Effective communication This is the act of passing on ideas or giving instructions from one party to another Importance of effective communication - It helps an entrepreneur to maintain a good relationship with his or old customers and to attract new ones - it helps in coordinating business activities - it helps in recruiting and selecting workers for the business through running advertisements - it creates room fro managing credit sales e.g. sending credit status inquiries among others - it creates link between the business with commercial services like banks, insurance, transport companies e.t.c. - it facilitates easy decision making by the entrepreneur since he or she will act on an informed basis - it helps an entrepreneur in making choice for the customers after getting data the likes and dislikes of the customers - a good communication system enables the employees to report to the entrepreneur about any break down of machinery or any other shortages Features of effective communication - It should be complete - It should be clear - It should be concise i.e. it should not be too wordy - Courteous in other words the sender should avoid deceiving - The data should be as correct as possible - The sender should have the receiver‟s environment in mind when sending the information - The information should be specific to the point point and not vague or too general Barriers to effective communication include the following This is any thing that can stop the receiver from getting the message the way it was sent - When the receiver is not ready to listen to the message - If the message is incomplete - When the environment is not appropriate e.g. a noisy environment - When there are too many steps the receiver has to go through to access the information - If the message is not attractive attractive or not packaged in an appealing way - When the message is set poorly or too ambiguous - If the channels of communication are not appropriate - When the language used is not understood - misuse of body language - when words mean different things to different people - when individuals interpret another‟s message as threatening Forms of written communication Business letters Notices Memos Minutes
1
Memos This at the same time means a “ thing to be remembered ” this is a form of communication where instructions and inquires with in an organization are transmitted Its components include Headline of the memo From : showing where it is coming from To : to whom the information is addressed to Date: when it was written Reference Body: the content of the memo
Notices This is a written information brief in nature and are placed in prominent places e.g. on boards where every one can easily see them from. Example one memo PRINCESS DIANA HIGH SCHOOL P.O.BOX 473 KAMPALA, UGANDA TO: class teacher senior five FROM: school bursar DATE: 24/03/2011 SUBJECT MATTER: school fees defaulters You should not allow any one in class minus a clearance from the school bursar for the whole of this week Thank you Ssewampuma Peter School bursar Example two
Notice
Princess Diana high school Munyonyo P.O.Box 2325 Kampala Uganda 24/03/2o11 TO: all heads of departments There will be a meeting on 25/03/2011 in the school staffroom from 10:00am please attend in person Mayanja Paul Head teacher
Minutes These are used to show proceeding in the meeting. They short points written by the secretary during the meeting proceeding They are written in the following ways 2
Memos This at the same time means a “ thing to be remembered ” this is a form of communication where instructions and inquires with in an organization are transmitted Its components include Headline of the memo From : showing where it is coming from To : to whom the information is addressed to Date: when it was written Reference Body: the content of the memo
Notices This is a written information brief in nature and are placed in prominent places e.g. on boards where every one can easily see them from. Example one memo PRINCESS DIANA HIGH SCHOOL P.O.BOX 473 KAMPALA, UGANDA TO: class teacher senior five FROM: school bursar DATE: 24/03/2011 SUBJECT MATTER: school fees defaulters You should not allow any one in class minus a clearance from the school bursar for the whole of this week Thank you Ssewampuma Peter School bursar Example two
Notice
Princess Diana high school Munyonyo P.O.Box 2325 Kampala Uganda 24/03/2o11 TO: all heads of departments There will be a meeting on 25/03/2011 in the school staffroom from 10:00am please attend in person Mayanja Paul Head teacher
Minutes These are used to show proceeding in the meeting. They short points written by the secretary during the meeting proceeding They are written in the following ways 2
-
Name of the organization
-
Heading
-
People present
-
Members absent with apologies
-
Members absent with out apologies
-
Opening prayer
-
Review of the last meeting
-
Response to the minutes of the last meeting
-
Communication from the chair person about the subject of the current meeting
-
Response to the communication
-
A.O.B [and other businesses
-
Date and venue of the next meeting
-
Signature (chair person and secretary)
Reports This is a written communication written by some one who has studied and collected relevant data about something and he or she gives it to some one who has asked for it for a given purpose It includes the following
-
The page (name of the organization, name and title written, subject matter)
-
Table of contents
-
Terms of reference
-
Procedure (how the task was accomplished)
-
Conclusion (summary)
-
Recommendations
-
Signature of the writer and the date
3
REVIEW QUESTIONS QN.1 You have been appointed by Princess Dinah High school as the school secretary. The head master is planning to conduct a staff meeting with in two weeks time. Matters to discuss about are the performance of the students, the welfare of the students and the teacher‟s salaries. In the process you are supposed to convey the message to the concern people [a] As a secretary prepare a memo to the head of the welfare informing him about the meeting due to take place on Friday 26 th 2011 [b] Develop a short notice informing the teaching staff about the meeting [c] Out line the barriers of effective communication [d] Explain the qualities of effective communication Qn.2 You have been recruited as a human resource manager of BIDCO Uganda limited and you are charged with the responsibility of filling up the vacant position by the appointing authority [a] write a memo to the production manager requesting him to attend the interviewing [b] Write a letter of termination to the accountant for neglect of his work [c] Design an application form to be used in the recruitment exercise Qn.3 You own an old secondary school that has frequently had problems due to poor management. You have decided to sell it off and use the money to establish a new one [a] Draft rules and regulations to be followed by the students in the new school [b] Write a warning letter to an employee whose performance is not to the set standards [c] Write an appointment letter to the newly recruited school deputy head teacher Qn.4 You are operating a coffee hulling factory. The contracts of your receptionist, general manager and transporting officer have expired through internal sourcing you get suitable replacements for the transport officer and receptionist. You are planning to communicate the changes to your employees and recruit a new general manager [a] Write a circular inviting heads of departments for an urgent meeting to discuss the matter [b] Design an appointment letter for the new transport officer
Purchasing procedures (2) This involves a number of documents a seen and explained below An inquiry
This is a document sent to the seller seeking information about the presence of a given commodity
4
AN INQUIRY TO BE SENT TO MAGANJO GRAIN MILLERS PRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda Tel: 0772242624 th Date 25 /03/2011 No: 03 MAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA RE: SUPPLY OF FLOUR please quote for us your price and terms of payment and deliver the following
QUANTITY 1 Tone 1 tone Yours faithfully Ssewampuma peter purchasing manger
DESCRIPTION first class flour Second class flour
A quotation This is a reply to an inquiry that is sent by the seller to the buyer. Other replies to an inquiry may include the catalogue and the price list. A catalogue carries more information compared to a price list which is just a simple list of items sold including the prices a quotation to be sent to princess Diana high school MAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA TO PRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda Tel: 0772242624 Date: 23/03/2011 No: 26 RE: QUOTATION Dear sir/madam th In response to your inquiry dated 25 /03/2011, we have the pleasure to quote for you the following quantity description Unit price Amount 1 tone Maize flour no. 0ne 1000 1,000,000 1 tone Maize flour second grade 800 800,000 total 1,800,000 The quoted price includes VAT Delivery: 30 days from the date of receipt of your order Discount: 3%discount if paid in the agreed time Looking forward for receiving your order Yours faithfully Mubiru Paul Sales manager
5
An order
This is a request to obtain goods at stated prices and terms. It written by the buyer to the seller Delivery noteThis is a document sent along with then goods and shows the goods that
have been sent and the buyer uses it to cross check the goods on arrival an example of a delivery note appears as seen below A PURCHASING ORDER TO MAGANJO GRAIN MILLERS PRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda Tel: 0772242624 th Date 25 /03/2011 No: 03 TO: MAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA RE: PURCHASE ORDER
please supply the following items quantity 2 tones 1 tone
Description Unit price amount Maize flour grade one 1000 2,000,000 Maize flour grade two 800 800,000 total 2,800,000 Enclosed is our cheque no: 232426011 for shillings 2,000,000 being 8 0% deposit payment Delivery: the order is valid for three weeks Yours faithfully Ssewampuma peter Purchasing manger
A DELIVERY NOTE TO PRINCESS DIANA HIGH SCHOOL
6
MAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA TO PRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda Tel: 0772242624 Delivery note Please receive the following quantity Item 2 tones Maize flour grade one 1 tone Maize flour grade two The above goods have been received in good order Received by …………………………. Delivered by……………………………….
