mgt combine) new

8/2/2019 MGT Combine) New

1/41

Planting group CPlanting group BPlanting group ATransporting de partmentP r o d u c t d e p a r t m e n t

W o o d w a n d e r i n g pl ant

S of a pl a n t

T r a n s p or t i n g d e p ar t m ent

Wood wandering plantProduct d epartmentService de partmentSafety departmentCant eenHuman resourcesManaging Director Financial D epartmentVice gener al manager Vice gener al manager Administratio n departmentEngineering departmentFactory sales departmentMaterial w arehousePurchase d epartmentProduction d epartmentWood wandering plantTransporting departmentSofa p lantProduct departmentUser Reta iler Wholesaler-i ntermediaryProducerUser Reta iler Wholesaler-i ntermediarySales agent/broker Producer

3rd Month 4th Month Total11500 3700RM168 RM168 RM168

42,8000 168,0000 193,2000 621,600

h - 1000; 4th Month - 1150


2/41


3/41

Wilson Private Limited

Company

The logo of our company

Type of business : good-producing business (Our company produces chair.)

Type of organization : profit organization (Our Company operates to earn profit.)


4/41

Type of industry : secondary (Our Company does not provide services but produce

goods such as chair.)


5/41

Aim : To be the top furniture company in the world.

Objective : To achieve RM100 million profit per year

Mission : We aim to provide comfort in style through constant innovation and

product development.

Vision : We endeavor to be the leading lifestyle furniture provider - enhancing living

concepts for every home.

Core value: Teamwork---We build our relationships on trust and teamwork.

InnovativeWe continuous adapt and strive to develop and create most

creative products.

Resources: People (employees)

: Information (internet website)

: Facilities and infrastructure (showing room, parking)

: Finances (money-profits)

: Machinery and equipment (machines, telephone, fax, and computers) :

Materials and supplies (wood, glue)


6/41

Leadership: DemocraticAll the manager and employees are able to discuss about their

project. For example, employees have chance to give advice or idea to the manager

about our company new project. Employees may give suggestion about the

design of the new chair that company want to product next before the manager

take the last decision.

Organization structure: Functional structure

Organization culture: The best materials we never settle for second best, we scour the

world in search of the finest materials. We selected hides to the best

fabrics and woods carefully.

: Care and Assurancewe believe in sharing with you the secret of

caring for your sofa -to provide you with extraordinary comfort,

year after year. Your sofa will always look as new.

: Offering the true value our customer are with the best in value,savings, service and price.

Core competencies: Professional Project ManagementModern project

management practices are at the heart of our success. Large

scale, complex fit-out projects demand leading edge project management

practices. We have a core team of well trained and experienced

project managers, backed by a strong logistics team to

coordinate, deliver and install furniture and fixtures according to

schedule. A best team can make a MIRACLE.


7/41


8/41

Marketing mix of the Organization

Product

Type of product

Consumer Products (Specialty Goods and Services)

Our products are so unique and special. It can get many people attention and many

people will buy our product. It is very expensive due to its high quality and it is mostly

purchased by the rich. As our company is using all those top quality materials, for sure our

product cost will be higher than other similar products in the market. Our products are

more expensive than convenience goods and shopping goods. Usually, we set up shops and

show rooms in active shopping area to attract customers attention. We do lots of

advertising to increase our product awareness. Our brand name is known by everyone.

Product Differentiation

We are sharing with you the right way of maintenance and to take care of our

furniture, so that the furniture will be more durable and provide you with extraordinary

comfort, year after year. Your sofa will always look like new. Customers can contact us for


9/41

advices, request for repair and provide feedback about the furniture. Furthermore, well

trained staffs are to ensure reliable, professional and careful service will be provided to all

customers. We also pride ourselves in our ability to take all your furniture delivery and

furniture drop shipping headaches away. Customers just need to call us and we will arrange

door-to-door delivery and repair services to the customers. Besides, we provide Two-Year

Warranty against manufacturing defects on all new furniture. The warranty period is longer

than others company. Every repair is free of charge in these two years. Sometimes, our

company will organize some promotion for our VIP members during the festival.

Customers can buy the products with a low price for a good quality thing. We never settle

for second best, we scour the world in search of the finest materials. We selected hides to

the best fabrics and woods carefully.

Product Mix

Code: 1135 / 1136

Description: Modern Chair

Colour: yellow, blue, green, purple, red, white

This chair is an innovative piece of furniture. We take the famous 80`s puzzle

videogame which is also one of the most well-known arcade game in Facebook as our reference for our design idea. This chair is name as DoubleT. It is a playful design

composed by the various types of 4cubes which is used in the videogame translated into 3D

versions which invite the user to become one more piece in the chair and interact with it.

Nowadays, the modern form with such extra-normal material make the sofa looks

tasteful and stylish. Besides, this sofa is a capable product and it is suitable for everyone.

DoubleT is a sofa that can be transformed into a mattress. People can enjoy various puzzles

with it. This may develop their imitativeness and space perception by using it. When it is

stretched, you can use it as a mattress, and when it is folded, you can also use it as a sofa.

You may use your creativity to make a sofa that different with others and the only one in

the world.

