NAME: ISHAKU JAMES MAIGARI

MATRIC NO: P/N/19/3620230

COURSE: INTRO TO BUSINESS

ASSIGNMENT

QUESTION: Write a term paper on the following duely typed and send it as an attachment.

* production and operation management functions

* Marketing

* source of funds for business

* Credit Management for business organization?

 PROUCTION AND OPERATION FUNCTIONS: Production and Operation Management deals with
the creation of goods and services through the application of the business concept. They are also vital in
both service and manufacturing firms. Production and Operations Management has a primary objective,
which is to employ the company’s resources to produce goods and services fit for the market.

 What’s the Aim of the Production Function?

 The goal of the production function is to add value. Be it product or services; the idea is to create
something that will strengthen the relationship between the organization and customers. But this cannot
only be made possible by the production department.

 The marketing people also have a huge role to play in this. They are the ones that will distribute
the product to potential buyers and should have the capacity to inform the production department of
what customers or consumers would prefer.

 The Function of Production Management

 The role of Production Management is quite elaborate. But the sole aim is to ensure the
business produces quality products that can satisfy the needs of customers on a regular basis. Below are
the functions of production management.

 Production Control – Here the manager supervises and directs the production process. He or she
also must find out and ensure the right production plan is followed during the production process. If
there are deviations, the production manager has to take the right steps to correct them

 Scheduling – This function is critical in every organization. It has to do with planning when the
actual production would begin and ends.
 Cost and Quality Control – Every company knows how essential quality control and price are.
Customers are not just looking for the best products. But they also want to have them at the lowest
possible price. Quality control is an essential duty the production manager has to perform. It entails
multiple checks performed on the product to ensure quality is intact.

 Maintenance of Machines – Production management also entails making sure that instruments
used are in good working condition. And that means replacing the ones that are underper forming or
changing damaged parts to enable the machine to function optimally.

 Why Production Management is so Important

 Production management is relevant to the firm’s success in many ways. Used efficiently, it can
lead to numerous accomplishments which will take the business to a great height. Below is the
importance of production management.

 Helps the Firm to Accomplish its Objectives

 Production management helps the firm to achieve its sales and business objectives by producing
goods and services that meet the need of consumers. Sales and profit will increase if the product
produced satisfies the customers’ needs.

 Boost Business Reputation and Goodwill

 A satisfied customer will undoubtedly want to repeat patronage. That’s why businesses should
ensure that quality products are delivered continuously. Making sure that your customers are always
happy can also boost business reputation.

 Reduces the Cost of Production

 Production management ensures that resources are used judiciously, without compromising on
quality. In other words, the business will continue to deliver quality products and sell at a convenient
price to customers. But this can only be possible in a situation where the input and output are
maximized.

 Meaning of Operation Management

 Operation Management is in charge of managing the conversion process. This unit handles the
day-to-day running of the business to ensure operations within the organization are carried out
smoothly. It is also in charge of production administration, manufacturing and other processes like the
rendering of services.

 In short, everything regarding production processes such as designing, implementation, and

 The Function of Operations Management

 As earlier mentioned the duty of the operations manager entails making sure that resource are
used for the right thing and plays a significant role in the production process to ensure the team delivers
quality output. Below are the functions of operations management.

 Finance

 Operation management’s responsibility is to make sure that the company’s resources are used in
the right manner to generate goods that satisfy its customers.

 Strategy

 Operations managers also help in the development of plans or tactics that could lead to the
maximization of resources and production of products that gives the company a competitive edge over
its competitors.

 Product Design

 It is the operations manager’s responsibility to come up with product design that not only caters
to the needs of customers but follows the market trend.

 Forecasting

 Operation management also predicts the performance of products or services in the future. In
other words, he critically analyses what customers’ demand for certain products would be in the future.

 Importance of Operation Management

 The role of the operation manager is to ensure that products or services are always available and
reaches customers promptly. He also makes sure that raw materials are transformed successfully into
finished products. One importance of operation management is to improve the overall productivity of
the business. Resources are also used properly in other to eliminate wastage and boost profit.