An invoice This is an official accounting document sent by the supplier setting out details of the goods supplied, description unit price, value, trade discount and the terms of payment it serves the same purpose a bill. At times it is an evidence of a credit transaction An illustration of an invoice from maganjo grain millers MAGANJO GRAIN MILLERS UGANDA LIMITED P.O.BOX 2345 KAMPALA
Invoice
date 03/25/11
TO:PRINCESS DIANA HIGH SCHOOL MUNYONYO P.O.Box 2326 Kampala Uganda quantity particulars rate amount 2 tones Maize flour grade one 1000 2,000,000 1 tone Maize flour grade two 800 800,000 E.O.E TOTAL 2,800,000 Accounts are due on demand Delivery 2days after receipt of demand Terms of payment 69%deposit, 31% balance not exceeding 23 days from the date of delivery Cash discount 5% 28days Goods received by: ………………………….. Signed: …………………………
7
A credit status inquiry
It is document written to the bank of the prospective buyer who is planning to get goods on credit to inquire about his or her f i n a n c i a l p o s i t i o n o r t h e c r e d i t w o r t h i n e s s It always happens when the buyer and the seller are meeting for the first time. There fore the seller has to check with the bank of the buyer to find out whether the buyer will be able effect payments due A format of a credit status inquiry to crane bank MAGANJO GRAIN MILLERS
UGANDA LIMITED P.O.BOX 2345 KAMPALA Date 25th /03/2011 To the manager Crane bank Kampala road branch P.O.Box 2326 Dear sir Re: credit status inquiry
We have been approached by princess Diana high school P.O.Box 2326 Kampala for an extension of credit facilities. It plans to place the orders in the range 2,800,000 Uganda shillings the prospective buyers has given your bank as a referee. We shall be grateful if you kindly let us have at your earliest convenience a report on its financial position. All matters from you shall be treated with strict confidence and will not be reveled to princess Dinah high school. A self addressed and stamped envelope is enclosed for your use thank you for your cooperation Yours faithfully ……………………….. Mubiru Paul Sales manager Example one You are operating a current account. You have received a loan of Shs 5,000,000 from crane bank to expend your furniture workshop. You have been granted a credit period of 5years at annual interest of 5%. You are required to pay the principal in five equal installments while the annual interest is to depend on the outstanding balance. [a] design (i) A withdraw cheque 8
(ii) A cheque you will use in your business operations with the bank Design a sample of a cheque deposit slip you will use in the bank while depositing
[b] money Solution [a] A with drawl slip for use in crane bank Crane bank
Withdrawal slip Branch …………………………… date……………………… Account number Account name………………………………………………………… Amount in words………………………………………………………. Amount in Shs…………………………………………………………. Customer’s signature…………………………………………………… Supervisor…………………………………………………………….. C.B
[b]
A sample of a cheque MM Limited will use in its operations with crane bank Crane bank Uganda limited Kampala road branch Date ……………. Pay ………………………………………………………order…………… Uganda shillings…………………………………………………………… …………………………………………………………UGX ………………………. SMP ENTERPRISE 00324 9854:
[c]
A cheque deposit slip CHEQUE DEPOSIT SLIP CRANE BANK UGANDA LIMITED Branch ……………………………..date …………………… Account name……………………. account no: Cheque no branch………………………. Bank ………………………………………………………………………. Drawer account no. Drawer‟s name…………… Amount in words……………………………. UGSHS……………… AMOUNT……………………………………………………………… signature of the person paying in name of the person paying in …………………………………. ………………………………….
Example 2 9
You are operating a business dealing in the sale and servicing of auto mobile spare parts. You have been contracted by an organization in need of spare. The prospective buyer wants to transact business on a credit basis but you are not a ware of his credit worthiness [a] prepare a status credit inquiry you will use to get information about the new clients financial position [b] Design a quotation you will send to your customer [c] Write a letter of credit to the customer having complained for being over charged Solution [b] A quotation Mayas spare parts will send to KK organization MAYAS SPARE PARTS IMPORTERS P.O.BOX 2352 KAMPALA UGANDA PLOT 2011 JINJA ROAD TEL: 03122334455 d e al e r s i n s e c o n d a u t o m o b i l e s p a r e p a r t s , c ar s , m o t o r c y c l e s f r o m J a p a n
TO: KK ORGANIZATION P.O.BOX 2325 KAMPALA DEAR SIR / MADAM RE: QUOTATION FOR THE SUPPLY OF SPARE PARTS In response to your inquiry, below are some of the quotes we have put across quantity description Unit price Total price 2 tyres 13 × 25cm 25000 50,000 2 engines Toyota model 2001 10,000,00 20,000,000 Total 20,050,000 Payments either made in cash or the bank should be addressed to the office with in 15 days with 5 % discount on cash down payment Looking forward to receiving your order Yours faithfully Namayanja Sales manager
[a] a credit status inquiry Mayas spare parts will send to the bank of KK organization
dealers in second auto mobile spare parts, cars, motor cycles from Japan date: 23/03/2011 To: the bank manager Crane bank Uganda limited P.O.Box 2367 Kampala Uganda Dear sir /madam
Re: credit status inquiry We have been approached by KK organization P.O.Box 2325 Kampala for a credit transaction. The organization intends to purchase goods worth Uganda shillings 15,000,000. They have given your bank as referee. Owing to the above information we would please kindly like you to let us know about its (KK organization) financial position and ability to clear such a debt if in any way granted
10
All the above details will be treated with strict confidence and “will” not be revealed to KK organization A self addressed and a stamped envelope is enclosed for use. Thank you for your cooperation Yours faithfully ……………………………. Namayanja Sales manager
NB. A credit note is a document written by the seller to the buyer allowing a reduction on the existing invoice Where as a debit note is a document that allows an increase on the existing invoice [c] A letter of credit or accredit note to the customer having complained for being over charged MAYAS SPARE PARTS IMPORTERS P.O.BOX 2352 KAMPALA PLOT 2011 JINJA ROAD TEL: 031223344 credit note no: 03 CREDIT NOTE date: 03/23/2011 TO: KK ORGANIZATION P.O.BOX 2325 KAMPALA We have credited your account as follows description To correct an arithmetical error on invoice no. 23 Erroneous total 5,000,000 Correct total 4,500,000
Amount
500,000 (Shs. Five thousand shillings only)
Total
500,000
Example three You have started a fish processing factory but it‟ s working in an environment of stiff business completion. As any other business you are carrying out an intensive campaign to make your products be known to the general public [a] prepare a credit note you will issue to your customer for having returned damaged goods [b] Write a business letter to your supplier complaining about the spoilt fish he supplied you on 25 th /04/2011 [c] Design a business card to promote your product
Solution [a] Refer to example two part (c) above 11
[b]
A business letter to the supplier complaining about the spoilt fish he supplied Peter fishing company on 25 th /04/2011
PETER FISHING PROCESSING COMPANY LIMITED P.O.BOX 478 KAMPALA UGANDA TEL: 041896754 TH
24 /03/2011 TO SALES MANAGER KASENYI FISHERIES P.O.BOX 567 KAMPALA DEAR SIR RE: FISH SUPPLIED
I wish to inform that the fish you supplied us as at 25 th/04/2011 was spoilt by the time it reached the factory. It should be noted that such incidences have been happening and less has been done to solve the problem. This letter is greatly informing to maintain the quality standards as regards the fish requirements. failure to do so the contract you are having with will be immediately terminated yours faithfully …………………………….. Mubiru Purchasing manger [c]
A business card Peter fishing company will use to promote its products
PETER FISHING PROCESSING COMPANY LIMITED P.O.BOX 478 KAMPALA UGANDA TEL: 041896754 Experts in buying and processing all types and breeds of which meet the international standards. We buy from the local fish men at friendly prices all over the country
Ssewampuma peter Managing director Located on plot 24, Salaama road P.O.Box 478 Kampala Uganda Tel: 23478566646 Fax: 47558647 Email:
[email protected] Example four You are operating a restaurant in your locality 12
[a] Design a petty cash voucher you will use to pay for small expenses [b] Design a menu card for your restaurant Solution [a] a sample of a petty cash voucher C and C restaurant will use to pay for small expenses
C AND C RESTAURANT PETTY CASH VOUCHER P.O.BOX 120 KAMPALA P/voucher no: ………………………………………. Date……………………… Dr. to…………………………………………………... a/c………………………… particulars
Shs.