Of course, you can make other various funny shapes and spaces. Steel frame is

loaded inside the frame of the sofa to support its interior materials. The exterior of blocks is


10/41

done in non toxic PU and high grade artificial leather. Besides it is also easy to clean and

maintain. It is foldable and smart, making the device compact enough for storage. It is also

adjustable. So you may move it easily.

Promotion

As what we have learned in the text book, promotion is actually a communication

technique to persuade customers to buy or use product and services provided by your company.

Therefore, our company is going to do many promotions so that we can attract a lot of

customers and supporters to buy our product. (Double T) We are going to cooperate with CIMB

bank, CIMB banks customer can redeem their points to vouchers and they would be able to buy

our product at a lower and cheaper price. By cooperating with CIMB bank, our company can

increase our exposure to people. Besides that, we also can create product awareness to many

people and increase the popularity of our branding.

Our company will organize a trade shows in many shopping complexes. For example, we

will build up booths in front of the shopping malls such as Midvalley megamall, KL Pavillion,

Times Square, Sungai Wang Plaza, IOI mall and others shopping malls to display our product and

demonstrate products to customer as there is many ways to use our Double T sofa. We are

going to organize this type of trade shows because there are many crowds in these areas. By

setting up booths in front of the shopping complexes can increase the awareness of our products

and many people will get to know of our creative products. Although it is very expensive to

setting up those booths, it is worthy as it can increase the popularity of our products. We will also

take part in those home fair or furniture fair. Attractive booth will be set up to attract people

attention. We will hire some show girls and models. This will also help to increase the popularity

of our products.


11/41

A coupon will be advertised on the newspaper, internet, forums, website, and magazines.

Customers have to cut out or print out the coupon so that they can redeem the coupon at our any

retail outlet and can enjoy 50% discount rate for any of our products. This way of production not

only can increase the awareness of our product, it can also boost up our sales and increase the

total revenue of our company.

Coupon advertised by our company.


12/41

PRICE

Pricing is the money charged for a product or service. A customer has to give up in

order to acquire a product or service from a company. It is a process of determining what a

company will receive in exchange for its product or service.

Our company decided to set a higher price and markup to a higher price which able

to generate higher profits per unit. Our companys pricing objectives are profit-maximizing

objectives our company marketers attempt to set prices to sell the number of units that

will generate the highest possible profits to our company. The second objective is E-

business objectives marketers pricing for sales on the Internet. The costs and prices are

lower than market price because of the webs unique marketing capabilities. We are using

this advance technology to promote our product because we know that everyone able toknow our product through the worldwide Internet. Besides that, there is costless and

payless by using this method.

Our company is also using cost oriented pricing to consider the firms desire to

make a profit and cover the production costs.

Our company pricing strategies for new products such as our tetris chair is price

skimming. Price skimming is setting an initial high price to cover new product costs and

generate a profit. The aim is to maximize profit per unit so that we can faster recover from

the research and development costs. After some time, when the our product tetris chair

becomes mature product, our company will shift the pricing strategies to pricing at or near

market prices to become price leader establishes product prices that competitors follow.


13/41

PLACE

Place is definitely important for a business and for it to survive in this competitive

market. A strategic place will be the most effective and efficient way to get products from

producers to consumers. And there are many distribution channels that an organization used

to move goods and services from producers to customers. We have to make decisions on

which channel of distribution we have to use to achieve an efficient way to reach our

products to the customers.

This can also reduce the cost of administration and many other costs for storing the

products. Besides of the producer and the customer, there are market intermediaries that

was called middlemen who channel good and service from producer to end-users. The first

is wholesaler-intermediary. This responsibility on who sells products to other businesses for

resale to final consumers. Second is retailer-intermediary. This middlemen sells products

directly to consumers and the third is sale agent or broker. These middlemen represent

many manufacturers and sell to wholesalers or retailers. Inside the distribution channel,

there are 8 channels to be chosen. For our business, we choose channel 3 and 4. As show

in the diagram below is the channel 3 and 4.


14/41

Channel 3

Channel 4

0

We choose these two channel because we cant straight sell our product to the

consumer. Without the middleman, the consumer will not able to know about our product

and the special of the product. Besides that, through this the consumer will know about the

benefits of our product. If the producer sells the product to the consumer without any

introduction of the product, the consumer will not be able to understand the function of it in

a short time.


15/41

Target Market and Market Segmentation

Target marketing can be the key to a small businesss success. The division of a

market into different homogeneous groups of consumers is known as market segmentation.

One can identify four primary bases on which to segment a consumer market are

geographical variables, demographic variables, psychographic variables, and behavioral

variables. Our company needs to know about the target market for our products. The

different types of customers have the different level satisfaction for our products.

Demographic segmentation is based on variables such as age, gender, ethnicity,

education, occupation, income, and family status. Demographic segmentation variables are

amongst the most popular bases for segmenting customer groups. Our creative sofa is suit

for adults and children. Our company target affluent consumers with specialty goods. They

have a high income for their work. They have to willing and able to buy our product which

is expensive. The sofa is a playful design. People can enjoy various puzzles with it. The

market of the sofa is on the family which has children in the house. Parent can buy for it to

create their sofa with different design with others. Our sofa is composed by the various

types of 4cubes which is used in the videogame. Children will like it very much. Parent

will buy the sofa that their children like for it.

