Developing Technical and Management Abilities. in individuals holding key-decision jobs. Bill Armitage BSc, MSc, FOR, CEng, MIMechE Dr Dan Davidson BSc, PhD Brasov, Romania 3rd-5th Oct 2007
Emerald-Vbe Virtual Business Environment An EDIT 515 Ltd.
The Management Report DECISIONS INPUT AVAILABILITY AND USE OF RESOURCES PRODUCT MOVEMENTS Accounts OVERHEADS PROFIT and LOSS BALANCE SHEET CASH FLOW Advertising Sales Revenue Assets Trading Receipts Sales Office Materials Purchased Liabilities Capital Receipts etc etc etc etc Overdraft Limit Next Quarter
GENERAL BUSINESS INTELLIGENCE Share Price % Dividend Last Qtr Free information Prices, Number Employed, and Wage Rate PAID FOR INFORMATION Advertising, Research Spend and Star ratings MARKET SHARE % Share of markets by Products sold All COMPANY BALANCE SHEETS
SimulationFormat History Analysis Decision Making Management Reports Computation
Quarters NOW Last Quarter Next QBL QAN Quarter New Decisions Latest Report NOW Time
CorporateFunctions ManagingDirector Marketing Production H.R.M Finance ProductPackage Scheduling Hire & Fire Borrowing Promotion Purchasing Wages Investment Selling Transport Conditions Dividends R & D
Sources Of Finance Reserves Share Capital Unsecured Loans Overdraft
Markets North South West
The Products 2 1
Distribution Retailer Retailer West North Retailer Retailer Factory South Retailer
Marketing Functions MARKETING PRODUCT DESIGN PROMOTION ORDER GATHERING MARKET INTELLIGENCE
Product Design Prices Design Quality Availability Competition
Competitiveness COMES FROM Low Prices Good Design High Quality High Stock Levels But Market Share doesn’t always bring Profit
Demography North 13 Million Homes West South 4 Million Homes 7 Million Homes
Advertising Trade Press Merchandising Reaches out to the retailers Builds a long term image TV & Press Advertising Influences the buying public
Sales Force How Many? Commission? Where? Salary? How Many? Where? Commission? Salary?
Some Economics Underlying Trend Seasonality The Law of Diminishing Returns The Competition
Diminishing Returns Result Effort
Product Improvements avoided obsolescence Minor?
Product Improvements Product Stocks? Major?
Product Improvements None? Itsdeteriorated!
Production Machine Assembly ? Shop Shop
Product Content Machining Time Assembly Time Material Content 1 1 Unit 60 mins 100 mins 3 Units 120 mins 300 mins 2
The Machine Shop Single Shift needs 4 Unskilled operators per machine
The Machine Shop 2 Shifts needs 8 Operators per machine
The Machine Shop 3 Shifts needs 12 men
The Assembly Shop Skilled Assembly Workers Work only single shift
The Underlying Conflict Marketing Production The Vision Resources Marketing Plan Production Plan The Forecast Warehouse Stock Order Backlog
H.R.M. Recruitment Take Home Pay Overtime Product Quality Downsizing Absenteeism Strikes Wastage
The Underlying Conflict Marketing Production H.R.M.
Finance PROFIT & LOSS BALANCE SHEET Revenue Fixed Assets Cost of Sales Current Assets Overheads Liabilities NET ASSETS PROFIT Dividends
Finance PROFIT & LOSS BALANCE SHEET Revenue Fixed Assets Cost of Sales Current Assets Overheads Liabilities LOSSES NET ASSETS Additional Funding
Buying Machines Machines cost £120,000 and take two quarters to come on-line Overdraft Limit Current Overdraft
Share Price The Criterion for Success Some of the factors affecting Share Price Net Asset Value per Share Liquidity R & D Effort Stocks & Backlog Resources (Machines & People) Market Dominance • Dividend Performance
The Underlying Conflict Production Marketing H.R.M Finance
Summary - Virtual Business Environments (VBE) Decision and Choice - Human Resource Management Assessing Employees Needs Aspirations Attitudes Conflicts Recruiting Employees Training Employees - Training HR Staff - Conclusion