Consists of:
o Working capital management
 Production
 Inventory
 Marketing
 Human resource planning
Working
capital
management
is
concerned with making sure we have
exactly the right amount of money and
lines of credit available to the business at
all times
 Working Capital is the money used to
make goods and attract sales

Cash Management
 Receivables Management
 Inventory Management

Cash Management
Identify the cash balance which allows for the business to
meet day to day expenses reduces cash holding costs
Receivables Management
Money which is owed to a company by a customer for
products and services provided on credit
Identify the appropriate credit policy
Inventory Management
Identify the level of inventory which allows for
uninterrupted production

A
company's
merchandise,
raw
materials, and finished and unfinished
products which have not yet been sold.
These are considered liquid assets, since
they can be converted into cash quite
easily.
ABC
 JIT
 FSN
 BILLS OF MATERIAL
 BIN CARDS
 EOQ-ECONOMIC RE-ORDER QUANTITY
 INVENTORY/TURNOVER

Plant location
 Plant layout
 Product design
 Production design


The locations where firm set up their
operations is called as ‘Plant Location’.
The choice of plant location should be
based on following considerations
It refers to the placements of departments,
workgroups within departments, work
situations, machines and so on
Capacity Planning
‘Capacity Planning’ is the process used to
determine how much capacity is needed
in order to manufacture greater product or
begin production of a new product

‘Long range capacity’
 Short range capacity’

Standardization
 Maintainability
 Reproducibility
 Product simplification
 Product value
 Reliability
 Servicing and sustainability

Scheduling
 Project inspection


Before any production/
service is
offered for sale to market, several
decision need to taken in regarding
marketing. Ex: price of product has to
determined, the methods of marketing
has been identified and the channels of
distribution have to be worked out
It is a place where the sellers and buyers
assemble to exchange their products for
money . Concept has been change
time to time
 Traditional approach focus on the needs
of the sellers (Buyers Beware).
 Modern approach focus on the needs of
the buyers. (sellers beware).

Competition with modern sector
 Lack of sales promotion
 Weak in bargaining power

There are number of techniques available
for forecasting demand.
 Survey Method
 Statistical method
 Leading indicator method
Basic of Market segmentation
• Geographic variable
• Demographic variable
• Education variable
• Income variable
Marketing Mix (7 p’s)
Economic and non- economic
 Product characteristics
 Product cost
 Objectives of the firm
 Competitive situation
 Demand for the product
 Customers behavior
 Government regulation
Cost plus method
 Skimming Pricing
 Penetration Pricing
 Market rate policy
 Variable price policy
 Resale price Maintenance

Zero level Channel: producer to
consumer
 One level Channel: Producer (to) retailer
(to) consumer
 Two level Channel: producer (to) whole
seller (to) retailer ( to) consumer.

What kind of people we need?
 How many people we need?

Job Analysis:
 Job Specification
 Job description
Start-up:
It refers to the birth of a business enterprise in
the economy. The production takes place
in limited scale. The enterprise is not faced
with any competition during this stage.
Profits may not be earned during the start
up stage.
 A. Growth stage B. Expansion stage
 C. Maturity stage D. Decline stage
Internal growth:These imply that enterprise grow their own
without joining hands with other
enterprises.
 Expansion
 Diversification. (FMCG to Heavy vehicle
manufacturing.)

It means enlargement or increase in the
same line of activity. It is natural growth
of business enterprise taking place in
course of time
 Production strategy
 Marketing development strategies
 Expansion through product development
/ modification
Approach to growth by adding new
products to the existing product line is
called “diversification”
Advantages:
 effective use of its resource
 minimize risk involved
 competitive strength
Horizontal diversification: The same type of product / market is
added to the existing ones.
Vertical diversification:Complementary products or service are
added to the existing product or service
line of the enterprise.
Concentric diversification
An enterprise enter into the business
related to its present one in terms of
technology, marketing or both.
Conglomerate diversification:It
is
just
contrary
to
concentric
diversification an enterprise diversifies
into the business which is not related to
its existing business neither in terms of
technology nor marketing inter into
unrelated to its present one.
External growth:Enterprises grow by joining hands with
other enterprises.
Joint ventures
 Mergers
 Sub-contracting

Franchising
 Product franchising
 Manufacturing franchising
 Business format
An entrepreneur starts a business with 2
choices;
 By “choice”
 By “compulsion”


It refers to bringing into circulation of
various types of resources like materials,
finance, labor, etc. which are essential
for operating the business.
Cash flow statement
 Income statement
 Balance sheet

 Outsourcing:
In business, outsourcing in the contracting out of a
business process to a third-party.
Outsourcing includes both foreign and domestic
contracting, and sometimes includes offshoring or
relocating a business function to another country

Material resources:
Assets in the form of material possessions assets anything of material value or usefulness that is
owned by a person or company