Avel-COVID19-Comp Sc-HND3 Course- SMALL BUSINESS MANAGEMENT
COVID – 19 SIT@HOME
INTEL DEV. CLASS
SMALL BUSINESS MANAGEMENT
Committee of Intellectuals [CoI]
INTELLECTUAL DEVELOPMENT CONFERENCE CENTER [INTEL CENTER]
SMALL BUSINESS MANAGEMENT
1(a) Principle of Organizing in designing Organizational Structure.
(i) Work Analysis: Analyze the total workload into t asks that can be logically performed by groups or individual.
(ii) Departmentation: Grouping of employees and tasks in a logical and efficient manner
(iii) Assignment of work to members of the firm according to their capabilities and interests
(iv) Delegation of authority
(v) Setting up mechanism for integrating departmental activities into coherent whole and monitoring the effectiveness of that integration.
(b) An entrepreneur directing a business must communicate with both internal and external groups. Explain the communication process.
Communication is the lifeline of every organization to properly communicate is to primarily succeed. Any organization that fails to communicate properly must e prepared to face the consequences of ineffective communications.
An entrepreneur must instruct, explain, train, inform and sometimes demonstrate what the workers must do. Communicating effectively to both internal and external members of an organization is an essential function of the entrepreneur because it contribute to managerial effectiveness, integrates organizational activities, assist in training of workers, creates harmonious working relationship with the environment and improve the level of awareness of organizational members.
The following are the process of communication:
(i) Information source, i.e. where the information originates from
(ii) Encoding, i.e. giving meaning to ideas by encoding them
(iii) Transmitting the information
(iv) Receiving the information
(v) Decoding of the message by the receiver
(vi) Taking of action
(vii) Feedback, i.e. the outcome f the communication exercise is examined, modified, corrected and strengthened
The main forms of information are:
(i) Formal communication/information: This is disseminated through pre-described or fixed rules and procedures.
(ii) Informal communication/information: This is disseminated through natural feeling without any outside inference, constraints or premeditation.
2(a) Mention four (4) stages in a product life cycle.
There are mainly four (4) stages in a product life cycle which are:
(i) Introduction (ii) Growth (iii) Maturity (iv) Decline/abandonment
(b) Differentiate between the following:
(i) Publicity: this is any form of unpaid non-personal presentation to the general public through the media. The information being publicized many be news, awareness about a product and services, etc.
(ii) Advertising: This is defined as any paid form of non-personal presentation of idea, goods or services by an identified sponsor
(iii) Personal selling: It involves direct face-to-face communication between sellers and potential customers.
3(a) What is Plant layout?
Plant layout entails arrangement of machines work areas and service areas within a factory. It can also be defined as the allocation of space and the arrangement of equipment in a manner that overall production costs are minimized.
Principles of an effective plant layout:
(i) Principle of minimum movement: Materials and labour should be moved over minimum distances, saving cost and time of transportation and material handling.
(ii) Principle of space utilization: All available cubic space should be effectively utilized both horizontally and vertically.
(iii) Principle of flexibility: It should be flexible enough to be adaptable to changes required by expansion or technological development.
(iv) Principle of interdependence: Interdependent operations and processes should be located in close proximity to each other, to minimize product travel.
(v) Principle of safety: To provide for comfort and safety of workers.
(vi) Principle of smooth flow: The layout should be so designed as to reduce work bottlenecks and facilitate uninterrupted flow of work through the plant.
(vii) Principle of satisfaction: A good layout should boost up employee moral by providing them with maximum work satisfaction.
(viii) Principle of supervision: A good layout should facilitate effective supervision over workers.
(b) Functions of maintenance department in an organization:
(i) Carrying out any necessary overhaul or repairs as efficiently and effectively as possible.
(ii) Maintenance of building and equipment
(iii) Supervision of new building
(iv) Installation of new equipment
4(a)(i) Causes of accident at work place:
(i) Defective tools and equipment
(ii) Inadequate safety devices
(iii) Age and experience; underage and over-age staff can cause accidents
while inadequate evidence occupational success before placement is another cause.
(iv) Health problems such as poor sound, hearing, etc.
(v) Absenteeism and tardiness
(vi) Effect of drugs, smoking and hard drugs
(vii) Inadequate training program
(viii) Indiscipline, violation of standard norms
(ii) Prevention of accident at work place:
(i) Well engineered machines and tools
(ii) Provision of safety devices; helmets, boots, clothes, gloves, glasses,
(iii) Proper maintenance of equipment and machines
(iv) Selection of qualified employees
(v) Adequate education and training
(vi) Effective publicity with posters, slogans, etc.