Geographic segmentation is based on regional variables such as region, climate,

population density, and population growth rate. Our company may choose to market our

brands in the city of the countries, but not in others. This is because the population in the

city is higher. The branded name of our company is more popular in the city. Our product

designs are different with other companies. The people in the city are more prefer to this

kind of sofa, but not the traditional design. There is no much more effect from the region

and climate to our product.

Psychographic segmentation is based on variables such as values, attitudes, and

lifestyle. Psychographics can easily be misunderstood or incorrectly applied. It's quite

common to contrast them with demographic variables such as age and gender, or with

behavioral variables such as usage rate. As we know, some of the customers are more

prefer to the products that are cheaper, but some of them are more prefer to the high quality


16/41

products. The normal assumption that higher price means higher quality. They are trendier.

They hope to buy a sofa that their like as the first condition when they choosing the sofa.

Behavioral segmentation is based on variables such as usage rate, readiness for

buying the product, attitude toward the product, loyalty to the product, and occasions onwhich the product is used. New markets for the products can be indicated, as well as

appropriate communication themes for product promotion. Our company segments a

market on the basis of how often a customer uses its products or services, categorizing

these into high, medium, and low users, by usage rate. This can be used to develop service

specifications or marketing mixes for each of these groups of users. For example, our

customer wants to creative a fashion room. They need a different kind of sofa for the new

room. Our company is popular in selling the creative sofa which is designed by a famous

designer. Most of the customer is loyalty to buy our products. They know that our sofa is

the best quality sofa with a good price.

Human resource management

Manpower requirements


17/41

Often, planning is very important to a company especially for those companies

which just start for their business. The best companies take the time and do it well. Human

resource planning is one of the most impactful aspects of business planning. Thus, our

company has decided to plan a human resource planning for the company developing in the

future. As we know, the efficient human resource planning is a key for the successful

business. Human resource planning is an ongoing process of systematic planning to

achieve optimum use of an organization's most valuable asset which is its human resources.

The objective of human resource planning is to ensure the best fit between employees and

jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR

planning process are forecasting labor demand, analyzing present labor supply, and

balancing projected labor demand and supply.

The first step of the human resource planning is conduct job analysis which ismeans systematic analysis of jobs in an organization. Job analysis is to assist in the

preparation of up-to-date job description and job specification, not a description of the

person. To achieve organizational success, it is crucial to identify and determine the jobs

that the organization needs performed in order to reach its strategic goals. Our company

make a job description gives an account of the work and duties associated with a particular

job. It describes the way the job is performed currently such as, the job that need in the

company. We will list down the duties and the organizational responsibilities relates for the

job. For example, our company faces the lacking of service department employees to

handle the job of repairing and give the best service for every customer. We want to

increase the number of service department employees. Besides that, job specifications

define the characteristics of the activities associated with the job and given in the job

description. They describe the skill sets and qualifications that a candidate for the job

should possess. As the example above, our company needs the service department

employees who are able to use all the tools to repair the sofa. They must have the basic

knowledge about the maintaining ways. To be a professional service department employee,

they must able to well communicate with the customer.

The second step of the human resources planning is foresting human resources

demand and supply. It is a process of projecting the organization's future human resource


18/41

needs (demand) and how it will meet those needs (supply) under a given set of assumptions

about the organization's policies and the environmental conditions in which it operates.

Demand forecasting is to estimates the number of people required in the future and their

capacity, supply forecasting is divided into two parts which is forecasting internal supply

and forecasting external supply. For the forecasting internal supply is means for the number

and the type of employees who will be in the firm at some future. Our company needs five

service department employees, but there are only two employees in our company. On the

others hand, the forecasting external supply is means for the number and type of people

who will be available for hiring from the labor market at large. When we make an

advertisement to hire the service department employees, there are ten people who apply for

the job.

The third step is replacement chart. Company records showing present

performance and profitability of inside candidates for the most important position. For

example, after interview or some quiz test for the candidates, Jack, Jason and Mick are the

successors to critical the services department employees. They have work for three months

as the testing. This may determines who are qualified as a replacement of the position. The

forth step is skills inventories. A skills inventory is a compilation of the skills, education

and experiences of current employees. Organizations use these inventories to assess their

ability to meet certain company goals. Our office computers are containing the information

on each employee. We can understand the pool of current skills or talents. So, we can take

some ways to improve it and achieve for our goal.

The last step is matching human resource supply and demand. Matching human

resource supply and demand determine future shortage and surplus. Is it the forecasting

labor supply is equal to forecasting labor demand? If supply is more than demand, the

surplus occurs. If supply less than demand, shortage is occurs. After matching human

resource supply and demand, our company managers start to plan to manage the problem

of shortfall or overstaffing. For example, if there is too much of service department

employees in our company, we will decide to transfer some of the employees to other

departments which need more employees. If shortfall of the employees, we hire some

temporary workers or temporary assign the person to another place for other projects.


