UT not YT, not Yan Ting not Yew Tee

Class,

UT is as easy as taking a train to Yew Tee, if you know how?.

UT is understanding Test - they want to know if you UNDERSTAND the theory/concept introduced. Not if you can memorise it.

So? - if you have started preparing for UT, from day 1, should be easy as ABC.

1) do you know what are the key learning objectives in each lesson?(key points)
2) do you know the basic facts of each concept/theory?
3) you know- can you explain it to your grandmother and she understand.
4) good
5) now, can you apply it or understand the implication?

How do they know you understand - because you can present it in your own words with examples (not cut and paste).

then you can apply it in a given scenario.

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How else can you prepare ?

Look at learning objectives and turn it into questions.

Do the worksheet questions - YOURSELF, alone (if you don't know, ask someoone who know).

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And last but not least,

don't open up 6P, during UT, because you won't have time.

Put all the 6P in your mind, and open up your mind. You mind process faster than your computer.


In my observation, those who have to open up 6P, usually spend some time looking for the right slide and then try to understand the slide.

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So, good luck, don't stop at Yew Tee, stop at Woodland, if you are taking the train, else you may miss the UT.

Lesson 3 : Value Adding- SVP Printing

Organisation structures :

different types of org structures - product, process, geographical, functional

understand the adv and disadv of each type of structure.

how and why would you recommend each org structure
- it depend on the needs of the company at a point in time.
(ie company business changes over time and the structure need to be adapted for
it to function effectively and thus improve bottom line.)

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Value Chain analysis - Michael Porter.

Basic : premise : to be profitable, a company must find its own competitive advantage.

what is competitive advantage ? - when a business can do something better (ie better design, more efficient, lower cost or have a patent) its competitor cannot.

Eg : what is one of a supermarket/hypermarket competitive advantage over neighbourhood shop :
lower priced goods (because they have volume), variety.

What is the neighbourhood shop competitive advantage over supermarket?
- hiyah - neighbours lah - location,
- relation ? - know your grandmother, mother since you were a baby (assuming the shop still around).

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In value chain analysis, each business provide a service/product- after going through a chain of activities (thus chain),
and to be profitable : each activity, need to have value add.

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What is value add :

to provide something of better value (cost, design, etc) to the customer that the customer himself/herself cannot do/provide.

Eg : if you want to buy a blouse, you can ask your grandmother(or yourself) to design and sew one for you .
or you can go to the boutique and purchase one.

You would purchase from the boutique only if it can offer you a blouse you like at a price you don't mind paying. ie better value (in cost or design) than what your grandmother can do.

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Theoretically, then :

to improve profit(increase margin), assuming the end product/service is an output of a series of activities, and we can then increase value (therefore charge higher price, assuming cost is the same) by analysing each activity, and see what value can be added or efficiency squeeze out of it.

Porter also mentioned that the activities can be categorised into
primary and supporting.

So, got the concept? , then apply it to your father business.

FAD or TREND, SOCIO CULTURAL - ignore PEST at your peril

This article is about a Korean company, expanding to US and some of the issues they faced, esp see the followup article.- how they did not study the local preference, which affected their business.

Lesson 2 - Analysis Tools-Dreams

Analysis Tool /what are they/how to use them/from the analysis how to spot opportunities :

UNDERSTAND THE IMPLICATION OF EACH ANALYSIS.

HOW CAN YOU USE THE TOOL TO ADVISE SOMEONE ON THE BUSINESS OPPORTUNITIES.


Macro environment scanning : PEST.

Micro environment : SWOT.

Political

Economic

Socio Cultural

Technology

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Imagine you are tasked to expand your company business oversea.
Your boss has asked you to prepare a report.
What would you do?

- use PEST to give a big picture of the country your company going to expand to.

understand each factors and what is the implication for your business.

Socio cultural : see posting on Fad or Trend (Red Mango : yoghurt/what happen if your company don't understand the socio-cultural impact).

Ageing population : what is the implication to your business, what opportunities does it present ? - eg anti ageing cream maybe a bit hit (demand curve shift to right?)


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SWOT :

to analyse your business or company at the company level and immediate factors (micro environment- eg suppliers/competitors) that affect the company.
External factors : Opportunities/Threats.

Internal factors : Strength/Weakness.

Hey : opportunities arise from EXTERNAL factors that may be beyond your control.

Eg : if you are interested to start up an event planning business, if the IRs (EXTERNAL) are successful in attracting big MICE , it will present opportunities for your company.

However, if big, established event planners also set up shop here, they become a THREAT to your business.

Lesson 1

The different types of business structures.

Not for profit - co-operatives (NOT corporation), clubs, societies.

For profit -
a)sole proprietor,
b) partnership, private limited and public listed.
c) private limited
d) public company (public listed)

Understand the
a) key features of each structure,
b) the advantages and disadvantages
c) based on customer (eg Peter) needs and goals - able to recommend the most optimal structure.

Eg Peter goals :
a) continuity (therefore entity must be able to be continued upon his death)
b) provide stream of income for mother and sibling (independent of Peter's whim and fancy)
c) grow and expand ( how easy is it to borrow external funding)

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Note :

a) co-operative (one member one vote) is different from corporation (one share one vote).
b) tax liability : sole proprietorship and partnership - pay income tax as individual
c) private limited/public listed : pay tax as a company, shareholder pay tax as individual.