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TRANSCRIPT
Renata Ltd.
Muhammad Tanvir HossainStudent ID: 4325352
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Renata Ltd.Executive SummaryYour Health, Our Priority
Business Summary: At Renata, we produce two different type of drugs, Painkiller and Antioxidant. We have been in pharmaceutical industries for more than 40 years. Our production facilities located in two countries, Finland and USA. We have been established a strong relationship with numerous distributors throughout the USA, Finland and France.
Opportunity and Market Gap: Most painkillers take long time to effect where our painkiller Rubbana quick and effective way of coping with mild to severe pain. It take only 15-30 minutes to start working if taken tablet form. Our antioxidant comes with Vitamin D, E and essential minerals where most antioxidants do not have any additional vitamins and minerals.
Target Market: There are 314 million consumers in USA and 70 million consumers in Finland and France. We have reached one hundred million people over the years and we are growing rapidly.
Customers: Our current customers are 20 million women and men in the USA, France and Finland, we do not recommend our painkillers for children age under 12.
Sales and Marketing Strategy: We are using extensive marketing campaigns on television, billboard, magazines, radio, internet, and word by mouth. Our advertising campaign use easy to remember slogan and catchy tune, accustomed with well known logo. We are looking to expand our market in Asia and Africa where we do not have any market right now.
Competitors: We have two major competitors in our market. Eco Lab and Pharmateam. Currently
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Company Profile:URL: www.renata-ltd.com/Industry: Pharmaceutical IndustriesEmployees: 450Founded: 1972
Contact:Muhammad T. [email protected]: 0330 001 8381W: 358-9-39351F: 358-9-39500
Financial Information:Use of Funds: Product development 30%, marketing/sales 25%, distribution 10%, operation/ inventory 20%, existing debt 5%, legal/others 10%Capital Raised: €20,00,000Monthly Burn rate: €300,000Pre-Money Valuation: €100,000,000
Management:Muhammad T. Hossain, CEOUnegbu C. Udochi, CFOFahima R. Alam, CSO
Advisors:Lawyer: Dewey and Co.
Investors:Bank of FinlandSampo Bank
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we have 50.6% market share globally where Eco Lab's market share is 39.8% and Pharmateam's market share 9.6% respectively.
Competitive Advantage: We are providing consumers innovative and alternative products which is not only cure the pain or counteracting the damage substance, it is also improve physical defence with the help of minerals and vitamins. We have intellectual property of patents, copyrights, and trademarks for our products Rubbana and AndyOx under NPSF and NPRL.
Renata Ltd.John Stenbergin Ranta 4, Helsinki, 00530, FinlandTel: 358-9-39351
Financials Round 4 (K Euro)
Round 5 (K Euro)
Round 6 (K Euro)
Revenues 27384 29777 31836
Expenditures 7941 8635 9232
Net Profit/Loss
19443 21142 22604
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1. Chapter One - Introduction:In this Business Simulation, I have covered three major disciplines, Sales, Marketing and Finance. In six business round, I had covered each disciplines twice as a business manager but the reports based on final three business round.
In the round four, I was a sales manager. Our company's sales strategies and objective was to acquire 60% market share globally by round five. To achieve our objectives, I have took strategic marketing plan process, which are: setting objectives, determining operations, organising for action, implementing, measuring results and re-evaluating and controlling. Which allowed me to analyse market, competitors and market share. I have assessed our strengths and weakness by SWOT analysis and applied marketing mix to achieve our objective.
In business round five, I have covered production. The market condition was positive and negative for our products Rubbana and AndyOx. Rubbana's demand was decreased by 10% globally and AndyOx's demand increased by 10% all around the world. Machinery prices decreased by 20%. As a Production manager my objective was to reduce production cost by 2%. I have analysed product supply chain, product life cycle, efficiency and Kaizen process for continues improvement, which allowed me to look at my production outside the box and help me to gained my objectives.
I have covered Finance in final business round six. In that round my activity was to reduce gearing ratio by 40% and hedge currency risk to help reducing production cost and give competitive pricing advantages over competitors. I have took consideration at our return on capital employed, working capital management to invest more capital and cash flow from operations than borrowing money from banks. I have used bottom up budgeting approach because we have different market conditions and demands in each business round.
Individual reflective dairy discuss about the knowledge and skills I have gained and developed at CULC in past one year, which are required to achieve my own personal goals, to become Retail Area Manager by 2015. It is also discuss relevant theories to know individuals learning style: Honey and Mumford's learning styles questionnaire, VAK learning styles theory and Belbin team role.
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2. Chapter Two - AR one
1. Introduction:This is an individual activity analysis report based on Renata Ltd., where in round four I am sales manager and business decisions provided by me. In this report the topic below will be discuss in order to manage sales for the pharmaceutical industry in the major markets of Finland, USA and France.
This analysis report will critically discuss the theories, framework and relevant decision I took during this round (i.e. Sales). It is also contains key objectives and strategies for Renata Ltd. which were implemented during this round and the results of the decisions I took.
Round Four: Sales
2. Individual Activities: Sales
Market Outlook:In this round, the demand for AndyOx (antioxidant) will increase by at least 15% in Finland, USA and France and it has positive effects on the demand of Rubbana (painkiller). The machinery price will fall and the costs of raw material declining for AndyOx but rising in Rubbana. Interest rates are growing and dollar strengthening continue against euro.
Sales strategies:As a sales manager of Renata Ltd., our sales strategies and objectives are to acquire 60% market share globally by round five. To achieve our objectives I set SMART objectives for Renata Ltd. as follows: Figure 1.1
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Any sales activities must be related within strategic marketing plan. These sales strategies and tactics implemented against a framework is called 'strategic planning process' (Jobber, D. & Lancaster, G. 2009:48).