19/41

Recruitment process

The recruitment and selection is the major function of the human resourcedepartment. Recruitment process in the human resources department is a process of

attracting qualified persons to apply for open jobs. Recruitment is the activity that links the

employers and the job seekers. There are two types of recruiting. The first type of

recruiting is internal recruiting. It is refers to the filling of job vacancies from within the

business where existing employees are selected rather than employing someone from

outside such as their family members, friends and others. The second type of recruiting is

external recruiting. This refers to the filling of job vacancies from outside the business.

For our company, we prefer external recruiting. This is because the internal

recruitment staff may feel they have the automatic right to be promoted. They are too close

with the manager. Sometimes, the manager is not able to give order to the staff. They may

not able to differentiate between work and personal. The staff will find some reason to

reject their job from the manager who is close with him. Whether or not staffs are

competent, they have more chance compare with others. This is really unfair to others who

are competent. There is larger pool of workers outside the company which able to find a

better candidate. We can hire people from other countries which have other religions,

culture and languages to support the 1 Malaysia campaign which is promoted by our Prime

Minister Dato Seri Najib Razak. People from different cultures and religions will bring in

new ideas to our company. People can know that our company is undergoing recruitment

process through advertising. Usually, we advertise in media like newspaper, internet,

specialist magazine and others. So, they can send their apply letter or email us to the

address given.

Before hiring of an employee, validations are done by us. We must determine the

predictive value of information. Firstly, the people who want to apply for the job have to

need to full in the application form. Then, we will make an appointment with them to have

an interview or test. There are two different type of interview. One is structure interview,

another one is unstructured interview. Our company is using the structure interview form.


20/41

The interviewer will ask some question to the candidates. Questions are written in advance

and all interviews follow the same list of questions for each candidate. We will also ask

them some fixed question. Everyone will answer the same question with the different

answer. Diagram3.1 show that the questions that have prepared by us to ask the candidate.

Interview Question For The Post Of Service Department Manager

1. Why do you want to work here?

2. Tell me about yourself.

3. What is the biggest challenge you have faced in your previous work? Do you

have any work experience in the related job?

4. Why do you want this job?

5. What do you know about the centre/company/role?

6. What is your biggest achievement?

7. What have you done to promote great customer service?

8. Why should we hire you? What are your strengths and weaknesses?

9. What can you contribute to this company?

10. What are your goals for the next five years / ten years?

11. What will you do if you don't get this position?

12. What are your ideas about salary?

Diagram3.1

Apart from this, some practical and theory test are prepared for the candidates.

This is a basic quiz to test them especially for those professional candidates. For example,

our company is going to hire a sofa designer. We will ask all of them to draw a creative set

of sofa for us. After that, we will make a comparision between those designs by the

candidates.

Our company will organize activity aimed at imparting information and/or

instructions to improve our staff's performance or to improve their level of knowledge or

skill. Our company organise on-the-job training for all the workers especially the newbie.

On-the-job training is the effectiveness of work based training which is provided in the


21/41

workplace by the contractor . This training generally is most cost-effective training. Workers

learn while they are in the actual work situation. The methods of on-the-job training are

coaching, mentoring, job rotation and job instruction technique. For example, our

companys maintenance technicians train alongside real colleagues. The senior will teach

and show the trainee the right ways to maintain the sofa. The experience and skill of the

senior is much better than the trainee. Trainee may maintain the sofa under the instruction

of the senior. Senior allows correcting their problems. This may also make the relationship

of the employees become closer. Thus, they may easy to work with one another without

any argument. Since this training is performed at the work area, training tends to be

focused on performing real job tasks. So, our company do not need any extra expenses for

the training.

Performance appraisals are essential for the effective management and

evaluation of staff. Appraisals help develop individuals, improve organizational

performance, and feed into business planning. Formal evaluation of an employees job

performance is done for every employee. The individual supervisor is usually responsible

for the performance subordinates. They will take observation of their subordinate in the

daily performance. Diagram 3.2 is one of the examples of the performance appraisal form.

Our company is very care about the performance of every worker. The marks will given by

the supervisor of every department. We will take some action for those who get the low

marks for the appraisal form.

Example of Performance Appraisal Form (diagram 3.2)

Name E/No. *Grade

S/N Appraisal Factors Score for * G1 ~ G5


22/41

1 Job Knowledge 0 1 2 3 4 52 Initiative 0 1 2 3 4 53 Attitude/Discipline 0 1 2 3 4 54 Co-operation/Teamwork 0 1 2 3 4 55 Guidance/Counselling 0 1 2 3 4 56 Cost Effective 0 1 2 3 4 57 Achievement of job assigned 0 1 2 3 4 58 Delegation/Co-ordination of task 0 1 2 3 4 59 5S/Follow to Company policy 0 1 2 3 4 5

10 Respected by others 0 1 2 3 4 511 Leadership 0 1 2 3 4 5 6 7 8 9 1012 Responsibility 0 1 2 3 4 5 6 7 8 9 1013 Planning & Organizing 0 1 2 3 4 5 6 7 8 9 1014 Problem solving 0 1 2 3 4 5 6 7 8 9 10

15 Implementation/Job Improvement 0 1 2 3 4 5 6 7 8 9 10

1st

Score 2nd

Score FINAL

General Comments on strengths & weakness/Months extended:

Months extended:

Strengths:

Weakness:

Compensation and benefits plan

Employers that want to succeed in this increasingly competitive environment

must have a well-designed compensation plan that motivates employee. Set of rewards that

organisations provide to individuals in return for their willingness to perform various jobs


23/41

and task within the organization. Compensation and benefits are given for all of the

workers in our company. The first compensation is salary. This is very normal. Salaries are

provided to the employee in return for their contribution to the organization, that is, for

doing their job. Our workers work so hard for us to make an efficient performance. They 12

hours concentrate for they jobs. Worker's compensation is really a worker's right, rather

than a benefit. Furthermore, incentives are also given to all the workers in our company.