TOTAL
Amount in words ……………………………………………………………………… Prepared by …………………………………... checked by………………………… Authorized by …………………………………..received by………………………… [b]
a sample of a menu for C and C restaurant
C AND C RESTAURANT Kyengera branch P.O.BOX 120 KAMPALA “For quality services”
MENU CARD Item Drinks Shs Soda 1000 Mineral water 700 Porridge 500 Snacks Chips 2000 Chicken 3000 Dishes luwombo 5000 goat meat 4000 served with matooke, rice, cassava, tomatoes, yams etc “o r d e r w i t h c a s h ” Example five You have obtained sufficient funds to start up a savings and credit society 13
[a] Design a deposit slip for customers‟ use [b] Design a balance of account reques t form for customers‟ use Solution [a] a deposit slip for customers‟ use
[b]
A balance of account request form for customers’ use
Munyonyo savings and credit society
balance of account
Balance of account request form Branch ………… date……………….. Account name………………………. Account number Customer‟s signature ………………….. Manager‟s / verifier‟s Signature …………………………………..
this section has to be completed by the manager Date and time…………………….. a/c type…………………………….. a/c name ………………………….. Currency……………………………… book bal. …………………………….. Available balance ……………………
You are operating a shop in your locality dealing in second hand computers. You customer wants you to sell him the goods on a hire purchase basis. [a] prepare a hire purchase agreement [b] Design a cash sale slip and a proforma invoice to be issued to your customers [c] Prepare a package sheet you will issue to your customers [d] Draft a statement of account to remind your customer the amount due [e] Write a bill of exchange to your customer requesting him to pay your money Solution [a] a hire purchase agreement between princess Diana and peter computer world
Importers of all types of second hand computers from Japan and Europe. we also repair and sell spare parts at a relatively cheaper price
HIRE PURCHASE AGREEEMENT WE HAVE SOLD TWENTY COMPQ COMPUTERS FROM JAPAN TO PRINCESS DINAH HIGH SCHOOL MUNYONYO TO BE PAID IN 10 MONTHS WITH IN10 EQUAL INSTALLMENTS Date: 03 /27/2011 Total value of goods: 5,000,000 (five million shillings) Amount of periodical payments: 500,000 monthly Signature of the buyer……………….. Signature of the seller………………… 14
[b]
(i)
Cash sale slip of
Importers of all types of second hand computers from Japan and Europe. we also repair and sell spare parts at a relatively cheaper price
Cash sale No. ……………………. Date…………….. M/S………………………………………………………………….. QUANTITY PARTICULARS AMOUNT
E &O E TOTAL Goods once sold are never returnable
(ii)
A proforma invoice
of
Im p o r t e r s o f a ll t y p e s o f s e c o n d h a n d c o m p u t e r s f r o m J a p a n a n d E u r o p e . We also repair and sell spare parts at a relatively cheaper price
Proforma invoice No………………………………….. Date……………………….. M/S…………………………………………………… quantity particulars rate amount 15
E&OE
TOTAL
Accounts are due on demand SIGNITURE ……………… Peter computer world
[c] A package sheet from
Im p o r t e r s o f a ll t y p e s o f s e c o n d h a n d c o m p u t e r s f r o m J a p a n a n d E u r o p e . We also repair and sell spare parts at a relatively ch eaper price
PACKAGE SHEET TO: MM COMPUTER TRAINING SCHOOL P.O.BOX 1240 KAMPALA UGANDA This package contains the following Monitors Key boards Packed by : Ssewampuma Peter
[d]
PACKAGE SHEET NO: 27 DATE: 27 TH MARCH 2011
checked by: Mubiru
Statement of account
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20 screens 20 keyboards LEDGER FOLIO 10/3
TO: MM COMPUTER TRAINING SCHOOL P.O.BOX 1240 KAMPALA UGANDA
DATE t 5 th 7 th 10 th 15 th 17 27th
STATEMENT OF ACCOUNT FOR THE MONTH OF MARCH 2011
DETAILS Invoice no. 56 Invoice no. 345 Invoice no. 27 Credit note no. 24 Credit note no.25 Credit note no.27
DEBIT(SHS) 100,000 200,000 400,000
Balance c/f
700,000 700,000
CREDIT
100,000 200,000 200,000
Terms: 2% months,2 after E&OE
500,000 700,000 Amount due 200,000 SIGNITURE……………………..
Example six You are operating a stationary on a large scale in your locality. The stationary has a good control system with an experienced store keeper. The business employees both skilled an unskilled labour [a] design (i) a store requisition form (ii) A requisition form for funds from the accountant (iii) Stock ledger card for the store keeper‟s use [b] Draft a payment voucher you will use when paying workers [c] Prepare a goods returned note for the damaged office supplies [d] Write a promissory note to your supplier for the amount due
Solution [a]
(i)
a store requisition form for carol stationeries limited
STORES REQUISITION FORM No: …………………………………….. Date……………………………………. Description of material
dept……………………………… quantity
rate
Authorized by ……………… …………….. Supplied from BIN NO…… …….. Materials received by ……………………. Entered in bin card stores ledger By ………………………………….
17
value
(ii)
A funds requisition form for carol stationeries limited
Section…………………………………………….. Funds are required to cover the following
Item
Details of expenditure
Date…………………
Amount required
Amount approved
Amount in words……………………………………………………………………. Person requisitioning funds…………………………. Signature……………….. Approved total……………………………………………………………………….. Person authorized payment……………………………………………………….. Status…………………………………………………………………………………
(iii)
Stock ledger card for store keeper’s use at carol stationeries limited
STOCK LEDGER CARD Name of item ………………………………………… Date received
Date of issue
Balance (units)
item no………………..
Issued to
Authorized by
Method used in issuing…………………………………………………………….. [b] Payment voucher to be used when paying worker at carol stationeries limited
18
Payment voucher No……………………………………………….. Date………………… M/S………………………………………………………………………………… particulars amount
Cash/cheque no………………………………. A/C NO……………………….. Amount in words…………………………………………………………………… Prepared by……………………………… approved by…………………………. Authorized by………………………………received by………………………….. [c]
Goods returned note for the damaged goods to carol stationeries limited
Goods returned note
To Mpanga publishers P.O.Box 678 Kampala details Entrepreneur ship books Markers chalk
goods returned note no. 89 date: 03/27/2011 reason Not required Damaged Wrong color
quality 10 copies 20 boxes 3 boxes
Please issue us with a credit note
[d]
Promissory note Mpanga publishers 27th march 2011 Two months after this date, we promise to pay Mpanga publishers for his order a sum of one million shillings, value received. ……………………………… Mayanja Paul For carol stationary limited
You have started a mineral water processing plant. You are competing with many other firms in the market. You are willing to sale shares to the public and make your product known to the public [a] design a questionnaire to issued to the customers [b] Design a client‟s information form to be used in the sell of shares [c] Draft a share certificate to be issued to the share holders [d] Design a tax invoice to be issued to your customers
Solution [a]
a questionnaire to be issued to the customers 19
Customers’ opinion form 1 Name……………………………………………………………………………. 2 Address…………………………………………………………………… 3 How regular do you buy our products …………………………………….. 4 How do you find them? Are they of good quality YES OR NO………….. 5 Explain…………………………………………………………………………… 6 How do you compare Munyonyo water with other mineral wat er… 7 Comment on the quantity……………………………………………………… 8 suggest means and ways which may be applied to increase sales of Munyonyo mineral water ………………………………………
[b] a clients information form to be filled by clients of BB mineral water company Form no. …………………………………. Surname……………………………………………. Other names………………………… Business name (where applicable)………………………………………………………….. Reg No …………………………………………… (attached certificate of reg) Nationality……………………….. I.D NO. …………………. Passport no……………….. Maiden name (if applicable)…………………………………………………………………. Marital status………………………………. Occupation…………………………………. Date of birth………………………………… TIN NO……………………………………….. Physical address building…………………………………. Floor………………………. Road/street…………………………………………………………………………………….. P.O.Box…………………………………………………….. Town………………………….. Tel……………………………………….. Fax………………………………………………. Contact person Surname…………………………………………………. Other names………………….. Relation ship…………………………………………………………………………………… Address: P.O.Box…………………. town………………. Tel........................................... Sign ……………………………………………………….. Date………………………………. For official use only Officer in charge………………………………………………………………………………. Designated supervisor………………………………………. Account number……………. l A share certificate to be issued to the share holders
20
Name of the company…………………………………………………………………. Certificate no……………………………………………………………………………… This is to certify that Name……………………….. Address…………………….. Is a registered holder number Million xxxxxxxx xxxx
of
ordinary
shares
one
five
zero
Ordinary shares of twenty thousand each fully paid in the above named company is subjected to the memorandum and articles of association there of. date
Transfer No.
