Groep 3:

OBS 114

Mev. Karen StanderBCom Finansiele Rekeningkunde, BCom (Honeurs) Ondernemingsbestuur,

huidig MCom Ondernemingsbestuur – met spesialisering in Strategie-as-Praktyk

EPos: mev.karen.stander@gmail.com

Klastye: Dins 14:30 GW4.3

Woensdae 15:30 IT 4.4

obs 114 ” click-up qUIZ

1

7 – 11 March 2011

7 - 11 Maart 2011

Chapters 1 & 2

Hoofstuk 1 & 2

Chapter 1 / Hoofstuk 1

Introduction to Business Management:

a value chain perspective

Inleiding tot Ondernemings Bestuur:

„n waardeketting perspektief

Isolation? / Isolasie?

• Our world is characterised by various types ofbusiness activities

• Business Management is relevant to all people – notonly “business people”

• Business Management includes all activities relatedto the management of all types of businesses

Management specific mode of thinking

Achievement of a set of goals and objectives by utilising the resources available to the organisation.

Introduction:

Business = System

(Sisteem)

4 Functional Areas

(Funksioneel)

4 Generic FX

(Generies)

Functional areas of

Business Management

• Purchasing and materials management

• Production and operations management

• Marketing management

• Financial management

Most businesses have various departments, each with a specific

job or task = functions

Generic management

functions

• General management

• Human resources management

• Corporate communication management

• E-management

All management functions should

work together to achieve the goals

of the business.

The role of needs in the

business cycle

Want = a vague feeling of deficiency

= “nice to have”

Need = an intense and definable drive to get something

= “must have”

Business activities are driven

by the satisfaction of human

needs.

“ Needs spiral

“ Unsatisfied

needs =

opportunity

“ Driving force

for human

actionBusiness Climate

Maslow’s hierarchy of needs

theory

= higher order needs (‚nice to have‛) =

Self-actualisation needs of fulfilling potential

Esteem needs of respect

Social needs of belonging

Safety needs of security

Physiological needs of human existence

= basic needs (‚must have‛) =

When a need is satisfied it no long influences behavior.

not

mutually

exclusive

Problem with needs =

means

• Various needs exist at one point in time

• Prioritise

• Priorities is subjective (eye of the

beholder)

• Order can change within broader

categories of hierarchy

ECONOMIC PRINCIPLE

• to gain maximum satisfaction with minimumeffort

– satisfy maximum needs with min need satisfyingresources

– the fundamental basis for economic activity

• the basis of productivity issues

– max output (RESULTS) with min input(RESOURCES)

ALL BUSINESS CONSIDERATIONS SHOULD BE BASED ON THIS ECONOMIC PRINCIPLE.

“ The provision of goods and

services to satisfy the needs of

customers = basis of economic

activity

“ Conversion of various inputs into

need satisfying outputs

Inputs

• Production factors

– 4 types:

• Land (all natural recourses – raw material)

• Capital (financial means for acquiring other

inputs)

• Labour / Human Capital

• Entrepreneurship (Innovation of putting together

production factors)

Integrate

d System

Needs and need-satisfiers

• Unlimited needs and wants

• Limited resources to create need-satisfiers

• Universal drive for need satisfaction gives stimulus for business ventures

• Scarcity/inability to efficiently utilise resources

Wal-Mart South Africa

Turn Over: USD 405

Billion

Tax Revenue: USD 85

Billion

21% of Revenue

Nr of Employees: 2,1

Million

Nr of Tax Payers: 5,9

Million

2.8 x more “employees”

What is the purpose of BB-BEE?

Transformation of the South African society through growth of the Black Middle Class -

Broader tax base

Broader consumer base

Phenomenon of “ownership”

Attract FDI

Conversion Process

Inputs Functions Outputs

VALUE:

“ WHAT IS VALUE

“ How is value created

” Not only fin / monetary value

” Time utility

” Place utility

” Form utility

What does Coke-a-Cola sell?

Happiness

Competitive Advantage

The ability to create value that you

competitors / rivals can not!

