Entrepreneurship Development and Management EDM Baljit S Siwach

Entrepreneurship Development and Management (EDM) Baljit S Siwach Lect. in Mech. Engg. G. P. Sonipat

ENTREPRENEURSHIP • Entrepreneurship is the process of designing, launching and running a new business, which is often initially a small business. . Entrepreneurship has been described as the "capacity and willingness to develop, organize and manage a business venture along with any of its risks to make a profit. "

NEED OF ENTREPRENEURSHIP • Entrepreneurship is important as it has the ability to improve standards of living and create wealth, not only for the entrepreneurs, but also for related businesses. • Entrepreneurs also help drive change with innovation, where new and improved products enable new markets to be developed.

FUNCTIONS OF AN ENTREPRENEUR • Risk Bearing, Administrative, Decision-Making and Distributive Functions. • An entrepreneur frequently has to wear many hats. He has to perceive opportunity, plan, organize resources, and oversee production, marketing, and liaison with officials.

Qualities of a Successful Entrepreneur • • • Confidence. . Open Minded. . Self Starter. . Competitive. . Creativity. . Determination. . Strong people skills. Strong work ethic Passion

Barriers to Entrepreneurship • • • Finances Fear of not to be a success No strategic plan in place Human resource issues Stringent rules and regulations of the market Fewer opportunities Lack of capacity Less market experience Lack of risk-taking capacity Corrupt business situations Inadequate training Lack of practical knowledge

Common Business Structures • Sole Proprietorship. A sole proprietorship is the most basic – and easiest – type of business to establish. . • Partnership. A partnership is a single business where two or more people share ownership. . . • Corporation. . • Limited Liability Company (LLC). . . • Cooperative. .

SOLE PROPRIETORSHIP • A business that legally has no separate existence from its owner. . The sole proprietorship is the simplest business form under which one can operate a business. • The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. • Examples: small businesses, such as a single person art studio, a local grocery, or an IT consultation service

PARTNERSHIP • A partnership is a form of business organization in which owners have unlimited personal liability for the actions of the business. • The owners of a partnership have invested their own funds and time in the business, and share proportionally in any profits earned by it.

Assistance to Entrepreneurs • Entrepreneurs need strong support and advisory system in order to turn their startup ideas into valuable businesses. . • The bright and ambitious minds of entrepreneurs are to turn their break-through ideas into successful companies with purpose, driven by their vision. • By supporting entrepreneurs, we support innovation.

Cont. . • Assistance to Entrepreneurs may be: National, State, District –level The main organisations are: NSIC, NRDC, MSME, SIDBI, NABARD, NIESBUD, HARDICON Ltd. , Commercial Banks, SFC’s TCO, KVIB, DIC, Technology Business Incubators (TBI) and Science and Technology Entrepreneur Parks

ROLE OF NSIC • NSIC is an ISO 9001 -2008 certified Government of India Enterprise under Ministry of Micro, Small and Medium Enterprises (MSME). • NSIC has been working to fulfill its mission of promoting, aiding and fostering the growth of small industries and industry related micro, small and medium enterprises in the country.

ROLE OF NRDC • National Research Development Corporation (NRDC) was established in 1953 by the Government of India, with the primary objective to promote, develop and commercialise the technologies / know-how / inventions / patents / processes emanating from various national R&D institutions / Universities and is presently working. . .

ROLE OF DIC • District Industries Centers (DICs) provide full assistance to the entrepreneurs who are going to start the business on their own and in their regional places. . • These DIC programs can take over the responsibilities in order to promote cottage and small scale industries at district level effectively.

ROLE OF MSME • The MSMEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. The MSMEs play a vital role in the overall growth of industrial economy of the country.

ROLE OF SIDBI • Its purpose is to provide refinance facilities and short term lending to industries, and serves as the principal financial institution in the Micro, Small and Medium Enterprises (MSME) sector. • SIDBI also coordinates the functions of institutions engaged in similar activities.