No, of share
For and behalf of ……………………………………… (company name) ……………………………………………………… Chair person
Work schedule (3) This is a process of deciding how to commit resources between varieties of possible tasks A schedule is a list of employees who are working on any given day, week, month in a work place Work plan scheduling is the process of ensuring that an organization has sufficient staffing levels at all times For an effective work place scheduling one has to look at a work o r d e r f o rm a n d w o r k schedu le form.
[a] This is form where the c u s t o m e r s ’ j o b s are recorded showing the name of the customer, work to be done, employee to do the work, when to start and finish the job, the cost of the same work. This form is used to keep accurate records of the customers‟ order and allocate work to the employee. It includes the following. Name, address, and phone contact of the customer, date of the work order, the projected starting and finishing of the job Description of the work to be done, name of the worker to do the work Total cost of the work including the taxes. An example of a work order 21
Order No………………………………… Date……………………………………… Customers Work Employee name description to do the work
[b]
Work order Starting time and date
Ending time and date
Order work No.
Job cost in ugs Shs
WORK SCHEDULE FORM
This is a form that specifies the work to be done, the customer‟s name, when it will begin and end and which employee is responsible for the work It is intended to keep the workers busy on job and get the customers satisfied Importance of scheduling work To make sure that work is done in time To coordinate work in different departments To keep the workers busy while at the place of work It allocates time because many jobs need completion before others For example
WORK SCHEDULE FORM
day
Customers Work Employees Start name description No. time
End time
Work order no.
Mon Tue wed Thurs Friday
An example You have received a grant from an international NGO worth 20 million to enlarge your metal your carpentry work shop 22
[a] Prepare a weekly work schedule for your workshop [b] Show how the schedule will help you in the management of your industry.
A WEEKLY WORK SCHEDULE FOR EMPLOYEES KAMPALA CARES NGO KAMPALA CARES UGANDA LIMTED P.O.BOX 5698 KAMPALA TEL: 031456789 WEEKLY WORK SCHEDULE day
Employee name
Employee no
Description of work
Start time
end time
Mon
Peter
1
Purchasing timber
09.00 am
02.00
Ssewampuma
2
Preparing meals
08.00 am
02.00pm
John
3
Cutting timber
02.00pm
04.30pm
Sendijja
4
supervising
08.00am
05.00pm
Peter
1
Cutting the timber
11.00am
04.20pm
John
3
Assembling the tables
10.00am
04.00pm
Ssewampuma
2
Meals and cleaning
08.00am
02.00pm
Sendijja
4
supervising
08.00am
05.00pm
John
3
Purchasing inputs
11.00am
02.00pm
Ssewampuma
2
Preparing food
08.00am
02.00pm
Sendijja
4
supervising
O8.00am
05.00pm
Tue
wed
23
Thurs
Fri.
peter
1
Furnishing the doors
11.00am
04.00pm
John
3
Assembling windows
08.00am
04.00pm
Ssewampuma
2
Food and cleaning
09.00am
02.00pm
Peter
1
Cutting the timber
09.00am
02.00pm
Sendijja
4
Supervising
11.00am
04.00pm
Ssewampuma
2
Preparing food
08.00am
03.00pm
Sendijja
4
Supervising
09.00am
05.00pm
Peter
1
Painting doors
11.00am
02.00pm
john
3
Assembling windows
10.00am
03.00pm
A plant lay out and a site plan A plant lay out is a technique of locating machines, process and plant service with in the factory so as to achieve the might quality and quantity of out put at the lowest position cost of manufacturing Types of plant lay out include Fixed position Product lay out
Process lay out
A SAMPLE OF A PLANT LAY OUT FOR MPANGA FACTORY MPANGA FACTORY P.O.BOX 4537 KAMPALA UGANDA PLANT LAY OUT
24
administration Inspection department
Parking yard
Weighing department
Roasting machine
Grading section
Workers‟ rest room
Store
Parking machine
Generator room
Toilet
Waste disposal
You are operating a rapidly growing restaurant operating in a small, noisy and congested area. You are looking for funds for usage in the construction of a new modern workplace so that you shift to a new location [a]
Draw a site plan for the new premises
Mpanga’s site plan for the new premises MPANGA FACTORY P.O.BOX 4537 KAMPALA UGANDA
25
Park yard
Serving tents
Main gate
Park yard
Reception and ordering room
Cooking place
Serving rooms/places
Store for food
Toilet
Disposal unit
Nb. A plant lay out is more detailed than a site plan A sample of an office lay out
Teller one
Teller two
Teller three
Dinning hall Customer care and work
exit
Entrance
Customer care desk
toilets
Managing director
operations
26
supervisor
Loan repayment schedule This can be referred to as the period between which one has to pay back a loan he or she has contracted from the bank. It‟s noted that one has to effect the payments with interest. Of course this depends on the terms and condition of the money lender. Among the contents with in the repayment schedule include The period, the principal, interest and the total amount to pa id in a given period The repayment schedule has got two methods namely The reducing balance method The fixed method Q u e s ti o n o n e You have received a loan from crane bank worth Ug Shs 80 million to expand you’re your school you have been granted credit period of 8yrs at an annual interest of 2% [a] Prepare a loan repayment schedule using the fixed method [b] Prepare a standing order to you bank to pay water bills monthly [c] Draft a cheque deposit slip you will use to deposit money on your account (a) Fixed method
Princess Diana high school Munyonyo Loan repayment schedule Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 total
principal 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 8,000,000
interest 160,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 1,280,000
Amount to be paid 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 1,160,000 9,280,000
Note
With this method the principal payable remains constant through out the repayment schedule. This principal is got by dividing the total amount of the loan with the credit period granted to the borrower as seen below. 8000,000 ÷ 8 =1,000,000 [8,000,000 is the total loan and 8 is what call the credit period] The interest unlike in the reducing method remains the same through out. It got 2/100 ×8,000,000 = 160,000shs The total amount to be paid still has to remain constant throughout .its got by adding the principal with the interest payable E.g. 1,000,000 + 160,000 = 1,160,000 27
[b]
a sample of banker’s order BANKER’S ORDER To: crane bank - Jinja road branch Date: ……………………………………… rd
On 3 march and on every first day of each month until cancelled by us in writing, please pay to UMEME Uganda for account of princess Diana High School Munyonyo P.O.Box 2326 Kampala A/C NO 03232425262011 the sum of Shs two hundred thousand (200,000). Debiting my account with all charges Name: Ssewampuma peter Address : P.O.Box 2326 Kampala Question two You are importing second hand cars from Japan . Due to the stiff completion in the business you are forced to get a loan from one of the prominent banks on the African continent to expand your business. The bank grants you a credit period of five years at an annual interest of 5%. [a] Prepare a loan repayment schedule using the reducing balance method [b] Explain the credit policy that will be implemented by money lender [c] What measures will an entrepreneur use to ensure proper loan management? [d] Draft a cheque deposit slip you will use to deposit money on your account
(B) REDUCING BALANCE METHOD Ssewampuma car importers Uganda ltd Loan repayment schedule Period Year 1 Year 2 Year 3 Year 4 Year 5 Total
Principal repayment 1,000,000 1.000.000 1.000.000 1.000.000 1.000.000 5.000.000
Interest payable 250.000 200.000 150.000 100.000 50.000 750.000
Total amount to be paid 1.250.000 1.200.000 1.150.000 1.100.000 1.050.000 5.750.000
Note Under this method the principal payable remains constant throughout The interest amount paid keeps on reducing from time to time. its calculated as seen below 28
1st year 5/100 × 5.000.000=250.000 Being a reducing balance method, after the first year you have to keep on subtracting the principal of 1.000.000 from the total loan in a given period of time as seen below. 2nd year 5.000.000 – 1.000.000 = 4.000.000 There fore 5/100 × 4.000.000 = 200.000 rd 3 year 4.000.000 – 1.000.000 = 3.000.000 5/100 ×3.000.000 = 150.000 The total amount to be paid is got by adding the principal payable with the interest as seen below 1st year 1.000.000 + 250.000 = 1.250.000shs nd 2 year 1.000.000 +200.000 = 1.200.000shs
Credit policy [b]
The credit policy that will be implemented by money lender One should be registered member of the bank or any financial institution
One should a share holder with a given organization
One should be economically active
One should be a resident of the locality
One should have savings on his account with in the bank
One should be able to pay monthly
One should be able to attend monthly meetings
One should have an account in that bank
Proper loan management [c]
The following are the measures that an entrepreneur uses to ensure proper loan management
By using the loan for the intended purpose
By providing accurate information when applying for a loan
Through proper documentation of the loan principal and interest
Through observing the agreed method of the repayment
Through proper monitoring and supervision of the enterprise to ensure its profitability
Through making regular visits and seeking advice from the lender 29
[d]
By obtaining a manageable loan size which can easily be repaid
Through communicating to the lender the major changes that may take place in the business and the likely effects on the business performance
Through obtaining the required knowledge and skills about the using of the loan funds. This may be through training in the financial management
Draft a cheque deposit slip you will use to deposit money on your account Crane bank Uganda limited P.O.Box 2425 Kampala Uganda branch ………………………… date ………………….. Account name …………………. a/c no. ……………….. Cheque no. …………………….. Branch……………….. Drawer’s a/c no………………………. Drawer’s name……………………….. Amount in words …………………………………………………… UGX……………………………………………………………………. signature of the person paying in name of the person paying in ……………………………………. …………………………………..
