Learning document #16

Administering management on occupational expansion

1. Business planning

Business planning is the particular plan identifying the activities to be conducted in the investment of a business, starting from goods production and services, processes of operations, result outcomes, investment budget, manpower, customer services and best practices to be survived. (source: Manop Shewthanasuntorn, SMEs business planning, Industrial Promotion Department 2547)

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1.1 Study and analysis of community aspects for promoting occupational expansion.

- Analyzing acommunity means to collect all possible data concerning that community in which it may comprise village data, district or sub-district information,depending on scope and level of information being needed. These information will provide us with several findings about the community and its problems and needs for supporting our planning for the channels of occupational expansion which will be compliance with the particular needs of the community people. Particularly, the information on marketing needs, government policies which support the production and occupation. These information may help us plan for the future tasks carefully.

In doing the analysis as said, we normally analyze the conditions within and outside the community through the application of SWOT analysis. For example; 

The study of community needs – is to be done through the survey of community information in order to find the strength and weaknesses as well as problems encountered, risk taking and opportunities on data and needs information.

S (Strengths)       Strengths of community

W (Weaknesses)  Weaknesses of community

O (Opportunities) Community’s opportunities to implement

T (Threats)     Obstacles or constraints which community should deny

In doing analysis, the analyzer should consider dividing or differentiating the data of several information concerning community by letting the community members or members of particular occupation participate in analyzing. In so doing, they should fill in all information into the right places or column in “S”, “W”, “O” and “T”. All information should be put in places, and if some information seemed not so clear, the team should do the survey of more information, after which they have to do the analysis of all information in order to identify the alternative way for solving the problems or for occupational expansion before they can develop their occupational vision.

- Identifying vision, mission and strategies for occupational planning and expansion

Vision –is the way of planning for future aspect and aim of occupational performance. In other words, it is the way to identify the goals of business and its outcomes for the future under a certain scopes and duration. In identifying the vision, we should bring into consideration carefully about the result or outcomes of community analysis on the information of the entrepreneur or occupational performer.

Mission – is the pieces of work that the entrepreneurs of occupational performers have to conduct successfully according to their vision. In so doing, the entrepreneurs should set their team work and identify the missions clearly in terms of production and marketing.

The mission analysisof entrepreneur may be examined so as to know which missions should be done before or after and which mission should keep doing or should be changed. The group of entrepreneur teamwork may have to join the analysis in order to identify the main missions and prioritize the significance of the missions in order to mobilize them successfully.

Goals or objectives of occupational expansion is to identify all details about what to do and when to finish in which we may set the time frame in terms of short or long duration such as 3-5 years. In setting the goal of occupational expansion, it should be clear and be able to evaluate. Besides, if we set the goal by setting numbers it should be more clear because it will help reach the effectiveness of our plan which contributed to achieving the performance and operation successfully.

Strategies in planning for occupational expansion is the way to plan for the tasks and strategies in expanding business or occupation in order to make it meet the set goal. In doing planning for business, it is necessary to identify the vision and long-term goal clearly. And in order to reach the set goal, the analysis of what to be happening in the future and what to be working out systematically should be done in order to achieve the goal.

Steps and processes of planning

The steps and processes of planning for community business expansion are as follow:

1. Identifying objectives of all activities clearly.

2. Setting goals for the tasks which can be measured in a short period of time.

3. Setting steps of working in which it should be planned beforehand so as to which activity is to do before or after.

4. Implementing the plan in which it should be operated continuously.

5. Improving the plan after implemented the task for a certain period of time in order to make the task more effective.

1.2 Planning for operations is the last step of business planning for occupational expansion in which its details derived from the strategic plan that identify the project / activities to be implemented. This strategic plan will comprise objectives, goals, time frame and responsible person.

2. Risk taking management

2.1 Risk Management

Risk taking is regarded as an uncertainty and unpleased event or occurrences to be faced unexpectedly.

Meanings

Risk management means the process in identifying risk analysis, risk assessment, examining and controlling the risks that are related to the activities, duties, and working processes. Risk management should be made to help the organization reduce the disruptions being faced in terms of business accident.

Risk –has many meanings such as :

- chance of loss

- possibility of loss

- uncertainty of event

- dispersion of actual result

Peril – means the cause of loss which may occur in terms of natural disasters such as tsunami, flooding, earth quake, etc. Apart from the natural disaster, some peril may have caused from the misled of human itself such as conflagration, traffic, murder, etc. The last and significant cause of peril that always occurs is the cause of economic downturn, and when it occurs it will impact people of the whole country or region worldwide.

