Anda di halaman 1dari 5

A.

MANAGING THE MARKETING FUNCTION 1. How may the marketing concept be explained? Is it applicable to engineering rms? The marketing concept holds the key to achieving organizational goals consists of being more effective than competitors in integrating marketing activities toward determining and satisfying the needs and wants of target markets. It states that the engineer must try to satisfy the needs of his clients by means of a set of coordinated activities. When clients are satisfied with what the company offers, they continually provide business. It is applicable to engineering firms as the main objective of engineers is to satisfy clients. An engineer must have marketing skills to be able to attract clients for the success of his firm. 2. What is meant by the term product? In a broad sense, product is a good, idea, method, information, object or service created as a result of a process and serves a need or satisfies a want. In marketing sense, the term product includes the tangible (or intangible) item and its capacity to satisfy a specific need. 3. How may the engineer manager meet the threat of a competitors product? An engineer manager meets the threat of a competitors product by improving their product or giving extras or bonuses are given to clients. 4. Why is price said to be a strong competitive tool? Price is said to be a strong competitive tool when a type of service becomes standardized. For a firm to win a client over a competitor, the firm must be able to lower their service fee without risking the company. 5. What are some of the possible measures to make products easily available to customers? Some of the possible measures to make products easily available to customers are: hiring sales agents to cover specific areas; selling to dealers in particular areas; establishing branches where customers are located; establishing franchises in selected areas. 6. How may the engineer manager convince the buyer or client to patronize the rm? For the engineer manager to convince the buyer or client to patronize the rm, he may use any of the following promotional tools:
1|Page

advertising publicity personal selling sales promotion

7. What is advertising? What are the types of advertising media? Advertising is a paid message that appears in the mass media for the purpose of informing or persuading people about particular products, services, beliefs, or action. The types of advertising media include television, radio, magazines, newspapers and internet. 8. May the engineer manager use publicity in promoting his rm? Cite an example. In marketing, publicity refers to the promotional tool that publishes news or information about a product, service, or idea on behalf of a sponsor but is not paid for by the sponsor. An example of publicity is when a newspaper features a certain product like a mobile phone without being paid by the manufacturer of that product 9. In selecting a target market, what must the engineer manager do? In selecting a target market, the following steps are necessary: Divide the total market into groups of people who have relatively similar product or service needs. Determine the profit potentials of each segment. Make a decision on which segment or segments will be served by the company. 10. What factors must be used in selecting a target market? In selecting a target market, the following factors must be taken into consideration: the size of the market, and the number of competitors serving the market

2|Page

B. MANAGING THE FINANCE FUNCTION 1. What is the finance function? How important is it to the engineering firm? The finance function is an important management responsibility that deals with the procurement and administration of funds with the view of achieving the objectives of business. It is important in an engineering firm because engineering firms are not only concerned with the output of a project; they are also concerned in the financial aspect of the project. The engineer must be able to manage funds effectively and efficiently for the success of the engineering firm. 2. What are the specific fund requirements of firms? The specific fund requirements of firms are: to finance daily operations to finance the firm's credit services to finance the purchase of inventory to finance the purchase of major assets 3. What are the various sources of the firm's cash in-flow? A firms cash in-flow comes from: Cash sales Collection of Accounts Receivables Loans and Credits Sale of assets Ownership contribution Advances from customers 4. What is the difference between short-term and long-term sources of funds? Short-term sources of funds are those with repayment schedules of less than one year. Short term sources of funds are usually used to provide additional working capital which is needed to fund the day to day activities of a business. On the other hand, long-term sources of are used to obtain assets that are expected to provide economic gain or benefit to the business in the long term. Long-term sources of funds are required to create production facilities through purchases of fixed assets such as plant, machinery, land, building, furniture, and others. Investments in these assets represent that part of firms capital which is blocked on a permanent or fixed basis and is called fixed capital. 5. What are the suppliers of short-term funds? Describe briefly each. The suppliers are:
3|Page

Trade creditors- refer to a supplier extending credits to a buyer for use in manufacturing, processing, or reselling goods for profit. Commercial banks- are institutions which individuals or firms may tap as source of short-term financing. Commercial paper houses- are those that help business firms in borrowing funds from the money market. Finance companies- are financial institutions that finance inventory and equipment of almost all types and sizes of business firms. Factors- institutions that buy the accounts receivables of firms, assuming complete accounting and collection responsibilities. Insurance companies- are also possible sources of short-term funds.

6. Describe briefly the long-term sources of funds. Long-term sources of funds are used to obtain assets such as plant, machinery, land building, furniture, and others that are expected to provide economic gain or benefit to the business in the long term. 7. How may one determine the best source of financing? In determining the best source of financing, according to Schall and Haley, the following factors must be considered: flexibility risk income control timing other factors like collateral values, flotation costs, speed, and exposure. 8. How may the financial health of the company be determined? To determine the financial health of a firm, the appropriate financial analysis must be undertaken. There are also three basic financial statements that serve as indicators of financial health. They are as follows: Balance sheet - also called statement of financial position; Income statement - also called statement of operations; Statement of changes in financial position. 9. What is meant by risk? Why must it be managed properly? Risk refers to the uncertainty concerning lose or injury. It is a very important concept that the engineer manager must be familiar with and it must be managed properly as companies are always exposed to it. According to reports, companies that could not cope with losses are
4|Page

forced to shut down. When risk is managed properly, it help greatly in organizing the strategy for protecting and conserving assets and people. 10. Describe briefly the methods of dealing with risks. There are various methods of dealing with risks. They are as follows: the risk may be avoided - A person who wants to avoid the risk of losing a property like a house can do so by simply avoiding the ownership of one. There are instances when ownership cannot be avoided like those for equipment, appliances, and materials used in the production process. the risk may be retained - A method of handling risk wherein the management assumes the risk is called risk retention. Planned risk retention, also called self-insurance, is a conscious and deliberate assumption of a recognized risk. In this case; management decides to pay losses out of currently available funds..Unplanned risk retention exists when management does not recognize that a risk exists and unwisely believes that no loss could occur. the hazard may be reduced - Hazards may be reduced by simply instituting appropriate measures in a variety of business activities.

5|Page