Revision questions Qn 1 You have got funds from a dear friend in form of a loan worth 10 million to expand
your poultry project. He grants you a credit period of 5 years at annual interest of 12% He suggests that you pay the principal in 5 equal installments with an annual interest that will depend on the outstanding balance [a] Prepare a loan repayment schedule [b] Draft the measures you will use to ensure proper loan management Qn 2 You are operating an account you have received a loan worth 15 million from Barclays bank to expand your dairy farm. You have been granted a credit period of 5years at an annual interest of 15%. You are required to pay the principal in 5 equal installments [a] Prepare a repayment schedule using both methods [b] As an entrepreneur measures will you use to ensure proper loan management Qn 3 You have received a loan worth 20million from crane bank to start up bread factory the loan charges are at a fixed interest rate of 5% and payable within 5 monthly equal payments. [a] Prepare loan repayment schedule. (7mks) [b] What measures will an entrepreneur use to ensure proper loan management? [c] Draft a cheque deposit slip you will use to deposit money on your account 30
QN4. You have obtained funds to start up a saving and credit society. The first client gets a loan from you worth 2.000.000. You grant him a credit period of 2years at monthly interest of 10%. Being the first client you request him to the principal in 10 equal installments [a] Prepare a credit policy for you project [b] Develop a loan repayment schedule for your client. Qn4. You have received a loan from local SACCO credit saving scheme worth 20 million to expand your tree growing project. The bank grants you a credit period 10 years at an annual interest of 20% .you are requested to pay the principal in 10 equal installments [a] prepare a loan repayment schedule using the reducing balance method [b] Write a letter to the loans officer requesting him for a grace period of 2 more years to clear the loan.
Business plan preparations (4) It is a well prepared document which is intended to serve in a particular period of time At times it’s referred to as a management tool which focuses on the nature of the business in a logical and organized manner It is always important for the business men to draw up business plan because it acts as driving force towards the success of any business as it helps on plan a head of time. The purpose of a business plan - It helps financiers like banks, insurance companies to decide whether to finance the business. - It consists of an action plan which acts as a time table for the implementation of various business activities - It provides information about the prospective future of about the business - It encourages the entrepreneur to be focused 0and think great about his business - It helps employers to know their expected targets as it clearly shows the responsibilities for each employee - It provides adequate preparation for the business e.g. in terms of production marketing etc - It helps the entrepreneur to define specific goals which serve as a yard stick to measure the progress of the business - It facilitates the monitoring of the business performance based on the set goals and objective as a standard measurement - It is a basis for determining government revenue from the business - It also helps the government to follow the trends of the business activities in a country
The general description of the business plan
Statement of the mission
financial plan
production plan
31
Action plan
organization plan
Marketing plan
This basically looks at the type of the business, features that make it different from other businesses, a SWOT analysis, the name, address and location of the business An example You have established a laundry project in your town [a] Give a general description of your business Solution
Below is a general description for my laundry project - The type of business I have started is a laundry project located in Salaama - The laundry project will do a series of activities aimed at maintaining the cleanness of the people in an area. It will deal with washing and ironing of peoples‟ clothes - The business will be located 8km along Kampala Munyonyo road - The main strength of my business will lie in the experience of my two workers who have knowledge about washing and ironing clothes - My opportunity lies in the area that is to say am the only one who owns a laundry project in the area on a large scale - Among the threats, my business is located in an area full of thieves who can steal the clothes while drying
(i) The mission statement
This is a brief statement that indicates the purpose of the business. It answers questions like - What business are we in? - Our primary goal is? - Our share holders are? (ii) The goals These are long or medium targets an entrepreneur is intending to achieve in a given period of time for example - To realize a 40% increase in profits in 10 years - Opening up 5 outlets in .four months (iii) Objectives These are specific targets an entrepreneur sets. They are normally developed from goals set by the business 32
NB. Objectives help the business man to move into the direction of achieving his or her goals A g o a l ; to realize a 40% increase in profits Therefore under the objectives we have to look at the ways which can drive us to achieve the 40% increase in profits E.g. -To improve on the channels of distribution - To increase the plant productivity by 30% Some thing to note about the goals b] measurable They must a] specific in nature c] realistic d] Achievable d] time frame An example You have established a poultry project in your locality. [a] write out a mission statement [b] Formulate a vision for the poultry project [c] Prepare any two goals and any two objectives in line with the poultry project Solution [a] mission statement - To provide customers with high quality eggs and hens at reasonably cheaper price to meet the customers demands. [b] The vision statement - To be leading provider of poultry products in the region My goals - To realize an increase in profits by 20% in 2 years - To increase sales by 30% per year over two years - To open up two outlets in 4 years My objectives - To employ about 12 workers in 1 year - To cut down on the production cost by 10% - To improve on the sales by 10%in a year
(c) The marketing plan This is an analysis of the possible position and opportunities of the business being planed in the present market situation. It covers areas like Position of the competitors Selection of the distribution channel An analysis of the product and its value An analysis of the various ways of communicating Projected marketing expenses Target market Pricing and sales NB A s t u d e n t i s r e q u i r e d t o p r e p a r e a m a r k e t i n g p l a n a n d c l e a r ly d i s p l a y t h e a b o v e head lines
Qn.1 33
You have obtained a grant of 50 million to start up a vegetable growing project . [a]
Prepare up a marketing plan for your project
-
I will use a short channel of distribution when selling my produce because of the stiff competetion in the market I will carry out advertisement on the local radios I will look at the quality and types of vegetables produced by competitors I will set lower prices than those set by my competitors I will look at the nature and size of the market so as to produce vegetables in relationship to the market needs I will incur expenses of radio advertisement, making a sign post, paying employees, water and power bills
(d)
THE PRODUCTION PLAN
This is an analysis of the projected needs for manufacturing the proposed goods and services. It covers the following areas -
The business location
-
Production standards
-
Manufacturing process
-
-
Machines and equipments needed
Inventory plans for stock and work in progress and finished goods
-
Labour requirements
-
Quality objectives
-
Power and utilities
-
Purchasing plans or re-order level
-
Estimated inputs
An example You have set up a concrete brick laying project in your locality Prepare a production plan for the project
A PRODUCTION PLAN FOR WAIRA BRICK LAYING PROJECT WAIRA BRICK LAYING PROJECT 34
P.O.BOX 786005 KAMPALA UGANDA TEL: 7786999044\ A PRODUCTION PLAN
[i] Business premises and location The work shop is located at Buddo 9km along Kampala Masaka road. This work shop is just in a highly populated area which has got a high demand for my products. The work shop was constructed on newly purchased land
The building cost include the following item Unit cost Total cost land Bricks (10000) 120 1200.000 Cement (50bags) 25000 1250.000 Iron sheets (40) 12000 480.000 wiring 300.000 Total 3230.000 [ii] Manufacturing process The work shop is producing quality products like bricks and pavers. it make 500 bricks in two weeks and 200 pavers in one week [iii] Choice of machinery Zzimwe construction uses physical man power to make the products It uses hand operated machines which I bought from Kampala because am working at night, I bought a generator to provide light in case of any load shading A summary cost for the machines and equipments quantity item Unit cost 2 Mixing machine 250.000 1 Generator 250.000 other Other machines total
Total cost 500.000 250.000 1.000.000 1.750.000
[iv] Labour requirements My project is employing 1 engineer skilled in brick making and 6 causal workers Position No Wages amount engineer 1 250.000 250.000 Causal workers 6 100.000 600.000 Total 7 350.000 850.000 [v]
Raw materials
35
The main raw materials are stones, cement, sand all estimated at 4.000.000shs all these are bought from Kampala and that they are obtained on a cash basis A summary of raw materials cost per month Type quantity Unit cost Total cost Cement 100 bags 25.000 2.500.000 Sand 5 trucks 80.000 400.000 stones 4 trucks 100,000 400.000 total 3300,000 [vi] Power and utilities The work shop requires electricity, diesel to run the stand by generator, water. All this charges are estimated at 750.000 per month [vii]
Transport The project hires a truck to transport the raw materials like sand, stones finished goods for those whoare buying in large quantities
and
[viii] Waste disposal The project has waste materials like damaged bricks and pavers during the production process. They are sold at subsidized prices to individuals who want to repair they their roads [ix]
Other facilities required Two punching machines to help in filing the documents, stationary, receipts, pens and pencils to help in record keeping [x] Over head expenses The project incurs some other expenses including depreciation of the machines, building, repairs and machine serving
(e)
Financial plan
This covers the financial requirements of the proposed business.