ROLE OF NABARD • NABARD functions to promote sustainable rural development for attaining prosperity of rural areas in India. It is basically concerned with “matters concerning policy, as well as planning and operations in the field of credit for agriculture and other economic activities in rural areas in India”. • NABARD is an apex Development Bank authorised for providing and regulating credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promote

ROLE • The general role of commercial banks is to provide financial services to general public and business, ensuring economic and social stability and sustainable growth of the economy. In this respect, credit creation is the most significant function of commercial banks. • Commercial banks are authorized to provide a variety of financial services which includes loans, savings accounts, etc. In this article, we will talk about various functions that a commercial bank performs.

ROLE OF HARDICON • HARDICON was set up in 1985, jointly by Public Sector Banks and Financial Institutions with the twin objectives of facilitating overall industrial development of the country by catering to the technical consultancy needs of the industry and promoting entrepreneurship. • HFC, HSIIDC and DFC of the two State Governments with the twin objectives of facilitating overall industrial development of the country by catering to the technical consultancy needs of the industry and promoting entrepreneurship.

TECHNOLOGY BUSINESS INCUBATOR (TBI) • A technology business incubator (or TBI) is a type of business incubator focused on supporting startups which use modern technologies as the primary means of innovation. In several countries, including India, China, and the Philippines there have been government initiatives to support TBIs. • The goal of the TBI is to facilitate economic development by improving the survival and growth of new entrepreneurial groups. They aim to accelerate the development of young entrepreneurial start-ups and companies from early to mid-stage entrepreneurial development.

TECHNICAL CONSULTANCY ORGANISATIONS (TCOs) • All India financial institutions and state governments have set lip a net work Of technical consultancy organizations. • The functions of the TCOs include, conducting surveys on industrial potential, preparing project profiles, undertaking techno-economic appraisal of projects, carrying out market research, providing technical and managerial assistance to entrepreneurs, assistance in modernisation, technology upgradations and rehabilitation programmes and organising information cell and Data Bank concerning industrial and economic activities and provide these to entrepreneurs.

ROLE OF KVIC • Khadi and Village Industries Commission (KVIC) has been conducting Entrepreneurship and Skill Development Programmes (ESDPs) for persons working in Khadi and Village Industries (KVI) through 38 Departmental and Non departmental training centres located in 18 States. • Primary Objective – To build up an active rural community. Social Objective – To provide employment in rural areas. Economic Objective – To produce a saleable product. Wider Objective – To create selfreliance among the economically weaker section.

Science & Technology Entrepreneurship Park (STEP) • The Science Parks and similar initiatives help in creating an atmosphere for innovation and entrepreneurship; for active interaction between academic institutions and industries for sharing ideas, knowledge, experience and facilities for the development of new technologies and their rapid transfer to the end user. • It was initiated to provide a re-orientation in the approach to innovation and entrepreneurship involving education, training, research, finance, management and the government. A STEP creates the necessary climate for innovation, information exchange, sharing of experience and facilities and opening new avenues for students, teachers, researchers and industrial managers to grow in a trans-disciplinary culture, each understanding and depending on the other's inputs for starting a successful economic venture.

ROLE OF SFC • The State Finance Corporations (SFCs) are an integral part of institutional finance structure of a country. Where SEC promotes small and medium industries of the states. Besides, SFC help in ensuring balanced regional development, higher investment, more employment generation and broad ownership of various industries. • The objectives are to maintain and promote fairness, efficiency, competitiveness, and transparency in the securities and futures markets; promote public understanding of investing and corporate finance policy; protect investors by enforcing regulations; reduce crime and misconduct

Chap-2. Market Survey and Opportunity Identification/Ideation • Environmental scanning is the process of gathering information about events and their relationships within an organization's internal and external environments. The basic purpose of environmental scanning is to help management determine the future direction of the organization. • Environment must be scanned so as to determine development and forecasts of factors that will influence organizational success. Environmental scanning refers to possession and utilization of information about occasions, patterns, trends, and relationships within an organization's internal and external environment.

Types of environmental scanning • Start scanning the relevant areas, using environmental scanning techniques like SWOT analysis, PESTLE analysis, interviews, surveys, focus groups, market research etc. • Weed out the unnecessary information and organize the relevant findings. You can make use of an affinity diagram to quickly categorize the data

PESTEL analysis • A PESTEL analysis is an acronym for a tool used to identify the macro (external) forces facing an organisation. • The letters stand for • Political • Economic • Social • Technological • Environmental • Legal.