For example, Bonus is an individual performance incentive in the form of a special

payment made over and above the employees salary. John receives eight month n\bonus at

the end of the years as his compensation. For the marketing manager, for every one

hundred thousand products produced, he are given RM1000 as a pay-of- performance.

Benefits include medical and dental programs, life insurance, long-term

disability insurance, optional accident insurance, travel accident insurance, flexible

spending accounts, defined contribution and tax-deferred annuity plans, dependent care

assistance, educational assistance, a schedule of paid holidays and additional paid time off.

Our workers feel safe to work in our company. If they get injured on the job, they do not

need to worry about the medical expenses. Nowadays, people plan for their retire life. Our

company has a retirement plan for every worker. So, they may not worry and get trouble

after retire.

Operations management

Production method

There are two types of operation process that is goods-manufacturing process

and service processes. The meaning of operation process is set of methods and technologies


24/41

used in the production. In our company, we are a goods-manufacturing process company.

What is goods-manufacturing process? There are two types of the good-manufacturing

process that is analytic process and synthetic process. Our company is using the synthetic

process. Our company will combine all the resources together into a component to create

the finished products.

As we know, they are many types of chair in this world. In primary and

secondary school, we were sitting on a wooden chair and wooden table. Of course, wooden

chair is made from woods; combine with screw, painting materials, and polish materials. If

you miss out one of the materials, the chair will not be able to complete or completed but

there will be dangerous and will injured the people who sit it. Besides that, some colleges

will use the chair that made of plastic and iron combine together as the finished product.

Some college will prepare some sofa in the library.

Sofa is combination with fabric and cotton. There will also combine with some

wood in the bottom of the sofa to become the stand of it. Moreover, each house will have

many types of sofa also. For some houses there are some old people live, they will prepare

a chair that we normally call it the lazy chair. This chair is also combining with iron, and

some screw to produce the finished products. There are many more chairs that combine

many kinds of materials like non toxic PU and high grade artificial leather to create the

finished product.

For our company, the main product is just like the sofas that normally see but our

product have combine some special materials that will make the consumer feel comfort and

can relax themselves when they sit on this chair. For the normal product is just same with

normal sofa that we normally seen but the special function of our product is can fix

up together to make a special styles chairs or you can separate it into few sit styles with the

shape of the chairs. As our special function for our product, it can be fix up with eachothers to make own sitting styles. But this will have some fix shape to make the sitting

styles.

Besides that, our company has produces the main product chairs that are

combination with negative ion into the cotton. If the customer needs, we will add in the


25/41

negative ion into the cotton. Negative ion brings a lot of advantages to human body.

Negative ions help freshen and purify the air. Negative ions also have been shown to help

lift mood, and alleviate depression. Besides, negative ionization of the air does a superb

job of eliminating most tiny particles that float in the air. With this negative ion technology,

consumer will be more concern about our product. Then consumer will be build trusted to

our company. Lastly our company will be having enough of money to do research and

development to create new efficiency and effective product for our next generation.

Our product has combine with many of the materials to create the finished product.

So we are using the synthetic process to complete the operation process. Not only combine

with the materials that we normally seen in the chairs but combine with the technologies

and something special into our product to show out the creative ways in chairs. Chairs are

for relaxed, sitting on the chairs to do work, watch movie or play computer. Our consumers

can do their works with a comfortable chairs and the works will be done quickly and nicely

when the consumer have a good situation to done theirs works.

Manufacturing Process

There are three types of methods production as job production, batch productionand flow production. For our company, we are using two methods that is batch production

and flow production. Batch production mean the product are produced in small or large

batches-useful of different variation of basically similar products. Each operation

completed through whole batch at a workstation before the next operation performed at


26/41

another workstation. This is commonly used method for manufacturing. Flow production

means the production line methods-products is continuously produced, flowing from one

stage of production to the next. The workers, machineries and robots are carrying out

individual repetitive tasks efficiently. High level capacity utilization leads to greater

production and economies of scales realization.

For batch production, this is not for our special production but for the normal

product of chairs in our company produced. The machine to produce is fixed to the chairs

that have to produce. Depends on the orders of consumers, if the consumers give a small

amount of orders, we will also produce a small amount of chairs that is only for the

consumers. Each operation has to be completed so the next operation will only able to start.

For opposite, the consumers give a large amount of orders, our company will also produce

a large amount of chairs for the consumers. Same with the above information, operation

has to be completed so that the next batch only able to start.

For example, batch processing for the plastic chairs that we always seen at common

hall, office or study place for the students. This is a large amount of orders to be done. The

main characteristics foe this production is quantity produced. The greater size of each batch

is determined by demand. Next is variation of goods. This can be wide or standardized

variation. The third characteristic is capital equipment required. More machines operated

due great number of production so can produce equally. Besides, labour requirement. The

lower level skill workers as same process repeated. Lastly is Finance, the additional capital

required due to more machinery usage.