Figure 1.2 The planning process (Source: Jobber, D. & Lancaster, G. 2009)
Above figure 1.1 demonstrate our objectives for the firm. As I mention above, our objective to gain 55% market share within round 4 and 60% market share within round 5 and keep the market share in round 6 by increasing product quality and marketing mix.
Situation analysis:The situation analysis is the precise content in preparing marketing plan which required internal and external audit (i.e. SWOT analysis).
Competitor analysis:Current market demand for Rubbana in Finland, USA and France are 72.14 (K Units), 210.76 (K Units) and 107.54 (K Units) respectively as it has 5% positive influence over current market demand for the increase demand of AndyOx. AndyOx's current market demand in Finland, USA and France are 140.10 (K Units), 278.44 (K Units) and 136.56 (K Units) correspondingly.
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Sales of the current round for Renata Ltd. and its competitors in the market are in the following graph 1.1:Sales (K Units):
Sales/(K units)
Finland/Rubbana
USA/Rubbana
France/Rubbana
Finland/AndyOx
USA/AndyOx
France/AndyOx
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
Series1Series2Series3
Source: SimFirm
In this graph 1.1 shows Renata's total sales of Rubbana and AndyOx are more than its competitors Pharmateam and Ecolab Pharma Ltd. For example: in Finland, USA and France Renata sales of AndyOx 44.60 (K Units), 94.11 (K Units) and 78.12 (K Units) respectively whereas closest competitor Ecolab's sales on AndyOx is 36.92 (K Units), 76.95 and 40.63 in that order.
Share analysis:Our objectives to acquire market share 55% by the end of the round four. Renata's current market share after round 3 globally in the following graph 1.2:Market share after round three:
Market shares/%
Rubbana/Finland
Rubbana/USA
Rubbana/France
AndyOx/Finland
AndyOx/USA
AndyOx/France
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
Series1Series2Series3
Source: SimFirm
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After round three Renata Ltd. market share for Rubbana in Finland, USA and France is 35.16%, 37.29% and 63.12% respectively. For AndyOx Renata's market share 36.61%, 38.87 and 65.78 in that order.
SWOT analysis:
In general assessment of a firm's strengths, weaknesses, opportunities and threats is called SWOT analysis (Kotler P., Keller K., Brady M., 2012:111). SWOT analysis allow firm's to monitoring its internal and external marketing environment. it is important for a firm to monitor major microenvironment actors and macro environment forces (Kotler P., Keller K., Brady M., 2012:111) factors that affect its ability to earn profit. Firm also should set up marketing intelligence system to find out trends, opportunities, threats and important development. Figure 1.3 SWOT analysis:
Source: SWOT analysis (Kotler P., Keller K., Brady M., 2012)
As in current market outlook Renata Ltd. has great opportunities to capture its target market share. Demand of AndyOx(antioxidants) will increase 15% in the all market and it has positive effects on Rubbana(painkillers). As a sales manager, for my firm I have opportunities to gain market share in Finland and USA for Rubbana. Our current market share for Rubbana in Finland and USA are 35% and 37% respectively.
Renata Ltd. strengths are leading market share globally for Rubbana 44% and AndyOx 45%. Its competitors Pharmateam has 22% and 23% for Rubbana and AndyOx in that order and Echo Lab has 35% and 32% market share globally for its products Rubbana and AndyOx correspondingly.
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Strengths Weaknesses
Opportunities Threat
SWOT
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Renata's weakness is in its homeland as the firm facing stiff completion from Pharmateam as well as Echo Lab. Even though Renata has more market share in Finland for both products but its competitors are gaining more market share over the past few rounds.
To achieve our sales and market share target in round four, I have followed Marketing Mix. Figure 1.4 Marketing mix:
Source: Marketing Plan
E. Jerome McCarthy describe market segmentation by far is the most important decisions within marketing programme (Jobber, D. & Lancaster, G. 2009). Neil Borden termed the marketing mix as the central concept of modern marketing practice (Borden, N.E. 1964).
In Finland, product price for Rubbana and AndyOx is 257.0 EUR (K Unit) and 197.0 EUR respectively. Compare to previous year the decrease the price of Rubbana and AndyOx by 3.0 EUR (K Unit) and 1.0 EUR (K Unit) respectively because of cost of raw materials for antioxidants are declining. Sales promotion for Rubbana in Finland
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I invested 250 EUR (K) for advertising and 250 EUR (K) for customer care. For AndyOx advertising and customer care budgets are 250 EUR (K) and 250 EUR (K) correspondingly to achieve my sales and market share objectives as Finland is my weakest place.
USA has the most market demand for both products per sales unit compare to Finland and France. Because of the more demand in USA for both products I increased the sales promotion budget than last year 240 EUR (K) for advertising and 240 EUR (K) for customer service. Price for AndyOx and Rubbana are 262.0 USD (K) and 342.0 USD (K) in that order.
In France, price per unit for Rubbana and AndyOx 258.0 EUR (K) and 198.0 EUR (K) respectively. Compare to the last year price, I have decrease the price for price penetration to gain more sales and market share as already Renata has more than 60% market share in France. The budget for sales promotion for both products 925 EUR (K) in France.
After using the sales planning process framework, SWOT analysis and marketing mix as well as with the consideration of market outlook for round four my forecasted sales are as follows: Table 1.1
Table 1.1: Sales forecast:
Round Four
Rubbana (K Units) AndyOx (K Units)
Finland 40.00 77.00
USA 116.00 153.00
France 68.00 90.00
In this table 1.1 I have followed the quantitative techniques 'Moving averages' (Jobber, D. & Lancaster, G. 2009:469) to forecast my sales for this round. The results of the current round sales are as follows:
Sales (K Units):
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Sales
/(K units
)
Finlan
d/Rubban
a
USA/R
ubbana
France/
Rubbana
Finlan
d/AndyO
x
USA/A
ndyOx
France/
AndyOx
0.00
20.00
40.00
60.00
80.00
100.00
120.00
PharmateamRenata Ltd.