Main Features of the New Industrial Policy of India • The government announced a New Industrial Policy on July 24, 1991. This new policy deregulates the industrial economy in a substantial manner. • The major objectives of the new policy are to build on the gains already made, correct the distortions or weaknesses that might have crept in, maintain a sustained growth in productivity and gainful employment, and attain international competitiveness.

Cont. . • In pursuit of these objectives, the government announced a series of initiatives in the new industrial policy as outlined below: • Abolition of Industrial Licensing • Public Sector’s Role Diluted • Abolition of Phased Manufacturing Programmes • MRTP Act • Free Entry to Foreign Investment and Technology • Industrial Location Policy Liberalised • Removal of Mandatory Convertibility Clause

Market survey • Market survey is the survey research and analysis of the market for a particular product/service which includes the investigation into customer inclinations. • Market surveys collect data about a target market such as pricing trends, customer requirements, competitor analysis, and other such details.

Purpose of Market Survey • Gain critical customer feedback • Understand customer inclination towards purchasing products • Enhance existing products and services • Make well-informed business decisions

Types of Market Survey • 1 – Market Investigation Surveys • 2 – Market & Customer Profiling Surveys 3 – Purchasing Tracking Surveys. . • 4 – Customer Motivation Surveys • 5 – Customer Expectations (& Attitudes) Surveys • 6 – Customer Retention Surveys. • 7 – New Product Concept Analysis Surveys

Assessment of demand supply in potential areas of growth • Follow these five steps to evaluate the attractiveness of a new market opportunity and start prioritizing your business growth initiatives. • Research your customers and competition. . • Get a high-level view of the market. . • Explore adjacent opportunities. . • Understand the business environment factors.

Cont. .

Identifying business opportunity Here are four ways to identify more business opportunities. • Listen to your potential clients and past leads. When you're targeting potential customers listen to their needs, wants, challenges and frustrations with your industry. . • Listen to your customers. . • Look at your competitors. . • Look at industry trends and insights.

Considerations in product selection • 6 Main Stages of New Product Selection and Development Process • Exploration: New ideas are sought from the sales force, since that is the department which is in constant direct contact with customers. • Screening: ADVERTISEMENTS • Business Analysis • Development • Testing • Commercialization

Converting an idea into a business opportunity • • • 8 Ways to Turn Your Business Idea Into Action Pursue Your Passions and Interests. Build Positive Relationships and Reach Out When Necessary. Think About What Needs Improvement in Your Industry. Keep an Open Mind. Have Capacity for Growth. Draw Inspiration From Brands and Companies You Respect. Avoid Perpetual Planning. Don't Let the Fear of Failure Hold You Back.

Chapter-3 Project Report Preparation • A Project Report is a written document pertaining to any investment proposal. It contains relevant data, on the basis of which the project has been appraised and found relevant to the entrepreneur. • A project Report is prepared by the expert after detailed study & analysis of the various aspects of a project.

Preliminary project report • A Project Report is a written document pertaining to any investment proposal. It contains relevant data, on the basis of which the project has been appraised and found relevant to the entrepreneur. • The project Report is prepared by the expert after detailed study & analysis of the various aspects of a project. • The project preliminary report describes your progress so far. It should form the basis of your final report. • The preliminary report should include: Problem: A clear description of the problem you are addressing.

Detailed project report (DPR) • Detailed Project Reports (DPRs) are the outputs of planning and design phase of a project. • DPR is a very detailed and elaborate plan for a project indicating overall programme, different roles and responsibilities, activities and resources required for the project. • The preparation of the DPR is the final and most important stage of pre-investment phase of project.

Cont. . The project report will be prepared for a plan of action to be undertaken which covers various aspects viz • i. Technical, • ii. Financial, • iii. Marketing, • iv. Management • v. Social.

Project Report preparation • A Project Report is a written document pertaining to any investment proposal. It contains relevant data, on the basis of which the project has been appraised and found relevant to the entrepreneur. • A project Report is prepared by the expert after detailed study & analysis of the various aspects of a project.

