OVERVIEW OF MANAGEMENT

MANAGEMENT as an effective tool in the Overall Operations of a Business Enterprise

BUSINESS ENTERPRISE/ORGANIZATION

CORPORATION
• It is an artificial being created by operation of law, having the right of
succession and powers, attributes and properties expressly authorized by law
or incident to its existence. (Sec. 2, Corporation Code)

PARTNERSHIP
• By the contract of partnership, two (2) or more persons bind themselves to
contribute money, property, or industry to a common fund, with the intention
of dividing the profits among themselves. Two (2) or more persons may also
form a partnership for the exercise of a profession. (Art. 1767, Civil Code)

SOLE PROPRIETORSHIP
A Simplest type of business organization
A Owner keeps all the profits
A Owner has unlimited liability

CORPORATION
• Stockholders
• Board of Directors
• Executive Committee

PARTNERSHIP
• PARTNERS
• Managing Partner and Silent Parner
• Managing Partner

SOLE PROPRIETORSHIP
• The PROPONENT
• Administrative and Operational Employees
• He is THE BOSS

ENTREPRENEURSHIP
• “The capacity and willingness to develop, organize and manage a business
venture along with any of its risks in order to make a profit. The most obvious
example of entrepreneurship is the starting of new businesses.
 • In economics, entrepreneurship combined with land, labor, natural
resources and capital can produce profit. Entrepreneurial spirit is characterized
by innovation and risk-taking, and is an essential part of a nation’s ability to
succeed in an ever changing and increasingly competitive global marketplace” -
www.businessdictionary.com

VALUE CHAIN ANALYSIS by Michael Porter 1995:

LOGISTICS
- “The overall management of the way resources are obtained, stored and moved to the
locations where they are required. Logistics management entails identifying potential
suppliers and distributors; evaluating how accessible and effective they are and
establishing relationships and signing contracts with the companies who offer the best
combination of price and service.” - www.investopedia.com

Council of Logistics Management

- “The process of planning, implementing, and controlling the efficient, effective flow and
storage of goods, services, and related information from point of origin to point of
consumption for the purpose of conforming to customer requirements." Note that this
definition includes inbound, outbound, internal, and external movements, and return of
materials for environmental purposes”
- www.logisticsworld.com

7 R’s of LOGISTICS
Seven Rs, which defines it as “ensuring the availability of the :
1. Right product,
2. in the Right quantity
and 3. the Right condition,
4. at the Right place,
5. at the Right time,
6. for the Right customer,
7. at the Right cost.”

TAXONOMY OF LOGISTICS
— Major Types:
1. In-House Logistics
2. Third Party Logisitics
3. Fourth Party Logistics
4. Transportation Management System (TMS) Logistics Software

FIELDS OF LOGISTICS
• Procurement logistics
• Production logistics
• Distribution logistics
• After-sales logistics
• Disposal logistics
• Reverse logistics
• RAM logistics
• Concierge Service
• Domestics logistics
• Global logistics
• Green logistics
RELATED FIELDS OF MANAGEMENT
ü GENERAL MANAGEMENT,
ü MANAGEMENT ACCOUNTING,
ü FINANCIAL MANAGEMENT,
ü STRATEGIC MANAGEMENT,
ü HUMAN RESOURCE MANAGEMENT,
ü PRODUCT MANAGEMENT,
ü LOGISTICS MANAGEMENT
INVENTORY MANAGEMENT,
FREIGHT/ TRANSPORTATION MANAGEMENT,
PRODUCTION MANAGEMENT,
SUPPLY CHAIN MANAGEMENT,
RETAIL AND WHOLESALE MANAGEMENT,
MARKETING MANAGEMENT,
ASSET MANAGEMENT
RISK MANAGEMENT
 PETER DRUCKER’s 5 Point Definition of MANAGEMENT

1. Making people's strengths effective and their weaknesses irrelevant.

2. Enhancing the ability of people to contribute
3. Integrating people in a common venture by thinking through, setting and
exemplifying the organizational objectives, values and goals
4. Enabling the enterprise and its members to grow and develop through training,
developing and teaching
5. Ensuring everyone knows what needs to be accomplished, what they can expect of
you, and what is expected of them

Management allows us to coordinate hundreds or thousands of people with different skills and
knowledge to achieve common goals.

Not to innovate is the single largest reason for the decline of existing organizations. Not to
know how to manage is the single largest reason for the failure of new ventures (including the
introduction of new products)