Hazard – means the situation or condition that elevates more cause of peril. Through the hazardous situation, we may categorize it into three situations -physical hazard, moral hazard and morale hazard.Physicalhazard is the situation that might be occurred physically such as the location of the building that supports fire or conflagration. The moral hazard means the opportunity or chance to commit falseness such as dishonest to working duty or corruption. The morale hazard is the carelessness or negligent in preventing risky hazard. For example, the worker leaves the machine to operate without caring.

2.2 Factors of risk management

2.2.1) Identifying disasters to be encountered by organization - it means to identify the causes and events of disasters that are presently impact the organization and this should be the first step of risk management.

2.2.2) Evaluating the impact of disasters to the organization, or in other word called the assessment of risk taking that the organization may have to be alerted and prepared to protect each particular disaster appropriately.

2.2.3) Identifying the counteract measure for disasters risk management in which it should be prioritized according to their significances. The outstanding counteract measure to disasters risk management comprise the following:
(1) Measure for eliminating or decreasing the violent

(2) Measure for protecting the victims not to face directly with disaster or danger. For example,

  * Disaster to be occurred in terms of injuries from climbing up high. The counteract measure is to fasten
    the belt to prevent falling down.

 * Disaster occurred from the vapor or toxic vapor which can be prevented by covering the nose or putting on the mask.

(3) Measure for reducing the violent of emergency event such as the conflagration in which some buildings have been prepared in terms of building construction by using the wall that can bear the burden of conflagration. Some building use water Springer that can reduce the violent or stop the fire.

(4) Measure for reducing the lost directly.

(5) Measure for recovering to actual aspect

Dealing with 5 measures for protecting disasters

(1) Readiness for risk management

(2) Response urgently when the violent occurs

(3) Rescue the victims and protect the asset of organization

(4) Returning or undertaking rehabilitation to the place after the disaster was ended so that the repair and rebuild would be started as soon as possible to enable the actual work to continue earlier. This repair or rebuild may as well concern the action of insurance company.

(5) Resumption of organization into actual task or business

2.3 Analysis of the factors of risk business

In doing the analysis of the factors of risk business we may start from observing our actual business and then observe the environment around our business and find the significant point. If that point is really vital that may bring about the evil impact and make our business fail, this significant point is to be called the “Critical point”.

Risk assessment

Identifying the risk by finding out what measures in our business have tendency to be risky which we may identify them into 5 different issues:

1) Marketing issue – change of product, change of the prices, changes of bank interest and exchange rate, stock price fluctuations, and market competition.

2) Production issue – raw materials, production capacity, production capital, mechanism technology, safety and mistake on steps of production.

3) Monitory issue –change in loans, change in asset used for insuring the Loans and liquidity.

4) Personnel issue –knowledge and ability, skills, attitudes, responsibility, corruption, harmony, and resign rate.

5) Capability issue –natural resource, climate, natural disaster, location aspect, arts, culture, custom, lifestyle and human resource.

After identifying the risk, the reassessment of the risk should be done once again in order to know the levels of violence and to prioritize the risk according to the levels of violent.

1.1) Aspects and levels of violence

- high level of violent

- middle level of violent

- Less / low levelof violent

Example: The criteria for considering levels of violent

1.2) Violent / Damage opportunity
- High

- Middle

- Low

Example : Levels of violent opportunity

Example : Assessment for prioritizing the levels of risk violent

Example : Assessment for prioritizing the levels of risk violent

Example: Identifying assessment measures for considering significant priority of risk

Prioritizing the significance of risks may help business owners and team worker take more interests or concernson the risk management that will mostly impact their business.

2.4 Identifying measures for solving and prevention of the risks

After prioritizing the significance of risks, the business owners have to consider the critical pointof each risk issue as follows:

2.4.1 The causes of particular critical point

2.4.2 The impact of critical point to the business

2.4.3 What should be the sign telling the cause of critical point?

2.4.4 What would the organization do to prevent if the business tends to impact the critical point of risk?

2.4.5 If the critical point already occurred, what should be the significant measures of the organization?

2.5 Assessment of problem solving and prevention measures

The working team who develops the business plan should undertake the analysis on the following:

2.5.1 Consider the risk that we had experienced in the past and could finally overcome it, then recall our measures as to what and how we could use those measures effectively.