Common errors in project report preparations • Not including what your audience actually needs. Project teams and stakeholders are busy people who are unlikely to appreciate anything that wastes their time. . • Lack of standardised templates. . • Too much information. . • Not using project reports. . • Ignoring a mistake.

Exercises on preparation of project report Here is a guide to 7 steps for easier project reporting. • Establish who to report to. First, work out who is going to receive this report. • Define expectations. What does this audience expect to see? • Agree on the format of the report. • Plan what to say. • Prepare the report. • Deliver your report. • Follow up.

Sample project report • A Project Report is a document which provides details on the overall picture of the proposed business. . It contains data on the basis of which the project has been appraised and found feasible. • It consists of information on economic, technical, financial, managerial and production aspects.

Cont. . • Below is the sequence of standard format which should be followed while preparing new business project report: • Background of the business. • Customer's profile. • Long and short term Corporate Objectives. • Market Analysis. • Financial Assessment. • Marketing Assessment. • Operational Plan. • Financial Plan.

Chapter-4 Introduction to Management • Management functions include: Planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. • Management consists of the interlocking functions of creating corporate policy and organizing, planning, controlling, and directing an organization's resources in order to achieve the objectives of that polic

Definitions • The process of dealing with or controlling things or people. "the management of the economy" • The people managing a company or organization, regarded collectively. • The best definition of management was created by the American Management Association. “It is the act of getting things done through others and having them do it willingly”. It is a difficult art, not a science, like the computer business or manufacturing.

Importance of management • Importance of Management. It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of predetermined goals. • Management ensures optimum utilisation of resources. Through planning and organisation, management eliminates all types of wastages and achieves efficiency in all business operations. Management motivates workers to put in their best performance. This would lead to the effective working of the business.

Functions of Management Henry Fayol, the father of principles of management, has classified managerial functions as follows: • 1. Planning 2. Organizing 3. Staffing 4. Directing 5. Controlling.

Principles of management (Henri Fayol, F. W. Taylor) • F. W. Taylor laid down the concept of Scientific Management. Henry Fayol emphasized the working of top level management, whereas F. W. Taylor stressed on the working of production level management. Conversely, Taylor's principles rely on observation and experimentation. Fayol is oriented towards managerial function.

Concept an Organisation • “Organisation can be defined as the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives. ”

structure of an organisation • An organizational structure is a system that outlines how certain activities are directed in order to achieve the goals of an organization. These activities can include rules, roles, and responsibilities. • The organizational structure also determines how information flows between levels within the company.

Types of industrial organisations • here a variety of legal types of organisations, including corporations, governments, non-governmental organisations, political organisations, international organisations, armed forces, charities, not-for-profit corporations, partnerships, cooperatives, and educational institutions.

Line organisation • Line Organization. Line organization is the most oldest and simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom.

staff organisation • One of the commonly used traditional hierarchical organizational structures is referred to as line and staff. It is a vertical hierarchy where some horizontal support is provided to key positions within the organization. • It's used in medium and large organizations.

Line and staff organisation • Line and Staff Organization is a compromise of line organization. It is more complex than line concern. Division of work and specialization takes place in line and staff organization. • The whole organization is divided into different functional areas to which staff specialists are attached.

Functional Organisation • A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing. • For example, there might be separate departments for marketing, accounting, and engineering. Generally, all the functional heads will report directly to the company president or CEO.

Leadership and Motivation Effective leaders have the potential to inspire workers in an organisation and in turn improve productivity. Leaders need to create passion among workers so that they can see meaning and sense in the different roles they are playing. Both passion and inspiration are key ingredients in motivation.

Leadership Definition • A simple definition is that leadership is the art of motivating a group of people to act toward achieving a common goal. . They are the person in the group that possesses the combination of personality and leadership skills to make others want to follow their direction.

Need of Leadership • A good leadership creates a better work world which increases the productivity and overall efficiency of the business. • Leadership provides the sense of purpose to the business. A leader looks forward and sees where the business is headed. It helps us to avert from the catastrophe before it happens.