Echo Lab
PharmateamRenata Ltd.Echo Lab
Source: SimFirm
In France, I have sold more than I forecasted but in Finland and USA my sales are less than expected.
3. Conclusion:
In conclusion, I would say as a sales manager I have achieved one of my objectives after round four is selling more products in France. But I have also failed to capture 55% sales and market share globally. Renata's current market share after round four 48.68%. As a Global Business student, it was a challenging task for me to handle selling and sales management in the real business environment. The decision I have taken without deep knowledge in previous round were analysed by me this time by understanding the framework and theories involve within the sales related tasks.
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3. Chapter Three - AR two
1. Introduction:This activity report is a significant assessment report of Renata Ltd., written based on the verdicts provided by me, as a production manager for the decision area in round 5. This business productions are in the pharmaceutical industry in the major markets in USA and Finland.
In this round five, the market condition was both positive and negative in condition of demands compare to round four. The demand for painkillers (Rubbana) decreasing by 10% all around the world and demand for antioxidants (AndyOx) are doing strong and expected to rise 10% in all markets. Consequently, I have an opportunity to help gain competitive advantages by analyzing product life cycle for both Rubbana and AndyOx. Renata Ltd., objective is to gain 60% global market share by the end of this round. As the objective is expand global market share by 60%, it is also my responsibilities to know current market sales globally to calculate exact production to maximise production capacity utilization.
The market condition for machinery prices are decreasing by 20% and raw materials prices for Rubbana are increasing and AndyOx materials prices are declining in their individual trends. These conditions has both negative and positive factors for me as a production manager in a respective way, where Rubbana will increase the product per price and AndyOx product per price will be less which has effects on profitability. My objective is to reduce production cost 2% in this round by using allocative efficiency, technical efficiency, cost efficiency and measuring efficiency as well as improving production efficiency.
2. Individual Activity: ProductionProduction is the methods and processes which involves to transform tangible inputs (i.e. semi finished goods, subassemblies, or raw materials) and intangible inputs (i.e. knowledge, information, or ideas) into goods or services (Business Dictionary, 2012). As a production manager I set production target for Rubbana and AndyOx to meet Renata's objectives as well as my objectives to reduce production cost by 2%.
2.1 Product supply chain:Previously, production cost and supply chain have not been the major key method in achieving a competitive lead in pharmaceutical industries. However, these factors carry important potential for a cost and capital optimization, which allows in an increasing competitiveness.
To discover the potential in supply chain and production, I must follow a holistic approach which contains of four dimensions:
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Production strategy and supply chain Network organization Capacity utilization and managing the difficulty of process and products
A plan-do-reflect-review cycle around these four dimension will be cornerstone for production and supply chain excellence. See Figure 2.1:
Plan-do-reflect-review cycle:
Source: London Deanery
My communication with my sales and finance manager clear and transparent to ensure on time production planning and maximise the capacity utilization to increase products margins. In this round, my capacity utilization in USA 98.0, which is same as Finland. As this below supply chain model (figure 1.2) shows, I have to manufacturing plant in USA and Finland and I have customer in three different countries France, Finland and USA. I am sending my finished goods in France from Finland as logistic cost if less Finland to France than USA to France, transportation cost 3.10 (EUR/Units) and 5.00 (EUR/Units) respectively.
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Figure 2.2: Product supply chain
Source: World trade group.
2.2 Product life cycle:Product life cycle first introduced by Theodore Levitt in 1965. The concepts of this model is to analyze the maturity stage of products and industries. This model allows managers and consultants to have and understanding the stage of a product and provides information about expected future sales growth and what kind of strategies need to be implemented.
Figure 2.3: Product life cycle
Source: Tom Spencer (tomspencer.com)
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According to the market analysis Rubbana(painkillers) sales in decreasing by 10% all over the market and Rubbana as from the product life cycle is in declining stage. My strategy is to reduce production of Rubbana compare to round four in USA and Finland. My target production of Rubbana in Finland and USA is 111.71 (K units) and 98.46 (K units) in that order.
The demand for AndyOx(antioxidants) are still growing strong in all markets. By product life cycle curve AndyOx still in growth stage, therefore Renata Ltd. has an opportunity to capture growing market by producing more quality AndyOx. As a production manager I have invested in machinery and buildings to improve total production capacity in Finland and USA, 90 (K units) and 20 (K units) respectively. Renata's objective is to gain 60% market share by the end of this round, for that reason the production of AndyOx in Finland and USA is 162.5 (K units) and 165.94 (K units) correspondingly.
2.3 Efficiency:Efficiency refers to the global relationship between all outputs and inputs in a production process (Speelman et al., 2008). As a production manager my concern with efficiency to gain my production objectives as well as Renata's objectives. There are several efficiency related to production which has significant impact on resource saving, which can be valuable effect on policy formulation and farm management (Bravo-Ureta & Rieger, 1991).
Technical efficiency Allocative efficiency Cost efficiency and Measuring efficiency
Technical efficiency is the combination of inputs with minimum uses of labour and capital to produce a certain amount of goods. Production wages is rising in Finland and USA than previous round. Current wages rate in Finland and USA is 49.00 (K EUR) and 51.00 (K EUR) respectively. As a production manager I have invested in production efficiency (k units/person) in Finland and USA to person in production to cope with current wages rate. Graph 1.1 illustrate that:
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Graph 1.1 Production efficiency in Finland:
Phar-mateam
Renata Ltd. Ecolab Pharma
Ltd.