2.5.2 What kind of risk are you encountering and what measures are being used to solve the problem? Are that measures found effective or not? If it is found not effective, how could you improve the strategies?

2.5.3 What kinds of risks do you think are going to occur, and the prevention measures you have planned have already been used or not, do you have to develop new strategies ?

2.5.4 What kind of risks have not yet arrived? Does your organization undertake the study and find out whether your plan of possible measures for risk prevention will be effective, or it has already been used effectively by other organization before

2.5.5 Identify the frequency of assessment on prevention measures in order to improve the plan and new strategies if the old ones are seen not effective.

2.6 Risk management planning

Risk management planning is aimed to decide for the selection of risk management activities of the business. Therefore, the said activities may have to cover and be comply with the risk management to enable the business administration to reach the final goal. In order to make the business more effective and successful, the owner should develop a good plan for risk management as well as provide adequate budget and resources to make the administering of risk management successful according to the set objectives and goal.

The components of risk management planning

Example : Risk management planning

2.7 Follow and evaluation of risk management

This is the significant step of studying the problems and obstacles in operating the risk plan in which it help the team work to get more information in order to improve the way to do risk management effectively.

3. Production management

The meanings of production management, services and quality control

Production management – means the processes and steps of production that are going on continuously to reach the goals of organizations and particular activities.

Services – the processes of providing services to the customers by making them full of happiness and satisfaction as well as receiving full of benefit.

Quality control – means the conduct of activities and productions to enable them respond to the needs and satisfaction of the customers through basic belief that “good processes create good product.”

Management of quality control of production

The aim of quality control is to make the production and services more successful according to the following objectives:

1. The products being ordered are qualified in terms of the quality according to what have been specified in the contract.

2. The production processes are correctly developed appropriately.

3. The production plan is in accordance with the plan prior identified.

4. The packaging is found appropriated and be able to delivery safely without damage.

Steps of quality control

1) Step of policy identification – is to identify the general objectives such as quality level of the product, size of market, selling procedures and insurance. All of these identification will tell us what to be done to reach the goal and objectives as planned.

2) Step of creating models of the product – means to set the qualification of the product. This step may have to be related to the production system.

3) Step of controlling the quality of production – means to make quality control of the products which is divided into 3 different steps; (1) checking the quality of particular units of the product, (2) Controlling the production processes, and (3) checking the overall quality of the products. These three steps of quality controlling will be undertaken through sampling of the products.

4) Step of quality control selling – is the after sell services in which the new actual marketing system has regarded as the most important step on creating satisfaction among customers who are to be sure that their products will be served and follow-up of the quality all the time.

Application of innovation and technology in the production

Applications of innovative technology for production are the proper way to develop the ability in human productions in which it helps solve the problem and support the needs of human beings creatively by applying general knowledge into technological processes to produce the appliances for daily use and have good quality of life.

Application of innovation and technology in creating innovation

Creating the innovation means to create the new idea for the production of new artifacts which have never been initiated before. This is meant to develop the new one through the improvement of the existing one.

Technology

Technology means something being developed by human for the use of actual work or for solving the problems that occurred such as equipment, materials, engine, or those things unable to touch, tohandle, or those systems and processes for working successfully. The technology will be great benefit to people if the user use it properly but not exceeded more than needed.

Processes of technological production

Technological process is the process of solving the problem through creative idea initiatively and carefully in order to create useful productivity according to the needs of human beings.

The principle process for designing technological product may be divided into 5 steps as follows:

Chart showing process for designing technological product

Reducing the capital of production and services

In conducting all kinds of businesses to make it stable and sustainable, the owner should find appropriate way to reduce the capital of production and services. The following are somes suggested principles:

1. Analize and study the actual status of production which includes manpower, raw materials, producing capital. After learning these factors, the owner should be able to find the defect of production and may find way to reduce the capital of production.

2. Analyze the causes of idle costs of capital that occurred from the production and services. This means the costs being spent without any usefulness nor benefit to the business.

3. Undertake business control by reducing the ineffective cost of production and continue to do it until it reach the goal effectively.

Factors for considering and controlling the capital cost of production

The capital cost of production will be up and down is depended on various factors as follows:

1. The business administrator should clearly and seriously have policy and project for reducing the capital, no matter these will be in terms of the quality standard policy such as ISO, the support of personnel capability, etc. the production reducing system should be conducted continuously and seriously.

2. The business administrator should create good attitude among their workforces regarding the reduction of capital costs of production.

