Business Economics

WEEK 1W/C 11th February 2013

INTRODUCTION

Course 17832 Advanced Diploma Management

WELCOME

Teacher: Peter Sciclunapeter.scicluna1@tafensw.edu.au0408 418 995

Textbook:

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HOUSEKEEPING

• Toilets

• Exits / Evac

• Air / Heat

• Breaks

• Roll sheet

• Notes– EMAIL

• Issues?

• Readings

• Logins– WIFI

InternationalPassword: danish123

– InternetUser: cseight.swsldPwd: learning105

• Safety in Sydney– TIPS– BE PARANOID

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Names

• Write names on folded piece of paper.• Place on the desk in front of you please.

Orientation

• Guidelines– RIGHTS

• Safety• Harassment

– ASSESSMENTS• SAGs• Late submittal• Extensions• Sick• Resit/resubmit policy• Report format / Image &

presentation• Academic writing

– Attendance

– Plagiarism

• Student Association

• Library

• Text books / book shop

• RPL

• Breaks

EXPECTATIONS

• RESPECT– Courtesy

• Respect the opinions of others

• Speaking in turn– DO NOT SPEAK WHEN

OTHERS ARE SPEAKING

• Attendance

• ON TIME

• PARTICIPATION– Contribute– Ask Q’s– Comment

• No Mobile phones

• No Food

Ads we will never see again

UNITS

OUTCOMES

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By the end of this session you will:

• Understand what is expected of you in this subject

• Be introduced to the course content

INTRODUCTION

My Background - ?’s

Course – 6 weeks

• Ch 16 – Purchase control • Ch 17 – Stock control

Week Chapter TopicsOne (1) Ch 16 – Purchase

controlIntroduction- Course overview- Objectives- AssessmentThe time value of moneyPurchasing - Intent

Two (2) Ch 16 – Purchase control

Supply strategies (make or buy?)OutsourcingPurchasing strategies

Three (3) Ch 16 – Purchase control

Supplier analysisPurchasing processesPurchase simulation exercise

Four (4) Ch 17 – Stock management

What does a company want to achieve?Stock mgmt – IntentStock adv vs disadv.Stock ordering methods

Five (5) Ch 17 – Stock management

OPV methodsOPV calculations Conundrum – People/Profit/Planet

Six (6) Ch 17 – Stock management

Case study tasksTrivia – Pop Quiz Course review

Assessment

• Approved by your teachers in Denmark.• Written research report.• Class presentation – dependant on time

otherwise in class participation will be recorded and reported as part of your assessment.

• Refer to the assessment outline handout.

Assessment

• Business Case – Research and Analysis

• In a group of three (3) or four (4) students you are to research an Australian company. Before you begin you are to inform the teacher of the company you have selected and verbally explain why you have chosen the company to obtain approval prior to the commencement.

Assessment• For the company you are to complete the following:

– A brief back ground on the company.

– The method you would use for the procurement of goods i.e. make or buy.

– The purchase strategy you would implement i.e. cooperation or differentiated or a hybrid.

– The risks associated with the points # 2 and 3.

– Contingencies to mitigate the identified risks.

– Recommended stock management method.

– An analysis of which one the company focuses on Profit/People/Planet.

• The research must be thorough and contain a good analysis to support developed answers. In other words you need to argue or present your case and support it with evidence.

• Anticipated written report length 4-6 A4 pages (est. 500 words per page).

Education

• What is the purpose of education?

The time value of money concept

• How much is $1.00 worth in 12 months time if you leave it in your drawer at home?

Purchasing

• What is the intent of purchasing?

Purchasing control

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Purchasing functions:1. Provides an external link with the supply

market.2. Controlling purchasing in cooperation with

production and sales.3. Ensure an efficient purchasing control.

Purchasing control

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The primary objectives of purchasing are:1. Ensure uninterrupted flows of raw materials

at the lowest total cost, 2. Improve quality of the finished goods

produced, and 3. Optimize customer satisfaction.

Purchasing Control

Purchasing contributes to these objectives by: – Actively seeking better materials and reliable

suppliers, – Work closely with strategic suppliers to improve

quality materials, and – Involving suppliers and purchasing personnel in

new product design and development efforts.

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Understanding purchasing• Purchasing-

Obtaining merchandise, capital equipment; raw materials, services, or maintenance, repair, and operating supplies in exchange for money or its equivalent.

• Merchant Buyers-wholesalers and retailers who purchase for resale.

• Industrial Buyers- purchase raw materials for conversion, services, capital equipment, & MRO supplies.

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Purchasing control

• Purchase goods and services:– From the right suppliers– In the right quantities– In the right qualities– At the right prices– Delivered at the right place and time

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Homework

• Form your group. (3 or 4 students)• Research your company.• Prepare the brief on the company ½ to 1 page

maximum. • Hand it in at the start of class next week.