Conclusion

 Both are relevant to an establishment. They both help the firm to accomplish its objectives. In
the past, the mindset people had was that operation management isn’t pertinent. But if you read this
post carefully, you will discover how important the role of the operations manager is. It is best for
companies to implement both management concepts and ensure they are run efficiently to achieve
business growth and customer satisfaction.

MARKETING

 is the process of getting the right goods or services or ideas to the right people at the right
place, time, and price, using the right promotion techniques and utilizing the appropriate people to
provide the customer service associated with those goods, services, or ideas. This concept is referred to
as the “right” principle and is the basis of all marketing strategy. We can say that marketing is finding out
the needs and wants of potential buyers (whether organizations or consumers) and then providing goods
and services that meet or exceed the expectations of those buyers. Marketing is about creating
exchanges. An exchange takes place when two parties give something of value to each other to satisfy
their respective needs or wants. In a typical exchange, a consumer trades money for a good or service. In
some exchanges, nonmonetary things are exchanged, such as when a person who volunteers for the
company charity receives a T-shirt in exchange for time spent. One common misconception is that some
people see no difference between marketing and sales. They are two different things that are both part
of a company’s strategy. Sales incorporates actually selling the company’s products or service to its
customers, while marketing is the process of communicating the value of a product or service to
customers so that the product or service sells.

 To encourage exchanges, marketers follow the “right” principle. If a local Avon representative
doesn’t have the right lipstick for a potential customer when the customer wants it, at the right price,
the potential customer will not exchange money for a new lipstick from Avon. Think about the last
exchange (purchase) you made: What if the price had been 30 percent higher? What if the store or other
source had been less accessible? Would you have bought anything? The “right” principle tells us that
marketers control many factors that determine marketing success.

 Most successful organizations have adopted the marketing concept. The marketing concept is
based on the “right” principle. The marketing concept is the use of marketing data to focus on the needs
and wants of customers in order to develop marketing strategies that not only satisfy the needs of the
customers but also the accomplish the goals of the organization. An organization uses the marketing
concept when it identifies the buyer’s needs and then produces the goods, services, or ideas that will
satisfy them (using the “right” principle). The marketing concept is oriented toward pleasing customers
(be those customers organizations or consumers) by offering value. Specifically, the marketing concept
involves the following:

 Focusing on the needs and wants of the customers so the organization can distinguish its
product(s) from competitors’ offerings. Products can be goods, services, or ideas.

 Integrating all of the organization’s activities, including production and promotion, to satisfy
these wants and needs

 Achieving long-term goals for the organization by satisfying customer wants and needs legally
and responsibly
 Today, companies of every size in all industries are applying the marketing concept. Enterprise
Rent-A-Car found that its customers didn’t want to have to drive to its offices. Therefore, Enterprise
began delivering vehicles to customers’ homes or places of work. Disney found that some of its patrons
really disliked waiting in lines. In response, Disney began offering FastPass at a premium price, which
allows patrons to avoid standing in long lines waiting for attractions. One important key to understanding
the marketing concept is to know that using the marketing concept means the product is created after
market research is used to identify the needs and wants of the customers. Products are not just created
by production departments and then marketing departments are expected to identify ways to sell them
based on the research. An organization that truly utilizes the marketing concept uses the data about
potential customers from the very inception of the product to create the best good, service, or idea
possible, as well as other marketing strategies to support it.

 CUSTOMER VALUE

 Customer value is the ratio of benefits for the customer (organization or consumer) to the
sacrifice necessary to obtain those benefits. The customer determines the value of both the benefits and
the sacrifices. Creating customer value is a core business strategy of many successful firms. Customer
value is rooted in the belief that price is not the only thing that matters. A business that focuses on the
cost of production and price to the customer will be managed as though it were providing a commodity
differentiated only by price. In contrast, businesses that provide customer value believe that many
customers will pay a premium for superior customer service or accept fewer services for a value price. It
is important not to base value on price (instead of service or quality) because customers who only value
price will buy from the competition as soon as a competitor can offer a lower price. It is much better to
use marketing strategies based on customer relationships and service, which are harder for the
competition to replicate. Southwest Airlines doesn’t offer assigned seats, meals, or in-flight movies.
Instead the budget carrier delivers what it promises: on-time departures. In “service value” surveys,
Southwest routinely beats the full-service airlines such as American Airlines, which actually provide
passengers with luxuries such as movies and food on selected long-haul flights.