Leadership Qualities That Make Good Leaders • • • • Honesty and integrity Confidence Inspire Others Commitment and Passion Good Communicator Decision Making Capabilities Accountability Delegation and Empowerment Creativity and Innovation Empathy Resilience Emotional Intelligence Humility Transparency Vision and Purpose

Function of a leader Following are the important functions of a leader: 1. Setting Goals 2. Organizing 3. Initiating Action 4. Co-Ordination 5. Direction and Motivation 6. Link between Management and Workers

Manager Vs leader • The main difference between leaders and managers is that leaders have people follow them while managers have people who work for them. • A successful business owner needs to be both a strong leader and manager to get their team on board to follow them towards their vision of success.

Types of leadership Common Leadership Styles • Democratic Leadership • Autocratic Leadership • Laissez-Faire Leadership • Strategic Leadership • Transformational Leadership • Transactional Leadership • Coach-Style Leadership • Bureaucratic Leadership

Case studies of great leaders • Great leaders don't reach the height of success without facing their share of minor challenges and major crises. In fact, most outstanding leaders would say that working through difficulties made them even better. The following case studies demonstrate how three great leaders overcame serious difficulties.

Motivation • Motivation is the word derived from the word 'motive' which means needs, desires, wants or drives within the individuals. It is the process of stimulating people to actions to accomplish the goals. • In the work goal context the psychological factors stimulating the people's behaviour can be - desire for money, success.

Characteristics of Motivation • There are two desiring factors in motivation(a) Fundamental needs, such as food, clothes and shelter and (6) Ego-satisfaction including self-esteem, recognition from others, opportunities for achievements, selfdevelopment and self actualization which act as powerful though unconscious, motivator of behaviour.

Cont. . 1. Motivation is a Psychological Concept 2. Motivation affects the Whole Individual, not part of Him /Her 3. Motivation is never an Unending Process 4. Non-fulfilment of Basic Needs Makes a Man Sick 5. Goals are Motivators 6. The Self-concept as a Unifying Force 7. Motivation is a complex phenomenon 8. Motivation is different from Satisfaction, Inspiration, and Manipulation

Importance of self-motivation • Self-motivation is, in its simplest form, the force that drives you to do things. The ability to motivate yourself—self-motivation—is an important skill. • Self-motivation drives people to keep going even in the face of set-backs, to take up opportunities, and to show commitment to what they want to achieve.

Factors affecting motivation • Drivers of human behavior related to the intrinsic nature of the work, but not necessarily to the surrounding circumstances or environment. • Motivating factors include achievement, advancement, autonomy, personal growth, recognition, responsibility, and the work itself.

Cont. . • • • Relationship between co-workers. Leadership role at workplace. Managing Conflict at Workplace incentives. Workplace Culture. Workplace Education or Learning.

Theories of Motivation • Some of the famous motivation theories include the following: • Maslow's hierarchy of needs. Abraham Maslow postulated that a person will be motivated when his needs are fulfilled. • Hertzberg's two factor theory. • Mc. Clelland's theory of needs. • Vroom's theory of expectancy. • Mc. Gregor's theory X and theory Y.

Maslow's Theory of Motivation • Maslow states that people are motivated by unmet needs which are in a hierarchical order that prevents people from being motivated by a need area unless all lower level needs have been met. • This critique of Maslow's theory of motivation examines all of its major components. The theory is summarized and its basic propositions are analyzed in the light of internal logic, other relevant theories, and related research. • This examination points up many deficiencies in Maslow's theory, which enjoys wide acceptance, especially among humanistic psychologists. Suggestions are made regarding modifications to theory that would remedy many of its more serious problems but at the same time preserve its perceptive insights.

Herzberg's motivation theory • The two-factor theory (also known as Herzberg's motivation-hygiene theory and dual-factor theory) states that there are certain factors in the workplace that cause job satisfaction while a separate set of factors cause dissatisfaction, all of which act independently of each other.

Douglas Mc. Gregor • Douglas Mc. Gregor's work builds on the work of other behavioral scientists who showed a link between human behavior, motivation, and productivity. • Theory X managers believe employees are self-centered, dislike work, are unambitious, avoid responsibility, and dislike change.