3. Undertake the measure to increase the effectiveness and quality of business administration and management seriously.

4. Marketing management

Marketing management means the operations and performances of all business activities in which it should have good planning of production, advertisement, marketing research, selling promotion, database of the customers, production distribution, pricing identification, selling and all kinds of business administration for supporting the needs and services as well as satisfaction of the customers.

Marketing management is concerned the following:

1. Advertisement –refers to the presentation and support of the idea and opinion in selling the products through all kinds of media and receive financial support for public relations. These media are, for example; magazines, newspapers, radio, television, banners, post, etc. Each type of public relation as said may have different strength and weakness, therefore in selecting the use of particular media the following should be considered.

1) Reaching the target population as much as possible.

2) Being of most effective.

3) Low cost

2. Public relations – means to contact and communicate appropriately for promoting the understanding and good relationship between the customers and producers. The public relations may come in the forms of distributing pamphlets and press release.

3. Selling promotion - means the activities to promote marketing apart from individual advertisement and public relations. This is to stimulate the interest of customers or consumers through other channels of public relations such as showing through exhibition, giving away, putting on sale, sweep staking, competition, and giving away the coupon.

4. Marketing research – means to study the factors of both internal and external markets, and this will make provide appropriate knowledge and information on planning for marketing to the business owners to enable them to be confident in their marketing. The research analysis of marketing should study about the attitudes of customers and adapt it for usingappropriately as follows:

2. Public relations – means to contact and communicate appropriately for promoting the understanding and good relationship between the customers and producers. The public relations may come in the forms of distributing pamphlets and press release.

3. Selling promotion - means the activities to promote marketing apart from individual advertisement and public relations. This is to stimulate the interest of customers or consumers through other channels of public relations such as showing through exhibition, giving away, putting on sale, sweep staking, competition, and giving away the coupon.

4. Marketing research – means to study the factors of both internal and external markets, and this will make provide appropriate knowledge and information on planning for marketing to the business owners to enable them to be confident in their marketing. The research analysis of marketing should study about the attitudes of customers and adapt it for usingappropriately as follows:

1) Who are business consumers? – the differences on market zones should be considered in terms of geographical areas, population education, psychological principle and behavioral science.

2) What kinds of products are wanted by the market ? – this information should be observed by the entrepreneur so that the products would be of satisfied to the consumers.

3) What attitudes should be learned and observed from the customers in terms of their decision making? – steps of buying process of particular customers are different depending on their personal needs and interests and duration of decision making are quite different. Some customers may need quite a while to do decision making, while some may take a short time to make decision.

4) Why do the customers want to buy? – this should be considered in terms of the purposes of their interest and buying.

5) When should be the right time and good opportunity for the customers to buy? - the buyer should know that each customer has different aims and different opportunities.

6) Where should be the right places for the customers to buy? – the appropriate place should be found out for particular customers.

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5. Business accounting

5.1 Meanings of business accounting

Business accounting means the system of data processing on monetary matter such as records of revenues – expenses of both finance and producing categories as well as monetary values in account book that should be follow-up and updated correctly and regularly according to the financial principle.

5.2 Significance of business accounting

1. It is the equipment for measuring the success of business administration to be considered from the outcomes of business performances, the financial status and stability of the business. The business accounting will comprise the records of investment, revenues-expenses, balance sheet, profit and loss, all of these will reflex the business administration.

2. It is the equipment for supporting the planning and decision making and may be used for analyzing the possibility of future investments. Therefore, if the accounting is recorded correctly it will increase the sustainable development of the business.

3. It is the equipment for planning the profit and controlling the expenses of the company and help making decision in identifying the prices of the products. It also helps in controlling the capital costs of production and planning for development of operations correctly appropriated to the resources available.

5.3 Types and steps of doing business accounting

Revenues – expenses accounting – means to record the events or occurrences about financial matter or partly information about the finance concerned. This will be done through the analysis process to be recorded in the financial form being provided in order to show the result of financials status and the outcomes of implementation in a certain period.

Example : Accounting form of revenues - expenses

Asset – Debt accounting  is the records of assets and debts such as lands, equipments, machines, agriculture equipment factors of production, numbers of production and the remaining products as well as the debts occurring from production process. Recording of the assets and the debts is to summarize the financial status to be used for calculating future revenues by concluding according to particular planting seasons or the end of the year in the form of financial values. The following is an example of Asset – Debts accounting.

Asset – Debts accounting

Bakery Shop