0
0.5
1
1.5
2
2.5
3
3.5
4
Rubbana (k units/person)AndyOx (k units/person)
Source: Cesim Sim Firm
I have invested 3.72 (k units/person) and 3.12 (k units/person) in Finland for Rubbana and AndyOx correspondingly to improve cost efficiency and technical efficiency to save capital investment on wages and gain competitive advantages over competitors.
2.4 Kaizen process:Kaizen means continues improvement. In this process it has never ending efforts on improvement engaging managers to workers. Figure 1.4 illustrate Kaizen process:
Figure 1.4 Kaizen Process:
Source: Business Coach (insbeco.com)
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I have applied Kaizen continues improvement process to avoid wasting my resources. I have invested to improve quality control for Rubbana and AndyOx by 1600 (K EUR) and 1550 (K EUR) respectively, which allowed Renata to provide quality products to the customers and earning satisfaction and loyalty which is valuable for the organization. I have also invested to improve cost of investment to achieve Renata's objective to acquire 60% global market share by the end of this round and reduce production cost by 2%. However as an organization we have failed to achieve our target market share. At the end of the round 5 our market share is 51.20 % for Rubbana and AndyOx but we have reduced our production cost 1.8%.
3. Conclusion:In conclusion, I would like to say for organization production is a very important sector. As a production manager I have to reconsider some of my decision which I took during this round. The opening inventory I had from last round is increased 89.20 (K units) and 91.38 (K units) for Rubbana and AndyOx in that order which is more costly for Renata Ltd.
I would recommend sales and finance manager to discuss with me for setting up sales target for round 6 so that I do not have to hold bulk number of units in storage. I have experience tough time with maintaining machinery as they have 25% depreciation and at the same time building has only 5% depreciation.
Finally, I have developed few important skills during this business round which I had lacked before, for example: the importance of efficiency. Although I have not fully understand what is profit efficiency, revenue efficiency and economic efficiency which I would like to improve during next round where I will be a finance manager.
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4. Chapter Four - AR three
1. Introduction:This is an activity analyse report based on Renata Ltd., where in round six, business decisions taken by me as a finance manager. This financial business report for the pharmaceutical industries in the major market in Finland, France and USA.
In this round six, the market condition is positive and negative either way in the perspective of finance. The rise of the demand for cement and steel production in Asian countries increase the costs of building materials approximately 40-50% all over the world. As a finance manager, I am using budgeting to gain economies of scale, to reduce production costs by 2% to expand competitive advantages over our competitors in the market and achieve 60% market share globally in this round six. In this case, investing minimum on buildings and taking advantages of advanced technology for machineries.
Euro is expected to strengthen against USA in the market and European central bank commence to lower the interest rates, it has both positive and negative effects on decision making process as a finance manager. To reduce the risk, I am considering gearing and risk management, as well as working capital management. My objective in this round is to reduce gearing ratio to 48% and hedge currency risk to gain more on return on capital employed, where the current gearing ratio is: 50.88%.
2. Individual Activity: Finance:Finance is a branch of economics concerned with resource allocation as well as acquisition, investment and resource management (Investor Words, 2012). It can be also describe money and market, where money rise through sales of debt and/or equity and insurance. There are three basic sources of company’s funds: which are shareholders (owner of the business), lenders (i.e. Banks, venture capitalists, government) and retained profit in according rounds (Proctor 2009: 45).
One of the main part of finance is investing. investment involves resources being laid aside now to produce a return in the future, for example, investing building and machinery tools to produce goods for next year (Arnold, G. 2008:20). In the chart 2.1 below shows how cash flows within the organization:
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Chart 2.1: Cash flow cycle
Source: Business Education
In this cycle, cash is used to purchase raw materials, wages and other production costs. Finish goods are sold to generate more cash and some external debts, which will allow me to have better understanding of gearing.
2.1 Gearing:Gearing ratio describe a financial ratio that indicates company's relationship between some forms of owner's equity or capital to borrow funds. This activity allow measure of financial influence by owner's funds versus creditors funds (Investopedia, 2012). Organizations profit varies on how much the organization borrowed because it has effects on profitability, as organization has to pay interest on borrowing funds. My objective is to reduce gearing ratio to 48% as Renata's current gearing ratio is 50.88%.
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The long-term liabilities also include preference shares and mortgages where capital employed includes share capital, retained earnings and long-term liabilities. Where Renata's long-term liabilities 75,000 and share capital is 5,000.
Graph 2.1: Current gearing ratio
Round Five Round Six47
47.5
48
48.5
49
49.5
50
50.5
51
Gearning Ratio
Gearning Ratio
Source: Cesim sim firm
In the graph 2.1 illustrate, as a finance manager, I was able to increase the profit of the organization to reduce gearing below 50% from previous round. The current gearing ratio is 48.43%, where my objective was to reduce 48%.
2.2 Return on capital employed (ROCE):ROCE referred to the business returns (profits) had made on the resources available on to it. It is calculate the percentage of profits earned before paying taxes and interest versus total (entire) amount of capital invested to earn profit. The higher percentage of ROCE is better for the business.
I have invested on production efficiency 10.0 (K Units) in USA and Finland, as well as I have invested on cost efficiency improvement to minimize the production cost to earn maximum profit. It allows me to gain more ROCE. After round six the return on capital employed is: 16.08%. The ROCE has few drawbacks, such as it measures return against the book value of assets in the business. As the assets has depreciated value, The ROCE will increase but cash flow will remain same.