(vii) Safety committees
(viii) Disciplinary action in erring workers
(b) Importance of the MAN to SSB
(i) Data Bank: MAN is data bank to all members. They compile data, conduct research and provide information on the national economic indications
(ii) Establishment of Manufacturers Bank, Merchant bank to provide banking services to members and non-members alike.
(iii) Provision of professional advice: This is done to ensure that issues of common interest are addressed and problems affecting each group are tackled effectively.
(iv) Watchdog to government: They provide useful information towards government annual budget
(v) Campaign for Made-in-Nigeria goods: They lend in the campaign to government and consumer to patronize Made- in-Nigeria goods.
SMALL BUSINESS MANAGEMENT
1(a) Define Micro Cottage Business and state the characteristics of SSB
Micro cottage can be defined as an enterprise with N1,500,000 including working capital excluding cost of land with number of employee not more than 10.
- Manufacturing business/manager are the owner
- Wholesale/independently own
- Retailing/largely local
- General construction/small size in terms of profit and market show
(b) Small Business enjoy certain services provided by NASSI, explain any five (5) of them.Nigeria Association of Small Scale Industrialist formed in 1978 to establish and maintain an association for the exchange of ideas and techniques in issues relevant to small and medium scales.
(i) Information on Raw Materials Sourcing: One of the major problem of SSB is inadequate raw materials. The association provides raw materials source from the technical assistance through Materials International Association, e.g. NISER, CIRD, etc.
(ii) Information on Plant and Equipment: The association provides the rights plant and equipment to produce quality product in large quantities.
(iii) Information in Manufacturing Standard: Several agencies provide industrial standards such as SON, NAFDAC, etc.
(iv) Information on Market: The association gives information on hw to get buyers for its members products.
(v) Training Program: Several training programs are organized by the association to enlighten the entrepreneur.
(c ) Enumerate briefly the factors that can enhance the development of SSI in Nigeria.
(i) Capital: Availability of adequate capital for investment and innovation proposes.
(ii) Infrastructural facilities: The provision of economic infrastructure such as roads, water, transport, electricity, etc.
(iii) Political stability: The political policy will influence the SSI.
(iv) Availability of resources: How available is the skilled and unskilled labor, raw materials on machine will determine the available and quantities of goods.
(v) Adequate market for production: The large space of market space available and determine the goods and services to produce, display and sale. It will aid competition within the production market.
2(a) Examine strategic planning steps as it is applicable to SSI.
(i) Goal formulation or establishment
(ii) Identification of current objectives and strategy
(iii) Resource analysis
(iv) Environmental analysis
(v) Strategic decision making
(vi) Strategic implementation
(vii) Strategic control
(b) Explain the term product life cycle.
Plc is the circle through which every products goes through from introduction to withdrawal or event demise
Stages involves are:
- Introduction – Maturity
- Growth – Decline
3(a) Itemize the costs that are associated with credit sales in SME.
- Accounting Cost
- Credit investigation
- Opportunity cost
- Bad debt
- Collection cost
(b) Define price and state the type of pricing system that SST can make use of.
Price can be defined as the value placed on an item or service being exchanged or sold.
- Fees charged by a lawyer
– Commission remitted to estate agent
- Premium charged by an insurance company
- Rent paid for the use of building
- Total fees charged for the uses of bridge
4(a) Give reasons why micro cottage enterprise is the dominant firm of business in Nigeria
(i) Extractive: Extractive of physical resources from the earth
(ii) Analytical: This is when basic material is broken into new and many other materials
(iii) Fabricating: It changes the shape and size of the materials
(iv) Synthetic: New materials are created with chemical
(b) Articulate the major factors involved in inventory control.
(i) Issue stock
(iii) Track stock
(iv) Make orders
(v) Stock card, storage capacity, finance, normal price requirement, ordering cost, price to end
(c) Define process production
It is the process of using the resources of a firm to convert inputs into outputs which are products or services required by customers.
7(a) In SSI, employees are likely to undertake variety of jobs, thus the principle of organizing must be strictly followed. Examine those principles.
(i) Consumer: Market research must be concluded to determine product needed by consumers or users.
(ii) Adequate market information
(iii) Product planning/development/management
(vii) Co-ordination of market mix
(viii) Integrated activities
(ix) Market environment
(x) Social responsibilities and ethics
(xi) Evaluation of market performance
(b) Discuss the advantages and disadvantages of SI for an individual.
(i) It provides job opportunities
(ii) It reduces unemployment for the nation
(iii) It enhances individual social status
(iv) Opportunity to be jack of all trade
(i) They accept sole responsibility of their decisions
(ii) Loosing of income total
(iii) It carries stress and fatigue, i.e. no closing or opening time
(iv) Pleasing other people for a SB firm to succeed
(v) Opportunity for large profit leads to serious risks