It includes projections of income and profit, balance sheet and cash flows It answers questions like - What is the total cost to set up a business? - Financing of the proposed business - Which source of fund should be tapped? - How will the income be used? An example You have started up a business manufacturing black exercise books worth 5 million shillings. [a] Draw up a financial plan
Solution 36
A financial plan for Lule stationeries Uganda LULE STATIONERIES UGANDA P.O.BOIX 54678893 KAMPALA TEL: 8856677473 A FINANCIAL PLAN requirements Shs Shs (i) Fixed capital Acquisition of land 400,000 Construction of building 700,000 Purchase of machines 400,000 Vehicles 500,000 2,000,000 (ii) Start up expenses Water installation 200,000 Installation of machines 200,000 Installation of power 300,000 700,000 (iii) working capital Raw materials 500,000 Direct labor 200,000 Administrative expenses 100,000 Transport expenses 200,000 1,000,000 total 3,700,000 (iv) Financing a business Source of funds Amount in Shs Cost implication Own funds 1,000,000 Trade credit 400,000 friends 300,000 Loan from crane bank 1,000,000 500,000 total 3,700,000 500,000 (v) Profitability of the business I will expect a rate of turn over on my investment of about 700,000 shillings in one year‟s period (vi) Break even sale of the business will be 23% NB. The financial plan can be shorten depending on the marks to be awarded
(f)
ORGANISATIONAL PLAN
This a frame work around which people machines, equipments and other physical parts are put together to have a moving organization. It answers questions like
Who will work organization? What are their tasks?
for
the
37
Who will the administrative work? what skills should their possess
An example You have started a fruit processing business manufacturing juice from oranges. You are competing with many firms to make your products known to the public. [a] prepare an organizational plan Below is an organizational plan
KAMPALA FRUIT AGENCIES LIMITED P.O.BOX 56788 KAMPALA UGANDA TEL: 25637265378 An organization plan People to wok in my factory ; Kampala fruit agencies is employing 10 causal workers and 10 skilled workers Tasks for workers Casual workers are taking parting in activities like collecting fruits from growers, preparing them for processing, help packing the juice loading and off loading, preparing meals among others. Skilled workers; include the human resource manager who is recruiting workers, an accountant keeping records, two engineers maintaining the machines, a receptionists and two heads of department Workers qualification The casual workers are having a minimum education qualification of A level certificate. The human resource manager is having a bachelor‟s degree in human resource management. The accountant is having a degree in accounting, a receptionist has a diploma in secretarial studies and the general manager is having a degree in social worker and public administration. Fringe benefits to given to my employees ; Both qualified and causal workers are given both housing and medical allowances. The total amount available for use is 14,000,000. The business has been operating with 6,000,000 and later a loan from 8,000,000 was received Remuneration/ salaries and wages position No Salary amount supervisor 1 200,000 200,000 General manager 1 400,000 400,000 Head of department 2 250,000 500,000 accountant 1 300,000 300,000 engineer 2 350,000 700,000 receptionist 1 200,000 200,000 Casual workers 10 120,000 1,200,000 total 18 1,920,000 4,500,000
38
An organizational chart Many learners find it so hard to define a difference between an organizational plan and an organizational chart. But the following should be noted. An organizational plan is a frame work around which people machines, equipments and other physical parts are put together to have a moving organization. Whereas an organizational chart is a diagram that different departments and personnel in these departments
Or this is a diagram that shows the way in which management is linked together and shows how authority is transmitted. It can be presented in form of an organizational structure It helps to illustrate the following
Shows the overall top person
Formal relationships between different departments
The number of subordinates
The identity of the manager where each worker is answerable
Formal channels of communication
An example You are a general manager of a large company
[a] Explain what ways you would do in carrying out a job analysis [b] Draw up an organizational chart for you company [c] Explain the advantages of an organizational chart to the project you are heading Solution [a] BIDCO Uganda limited would do the following when carrying out a job analysis By finding out the purpose of the job - By knowing the skills and experience needed - By knowing the knowledge required [b]
Below is an organizational chart for BIDCO Uganda limited
39
BIDCO UGANDA LIMITED P.O.BOX 56478 KAMPALA, UGANDA TEL: 031546783 AN ORGANIZATION PLAN
Board of directors
General manager
Production department
[c]
Marketing department
Finance department
Research department
Welfare department
The advantages of an organizational chart to BIDCO Uganda limited
It shows how every body is linked together in an organization
It enables every individual to see their own position in the organization
It will help me inform my employees to see from whom to take orders
It shows in the link and relationship between different departments with in an organization
Allocating every one in a different department avails a sense of belonging to the employees in an organization.
It helps an entrepreneur coordinate different departments in an enterprise
It helps to determine the personnel requirements
It ensures proper organizational structure which improves efficiency
It improves on the flow of information and communication in an enterprise
It avoids duplication and clashes of roles and responsibilities
40
This is a plan put forward by the entrepreneur in form of a time table to guide him on how he will go about implementing the ideas of the business plan Or It‟s a management tool which deals with carrying out the sequenced steps towards achieving a business in an attempt to get things done.
Functions of an action plan
It helps to obtain information about the progress of the business.
It is a time table estimated for implementing a business plan
It helps to allocate sources of information and resources needed
It helps the business to remain focused during the implantation of its programs.