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2.3 Working capital management:Every firm need to invest in order to prosper. To invest new factory or new machinery is the part of long term investment. It is also necessary to expand in additional resources devoted to current assets (Arnold, G. 2008:529). The figure 2.2 shows the working capital cycle for a typical firm, such as Renata Ltd. as it is a manufacturing firm rather than business services.
Exhibit 2.2: The working capital cycle
Source: The working capital cycle
As on the diagram, in the upper part where capital invested in raw material inventories which are then used in the production process. Some of the finish goods then sold for cash and rest are sold on credits. As a finance manager, I have invested in raw materials and production efficiency as raw materials and wages prices are going up in global market. Current wages of production in Finland is 49 (K EUR) and 51 (K EUR) in USA respectively.
The bottom part of the diagram 2.2, shows non-working capital cash flow. These are generally long term expenses. In the market condition, building cost rises 40-50% and my objective is to reduce production cost by 2% in this round. As a finance manager, I did not invest any amount on new buildings because of investment expenses on building in Finland and USA are 215 (EUR/unit) and 158 (EUR/unit)
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respectively compare to round five 145 (EUR/unit) and 107 (EUR/unit) in that order. To manage the currency risk, I have cross currency swap agreement with my raw materials suppliers:
Exhibit 2.3 Cross currency swap:
Source: Bank for international settlements.
And I was able to reduce my production cost by 5.62% compare to previous round, where my objective was to reduce by 2%.
2.4 Budgeting:I have used bottom up budgeting approach to reduce production, sales cost and effective use of logistic to use minimise unit cost. Considering the rise of material cost for building and raw materials as well as transportations. Figure 2.4: bottom up budgeting
Exhibit 2.4 Bottom up approach
Source: Government of Pakistan, ministry of finance
By using bottom up approach I have decided to utilize 100% production capacity to maximise the use of space and inventories. My sales and marketing budget (Refer Appendix 1) was to achieve our main objective to gain 60% market share globally. We have failed to capture 60% market share, where our global market share after this round is: 50.66% and at the same time our competitors Pharmateam and Ecolab Pharma has 9.35% and 39.99% correspondingly.
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3. Conclusion:In conclusion, I would say the budget operations and finance is very important in an organization. As a finance manager I have faces many challenges to achieve our objectives, which ultimately we have failed to achieve.
The decision I have took without having more financial knowledge in previous round helped me to gain more experience and better understanding of some of critical financial aspects, such as gearing, ROCE, risk management and working capital management which allowed me to achieve my objectives as a finance manager in this round to reduce production cost by 2% and minimize gearing ratio to 48%.
Finally, I have developed couple of crucial skills during this round, such as currency and exchange rates, gearing etc. My personal development plan is to gain more knowledge in finance as it is a very vast subjects and there are few interesting concepts and which I will learn during my MBA at Coventry University, for example: shareholder value-based management, total shareholder return, dividend policies, value sharing and stock exchange.
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5. Chapter Five - Individual Reflective Diary
1. Introduction:In this reflective diary I will briefly discuss and analyse the key skills I have gained and developed during my time at Coventry University, which will help me to achieve my goal to become an Area Manager of Retail Industry. I have assessed myself using the core skills assessments test (see appendix 1) and SWOT analysis (see appendix 2) and identified the skill gaps, which I need to develop to achieve my goal.
Confuscius said, over 2000 years ago: ‘When three of us are walking together I am sure to have a teacher. Having noted his competences, I imitate them: his incompetences I avoid.’ (Cameron 2009)
2. Relevant theories:I will be discussing briefly three different learning styles and team work model which helped me develop individually and at the same time as a part of a team, which include Honey and Mumford's learning style questionnaire (LSQ), VAK learning style theory, and Belbin team role (please see in appendix 5).
2.1 Honey and Mumford's learning styles questionnaire (LSQ):Honey and Mumford's learning style, based on Kolb's learning cycle. It has four different learning styles: Activist, Reflectors, Theorists and Pragmatists.
Source: GP Education and Training Resource.
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Based on these four learning styles, I was able to recognize myself as a mixture of activist and reflector. I was also able to explore my basic strengths and weakness of those groups. My opportunity to know how to communicate with other learners and which is the best way to approach and motivate them, increased self awareness and team-working skills.
2.2 VAK learning styles theory:The VAK learning styles theory, is based on the sensory modes of capturing data, the way individual learns. There are three main categories of learners according to the theory, Visual, Auditory and Kinesthetic. The receiving modes can be one or more, for example: bi- or even tri-modal.
Source: Johns Hopkins University, School of Education.
After taking VAK questionnaire (appendix 3), I have learned that I was 50% and 46% kinesthetic or tactile learner. My reflections from this outcome, I became more acknowledge of my skills and start taking notes and visual audience, which gave me confidence to build my strengths, and to develop my weaknesses.
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3. Reflection on personal development:
3.1 Knowledge gained:At CULC, I have covered a broad range of disciplines, such as International Investment Analysis, Global Business Simulation, International Marketing Strategy, International HRM and International Business Strategy. I have gained knowledge in all of the disciplines but especially in IBS, Marketing and Business Simulation.
I was intend to write dissertation when I heard that Business Simulation is very tough. But then I challenged myself to do it because I am an activist learner as well as reflector learner and Simulation is real-world business situations.
Other things that I took on board during Simulation, concentrating on the four different disciplines at the same times, Production, Sales and Marketing and Finance. I wasn't afraid to test myself to improve my knowledge in real-time business situations, how marketing effects on sales and how to decrease production costs, considering hedging funds, improving per person productivity, quality controls and analyse market demands and implement them accordingly.
