deck_18369595 Flashcards
Describes the business structure, ownership, roles, and financial obligations.
The organization plan provides a detailed description
of the business in terms of the following:
Form of the business organization
1. Form of the business organization
2. Liability of the owner or owners
3. Organizational structure
4. Roles and responsibilities
5. Salary requirements
Organizational Plan
Business Organization: Sole proprietorship, partnership, or corporation.
Selection Factors:
1. Capital requirements
2. Liability of owners
3. Management skills
4. Tax implications
5. Government regulations
6. Business nature
7. Need for external financing
Form of the Business Organization
means that in the case of business dissolution and there still remains unsettled financial obligation of the business, the creditor cannot go after the personal property o the business owner. The liability of the owner is only up to extent of his/her financial contributions to the business.
limited liability
means that the creditors can run after the
personal property of the owner in the event that the business fails to fully settle its financial obligation during business dissolution.
unlimited liability
Sets vision, strategy, and major business decisions.
CEO (Chief Executive Officer)
Manages daily operations and ensures efficiency.
COO (Chief Operating Officer)
Oversees financial planning, budgeting, and risk management.
CFO (Chief Financial Officer)
Develops branding, advertising, and customer engagement strategies.
Marketing Manager
Implements sales strategies, manages client relationships, and drives revenue growth.
Sales Manager
Oversees production, logistics, supply chain, and quality control.
Operations Manager
Handles recruitment, employee relations, payroll, and workplace policies.
HR Manager
Manages company technology, cybersecurity, and IT infrastructure.
IT Manager
Oversees new product design and innovation.
Product Development Manager
Ensures excellent customer support.
Customer Service Manager
Provides legal guidance and compliance oversight.
Legal Advisor
Includes projected monthly/annual salaries and employer contributions to SSS, Pag-ibig, and PhilHealth. Any expected legislative salary adjustments should be disclosed.
Salary Requirements
defines the key positions within
the company and outlines their
duties. This helps establish clear
leadership, accountability, and
efficient workflow.
Roles and Responsibilities
presents or describes activities related to the
production of goods. the production plan is the result of the industry
analysis, particularly the study of supply and demand and consumer
behavior
production plan
The production plan includes the following:
- Production schedule
- Production process
- Processing plant and equipment
- Sources of material
- Production cost
presents the total number of goods to be produced and the
expected time to produce them.
Production Schedule
The total number of units to produce, however, is usually
affected by the following factors:
Demand for the product1.
Availability of resources2.
Capacity of the plant3.
The different process or stages involved in the production of goods must be clearly
spelled out in this section, as well as the description of the following:
- Exact processing procedure
- Materials, parts, or ingredients required
- Expected time to process the product
describes the manufacturing plant, the machinery
and equipment, and the various tools to be used in the production of goods, including
respective estimated costs.
Processing Plant and Equipment
In the selection of the machinery and other equipment, the entrepreneur must consider the following factors:
- Capacity of the plant or machinery
- Model of the machinery or equipment
- Availability of spare parts
- Cost and terms of payment
The possible sources of raw materials and manufacturing supplies must be described in terms of the following:
- Proximity of the source to the processing plant
- Payment terms and conditions
- Discounts and damages
- Terms of shipment
total expenses incurred in the process of manufacturing a product or
delivering a service. It includes all direct and indirect costs necessary to create and bring
the product to market
Production Cost
Expenses directly tied to production, such as raw materials, labor, and manufacturing supplies.
Direct Costs
Overhead costs like rent, utilities, equipment depreciation, and administrative expenses.
Indirect Costs
Costs that fluctuate with production volume, such as raw materials and per-unit labor wages.
Variable Costs
constant expenses like rent and salaries of permanent employees.
Fixed Costs
The components or ingredients used to make the product
Raw materials
Wages paid to workers involved in production
Labor costs
tools and consumables used in production
Manufacturing supplies
electricity, water, and maintenance for the production facility.
Factory rent or utilities
the loss of value over time of machines used in production.
Depreciation of equipment
Salaries of management and staff overseeing production.
Administrative expenses
describes the extent of
the owner’s financial
obligations with
creditors. The extent of
financial liability can
either be limited or
unlimited
Liability of the Owner or Owners
