BUSINESS TECHNIQUES

Business Techniques

Business Techniques

To address the issue as a Product Manager, it is important that I perform a detailed analysis of the company and draft out a proper report for the purpose of decision-making. All the tasks that I would be performing as a Product Manager are described below:

Activities Undertaken to Meet Objectives

In order to bring about a positive change, it is essential that a clear picture of the overall operations is known. It is important to know the departmental activities so that all such operations can be analyzed for efficiency and any possible issues are rectified. Resources are necessary elements that a company uses to produce a good or a service (Blocher, Cokins, Stout, & Chen, 2006). In the field of production management, the most important decisions in planning the introduction of new products are dependent on setting proper objectives of the planning process. There are various points that I believe should be kept well under consideration while implementing the plan. These are listed below:

Determining the location and size of new facilities

Determining the overall efficiency of the current plant and equipment employed

Maintenance of current plant and equipment or the acquisition of new equipment

The proper definition of production units within each facility

Investment appraisal and costing of the production processes

Providing a short-term planning stage for implementation

Once an aggregate production capacity of the distribution plan is created, operational decisions and production schedules will be prepared on the basis of information from government to higher levels (Horngren, Datar, Foster, Rajan, & Ittner, 2009).

Financial Techniques used for Decision-Making

Financial techniques are commonly used for the purpose of determining the investment activity requirements. It is one of the most important aspects of operation of any commercial organization (Blocher, Cokins, Stout, & Chen, 2006). In order to complete all the objectives mentioned in the last heading, I will be using  a comprehensive and effective financial technique to assist in the decision-making process. The reasons for investment include updating the material available base, increasing the volume of production and development of new activity. The most appropriate method of decision-making regarding the scenario would be calculating the NPV and IRR of the proposed investment options.

The value of investments is in relation to the present or the beginning of the investment amounts (Hasen, & Mowen, 2005). The value defines IRR rate for which NPV = 0. The project is economically viable if the IRR is equal to or greater than the rate limit, the lowest rate of profitability that is acceptable to the investor (usually this is a long-term interest rate loans or interest rate paid by a potential borrower) (Blocher, Cokins, Stout, & Chen, 2006).

Obtaining Required Financial Information

The required information can be received from the various financial statements and costing calculations done as a part of normal production processes that prevail in the company. Apart from that, a lot of valuable information can be collected from the annual reports of the company.

Additional Resources Requirement for Objectives

It is obvious that the set objectives require additional resources for ...