3.2 Skills developed:I have develop few skills which I mentioned during my Personal Development Plan in DBP.
3.2.1 Information and technology communication skills:I have developed this technical competence in PowerPoint presentation application software. I wasn't able to use PowerPoint effectively before. I have attended computer classes offered at the University, which allowed me to develop some other IT skills as well, such as Microsoft Word and Excel.
3.2.2 Planning and delegation skills:By learning Belbin's team role, I have developed my planning and delegation skills. My group member helped me to develop plant and implementer to get best out of the team. I had a training session at work for planning and delegation, which allowed me to plan in advance and monitor the activities and improving the plan by getting feedback from my manager.
3.2.3 Communication skills:When I have looked for employment in recruitment web sites, most employers mention about this skills. I involved myself in class activities, such as debate in marketing and HRM module.
With participating events at CULC, such as Synergy and elevator pitch in DBP, I was able to speak and write essays and business reports at work and at University using good business English.
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3.3 Skill gaps:The challenges I have faced during my past modules, was to develop research and investigative skills, concerning retrieving relevant data and analyse case studies. I have also lack in leadership skills in term of team work, organizational strategies, training and development.
Source: Beardwell and Claydon (2010)
After our first group presentation during Business Simulation, I had this feedback from my tutor Mr. Wale, that I have lack of leadership skills where I missed our main objectives for your organization. I have failed to fill the gap of our group ineffectiveness.
4. Relevance and value: As I mention before I would like to work in the Retail Industry as an Area Manager. However, as an employee I am interested in finding the role of London supermarket's online customer service. The role of Area Manager(see more in appendix 4) are planning, communication, decision making and problem solving, conducting interviews, risk management and leadership. The knowledge I have gained from all disciplines, especially from Business Simulation, Marketing and Finance will help me to calculate risk, productivity, current market and capture the opportunities to minimise the threat and weaknesses to gain competitive advantages over competitors.
I have concentrated on employability skills especially my communication, IT and planning and delegating skills because those skills are most essential by the
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employers, as they require their employees to speak, listen, read and write resourcefully as successful communication is vital for business.
5. Conclusion:In conclusion, I would like to say, I was able to identify the most important areas of learning and took decisions which actions that will enable me to gain or develop my existing skills. As I have mention above, I need to improve my research and investigative skills as well as leadership skills which I required for the job I would like to apply in future. I also need to improve some other skills which are crucial for my future goal, such as team working, learning and personal management skills.
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6. Bibliography:
Books:Arnold, G., (2008). Corporate Financial Management, 4th Edition, Pearson Education Limited, England.
Ajibefun, I.A., & Daramola, A.G. (2003). Determinants of Technical and Allocative Efficiency of Microenterprises: Firm-level Evidence from Nigeria. African Development Review, 15(2-3): 353-395.
Beardwell, J., Claydon, T. (2010) 5th Edition Human Resource Management: A Contemporary Approach. Harlow: Financial Times Prentice Hall
Cameron, S. (2009), 5th Edn. The Business Student's Handbook: Skills For Study And Employment. Pearson Education Limited, England
Jobber, D. & Lancaster, G. (2009), 8th Edn. Selling and Sales Management. Pearson Education Limited, Essex, England.
Kotler, P., Keller, K.L., Brady, M., Goodman, M., Hansen, T., (2012), 2nd Edn. Marketing Management. Pearson Education Limited, Essex, England.
McCarthy, E.J. (1960) Basic Marketing: A Managerial Approach, Irwin, Homewood, IL.
Proctor R (2009) Managerial Accounting for Business Decisions (3rd Ed) Harlow. FT/Prentice Hall
Sadler-Smith, E., Evans, C. (2006) Learning Styles in Education and Training. Emerald Group Publisher.
Speelman, S., D’Haese, M., Buysse, J., & D’Haese, L. (2008). A measure for the efficiency of water use and its determinants, a case study of small-scale irrigation schemes in North-West Province, South Africa. Agricultural Systems, 98(1): 31-39.
Journals:Borden, N.E. (1964) 'The concept of marketing mix', Journal of Advertising Research, 4(June), pp. 2-7
Online Resources:1000 Ventures. [online] available from <http://www.1000ventures.com/design_elements/selfmade/kaizen_culture_8elements_6x4.jpg>
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Allocative Efficiency, Agency for Healthcare Research and Quality. [online] available from <http://www.ahrq.gov/qual/efficiency/hcemappa.htm> [2012]
Aurora TDS. [online] available from <http://www.aurora-tds.co.uk/belbinforyoungpeople.html> [February, 2012]
Bank for international settlements. [online] available from <http://www.bis.org/publ/qtrpdf/r_qt0803z.htm>
BELBIN TEAM ROLES. [online] available from <http://www.belbin.com/rte.asp?id=8> [2012]
Business Education. [online] available from <http://www.bized.co.uk/reference/diagrams/The-Flow-of-Working-Capital---Cash-Flow-Cycle> [16.07.2001]
Business Dictionary. [online] available from <http://www.businessdictionary.com/definition/production.html> [2012]
Business Coach. [online] available at <http://www.insbeco.com/1000ventures/products/bec_mc_cif.html>
Capgemini Consulting. [online] available from <http://www.capgemini-consulting.com> [2012]
Cesim, Sim Firm. [online] available at <http://sim.cesim.com/results/se/IncomeStatementPage/wicket:pageMapName/wicket-0>
Cesim, Sim Firm. [online] available at <http://sim.cesim.com/results/se/ProductionPage/wicket:pageMapName/wicket-0>
Cesim, sim firm. [Online] available from <http://sim.cesim.com/dss/se/OutlookPage/wicket:pageMapName/wicket-0> [22.08.12]
Investopedia. [online] available from <http://www.investopedia.com/terms/g/gearingratio.asp> [2012]
Investor Words.[online] available from <http://www.investorwords.com/1940/finance.html> [2012]
Johns Hopkins University, School of Education. [online] available from <http://education.jhu.edu/PD/newhorizons/strategies/topics/Learning%20Styles/playground.html> [September, 2002]
GP Education and Training Resource. [online] available from <http://www.gp-training.net/training/educational_theory/reflective_learning/learning_styles/introduction.htm> [February, 2011]
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Government of Pakistan Ministry of Finance. [online] available from <http://www.mtbfpakistan.gov.pk/mtbf-process-bottomup.htm>
London Deanery. [online] available from <http://www.faculty.londondeanery.ac.uk/e-learning/assessing-educational-needs/when/view?portal_status_message=Error%20creating%20PDF%20file>
Marketing Plan. [Online] available from <http://www.marketingplan.net/marketing-mix/> [31.08.12]
The Working capital cycle. [online] <http://withfriendship.com/user/boss/working-capital.php>
Tom Spencer. [online] available from <http://www.tomspencer.com.au/2009/01/25/product-life-cycle-model/> [25.01.2009]
World Trade Group. [online] available from <http://www.wtgnews.com/2010/08/the-supply-chain-strain-is-changing-the-way-manufacturers-do-business/> [2012]
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7. Appendices:
AR Three - Finance
Appendix 1: Sales and marketing cost
Individual Reflective Diary:
Appendix 1: Core skills assessmentUse this template to rate your skill level against each of the QAA Core Skills for International Business Students. For more information, refer to page 7-8 in Cameron (2009).
