Supervisory in Business

In order to assess alternative sources of capital, we need to start by considering their costs to the company. The aim of an analysis of the cost of capital will be to arrive at the optimal balance between equity and debt capital. In undertaking this task, it will be evident that each organization has a unique set of circumstances that need to be taken into account. There are some factors that you need to consider to have an optimal cost of capital:

1. The risk involved in the organization’s future strategies

2. Company attitudes to risk

3. The risk in the industry

4. Competitor’s costs of capital and capital structures

5. Possible trends in interest rates and factors that might substantially alter these, such as national economic performance

Having a research and development division in your company is vital. With research and development team, your company can keep developing new products with much more additional capability. Finding new products is not easy. But once if it has been found, your company will get the advantage because you can patent it for several years. And the market will be yours for the moment. Bellow is a short story about a potentiometer.

A potentiometer is made of a variety of materials ranging from polyester to fiberglass, depending on the temperature or cycle need. Potentiometers are commonly used to control electrical devices such as volume control of a radio. Potentiometers operated by a mechanism can be used as position transducers, for example in a joystick.

Few years ago, it is difficult to find a potentiometer that able to handle 60 degree Celsius temperature or 100% humidity. But now, because of the technology, it is easy to find it. Also because of technology, it is easy to find a very tiny potentiometer.

What I was trying to say, if you have a company do not ever stop do researches. Developing new products with new features or additional function of an existing products is will give your company advantages.

There are 5 thing that is important to manufacturing strategy. Here are the things:

1. Factory location and size
   Factory location is important. It is better if the lcoation is near with the supplies and buyers. This will save cost of transportation.

2. Processes
   Each factory will have certain types of equipment and procedures for making products dealing with variations in demand and so on.

3. Production capacity
   The production capacity must be adjusted with the demand.

4. Manufacturing infrastructure
   Planning and controls of stocks, quality, work in progress inventories and the flow of goods are vital to factories.

5. Links with other functions
   Manufacturing has started to move towards production that meet precise customer demand through flexible manufacturing. This is only possible from close links with sales.

Here are 4 things you need to know to measure competitiveness:
1.Cost
Even cost is a tool to compete that is used in a market, profitability relates with price and cost. Cost is a variable that makes price lower but still profitable.

2.Quality
Effectiveness from this factor has been shown by Japanese market in electronic staffs, steel, and cars where the quality of a product usually is said as a reason for customers to choose which product is going to be bought by customers and usually customers willing to pay more expensive to get a better quality of a product.

3.Dependability as a supplier
Reputation of how good you are in supplying products usually is a great weapon to compete. Customers may want to compromise about the price to get the products delivered in time.

4.Flexibility or Service
Flexibility depends on the production system design and process technology that is used. For some companies, if they are asked about variation of request, they usually answer with “we are not in that business”. The fact is, that market for that kind of business is big. So, competitor can choose a flexibility as a weapon for the business.

Companies will get an advantage if their employees figure out the business priority and find a way to give creativity and their individual spirit in fulfilling that aim.

• If we can friendly to every customers, we can create a bond that invites customers to come again

• Listening is one part of creating a relationship with customers. Each business must able to find the needs of the customers and a unique condition from each customer then find a way to fulfill that needs

• Be aware of what customer really needs

• Care to your customers.

Instead of buying products from suppliers, some manufactures prefer to make the products themselves. Here are few things that can be used as considerations whether to choose to make the products themselves or to buy the products.

1. Make when

   - The cost of supply is high part of the cost

   - The company has specialised needs of the products

   - It needs to have a really source of supply

2. Buy when

   - The company wants to maintain flexibility in its sources of supply

   - The company has only limited skills and resources of supply

Analysis is needed to examine not justthe cost of each alternative make-or-buy decission, but also the skills, resources needed and broader direction of the company. It will also look at what competitors do and explore the reasons for any differences.

Publication is really an important aspect we must aware in promoting out products. Because publication makes the market of our products wider. The problem, to do publication usually we think that we need to do it expensively and use quite expensive materials like brochures and so on.

In the real world, an ideal publication must be fitted with how big is our business. For how much budget for publication, there is not any formula yet to measure the budget. Usualy, businessman make budget for marketing and publication things for about 10% from the revenue.

What interesting, there are other ways we can do for publication. One of them is publication via mouth to mouth. Thing that is need to be preapare is before doing the publication is we must ensure our products have quality that can be trusted.

Another tip that your publication of your business more effective, you can drive the publication to the communities. The effect from word-of-mouth will be more powerful with the support of the communities.

Internet marketing is also an interesting alternative, knowing there is more people trust internet to find certain products.

Since customers generate the revenues that keep the organization in existence deliver its provits, customers are crucial in your business. In this context, it is perhaps surprising that much greater emphasis has been given in some aspects of strategic development to competition rather than to the customer. The reason is that the focus of the purchase decision for the customer is a competitive selection between the different products or services an offer. While this is undoubttedly true, it is easy to lose sight of the direct strategic importance of the customer.

There are 3 useful dimensions to an analysis of the customer:
1. Identification of the customer and the market
2. Market segmentation and its strategic implications
3. The role of customer service and quality