CUSTOMER SATISFACTION

 Customer satisfaction is a theme stressed throughout this text. Customer satisfaction is the
customer’s feeling that a product has met or exceeded expectations. Expectations are often the result of
communication, especially promotion. Utilizing marketing research to identify specific expectations and
then crafting marketing strategy to meet or exceed those expectations is a major contributor to success
for an organization. Lexus consistently wins awards for its outstanding customer satisfaction. JD Powers
surveys car owners two years after they make their purchase. Its Customer Satisfaction Survey is made
up of four measures that each describe an element of overall ownership satisfaction at two years:
vehicle quality/ reliability, vehicle appeal, ownership costs, and service satisfaction from a dealer. Lexus
continues to lead the industry and has been America’s top-ranked vehicle for five years in a row

 FINANCE FOR BUSINESS.

 Putting all your eggs in one basket is never a good business strategy. This is especially true when
it comes to financing your new business. Not only will diversifying your sources of financing allow your
start-up to better weather potential downturns, but it will also improve your chances of getting the
appropriate financing to meet your specific needs.

 Keep in mind that bankers don't see themselves as your sole source of funds. And showing that
you've sought or used various financing alternatives demonstrates to lenders that you're a proactive
entrepreneur.

 Whether you opt for a bank loan, an angel investor, a government grant or a business incubator,
each of these sources of financing has specific advantages and disadvantages as well as criteria they will
use to evaluate your business.

 1 PERSONAL INVESTMENT

 When starting a business, your first investor should be yourself—either with your own cash or
with collateral on your assets. This proves to investors and bankers that you have a long-term
commitment to your project and that you are ready to take risks.

 2. LOVE MONEY

 This is money loaned by a spouse, parents, family or friends. Investors and bankers considers this
as "patient capital", which is money that will be repaid later as your business profits increase.

 When borrowing love money, you should be aware that:

 Family and friends rarely have much capital

 They may want to have equity in your business

 A business relationship with family or friends should never be taken lightly

 3. VENTURE CAPITAL

 The first thing to keep in mind is that venture capital is not necessarily for all entrepreneurs.
Right from the start, you should be aware that venture capitalists are looking for technology-driven
businesses and companies with high-growth potential in sectors such as information technology,
communications and biotechnology.

 Venture capitalists take an equity position in the company to help it carry out a promising but
higher risk project. This involves giving up some ownership or equity in your business to an external
party. Venture capitalists also expect a healthy return on their investment, often generated when the
business starts selling shares to the public. Be sure to look for investors who bring relevant experience
and knowledge to your business.

 BDC has a venture capital team that supports leading-edge companies strategically positioned in
a promising market. Like most other venture capital companies, it gets involved in start-ups with high-
growth potential, preferring to focus on major interventions when a company needs a large amount of
financing to get established in its market.

 4. ANGLES

 Angels are generally wealthy individuals or retired company executives who invest directly in
small firms owned by others. They are often leaders in their own field who not only contribute their
experience and network of contacts but also their technical and/or management knowledge.

 In exchange for risking their money, they reserve the right to supervise the company's
management practices. In concrete terms, this often involves a seat on the board of directors and an
assurance of transparency.

 Angels tend to keep a low profile. To meet them, you have to contact specialized associations or
search websites on angels. The National Angel Capital Organization (NACO) is an umbrella organization
that helps build capacity for Canadian angel investors. You can check out their member’s directory for
ideas about who to contact in your region.