Core Skill Skill Rating (1–10)Low =1 – High = 10
EvidenceInsert an example to support your rating
Cognitive skills: critical thinking, analysis and synthesis
6 Before taking this module I believed what theories say. I never used to look for an alternative theory or ask question to me why this is perfect for everyone. Now I am looking for a different courses and weakness or advantages of any task or theories. For example: Maslow’s hierarchy of needs. Depends on individuals the pyramid varies. For disable people they need love and caring more than other needs.
Problem solving and decision making: using quantitative and qualitative data
7 At work I take quick decision and solve problem according. For example: I have checked last week sales report for our company and saw one of our style selling really well and it
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wasn’t even on display, so I put them on display and in that day we sold couple of them.
Research and investigative skills: as part of individual and team assignments
6 In research and investigate, as an individual my skill is fair but as team assignments I do always very good results. As a Team Leader for 2 groups at university and at my work I my duties are to research and investigate on others and make sure they are doing their assigned task and serve as a group. My group score was 65 and 70 respectively in DBP and IBS.
Information and communications technology skills: using a range of business applications
7 I was an IT student before. And moderate user of MS Office. To communicate I use all sort of resources such as mobile, email, text and internet.
Numeracy and quantitative skills: data analysis, interpretation and extrapolation
7 Once taught I am very good at calculation, analysis and ratios. I am doing it every day at work as a Team Leader like hours, productivity and personal targets.
Communication skills: oral and written English, using a range of media
6 Verbal or nonverbal communication I am very good but I am not good at writing. An average person. But I want to improve it. In my IELTS test I scored only 5.5 on writing but overall score was 6.5.
Interpersonal skills: talking, listening and negotiation
7 I can talk, at the same time I can listen to others and give appropriate answer to the receiver. My negotiation skill is very good because I know how to explain. In the class I always participate with lecturer, I listen to them and I ask questions. In group activities I listen to the group members, share my ideas and come up with the best solution and distribute between them what needs to be done.
Team-working skills: leadership, team-building, influencing others
7 I am a Team Leader in world largest shoe company and I am managing almost 90 people in
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my store. My learning of the product knowledge and latest information around the world about fashion and design make stand out from my colleagues and sales team member. I can influence and motivate other to bring out what lies within them.
Personal management skills: time management and planning, motivating yourself, using initiative
6 Time management is pretty good when it's come to serve on time at work or at university. I submit my papers on time and I never leave pending works for tomorrow at work. I motivate myself doing hard work and getting feedback from lecturer and from my store manager.
Learning skills: reflective, adaptive and collaborative
6 Throughout my student life I am a very good learner on practical work rather than text book. I can adapt any environment easily. I am mixture of active and pragmatic learner.
Self-awareness: sensitivity and openness to others who are different to you, emotional intelligence
8 I am open to others and I observe others so that I can have an idea and how to deal with them. I always keep in touch with my colleagues and those who need personal assistant to finish their course or job.
Appendix 2: SWOT analysisUse this section to create your SWOT (Strengths, Weaknesses, Opportunities and Threats) for your current study and future career plans.
MY STRENGTHS Hardworking Good Listener Team Player Communicative Eager to learn Active IT skilled Strong public speaker Self-awareness Interpersonal skills i.e. listening and
presentation skills
MY WEAKNESSES Lack of planning Lack of delegation Lack of time management Critical thinking Research and investigative skills
I get nervous sometimes when doing presentation and to do list give me stress.
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I am a creative person and I often impress my manager with my IT skills. I also ask question during class or management brief to get the best idea of the subjects.
MY OPPORTUNITIES Can be score excellent grades at
university To become a successful manager Allow me to gain access in different
business fields.I am able to manage myself and able to work independently and with others successfully.
I am self aware and can communicate in three different language fluently, Hindi, Urdu and English where my opportunity to work in India as she is the immerging nation.
At work my assistant manager leaving soon for her maternity leave. I am covering her while she is away.
MY THREATS Other graduates at the job market Might be score poor grades at
university My group members Poor job market Recession
For economic recession globally firms are cutting funds and it is a big threat for me.
