in taxes, evaluate whether you can use your profits to expand your businessand reduce your tax bill. 1. Bootstrapping Many billion-dollar entrepreneurs find a way to grow without external financing so that financiers dont control their destinies or grab a disproportionate slice of References: