OPERATIONS

AND
MANAGEMENT
Chapter 5.7 1

Michael Karl M. Barnuevo, MBA

OPERATIONS AND
MANAGEMENT
A well defined and realistic organizational structure
is an important element of the business plan.
Investors and lending institutions will be interested
to look at this particular aspect.

Michael Karl M. Barnuevo, MBA 2

OPERATIONS AND
MANAGEMENT
 Generally, investors will be concerned how the firm is organized along the following
concerns:
1. Marketing (including sales, customers relations and service)
2. Production (including quality assurance)
3. Research and Development
4. Finance
5. Management
6. Human Resources

Michael Karl M. Barnuevo, MBA 3

ORGANIZATIONAL
STRUCTURE
 An organizational structure defines how activities such as task
allocation, coordination and supervision are directed toward the
achievement of organizational aims. 
 Organizations need to be efficient, flexible, innovative and caring in
order to achieve a sustainable competitive advantage.  
 Organizational structure can also be considered as the viewing glass
or perspective through which individuals see their organization and
its environment.

Michael Karl M. Barnuevo, MBA 4

ORGANIZATIONAL CHART
 In this part of the business plan, your business should have an
organizational chart.
 The organization chart is a diagram showing graphically the
relation of one official to another, or others, of a company. It is also
used to show the relation of one department to another, or others, or
of one function of an organization to another, or others. This chart
is valuable in that it enables one to visualize a complete
organization, by means of the picture it presents.

Michael Karl M. Barnuevo, MBA 5

ORGANIZATIONAL CHART
 Sample 1

Michael Karl M. Barnuevo, MBA 6

ORGANIZATIONAL CHART
 Sample 2

Michael Karl M. Barnuevo, MBA 7

ORGANIZATIONAL CHART
 Sample 2

Michael Karl M. Barnuevo, MBA 8

JOB DESCRIPTION
 Each of your assigned jobs in your organizational chart should have a job description.
 A job description is a document that describes the general tasks, or other related, and
responsibilities of a position. It should state the following:
1. Required tasks for the position
2. Qualifications for the position
3. Salary Range

Michael Karl M. Barnuevo, MBA 9

Michael Karl M. Barnuevo, MBA 10