SUSTAINABILITY OF AN UNIT PRECAUTIONS NEEDED

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VANLALTHLANA ASSISTANT PROFESSOR PACHHUNGA UNIVERSITY COLLEGE 5/26/12

SUMDAWNNA

Zawrh thila eizawnna Zotawng Dictonary leh hralh Zirlaite Dictionary SUSTAINABILITY

Lei

A sustainable business is one that ensures that all its activities adequately address current environmental, societal and economic 5/26/12

Reasons for Sickness/ Incipient Sickness (3rd All India Census of Small Scale Industries, 2001)
n Lack

of Demand 71.6 % n Shortage of Working Capital 48 % n Marketing Problems 44.5 % n Power Shortage 21.4 % n Non-availability of Raw Material 15.1 % n Equipment Problems 10.6 % n Labour Problems 7.4 % n Management Problems 5.5 %

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SURVIVAL AND GROWTH

40%

of newly established enterprises becomes bankrupt after 3 years of its inception.

In NE India, it is considered best to use traditional technology with a modern concept in small and medium enterprises. According to Deming, problems in an organisation is due to :

1950s

85% 15%

System Persons concerned

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After 2000

RISKS
1. 2. 3. 4. 5. 6. 7. 8.

Financial mismanagement Product becoming obsolete Decline in demand for the product Change in Government policy Price fluctuations Workers strike Dissatisfaction of employees Uncontrollable situations
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Using Strength, Weakness, Opportunities and Threats (SWOT) methods Analyse:

1. 2. 3. 4. 5. 6. 7.

Exercise No 1 ANALYSING

Product Technology Finance Location Government Policies Material Resources Human Resources
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PRODUCT
nPricing nQuality

Control nMarketing/Promoti on nBranding

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TECHNOLOGY
Up

to date Technology Efficient work schedule Efficient plant layout Trained workers Efficient machines and tools
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FINANCE
THE MONEY IS NOT YOURS, YET.

Account Manager System credit period Capital Management to all workers

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Accounting Loan

Working

Accountability Internal

audit system

LOCATION
LOCATION,

LOCATION,

LOCATION.

Accessibility Customers Unit Retailing Unit Distance facilities

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Target

Production Parking

GOVERNMENT POLICIES
Industrial

Policies Subsidies Long Term Vision Political

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MATERIAL RESOURCES Procurement/Purchase Sales unit Inventory Control System (EBQ) Internal Pricing System
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How much to buy?

Economic Order Quantity Optimum quantity for purchase

2 x Annual consumption x cost of placing order Cost of carrying one unit inventory for one year

Eg: Let A = 1,200 units; Cp = Rs.10; Cc = 24% of unit cost; Cost of one unit = Re 1 Hence EBQ is 316 units per order and he should place orders 4 times (316/1200) times in a year.
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HUMAN RESOURCES
Satisfaction

of Workers Working conditions Pay structure Personal connection Efficient hiring procedure Working hours
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SUSTAINABLE BUSINESS ENVIRONMENT

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PEACE

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Have you ever wondered why

A person owning a Harley Davidson bike proudly tattoos the HD logo on his arm while an owner of a Hero Honda bike does not? wanted to buy things that are more costly than others even though it performs the same required process? 5/26/12

You

SICKNESS
Internal:
1. 2. 3. 4. 5. 6. 7.

Low product quality Poor marketing efforts Financial mismanagement Wrong location Excessive inventories Unplanned capital expenditure Under utilisation of capacity
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Remedial Measures

Identification at initial stage approach in Management

Integrated Change In

depth investigation

(Causes/Close or Reconstruct decision)

Internal

Audit of Financial Institutions 5/26/12

Assistance

KA LAWM E
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