Chapter 06 Management Scope in Different Areas Human Resource Management (HRM) Introduction: Human Resource Management (HRM) is an operation in companies designed to maximize employee performance in order to meet the employer's strategic goals and objectives. More precisely, HRM focuses on management of people within companies, emphasizing on policies and systems.

Objective of Human Resource Management • The primary objective of HRM is to ensure the availability of a competent and willing workforce to an organization. Beyond this, there are other objectives, too. Specifically, HRM objectives are four folds- societal, organizational, functional, and personal.

Cont. . • This primary objective can further be divided into the following subobjectives: • 1. To help the organisation to attain its goals effectively and efficiently by providing competent and motivated employees. • 2. To utilize the available human resources effectively. • 3. To increase to the fullest the employee’s job satisfaction and selfactualisation. • 4. To develop and maintain the quality of work life (QWL) which makes employment in the organisation a desirable personal and social situation. • 5. To help maintain ethical policies and behaviour inside and outside the organisation. • 6. To establish and maintain cordial relations between employees and management. • 7. To reconcile individual/group goals with organisational goals.

HRM Objectives and Functions

Introduction to Man power planning, recruitment and selection • MANPOWER PLANNING, RECRUITMENT, TRAINING TRANSFER, PROMOTIONS POLICIES. • Man power planning or human resource planning means deciding the number and type of the human resources required for each job, unit and the total company for a particular future date in order to carry-out organizational activities.

Manpower Planning • Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization.

Recruitment Sources • The top 9 recruitment sources your company should continuously leverage to reach the best talent out there. • Job Boards. • Company Website. • Social Media. • Referrals. • Direct Contact. • Temp-to-Hires. • Career Fairs. • Agency. • Newspapers.

Introduction to performance appraisal methods • Performance appraisal is the systematic evaluation of the individual with regard to his or her performance on the job and his potential for development”. • According to Gary Dessler, Performance appraisal is an evaluation of employee's current or past performance relative to his/her performance standards.

Performance Appraisal Methods • The employee performance appraisal process is crucial for organizations to boost employee productivity and improve their outcomes. But although performance management is super important, it’s rarely put to good use. • Many companies don’t put in their best effort to pick the best perfect performance appraisal method, which is why only 55% of employees believe theirs is effective.

Cont. . • Listed below are the various methods that belong in those two categories:

Material and Store Management • Storage is an essential and most vital part of the economic cycle and store management is a specialized function, which can contribute significantly to the overall efficiency and effectiveness of the materials function. • Literally store refers to the place where materials are kept under custody. • Thus , the basic functions , to manage a stores, carried out are: Receiving of incoming consignments (goods) Safe keeping of goods (Custody) Disposal of undesirable goods.

Objectives of store management • To ensure uninterrupted supply of materials without delay to various users of the organization. To ensure safe handling of materials and prevent their damage. To ensure proper and continuous control over the materials. • Minimizing cost of production through minimizing cost on materials • Maintaining the value of materials • Services to User departments • Establishing Co-ordination with other Departments • Advising Materials managers

ABC analysis • ABC analysis is a type of inventory categorization method in which inventory is divided into three categories, A, B, and C, in descending value. • A has the highest value items, B is lower value than A, and C has the lowest value. • For example, ABC analysis can be used to segment your customers and break down customer-specific data. First, you would divide the customers into each of the three categories based on the sales volume the customer provides. Then, you would consider how that volume relates to your margin contribution.

EOQ • Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs. This production-scheduling model was developed in 1913 by Ford W. Harris and has been refined over time. • The formula assumes that demand, ordering, and holding costs all remain constant. • The Economic Order Quantity (EOQ) is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs. • The EOQ model finds the quantity that minimizes the sum of these costs.

Formula and Calculation of Economic Order Quantity (EOQ) • The EOQ formula is the square root of (2 x 1, 000 pairs x $2 order cost) / ($5 holding cost) or 28. 3 with rounding. The ideal order size to minimize costs and meet customer demand is slightly more than 28 pairs of jeans. A more complex portion of the EOQ formula provides the reorder point.