For flow production, is focus on our main product that our main product is not

many people will buy it and also this will not produce to a company because it will only

produce for a small amount of product. The production flowing is from the one stage to

another come out the production. The first stage of our production is makes sure our design is the best design that the customer wants. After that we will choose the material

need to be use in this product. After all preparation of materials, the product can be now

starts to produces. Each department will have their own product part. These will all join

together to create the product. For our workers, they have to make sure all their work are


27/41

doing in the correct process at their own part and the machineries will continuously

produce the without any judgment or problem.

Quality control

The quality of a product is very important for our company. Quality is a products

fitness for use, its success in offering features that consumers want. So we must have the

quality control in our company. Quality control is taking action to ensure that an operation

produces products that meet specific quality standards and also requires establishment of

specific standards and measurements. For the methods for managing quality, there is total


28/41

quality management or quantity assurance. It is the sum of all activities involved in getting

high-quality products into the marketplace. Our company will determine what customers

want; creating customer satisfaction that means the customer focus.

For our company, we will measure the quality of incoming supplies. Quality controlshould include procedures for acceptance and inspection of goods inwards and

measurement of rejects. For example, the fabric of the product must be checked and make

sure that it is in a good quality, if the fabric are a thin fabric or have some small hole on it,

we will rejects the fabric to our product. If the suppliers would not produce a good quality

of fabric for our company, we will get others suppliers that can give us the best quality

fabric to our product. In this quality checking process, our company will have double check

toward the materials we receive. Not only with the machine that we have but the workers

have to check the materials again after the checking of the machine. So workers could not

be lazy toward these steps.

Next, our company has to monitoring work done as it proceeds. In process controls

include statistical process controls and random sampling and measures such as the amount

of scrap and reworking in relation to good production. Measurements can be made by

product, by workers or work team, by machine or machine type, by department or whatever

is appropriate. In this monitoring work, the workers have to be enough training and know

the steps to be done. The workers are also full with experiences on this works so that they

will not easily forget the quality of the product. Random sampling is simply picks out one

of the product when the process is going to check out the quality of it. If the product has

some problem, the workers have to see that the product cans me reworking to become back

a quality product. Besides of the workers, the machine must be checked or maintain in a

certain times to make sure the machine will produces the same quality products.

Besides that, we will measure the customer satisfaction. This may be monitored inthe form if letters of complaint, returned goods, penalty discounts, claims under guarantee,

or requests for visits by service engineers. Some companies adopt a more pro-active

approach to monitoring customer satisfaction by surveying their customers on a regular

basis. They use the feedback to obtain an index of customer satisfaction which is used to

identify quality problems before they affect profits. After we receive the feedback of the


29/41

consumers, we have to accept the feedback and make the feedback as a reference for a

better quality product. Moreover, when we received the rejection product form then

customers, we have to rework the product and set up a date for the customer to make sure

that they can get back the products from us.

There are some tools for total quality managements. The first is the competitive

product analysis. It means the process by which a company analyzes a competitors

products to identify desirable improvements. We will compare our products with others

companys product. Analysis the strengthen and the weakness of their product and compare

with our product. We will add on some strengthen that we did not have in our product or

dismiss the weakness that we both have or only our product have. The second tool is

benchmarking. This is the process by which a company implements the best practices from

its own past performance and those of others companies to improve its own products. Our

special product is a product that has many benefits for human. Not only the seniority will

buy this product, family will also encourage their friends to buy this product.

Lastly are the quality improvement teams. This is a group of employees work

together to improve quality by meeting regularly to define, analyze, and solve common

production problems to improve both work methods and the products. This group is only

work on the quality management sides. The group members are fully trained in quality

management sides and they have to fully understand about the product. They must have the

behavior to make sure the product under quality control. They have to analyzes the product

together and solve the problem or weakness together in the groups.

Finances

There are two types of accounting. The first type is financial accounting, which

is the field of accountancy concerned with the preparation of financial statements for

decision makers, such as stockholders, suppliers, banks employees, government agencies,

owners, and other stakeholders. Financial capital maintenance can be measured in either

nominal monetary units or units of constant purchasing power. The fundamental need for

financial accounting is to reduce Principal-agent problem by measuring and monitoring

agents' performance and reporting the results to interested users.


30/41

Financial accountancy is used to prepare accounting information for people

outside the organization or not involved in the day-to-day running of the company.

Management accounting provides accounting information to help managers make decisions

to manage the business.

In short, Financial Accounting is the process of summarizing financial data taken

from an organization's accounting records and publishing in the form of annual (or more

frequent) reports for the benefit of people outside the organization.

The second type is Management accounting or managerial accounting is

concerned with the provisions and use of accounting information to managers within

organizations, to provide them with the basis to make informed business decisions that will

allow them to be better equipped in their management and control functions.

In contrast to financial accountancy information, management accounting

information is:

Primarily forward-looking, instead of historical;

Model based with a degree of abstraction to support decision making generically, instead

of case based;

Designed and intended for use by managers within the organization, instead of being

intended for use by shareholders, creditors, and public regulators; Usually confidential and used by management, instead of publicly reported; Computed by

reference to the needs of managers, often using management information systems, instead

of by reference to general financial accounting standards.