• Valued: USD 10 BN

• Growth Potential

• 175 million users

– More than 500 million active users

– 50% of our active users log on to

Facebook in any given day

– Average user has 130 friends

– People spend over 700 billion

minutes per month on Facebook

?

bu

The free market system

“ Market forces are allowed to freely guide

business activity

“ Individual and economic rights are

recognised and characterised by:

* private ownership (Strong Property

Rights)

* initiative for own profit

* freedom of choice

* dominant market forces

* minimum government interference

5. Hoekom

begin

meeste

mense „n

besigheid

? / Why

do most

people

start a

business

?

Objectives for business

organisations

“ Profitability

“ Growth

“ Market shares

“ Social responsibility

“ Well-being of employees

“ Product quality

“ Service levels

Why does 2/3 SA businesses

fail in the first 2 years?

Need satisfaction

institutions in the free

market system

• Business organisations (Purpose to make

profit)

• Government organisations (Serve the

people)

• Non-profit-seeking organisations (Intent is

not to make profit)

Sosiale Media feite:

OBS 114

Chapter 1

Class 2

Revision / Hersiening

• Business as a SYSTEM

• Besigheid as „n systeem

Want

s

Begeerte

s

‚nice to

have‛

‚lekker

om te hê‛

‚must have‛

‚moet hê‛

Needs

Behoeftes

Maslow hierarchy / herargy

“ Self-actualisation

needs

“ Esteem needs

“ Social needs

“ Safety needs

“ Biological needs

“ Simultaneously

“ Dieselfdetyd

• Means / Money /

Geld

• Priorities /

Prioritiseer

Value

Waard

e

Cost

/

Kost

e

Price /

Prys

Customer

reserve price

Klient reserve

prys

Value Added/

Waarde

Toegevoeg

Customer Surplus / Klient

Surplus

Profit /

Wins

Relationship between VALUE & NEEDS

Verwantskap tussen WAARDE & BEHOEFTES

Water:

Value is created when:

benefits > cost

Waarde is geskep as:

voordele > koste

Extracting of value

Buisness / Besigheid:

• Profit

• Wins

Client / Klient:

• Value for money

• Waarde vir geld

Ontrekking van waarde

Customer Surplus / Klient

Surplus

Benefits > Price

Voordele > Prys

Employees/

Werknermers:Government/ Regering

• Salary & Work

satisfaction

• Salaris & Werk

satisfaksie

• TAX (VAT)

• Belasting (BTW)

Competitive

Advantage

Kompetisie

Voorsprong

Creatin

g value

that

your

rivals

can not

Skepping

van

waarde

wat jou

kompetisi

e nie kan

nie

Value

Chain

InputsInsette

Processes Prosesses

Outputs Uitsette

Waardeketting

business

besighei

d

environmen

t

omgewing

Form

utility

Value

Chain

Inputs Insette

Processes Prosesses

Outputs Uitsette

Waardeketting

business

besighei

d

environmen

t

omgewing

Natural

Resources

Natuurlike

Hulpbronne

Production

FunctionInputs

InsetteProduksie

Funksie

Business

Resources

Besigheids

Hulpbronne

Natural Resources

Natuurlike Hulpbronne

Production Functions

• Land & Natural Resources

• Capital (Financial Means)

• Labour (Physical & Mental)

• Entrepreneurship (Creativity)

Produksie Faktore

Inputs

• Raw Materials

• Human Resources

• Financial Resources

• Information (Know how)

• Machinery

• Technology

Insette

Business adds Value by using its

RESOURcES during its PROCESSES

• Financial Resources (Cash or easily

convertible)

• Operating Resources (Enablers)

• Human Resources

Besigheid voeg waarde toe deur sy

HULPBRONNE te gebruik gedurende sy

Prosesse

Resources: Those inputs that a business

converts to create a output

The making of

Jellybeans:

Die maak van

Jellybeans:

Raw Material

Sugar Suiker

Colouring Kleursel

Wax Waks

Glucose

Glukose

Bag Sakkie

Starch Stysel

Value

Chain

Inputs Insette

Processes

Prosesses

Outputs Uitsette

Waardeketting

business

besighei

d

environmen

t

omgewing

Cost

/

Kost

e

Price /

Prys

Customer

reserve price

Klient reserve

prys

Value Added/

Waarde

Toegevoeg

Customer Surplus / Klient

Surplus

Profit /

Wins

Adding value

Waarde toevoeging

Human Resources

Raw Material

Operating Costs

Cost / Koste

Cost

/

Kost

e

Price /

Prys

Customer

reserve price

Klient reserve

prys

Value Added/

Waarde

Toegevoeg

Customer Surplus / Klient

Surplus

Profit /

Wins

Cost / Koste

The making of

Jellytots:

Die maak van

Jellytots:

The making of Jellytots:

Value

Chain

Inputs Insette

Processes Prosesses

Outputs Uitsette

Waardeketting

business

besighei

d

environmen

t

omgewing

Outputs = need satisfiers

• Products/ Services

• Job

(dis)satisfaction

Uitsette =

behoeftebevrediges

• Produkte / Dienste

• Werksatisfaksie

Cost

/

Kost

e

Price /

Prys

Customer

reserve price

Klient reserve

prys

Value Added/

Waarde

Toegevoeg

Customer Surplus / Klient

Surplus

Profit /

Wins

Outputs

Uitsette

The making of

Jellytots:

Die maak van

Jellytots:

The making of Jellytots:

2 methods of

ADDING / CREATING VALUE

2 metodes van WAARDE

TOEVOEGING / SKEPPING

COS

T KOSTE

OUTPUT

VALUEUITSET WAARDE

Value

Waard

e

Cost

/

Kost

e

Price /

Prys

Customer

reserve price

Klient reserve

prys

Value Added/

Waarde

Toegevoeg

Customer Surplus / Klient

Surplus

Profit /

Wins

INCREASING Value

VERHOOGING van Waarde

OUTPUT VALUEUITSET WAARDE

PRICE:

Making a product that

is:

•Unique / different

•Quality

•Client is willing to pay

more

COST KOSTE

COST:

Making a product for

cheaper, without

changing the quality of

your output.

RESPOND: first and

quickly to specific

need.

REAGEER: eerste en

vinnig op ‘n spesifieke

behoefte

Adding competitive value

Toevoeging van Kompetatiwe

Waarde

InputsInsette

Processes

Prosesses

Outputs Uitsette

business

besighei

d

environment

omgewing

Internal

Intern

Porter: Value

Chain

Activity

Aktiwietyd

Porter:

Waardeketting

Internal Unique

Process

Interne Unieke

Prossese

Adding competitive value

Toevoeging van Kompetatiwe

Waarde

InputsInsette

Processes

Prosesses

Outputs Uitsette

business

besighei

d

environment

omgewing

Pro

cess

/ P

rose

s

Process

Proses

CUSTOMER

PERSIEVED

VALUE

Porter Primary

Functions:• FX involved in physical creation

– Procurement & Inbound Logistics

– Production & Operations

– Outbound Logistics

– Marketing & Sales

– Customer Service

Porter PrimereFunksies:

• FX betrokke in fieses maak– Aankope in Inwaardse Logistiek

– Produksie & Opperasies

– Uitwaardse Logisiek

– Bemarking & Verkope

– Kliente Diens

Procurement & Inbound

Logistics

Sourcing

Receiving

Storing

Handling

Transporting within organisation

Po

rter

Pr

ima

ry

Fun

ctio

ns:

Po

rter

Pr

imer

eFun

ksie

s:Aankope in Inwaardse

Logistiek

Soek

Ontvang

Storteer

Handteer

Vervoer binne in die organisasie

Production & Operations

Production of Goods

Technical core: Where service

support activities are carried

out

Po

rter

Pr

ima

ry

Fun

ctio

ns:

Po

rter

Pr

imer

eFun

ksie

s:Produksie & Opperasies

Producksie van goedere

Tegniese Kern: Waar die

ondersteunde diens funksies

uitgevoer word

Outbound Logistics

Transporting & distributing to

final customer

Po

rter

Pr

ima

ry

Fun

ctio

ns:

Po

rter

Pr

imer

eFun

ksie

s:Uitwaardse Logistiek

Vervoer & distribusie na finale

klient

Marketing & Sales

Analysis of needs & wants

Brings products & services to attention of customer

Enable to buy (take possetion)

Po

rter

Pr

ima

ry

Fun

ctio

ns:

Po

rter

Pr

imer

eFun

ksie

s:Bemarking & Verkope

Analiese van behoeftes & begeertes

Bring goedere en dienste onderdie aandag van klient

Maak eienerskap moontlik

Customer Service

After sales service

Exchanges

Repairs

Reverse Logistics

Po

rter

Pr

ima

ry

Fun

ctio

ns:

Po

rter

Pr

imer

eFun

ksie

s:Kliente Diens

Na Verkope Diens

Omruil

Regmaak

Omgekeerde logisiek

Porter Support

Functions:• FX allow Primary functions to take place on an

ongoing basis– Financial management

– HR management

– Communication

– Information Management & E-Business

Porter OndersteuningsFunksies:

• FX wat help dat Primere Funkises op „n aaneenlopende basis kan plaas vind– Finansiele Bestuur

– MB Bestuur

– Kominukasie

– Informsie Bestuur & E-besigheid

Financial management

All activities, cost, assets related

to the acquisition, utilization

and the control of the MONEY

a company requires to finance

is activities

Finansiele Bestuur

Alle aktiwieteite, kostes, bates verwant aan die aankoop,

gebruik en beheer van die GED wat „n besigheid nodig het om sy

aktiwieteite te befonds.

Po

rter

Sup

po

rt

Functio

ns:

Po

rter

On

der

steunin

gs

Fun

ksie

s:

HR management

All activities, cost, assets related to recruitment, hiring, training,

development and compensation of ALL types of personnel and

labour relations activities.

MB Bestuur

Alle aktiwieteite, kostes, bates verwantaan die opsoor, aanstel, opleiding,

ontwikkeling en vergoeding van ALLE soorte personeel en WN

verhoudings aktiviteite.

Po

rter

Sup

po

rt

Functio

ns:

Po

rter

On

der

steunin

gs

Fun

ksie

s:

Communications

All activities, cost, assets related

to internal and external

communication

Komunikasie

Alle aktiwieteite, kostes, bates

verwant aan interne en externe

komunikasie

Po

rter

Sup

po

rt

Functio

ns:

Po

rter

On

der

steunin

gs

Fun

ksie

s:

Information Management & E-

Business

The application of all

management principles in

managing a e-business

Informsie Bestuur & E-

besigheid

Die aanvending van alle bestuurs

waardes in die bestuur van e-

besigheid.

Po

rter

Sup

po

rt

Functio

ns:

Po

rter

On

der

steunin

gs

Fun

ksie

s:

Porter Primary

Functions:

Procurement & Inbound

Logistics

Production & Operations

Outbound Logistics

Marketing & Sales

Customer Service

Porter Support

Functions:

Financial management

HR management

Communication

Information Management &

E-Business

Entr

epre

neurial

Pro

ce

ss

Sta

rt-u

p

Ge

ne

ral M

an

ag

em

en

t &

Le

ad

ers

hip

(Pla

n, d

ire

ct,

co

ntr

ol)

Va

lue

ex

tr

actio

n

environment

omgewing

Porter: Value Chain

• Organisation part of a wider system of role

players

• All these role players add value

Adding competitive value

Toevoeging van Kompetatiwe

Waarde

• Onderneming is deel van „n wyers syteem

van rol spelleres

• Alle rol spellers voeg waarde toe

tHE SUPPLY CHAIN

All activities from RAW MATERIAL to END

USER

dIE vERSKAFFINGS kETTING

Alle aktiwieteite van ROU MATERIAAL tot eindgebruiker

Raw

Material

Rou

MateriaalManufacturer

Vervaardiger

Distributors:

Wholesale

RetailVerspreiders:

Groothandellaar

Kleinhandelaar

Customer

Klient

Understand your supply chain:

• Waar word waarde toegevoeg/ verloor?

• Waar kan ek additionele waarde toevoeg?

Verstaan jou verskaffings

ketting:

• Where is value added / lost?

• Where can I add additional value?

adding competitive

advantage• Create a strong supply chain

• Incorporate technology – know where what is

when

• Shift focus to customer – demand chain

Toevoeging van KompetatiweVoordeel

• Maak „n sterk verskaffings ketting

• Gebruik tegnologie – weet waar is wat

wanneer

• Fokus op die klient – vraag ketting

Thank You

Dankie