Marketing and sales • Sales and marketing are two business functions within an organization -- they both impact lead generation and revenue. The term, sales, refers to all activities that lead to the selling of goods and services. • And marketing is the process of getting people interested in the goods and services being sold.

Importance of Marketing and sales • Marketing plays an important role in selling. It helps sales teams find and qualify leads and maintains contact with prospects throughout the sales cycle. • Marketing is about identifying a customer's need or want. If a customer doesn't need or want it, you can't sell it.

Functions of Marketing and Sales • Marketing functions include research and development, pricing, distribution, customer service, sales and communications. • In its narrowest form, a sales department advises the marketing department based on its feedback with customers and focuses on customer contact to drive sales.

Physical distribution • Physical distribution includes all the activities associated with the supply of finished product at every step, from the production line to the consumers. • Important physical distribution functions include customer service, order processing, inventory control, transportation and logistics, and packaging and materials. • The principal objectives of physical distribution are to deliver the right goods to the right customer at the right time and place. • ADVERTISEMENTS: In other words, efficiency and satisfactory service are key goals of physical distribution, although there might be some conflicts with each other.

Introduction to promotion mix • A specific combination of promotional methods used for one product or a family of products. Elements of a promotion mix may include print or broadcast advertising, direct marketing, personal selling, point of sale displays, and/or merchandising. • he promotional mix is just one aspect of the overall marketing mix, and it focuses on communication and interaction with potential customers. • Promotion – Activities undertaken by a business to get the message out about its product or service to the target audience.

Sales Promotion • Sales promotion is the process of persuading a potential customer to buy the product. Sales promotion is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty. Some sales promotions are aimed at consumers. • Examples include contests, coupons, freebies, loss leaders, point of purchase displays, premiums, prizes, product samples, and rebates. Sales promotions can be directed at either the customer, sales staff, or distribution channel members (such as retailers).

Financial Management • Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. • Financial management helps to determine the financial requirement of the business concern and leads to take financial planning of the concern. Financial planning is an important part of the business concern, which helps to promotion of an enterprise. Acquisition of Funds.

Cont. . • The primary objectives of financial management are: Attempting to reduce the cost of finance. Ensuring sufficient availability of funds. Also, dealing with the planning, organizing, and controlling of financial activities like the procurement and utilization of funds.

knowledge of income tax • An income tax is a tax that governments impose on income generated by businesses and individuals within their jurisdiction. By law, taxpayers must file an income tax return annually to determine their tax obligations. 12 Income taxes are a source of revenue for governments. • Income from Business or Profession : Income earned through business or profession is taxable under the head 'profits and gains of business or profession. The income on which tax is levied shall be net of expenses.

Sales tax • Sales tax is an amount of money, calculated as a percentage, that is added to the cost of a product or service when purchased by a consumer at a retail location. Forty-five states have state sales tax rates that range from 1. 76% (Alaska) to 9. 45% (Tennessee). On top of these state sales taxes, there are 38 states that have a local sales tax that is added on top of the state sales tax. Consumers then pay the combined state and local tax rate every time they make a purchase. • Sales Tax Rate in India is expected to reach 18. 00 percent by the end of 2020, according to Trading Economics global macro models and analysts expectations. In the long-term, the India Sales Tax Rate - GST is projected to trend around 18. 00 percent in 2021, according to our econometric models.

Excise Tax • An excise tax is a legislated tax on specific goods or services at purchase such as fuel, tobacco, and alcohol. • A percentage tax levied on a company's revenue, instead of (like income tax) on the company's income. A fixed tax levied on an activity or occupation, such as the license fee charged from attorneys, doctors, and other professionals. Also called excise tax.

Custom duty • Custom duty is a type of indirect tax that is levied on all the goods that are imported to the country as well as some goods exported from the country. To simplify it, any tariff that is introduced on goods across national borders is referred to as custom duty. • Custom duty in India is defined under the Customs Act, 1962 and enables the government to levy duty on exports and imports, prohibit export and import of goods, procedures for importing/exporting and offences, penalties etc. All matters related to custom duty fall under the Central Board of Excise & Customs (CBEC).