The responsibilities of our financial manager are for planning and controlling

and dispersal of a firms financial resources. Normally there are 3 general categories of

responsibilities.

1) Cash Flow Management

2) Financial Control

3) Financial Planning


31/41

A) Cash Flow Management

Cash flow management is a management of cash inflows and outflows to ensure

adequate funds for purchases such as raw materials, utility and labor for production and for productive use of excess funds such as immediate cash used to avoid borrowing or

investment, cash returns or interest. What can conclude here is cash flow management is

the process of monitoring, analyzing, and adjusting our business' cash flows.

Company Cash FlowStatementFY Ended 31 Dec 2011

all figures in RM

Cash Flow FromOperations

Net Earning 3,000,000

Additional to CashDepreciation 15,000


32/41

Decrease in Accounts Receivable 20,000Increase in Accounts Payable 20,000Increase in Taxes Payable 3,000Subtractions from cashIncrease in Inventory -25,000

Net Cash from Operations 3,033,000Cash Flow from investingEquipment -430,000Cash Flow fromFinancing

Notes Payable 8,000

Cash Flow for FY Ended 31 Dec 2011 2,595,000

From this CFS, we can see that the cash flow for FY 2011 was RM2,595,000.

The bulk of the positive cash flow stems from cash earned from operations, which is a

good sign for investors. It means that core operations are generating business and that there

is enough money to buy new inventory. The purchasing of new equipment shows that the

company has cash to invest in inventory for growth. Finally, the amount of cash available

to the company should ease investors' minds regarding the notes payable, as cash is

plentiful to cover that future loan expense.

Of course, not all cash flow statements look this healthy, or exhibit a positive

cash flow. But a negative cash flow should not automatically raise a red flag without some

further analysis. Sometimes, a negative cash flow is a result of a company's decision to

expand its business at a certain point in time, which would be a good thing for the future.

This is why analyzing changes in cash flow from one period to the next gives the investor a

better idea of how the company is performing, and whether or not a company may be on

the brink of bankruptcy or success.

Our company used a cash flow statement to predict future cash flow, which helps

with matters in budgeting. For our company, the cash flow reflects a company's financial

health: basically, the more cash available for business operations, the better. However, this

is not a hard and fast rule. Sometimes a negative cash flow results from a company's

growth strategy in the form of expanding its operations.


33/41

By adjusting earnings, revenues, assets and liabilities, our company can get a

very clear picture of what some people consider the most important aspect of a company:

how much cash it generates and, particularly, how much of that cash stems from core

operations.

B) Financial Control

Financial Control is a process of checking actual performance against plans

which to ensure desired financial result to occur. For example, to monitor revenue inflows,

if it is high, our compant can deposit in bank and use to pay short trm debts, If it is low, our

company will looks for short term borrowing for current debt.

Budget is an internal financial statement. It is relating use of resources to achieve

specific targets over a given period of time. Our company is using the budget for internal planning, controlling, and decision making. It also known as financial report or forecast

income & expenditure.

What are the purpose of budget in our company? By using this method, we able

to predict about the future enable an organization to determine its objectives and make

plans to achieve them. Besides that, our company can set targets which will enable

objectives to be achieved such as sales volume, for revenue and spending limits to control

cost, effect allocation of resources. Lastly, it ables to monitor performance which able to

ensure that targets are being achieved and to enable corrective action to be taken where this

is not happening.

Budget can:

Predicts dollars of sales

Is the first schedule prepared because many other schedules are dependent on it

Shows expected sales and units of production

Is the key to the entire process

Typically expressed in both dollars and units of product

Uses expected selling price to extend unit sales to revenues

Is often started by individual sales persons or managers predicting sales in their

own area for the next period of time


34/41

An aggregate sales budget is influenced by economic conditions, pricing decisions,

competition, marketing programs, etc.


35/41

C) Financial Planning

Financial plan shows the funds a firm will need for a period of time, as well as

the sources and uses of those funds. If contruct a plan, financial managers will develop

reasons why need the fund, review relative costs and benefits of potential funding sources

and identify sources of funds for long term and short term. There is a cash flow forecast

also which attempt by management to plan ahead to prevent liquidity problems, contains

estimates of cash receipts and cash payments such as rental , labor and utility, Cash in hand

or cash deficit and the crucial for loan facilities provided by bank.

What we can conclude here is, a financial plan is a series of steps which are

carried out, or goals that are accomplished, which relate to an individual's or a business's


36/41

financial affairs. This often includes a budget, which organizes an individual's finances and

sometimes includes a series of steps or specific goals for spending and saving future

income. This plan allocates future income to various types of expenses, such as rent or

utilities, and also reserves some income for short-term and long-term savings. A financial

plan sometimes refers to an investment plan, which allocates savings to various assets or

projects expected to produce future income, such as a new business or product line, shares

in an existing business, or real estate.

In business, a financial plan can refer to the three primary financial statements

(balance sheet, income statement and cash flow statement) created within a business plan.

