1. Positive: Certainty
Negative: Red-Tape
2. Short run - It is costly
Long run - need more competition
3a) Strategic is what / Tactical is How
http://www.dummies.com/how-to/content/strategic-planning-strategy-vs-tactics.html
b) Shareholders want higher returns but employees want higher wages
4a) Private and Public Limited....Liability / Public Limited - shareholders will take the brunt.
b) Privacy and corporate self-determination
5 Yes - Niche market / highly specialised
No - needs more capital
Monday, October 5, 2015
Wednesday, September 30, 2015
Case-study - Singapore Made
http://www.straitstimes.com/singapore/transport/motorbike-made-in-spore-hits-the-roads#xtor=CS1-10
Alife Air Automobiles' customisable A bike has LTA nod; some units already being used. A home-grown company has launched a made-in-Singapore scooter, the only one in the market now to be assembled here.
1
The Alife Air Automobiles' A bike, which comes in 125cc and 150cc variants and in four designs, is put together at the company's plant in Bukit Batok Street 23.
2
It is the first product to roll off the assembly line for the firm, which is the brainchild of entrepreneur Devan Nair, 55.
3
About 80 per cent of parts are imported from China, Korea and Japan, with the rest sourced from local suppliers. The engine is designed and made in the US.
4
The scooter was approved for use by the Land Transport Authority earlier this year, said Mr Nair, Alife Air Automobiles' president and group chief executive officer.
5
He defied naysayers, who questioned the firm's viability in an established industry dominated by the likes of Honda and Yamaha, when he started the business two years ago.
6
He said such big players satisfy a global market and have "set parameters in their designs". The A bike's design is simple and can be customised to individual needs, he said.
7
Its biggest customer so far is SH Cycle, which has ordered 200 bikes, which it will, in turn, supply to clients such as Pizza Hut.
8
The first 20 machines were delivered on Saturday.
9
SH Cycle director Royston Ho said: "My business associates and staff have test-ridden the bike and find it good and economical."
10
Mr Nair said that for corporate dealers, which need to regularly service motorcycles they lease to clients, the advantage of buying a locally assembled machine is clear.
11
"We keep ample stock of parts. They can come to our factory for a one-to-one exchange," he said.
12
As part of the firm's contribution to SG50, he said the A bike will be sold at a "big discount" of $4,988 - excluding the Certificate of Entitlement - to Singaporeans and permanent residents. The retail price is over $8,000 for other buyers.
13
The prices may raise an eyebrow or two, said industry observers, considering that an Indonesian- or Chinese-made scooter can cost under $3,000.
14
Asked about this, Mr Nair said: "We cannot and will not compromise on the quality of parts and safety in our design. So we do not compete as such... Our price is benchmarked against established European and Japanese brands."
15
There are over 20 orders from the public, and some are already on the road, he added.
16
Asked if he would buy one, research assistant Larry Liew, 34, said: "The bike seems a little pricey, but it appears to have a fast pick-up speed. I'm not so familiar with US-made engines as Japanese ones are more common, so I'll be eager to see if it is fuel-efficient."
17
Alife Air Automobiles is the second firm to make motorcycles in Singapore. Tiger Motors, a now-defunct Singapore firm, had set up an assembly plant in Kallang in 2000.
18
Mr Tony Yeo, president of the Singapore Motor Cycle Trade Association, said it is hard to make and sell bikes in Singapore as labour costs are high and the market is small.
19
Mr Nair said the A bike is just the start. The firm is now working to get a rotary engine certified in the US. This will be used in motorcycles sold there and in Singapore. This is a departure from the piston design found in nearly all motorcycles. "The biggest cause of accidents for motorcycles is engine vibration. The higher the engine capacity, the more the vibration. At high speeds, it's a very dangerous element. "We are designing a rotary engine that can give you zero vibration," said Mr Nair.
Alife Air Automobiles' customisable A bike has LTA nod; some units already being used. A home-grown company has launched a made-in-Singapore scooter, the only one in the market now to be assembled here.
1
The Alife Air Automobiles' A bike, which comes in 125cc and 150cc variants and in four designs, is put together at the company's plant in Bukit Batok Street 23.
2
It is the first product to roll off the assembly line for the firm, which is the brainchild of entrepreneur Devan Nair, 55.
3
About 80 per cent of parts are imported from China, Korea and Japan, with the rest sourced from local suppliers. The engine is designed and made in the US.
4
The scooter was approved for use by the Land Transport Authority earlier this year, said Mr Nair, Alife Air Automobiles' president and group chief executive officer.
5
He defied naysayers, who questioned the firm's viability in an established industry dominated by the likes of Honda and Yamaha, when he started the business two years ago.
6
He said such big players satisfy a global market and have "set parameters in their designs". The A bike's design is simple and can be customised to individual needs, he said.
7
Its biggest customer so far is SH Cycle, which has ordered 200 bikes, which it will, in turn, supply to clients such as Pizza Hut.
8
The first 20 machines were delivered on Saturday.
9
SH Cycle director Royston Ho said: "My business associates and staff have test-ridden the bike and find it good and economical."
10
Mr Nair said that for corporate dealers, which need to regularly service motorcycles they lease to clients, the advantage of buying a locally assembled machine is clear.
11
"We keep ample stock of parts. They can come to our factory for a one-to-one exchange," he said.
12
As part of the firm's contribution to SG50, he said the A bike will be sold at a "big discount" of $4,988 - excluding the Certificate of Entitlement - to Singaporeans and permanent residents. The retail price is over $8,000 for other buyers.
13
The prices may raise an eyebrow or two, said industry observers, considering that an Indonesian- or Chinese-made scooter can cost under $3,000.
14
Asked about this, Mr Nair said: "We cannot and will not compromise on the quality of parts and safety in our design. So we do not compete as such... Our price is benchmarked against established European and Japanese brands."
15
There are over 20 orders from the public, and some are already on the road, he added.
16
Asked if he would buy one, research assistant Larry Liew, 34, said: "The bike seems a little pricey, but it appears to have a fast pick-up speed. I'm not so familiar with US-made engines as Japanese ones are more common, so I'll be eager to see if it is fuel-efficient."
17
Alife Air Automobiles is the second firm to make motorcycles in Singapore. Tiger Motors, a now-defunct Singapore firm, had set up an assembly plant in Kallang in 2000.
18
Mr Tony Yeo, president of the Singapore Motor Cycle Trade Association, said it is hard to make and sell bikes in Singapore as labour costs are high and the market is small.
19
Mr Nair said the A bike is just the start. The firm is now working to get a rotary engine certified in the US. This will be used in motorcycles sold there and in Singapore. This is a departure from the piston design found in nearly all motorcycles. "The biggest cause of accidents for motorcycles is engine vibration. The higher the engine capacity, the more the vibration. At high speeds, it's a very dangerous element. "We are designing a rotary engine that can give you zero vibration," said Mr Nair.
Tuesday, September 29, 2015
Monday, September 28, 2015
EOQ
http://www.inc.com/encyclopedia/economic-order-quantity-EOQ.html
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 is used as part of a continuous review inventory system in which the level of inventory is monitored at all times and a fixed quantity is ordered each time the inventory level reaches a specific reorder point. The EOQ provides a model for calculating the appropriate reorder point and the optimal reorder quantity to ensure the instantaneous replenishment of inventory with no shortages. It can be a valuable tool for small business owners who need to make decisions about how much inventory to keep on hand, how many items to order each time, and how often to reorder to incur the lowest possible costs.
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 is used as part of a continuous review inventory system in which the level of inventory is monitored at all times and a fixed quantity is ordered each time the inventory level reaches a specific reorder point. The EOQ provides a model for calculating the appropriate reorder point and the optimal reorder quantity to ensure the instantaneous replenishment of inventory with no shortages. It can be a valuable tool for small business owners who need to make decisions about how much inventory to keep on hand, how many items to order each time, and how often to reorder to incur the lowest possible costs.
CPA
https://www.mindtools.com/critpath.html
The essential concept behind Critical Path Analysis is that you cannot start some activities until others are finished. These activities need to be completed in a sequence, with each stage being more-or-less completed before the next stage can begin. These are 'sequential' activities.
Other activities are not dependent on completion of any other tasks. You can do these at any time before or after a particular stage is reached. These are non-dependent or 'parallel' tasks.
The essential concept behind Critical Path Analysis is that you cannot start some activities until others are finished. These activities need to be completed in a sequence, with each stage being more-or-less completed before the next stage can begin. These are 'sequential' activities.
Other activities are not dependent on completion of any other tasks. You can do these at any time before or after a particular stage is reached. These are non-dependent or 'parallel' tasks.
Porter's 5 Forces
http://beta.tutor2u.net/business/reference/porters-model-of-industry-rivalry-five-forces
Why do airlines make so little profit (and such big losses)? There are several factors, including:
Very intensive competitor rivalry – mainly on price
Low barriers to entry – lots of new airlines who want to set up
Suppliers of aircraft & equipment are powerful – can charge high margins
Customers have lots of substitute options – e.g. rail, car
High fixed costs – airline losses rise significantly if revenues fall only slightly since it costs roughly the same to fly half-empty planes as full ones
By contrast, why are profits so high in the soft drinks market? The answer is mainly that:
Customers and suppliers have little power – Pepsi has many millions of individual consumers, and thousands of retail distributors none of whom has much influence over the business
There is high brand awareness & loyalty = less consumer desire for substitutes
High barriers to entry – how do you enter a market dominated by Coca-Cola and Pepsi?
Why do airlines make so little profit (and such big losses)? There are several factors, including:
Very intensive competitor rivalry – mainly on price
Low barriers to entry – lots of new airlines who want to set up
Suppliers of aircraft & equipment are powerful – can charge high margins
Customers have lots of substitute options – e.g. rail, car
High fixed costs – airline losses rise significantly if revenues fall only slightly since it costs roughly the same to fly half-empty planes as full ones
By contrast, why are profits so high in the soft drinks market? The answer is mainly that:
Customers and suppliers have little power – Pepsi has many millions of individual consumers, and thousands of retail distributors none of whom has much influence over the business
There is high brand awareness & loyalty = less consumer desire for substitutes
High barriers to entry – how do you enter a market dominated by Coca-Cola and Pepsi?
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