It helps to identify business barriers
Steps taken when preparing a business plan
Selecting the business
Discussion of the draft business
Conducting market research
Collecting relevant data
Finalizing your business plan by preparing an action plan for implementation
Drafting a proposed business plan
An example of an action plan You have obtained a loan to expand your project producing plastic cups [a] Explain some of the importance of an action plan to your project. [b] Prepare an action plan for your project Solution [a] The following are the functions of an action plan to Mukwano enterprises - It helps to obtain information about the progress of the business. - It is a time table estimated for implementing a business plan - It helps to allocate sources of information and resources needed - It helps the business to remain focused during the implantation of its programs. - It helps to identify business barriers
[b]
An action plan for Mukwano enterprises
41
MUKWANO ENTERPRISES P.O.BOX 67589 KAMPALA. UGANDA TEL: 0316734563 AN ACTION PLAN activity Preliminary survey of the business (SWOT analysis Market research and finalization of the business plan Ordering for machines Construction and renting of the factory Installation of machines Recruiting of personnel Application for utilities Production trail Commercial production Necessary training publicity
Jan *
Time frame Feb March April
*
*
* * * *
* * * * *
May
June
July
* * *
*
*
*
*
* *
*
Review questions Qn.1 You have started up a sugar processing factory worth 100,000,000 Uganda shillings [a] Prepare an organizational plan for your project [b] What tools would use to monitor your business operations [c] Identify the business support organizations you will require and the services they provide [d] Identify (i) Products (ii) By products Solution AN ORGANIZATION PLAN KAMPALA SUGAR UGANDA LIMITED KAMPALA SUGAR UGANDA LIMITED P.O.BOX 56477 KAMPALA UGANDA TEL: 7856479823 AN ORGANIZATION PLAN
The company is employing 20 casual laborers, 10 skilled and one supervisor Tasks for my workers; Causal workers will do activities like cutting loading sugar canes, cleaning the factory, preparing meals, packing sugar, providing security among others. The skilled workers are including a human resource manager who is recruiting workers, an accountant keeping the books of records, the general
42
manager and three heads of department. The supervisor who is responsible for supervision of all departments Workers qualification; the casual workers are having a minimum education level of o level education certificate. Human resource manager is having a bachelor‟s degree in human resource management. - An accountant is having a bachelor of commerce in accounting from any recognized institution. - An engineer possesses a degree in mechanical engineering. - A receptionist is having secretarial skills - The general manager possess a bachelor in social work and social administration Fringe benefits to be given to the workers; both skilled and unskilled are given medical and housing allowances Remuneration position supervisor General manager Heads of department Human resource manager accountant engineer receptionist Casual workers Total [b]
-
-
no 1 1 3 1 1 2 1 20
salary 400,000 300,000 200,000 300,000 200,000 400,000 100,000 100,000
amount 400,000 300,000 600,000 300,000 200,000 800,000 100,000 2,000,000 4,700,000
Kampala sugar Uganda limited would use the following tools to monitor its business operation KAMPALA SUGAR UGANDA LIMITED P.O.BOX 56477 KAMPALA UGANDA TEL: 7856479823 TOOLS TO MONITOR THE BUSINESS By setting sales targets which my workers will aim at achieving Through cross checking monthly bank statements Through cross checking the cash in and out flows in the business By preparing an operational budget and the workers will perform as the operational budget By keeping records of stock the business will always use departmental reports to compare the performance of the business By using a business plan to monitor the business, it will use work schedule that is to say it will set different time schedules at which workers should complete the assigned tasks By designing a schedule showing all workers activities at different intervals
[c] Kampala sugar Uganda limited would require the following business support organizations and their services 43
KAMPALA SUGAR UGANDA LIMITED P.O.BOX 56477 KAMPALA UGANDA TEL: 7856479823 SUPPORT ORGANIZATIONS FOR THE PROJECT - Uganda national farmers association which will help the business to look for cheap sources of supply for raw materials - Uganda national chamber of commerce and industry that will provide the business with information about production techniques and training facilities for my workers - Uganda manufacturers association that will help the business look for market - Financial institutions; these would assist the business with safe custody of my funds and granting credit to my business - Utility service institutions like national water, UMEME among others these will help the business in acquiring water electricity and quick transmission of massages to my customers - Non government organizations; these provide me with credit facilities, marketing services, training and information [d] My sugar processing factory will produce the following products and by products Products - Sugar and sweets Byproducts - Gasses - Molasses - Effluents - Noises - Rubbish Qn.2 You are operating a tomato sauce factory the contract of a general manager, security officer and factory nurse have expired. You are making plans to communicate the development to your employees and recruit a new general manager [a] Design an organization chart you will use when inducting the new general manager
An organization chart T and C GROUP OF COMPANIES will use when inducting a new a new general manager 44
T and C GROUP OF COMPANIES P.O.BOX 564378 KAMPALA UGANDA TEL: 67589309 AN INDUCTION PROGRAME
Managing director
General manager
Marketing manager
Sales manager
Financial manager
Production manager
accountants
Factory manager
Human resource manager
Security officer
Factory nurse
Qn.3 You are operating maize growing project on a large scale with two other friends and you are to establish a maize milling and processing factory [a] Formulate a mission of statement, goals and objectives for your project [b] Prepare a marketing plan for your project [c] Prepare an organization plan for the new factory [d] Prepare an action plan Solution [i] A MISSION STATEMENT MAYANJA MAIZE GROWERS
MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA 45
TEL: 023657489329 A MISSION STATEMENT To provide customers with high quality coffee products that meet their standards [ii] GOALS FOR MAYANJA MAIZE GROWERS
[II]
[b]
MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA TEL: 023657489329 GOALS To open up two more outlets in the next two years To increase profits by 15% to realize an increase in sales by 20% per year OBJECTIVES MAYANJA MAIZE GROWERS MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA TEL: 023657489329 OBJECTIVES To improve on the sales by 20% To recruit about 15 more workers To cut down on the production costs A MARKETING PLAN FOR MAYANJA MAIZE GROWERS MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA TEL: 023657489329 A MARKETING PLAN
-
-
-
[c]
For the target market, The grain milling factory is targeting residents of Buddo, Wakiso among others for the poultry and piggery projects who need the maize brand and perhaps the schools that need the maize flour products offered include; maize brand, maize flour and maize grains When it comes to the position of the competitors, Mayanja maize growers only has one competitor who lacks a steady supply of the maize products The business sets its prices basing on the costs It has incurred in the production process and probably the demand for the products When it comes to the distribution strategies Mayanja maize growers sells its products directly to the costumers and to the wholesalers who are suited far away from the factory. This is helping the business to out compete other competitor The projected marketing expenses include expenses on radio adverts, water and electricity bills. An organization plan FOR MAYANJA MAIZE GROWERS
MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA 46
TEL: 023657489329 An organization plan People to wok in my factory; I will employ 10 causal workers and 10 skilled workers Tasks for workers Casual workers will part in activities like clearing the fields for planting, weeding, harvesting and sun drying the maize cobs, prepare them for processing, help packing loading and off loading them, preparing meals among others. Skilled workers; will include the human ,resource manager who will be recruiting workers, an accountant to keep records, two engineers to maintain the machines, two supervisors and two heads of department Workers qualification The casual workers will have a minimum education qualification of A level certificate. The human resource manager will possess a bachelor‟s degree in human resource management. The accountant should have a degree in accounting, the supervisors should possess qualification agricultural skills and the general manager will have a degree food far9ming and degree in social worker and public administration. Fringe benefits to given to my employees ; Both qualified and causal workers will be given both housing and medical allowances. The total amount available for use is 14,000,000. The business has been operating with 6,000,000 and later a loan from 8,000,000 was received Remuneration/ salaries and wages position No Salary amount supervisor 2 200,000 400,000 General manager 1 400,000 400,000 Head of department 2 250,000 500,000 accountant 1 300,000 300,000 engineer 2 350,000 700,000 receptionist 1 200,000 200,000 Casual workers 10 120,000 1,200,000 total 18 1,920,000 4,700,000
[d]
Below is an organization chart for MAYANJA MAIZE GROWERS
MAYANJA MAIZE GROWERS P.O.BOX 675890 KAMPALA, UGANDA 47
TEL: 023657489329
Owners of the factory
General manager
Planting department
Harvesting and processing department
Production department
Sales department
Accounts department