Appendix 3: VAK learning styles questionnaire
visual auditory kinesthetic/physical
1
when operating new equipment for the first time I prefer to
read the instructions
listen to or ask for an explanation
have a go and learn by 'trial and error'
K
2
when seeking travel directions I..
look at a map
Vask for spoken directions
follow my nose or maybe use a compass
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3
when cooking a new dish I..
follow a recipe
Vcall a friend for explanation
follow my instinct, tasting as I cook
4
to teach someone something I..
write instructions
explain verbally
demonstrate and let them have a go
K
5I tend to say..
"I see what you mean"
"I hear what you are saying"
"I know how you feel"
K
6I tend to say..
"show me"
V "tell me" "let me try"
7I tend to say..
"watch how I do it"
V"listen to me explain"
"you have a go"
8
complaining about faulty goods I tend to..
write a letter
phonego back to the store
K
9
I prefer these leisure activities
museums or galleries
music or conversation
physical activities or making things
K
10
When shopping generally I tend to..
look and decide
discuss with shop staff
try on, handle or test
K
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11Choosing a holiday I...
read the brochures
Vlisten to recommendations
imagine the experience
12Choosing a new mobile I...
read the reviews
Vdiscuss with friends
Test it in a shop
13learning a new skill
I watch what the teacher is doing
V
I talk through with the teacher exactly what I am supposed to do
I like to give it a try and work it out as I go along by doing it
14
Choosing from a restaurant menu...
I imagine what the food will look like
I talk through the options in my head
I imagine what the food will taste like
K
15when listening to a band
I sing along to the lyrics (in my head or out loud!)
I listen to the lyrics and the beats
I move in time with the music
K
16When concentrating I...
focus on the words or pictures in front of me
discuss the problem and possible solutions in my head
move around a lot, fiddle with pens and pencils and touch unrelated things
K
17 I remember things
writing notes or keeping
saying them aloud or repeating
doing and practising the activity, or
K
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best by...printed details
words and key points in my head
imagining it being done
18my first memory is of
looking at something
Vbeing spoken to
doing something
19When anxious, I...
visualise the worst-case scenarios
V
talk over in my head what worries me most
can't sit still, fiddle and move around constantly
20
I feel connected to others by
how they look
Vwhat they say to me
how they make me feel
21
When I revise for an exam, I..
Write lots of revision notes (using lots of colours!)
V
I talk over my notes, to myself or to other people
imagine making the movement or creating the formula
22
When explaining something to someone, I tend to..
show them what I mean
V
explain to them in different ways until they understand
encourage them to try and talk them through the idea as they try
23 my main interests are
photography or watching
listening to music or listening to
physical/sports activities or food or
K
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films or playing computer games
the radio or talking to friends
dancing
24
Most of my free time is spent..
watching television
Vtalking to friends
doing physical activity or making things
25
When I first contact a new person..
I arrange a face to face meeting
I talk to them on the telephone
A
I try to get together to share an activity
26
I first notice how people..
look and dress
Vsound and speak
stand and move
27If I am very angry..
I keep replaying in my mind what it is that has upset me
I shout lots and tell people how I feel
I stomp about, slam doors and throw things
K
28
I find it easiest to remember
faces V namesthings I have done
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29
I think I can tell someone is lying because..
they avoid looking at you
their voice changes
the vibes I get from them
K
30
When I'm meeting with a friend..
I say "it's great to see you!"
I say "it's great to hear your voice!"
I give them a hug or a handshake
K
totals visual 15 auditory 1kinesthetic/physical
14
The total scores for each style indicate your relative preferred learning style or styles. There are no right or wrong answers. Some people have very strong preferences, even to the extent that they have little or no preference in one or two of the styles. Other people have more evenly balanced preferences, with no particularly strong style. The point is simply to try to understand as much as you can about yourself and your strengths (your preferred style or styles), and then make best use of learning methods which suit your strengths (your preferred style or styles).
Visual learning style involves the use of seen or observed things, including pictures, diagrams, demonstrations, displays, handouts, films, flip-chart, etc.
Auditory learning style involves the transfer of information through listening: to the spoken word, of self or others, of sounds and noises.
Kinesthetic learning involves physical experience - touching, feeling, holding, doing, and practical hands-on experiences.
Appendix 4: Role of Area Manager
Skills Explanation
Planning Area manager must have planning and organising skills to achieve organisational goals. For example: plan for the business and opportunity and over the weakness as well as plan for workload, stress and possibility.
Communication Area manager should have excellent writing, speaking and
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listening skills. Most managers are wonderful in writing and reading but not listening.
Decision making and problem solving
To move organisation’s plan forward area manager must have decision making skills and solve the arising problem quickly and accordingly. Another organisation might take the opportunity of one’s weakness if manager cannot act quickly and solve the problems.
Delegation Workload might be a big problem for stress. Sometimes managers fall behind because of workload. Area manager must have delegation skills to get best results out from store managers.
Conducting interviews
Area manager’s duty is to hire managers and assistant managers to serve the organisation. This is big investment for business. Area manager have to make sure he or she hires the right person to help him or her week in, week out to achieve organisational goals.
Motivation To achieve organisational goals area manager have to motivate the teams around him. Without motivated teams he cannot achieve his target and it will cost company a lot. And if he could do it without spending any money it would be a great success.
Risk Management
Area manager’s one important skill is to manage risk and bring company to a profitable organisation. For example: recession or falling of sales target. Area manager should have a plan to overcome this risk or survive during recession.
Leadership Leadership is a critical management skills. Bring change if organisation required and stand above everyone, be respectful and quality to motivate teams to achieve common goals. For an example: Carlos Ghosn (Appendix 3.7 Learning Journal 7 )
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