Financial forecast or financial plan can also refer to an annual projection of income and

expenses for a company, division or department. A financial plan can also be an estimation

of cash needs and a decision on how to raise the cash, such as through borrowing or issuing

additional shares in a company.

There are 2 types of sources of funds that our company is using, which are short-term funds and long-term funds.

A) Short-term Funds

A Short-Term Investment Fund (STIF) is a type of investment fund, which

invests in money market investments of high quality and low risk. They are commonly

used by investors to temporarily store funds while arranging for their transfer to another

investment vehicle that will provide higher returns.

This type of fund aims to protect capital while generating a return that compares

favorably with a particular benchmark. These types of fund have low management fees

(usually well beneath 1% p.a.) and relatively low rates of return, commensurate with their

low-risk investment style.


37/41

Firstly is working capital, is the difference between the firms current assets and

current liabilities, it indicates the firms ability to pay off short term debts to outsiders and

is a type of liquid fund to maintain short term cash flow.

Secondly is trade credit, a good-faith agreement. When our company is buy products from outsider or supplies on credit from its suppliers, it means postponing

payment too, this method is very common in the trade market.

Thirdly is bank loan, fixed amount given for fixed period of time back to bank.

If size and duration increase, lender requires collateral. In case non-payment occurs, banks

earn outstanding loan value by selling asset, which is secured for loan.

Fourth is bank overdraft is a business takes out more than it has banked,

withdraw limits set with interest payment for each amount and normally used when

business face short term cash flow problems.

Fifth is commercial paper, which is a short-term security or notes that containing

a borrowers promise to pay back.

B) Long term Funds

Long term sources or funds are required to create production facilities through

purchases of fixed assets such as plant, machinery, land, building, furniture, etc.

Investments in these assets represent that part of firms capital, which is blocked on a

permanent or fixed basis and is called fixed capital.

The long-term sources of finance are:

First are ownership securities: These securities represent shares. Share is themost common form of raising long-term funds from the market. Every company, except a

company limited by a guarantee, has a statutory right to issue shares. The capital of a

company is divided into a number of equal parts called shares.


38/41

a. Equity shares: Represents the owner`s capital in a company. The holders of

these shares have full control over the working of the company and have voting rights.

Equity shareholders are paid dividends from the remaining income of a company. The rate

of dividend depends upon the profit of the company.

b. Preference Shares: As the name suggests, these shares have certain

preferences. There is a preference for payment of dividend. They have fixed rate of

dividend, but they don`t have any voting rights and control over the management of a

company.

Second are creditor ship securities: It is also known as debt-capital, and it

represents debenture and bonds The use of such securities along with shares in financing of

a business generally tends to reduce the cost of capital and helps to improve the earnings of the shareholders.

a. Debentures or Bonds: A debenture is an acknowledgement of debt. It is a form

of loan on which a company has to pay a fixed amount of interest to debenture-holders.

They are the creditors of the company. There are many type of debentures i.e. unsecured,

secured, registered, redeemable, irredeemable, convertible, zero coupon bonds, deep

discount bonds, etc.

Third is loan financing: A business can also finance through loans from

specialized financial institutions and development banks or from commercial banks.

Fourth is Internal financing: A new company can raise funds only through

external sources, such as shares, debentures, loans, public deposits, etc. But an existing

firm which needs finance for its future growth and expansion can generate funds through

retained earnings.

Fifth are Public deposits.


39/41


40/41

Conclusion

It is not easy as you think to set up a company and come out with a new product. A

company may face many challenges and competitors in the life cycle of a company from

establishment, growth to maturity of a company. Strong management skills will be needed

in order to keep the company alive.

The process of recruitment and staffing is the most important process in a company.

This is to select out candidates which is best among the best. Our company will not look

into their qualifications and education in details but we are very particular and strict in the

interview process. We will undergo systematically structured interviews to choose out the

candidates that have responsibility, respect, innovative and energetic.

Our company will be determined to break through all the challenges faced with our

powerful and energetic staff.

The challenges that our company will face in 2 years time is our company is a new

company that just established. Therefore, we have to go through a hard time as our

products do not have any popularity in the market yet. We have to spend large expenditures

for research and development, promotion, advertising and distribution. We will only make

little profit in this 2 years time. In this 2 years time, we will also face many challenges fromthe competitors. Competitors usually will use many tactics so that they can have a large

market share. Therefore, our company has to come out with creative and innovative

product to attract more customers.

Our future plan is to expand our company to overseas and all around the world. We

will plant our factory in China to reduce cost as the labor cost in China is more expensive.

Besides that, our company is going to design and produce many types of furniture ranging

from chairs to cupboards and many others. This can increase more product line of thecompany and on the other hand can create large total revenue of our company. Although

our company will expand to all around the world, we are still very strict in the recruitment

and staffing process so that the quality of our staff will be tip top in the world.


41/41

Our future plan is to become the most value brand in the world. In the future,

everybody will afford to buy our product for the poor and for the rich. We will produce

furniture that is very cheap but with its high quality from our company. Of course we will

still remain to target the high class society by producing luxury and expensive furniture.

For conclusion, our company will face all the challenges and problems and solved

all of it. With our energetic and innovative staff, it should be not a problem for our

company to expand to overseas in two years time.

mgt combine) new

Documents