 5. BUSINESS INCUBATORS

 Business incubators (or "accelerators") generally focus on the high-tech sector by providing
support for new businesses in various stages of development. However, there are also local economic
development incubators, which are focused on areas such as job creation, revitalization and hosting and
sharing services.

 Commonly, incubators will invite future businesses and other fledgling companies to share their
premises, as well as their administrative, logistical and technical resources. For example, an incubator
might share the use of its laboratories so that a new business can develop and test its products more
cheaply before beginning production.

 Generally, the incubation phase can last up to two years. Once the product is ready, the business
usually leaves the incubator's premises to enter its industrial production phase and is on its own.

 Businesses that receive this kind of support often operate within state-of-the-art sectors such as
biotechnology, information technology, multimedia, or industrial technology.

 6. GOVERNMENT GRANTS AND SUBSIDIES

 Government agencies provide financing such as grants and subsidies that may be available to
your business. The Canada Business Network website provides a comprehensive listing of various
government programs at the federal and provincial level.

 CRETERIALS
 Getting grants can be tough. There may be strong competition and the criteria for awards are
often stringent. Generally, most grants require you to match the funds you are being given and this
amount varies greatly, depending on the granter. For example, a research grant may require you to find
only 40% of the total cost.

 Generally, you will need to provide:

 A detailed project description

 An explanation of the benefits of your project

 A detailed work plan with full costs

 Details of relevant experience and background on key managers

 Completed application forms when appropriate

 Most reviewers will assess your proposal based on the following criteria:

 Significance

 Approach

 Innovation

 Assessment of expertise

 Need for the grant

 Some of the problem areas where candidates fail to get grants include:

 The research/work is not relevant

 Ineligible geographic location

 Applicants fail to communicate the relevance of their ideas

 The proposal does not provide a strong rationale

 The research plan is unfocused

 There is an unrealistic amount of work

 Funds are not matched

 7. Bank loans

 Bank loans are the most commonly used source of funding for small and medium-sized
businesses. Consider the fact that all banks offer different advantages, whether it's personalized service
or customized repayment. It's a good idea to shop around and find the bank that meets your specific
needs.

 In general, you should know bankers are looking for companies with a sound track record and
that have excellent credit. A good idea is not enough; it has to be backed up with a solid business plan.
Start-up loans will also typically require a personal guarantee from the entrepreneurs.

 LASTLY

 Credit management is the process of granting credit, setting the terms it's granted on, recovering
this credit when it's due, and ensuring compliance with company credit policy, among other credit
related functions. The goal within a bank or company in controlling credit is to improve revenues and
profit by facilitating sales and reducing financial risks.

 A credit manager is a person employed by an organization to manage the credit department and
make decisions concerning credit limits, acceptable levels of risk, terms of payment and enforcement
actions with their customers. This function is often combined with Accounts Receivable and Collections
into one department of a company.

 The role of credit manager is variable in its scope and Credit managers are responsible for:[1]

 Controlling bad debt exposure and expenses, through the direct management of credit terms on
the company's ledgers.

 Maintaining strong cash flows through efficient collections. The efficiency of cash flow is
measured using various methods, most common of which is Days Sales Outstanding (DSO).

 Ensuring an adequate Allowance for Doubtful Accounts is kept by the company.

 Monitoring the Accounts Receivable portfolio for trends and warning signs.

 Hiring and firing of credit analysts, accounts receivable and collections personnel.

 Enforcing the "stop list" of supply of goods and services to customers.

 Removing bad debts from the ledger (Bad Debt Write-Offs).

 Setting credit limits.

 Setting credit terms beyond those within credit analysts' authority.

 Setting credit rating criteria.

 Setting and ensuring compliance with a corporate credit policy.

 Pursuing legal remedies for non-payers.

 Initiating legal or other recovery actions against customers who are delinquent.

 Credit managers tend to fall into one of three groups due to the differing specialty legal and
jurisdictional knowledge required:

 Commercial Credit Manager

 Consumer Credit Managers

 Construction Credit Managers

 Professional Organizations