Value-added tax (VAT) • A value-added tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed. • A value-added tax (VAT) is a consumption tax levied on products at every point of sale where value has been added, starting from raw materials and going all the way to the final retail purchase. For example, if a product costs $100 and there is a 15% VAT, the consumer pays $115 to the merchant.

GST • In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. Under the GST regime, the tax is levied at every point of sale. • Based on the kind of transaction, there are four types of GST, viz. Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Integrated Goods and Services Tax (IGST), and Union Territory Goods and Services Tax (UTGST).

Chapter 7 Work Culture • Work culture plays an important role in extracting the best out of employees and making them stick to the organization for a longer duration. Work culture is a concept which deals in the study of: Beliefs, thought processes, attitudes of the employees. Ideologies and principles of the organization. • Work culture is a combination of qualities in an organization and its employees that arise from what is generally regarded as appropriate ways to think and act. The "work culture" of an organization is a product of its history, traditions, values, and vision. "

Importance of Healthy Work Culture in Organization • The improved morale of workers in a company with a healthy corporate culture increases productivity. When workers increase productivity, the financial health of the organization improves, and profits increase. Increases in productivity are a measure that illustrates efficiencies and effectiveness in the company. • A healthy workplace culture has employees who are given every opportunity to take care of their physical health. Perhaps, the best way to do this is with quality health care benefits that allow workers to see physicians regularly.

Components of Culture • The major elements of culture are symbols, language, norms, values, and artifacts. Language makes effective social interaction possible and influences how people conceive of concepts and objects. Major values that distinguish the United States include individualism, competition, and a commitment to the work ethic. • Religion. Beliefs of a society, some traditions. • Art. Architecture, style. • Politics. Government and laws of a culture (rules and leadership) • Language. Communication system of a culture (speech, writing, symbols) • Economy. • Customs. • Society. • Geography.

Importance of attitude • Attitude is one of the most important factors in helping you get through the highs and lows of life. Since attitude spells how a person copes, whatever perspective you may hold will invariably have an effect in your performance and the way you handle rejection. • The Importance of Having the Right Attitude in Life Our attitude is what influences all our actions. It is only the right attitude, which gets us good results. All the smiles and hand-shakes are not going to get you far, if you do not have the attitude to help others, without any selfish expectations in return.

importance of values • Our values are important because they help us to grow and develop. They help us to create the future we want to experience. Every individual and every organisation is involved in making hundreds of decisions every day. • alues are basic and fundamental beliefs that guide or motivate attitudes or actions. They help us to determine what is important to us. • Values in a narrow sense is that which is good, desirable, or worthwhile. Values are the motive behind purposeful action. They are the ends to which we act and come in many forms. • uman values are most important in life—so important that people are and should be ready to sacrifice almost anything to live with their values. Honesty, integrity, love, and happiness are some of the end values or destination values that human beings seek to attain, practise and live with.

Importance of behaviour • Behaviour is important as it shapes our personality and helps us in building a good character. You develop the skills of good communication and learn how to maintain the decor of the room whilst being with another hundreds or thousands of people in a room. • The first and foremost importance of organizational behavior lies in understanding human behavior. If the management can interpret properly the human needs within an organization, it can work towards fulfilling those needs and also chalk out new plans and incentives to satisfy the employees and boost them.

Behavioural Science – Individual and group behavior. • Organizational behavior is the study of both group and individual performance and action within an enterprise. This field of study scans human behavior in the working atmosphere. • It determines its effect on job structure, performance, communication, motivation, leadership, decision making abilities etc. The way an individual behaves and behavior as a group have two perspectives − internal and external. • Individual & Group Behavior - Introduction. Organizational behavior is the study of both group and individual performance and action within an enterprise. . The way an individual behaves and behavior as a group have two perspectives − internal and external.

References • • • https: //blog. hubspot. com/marketing/leadership-styles www. skillsyouneed. com › self-motivation http: //www. mnestudies. com/ https: //journals. sagepub. com ecoursesonline. iasri. res. in www. mbaknol. com www. linkedin. com › pulse www. yourarticlelibrary. com www. cleverism. com https: //www. investopedia. com/terms/i/incometax. asp https: //www. coverfox. com/personal-finance/tax/customduty/