Qn. 4 You intend to establish a cosmetics shop in one of the suburbs of Kampala [a] use the SWOT analysis to determine the competitive advantage of your business [b] Explain what you would do to become a successful sales person [c] Prepare an action plan Solution [a] my SWOT chart I have the following strengths - High quality products - Lower but profitable prices - Ability of the products to meet the customers needs - Effectiveness in serving the customers - Good location of the business - Good and trained marketing staff - High and effective entrepreneur spirit My weakness - Marketing skills are in effective - Narrow product line - Inability to finance market changes - Not used to customers being new in the area - Poor calculations thus losses My threats - Growing bargaining power of the customers - New businesses being started up - Changes in the buyers tastes - Shifts in the trade policies - Rising sales of substitute goods
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-
[c]
I have more strength than my competitors since they have few goods with in the shop- and lack customer care. There I am more advantaged to operate a cosmetics shop than my competitors An action plan
activity
Preliminary survey of the business (SWOT analysis Market research and finalization of the business plan Ordering for machines Construction and renting of the factory Installation of machines Recruiting of personnel Application for utilities Production trail Commercial production Necessary training publicity
Jan *
Time frame Feb March April May
*
* *
June July
* * * * *
*
*
* * * *
* *
*
*
Qn. 4 - You have started a bakery project in your locality - [a] Give a general description of your project - [b] Prepare a marketing plan for your project Solution [a] The general description of the business - The type of business set up is a bakery project dealing in the making bread, cakes and doughnuts. - The project is located along Salaama road opposite princess Diana High School along Kampala district - The project does a series of activities including baking of bread, cakes, and doughnuts. It is also offering training services to the people around regarding making the products - What makes the business different from others is that it operates on a large scale producing high quality products - The main strength of Ntake two bakeries is lying in the experience of the workers who have knowledge about skills and experience in baking. - Ntake two bakery‟s opportunity lies in the area that is to say it is the only bakery project in the area on a large scale - Among the threats, Ntake bakery is located in an area full of lower income earners who always buy on an irregular basis [b] A marketing plan for my project is as follows
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-
-
My target market includes students in schools, the staff of those schools and people around the area Products offered; the main products include bread, cakes and doughnuts. I will pack my products in polythene bags. I will also offer training to people as regards manufacturing of bakery products I will use a short channel of distribution when selling my produce because of the stiff competition in the market I will carry out advertisement on the local radios with objectives of increasing sales, maximizing on the profits and to weaken the strength of my competitors I will look at the quality and types of bread doughnuts and cakes produced by competitors I will set lower prices than those set by my competitors I will look at the nature and size of the market so as to produce bakery products in relationship to the market needs I will incur expenses of radio advertisement, making a sign post, paying employees, water and power bills I will sale both on cash and credit basis to some trust worthy customers in order to capture a large market population My plan to out compete my competitors is to produce on a large scale and sell at lower prices
A budget, an operational budget And a financial plan [A] A budget A budget is a statement of estimated income and expenditure of a business over a given period of time. This helps to avail and present information about the cost for under taking each activity. This is because that each activity or cost of an item is calculated. An example You have received a grant from an American NGO to enlarge your metal fabricating industry worth 50,000,000.uganda shillings [a] prepare a budget for the project [b] Explain the advantages of a budget to your project Solution [a] A budget for KK metal fabricating business given KK metal fabricating WORK SHOP P.O.BOX 5647893 KAMPALA TEL: 098643782545278 A BUDGET FOR THE WORK SHOP requirements FIXED REQUIREMENTS Enlargement of land Construction of another building Purchase of machines
amount
5,000,000 7,000,000 10,000,000 50
amount
[b]
Motor vehicles 5,000,000 Fixture and fittings 1,000,000 Total 28,000,000 WORKING CAPITAL Labour 3,000,000 Raw materials 15,000,000 Administrative expenses 1,000,000 Marketing expenses 1,000,000 Power per month 1,000,000 Cash at hand or liquid cash 1,000,000 22,000,000 TOTAL 50,000,000 GENERAL TOTAL The following are the advantages of a budget to the business
A tittle. An address, business nam e and frame are very impo rtant
-
It is an important aid in decision making through daily record keeping it gives the managers or the employees authority to control the their own departments
-
A Budget controls the whole business as they control the amount of money allocated to each department
-
A budget helps to supervise daily cash receipts and expenditures
-
A budget helps in cash flow planning by predicting the amount of money allocated to each department
-
A budget helps me an entrepreneur in debt collection from credit customers and also in settling debts
-
A budget helps me the manager to make sure that the business doesn‟t over spend
-
The setting of budgets can involve all workers, supervisors as well as managers some thing that can lead to greater motivation
-
A budget reveals potential hindrances or problems to the smooth running of the business before they occur
-
It allows an entrepreneur to direct extra funds into important areas of the business
-
Budgets can be used to see how the business is performing
-
A budget can provide an entrepreneur with targets for departments and employees to work towards
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-
It helps in cash flow planning by predicting the amount of cash that will flow in and out
[b] An operational budget This is a summary of the income and expense projection of a business. That is to say income and expenditure expectations. It helps one in monitoring the business performance after looking at the income and expenditure planned The following are the steps involved in preparing an operational budget
Select the business objectives, goals and activities to be performed
estimate the sales to be made
Estimate the cost of goods or services you are planning to sell
Calculate the gross profit by (sales – cost of goods to be sold
If profits are taxable, apply the tax rate to the difference between the gross profit and the value of the assets together with the estimated selling and general administration expenses to the tax payable
The following is an example of an operational budget description sales Cost of goods sold books 100,000 x 300 Pencil 20 boxes x 500 Duplicating papers 10 reams x 10,000 Gross profit General and administrative expenses Salaries 200,000 renting 90,0000 advertising 150,000 Miscellaneous expenses 50,000 Fixed assets Buildings 100,000 land 200,000 machinery 50,000 total Net profit
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amount 5,000,000 = 3000,000 = 10,000 = 100,000
3,110,000 1,890,000
750,000 1,140,000
[c] Financial plan Example one you have started up a business manufacturing black exercise books worth 5 million shillings.
[a] Draw up a financial plan Solution A financial plan for MAYAS enterprises MAYAS ENTERPRISES P. O. BOX 56487474 KAMPALA TEL: 89895785888 A FINANCIAL PLAN requirements Shs Shs (i) Fixed capital Acquisition of land 400,000 Construction of building 700,000 Purchase of machines 400,000 Vehicles 500,000 2,000,000 (ii) Start up expenses Water installation 200,000 Installation of machines 200,000 Installation of power 300,000 700,000 (iii) working capital Raw materials 500,000 Direct labor 200,000 Administrative expenses 100,000 Transport expenses 200,000 1,000,000 total 3,700,000 (iii) Financing a business Source of funds Amount in Shs Cost implication Own funds 1,000,000 Trade credit 400,000 friends 300,000 Loan from crane bank 1,000,000 500,000 total 3,700,000 500,000 Profitability of the business I will expect a rate of turn over on my investment of about 700,000 shillings in one year‟s period Break even sale of the business will be 23% N B . Th e f i n a n c i a l p l an c a n b e s h o r t e n d e p e n d i n g o n t h e m a r k s t o b e a w a r d e d
Some thing to note
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Fixed requirements
Sales Cost of goods to be sold Gross profit
working capital General expenses Net profit
Fixed capital Financing of the business, Start up expenses, Profitability of the business, Working capital, Break even sales qn. 2 You have obtained a loan to start up a poultry project [a] design an organizational plan for your project. [5mks] [b] Prepare an action plan for the project [c] Explain the functions of an action plan to your project Qn you are a personnel manager of a large company, explain what you in; Carrying out a job analysis [a] Design a mission of statement, goals and objectives [b] Draw up an organizational chart for the company Qn. 4 You are operating a small scale secondary school; you are employing 15 skilled teachers 6 casual workers and an accountant [a] Prepare a mission of statement, goals and objectives [b] Prepare an organization plan for your small school [c] Design a financial plan for the school Qn5 You are operating an orchard in your village. due to the increased demand for the juice you intend to install a beverage processing plant [a] prepare a vision for your business [b] Prepare a production plan for your project [b] Design a financial plan for the business Qn. 6 Having graduated as a construction engineer you have decided to start up a construction company dealing in building flats [a] Formulate a mission statement, goals and objectives [b] Prepare a budget for the construction of a client ‟s flat given 50 million [C] Out line the merits of a budget to your construction company [d] Design a marketing plan for your project so that it can be known by the public [e] Formulate a general description of the project Qn. 7 You have been appointed as a general a manager in a big factory making soap. The board of directors contracts a loan worth 80 million to expand the factory [a] prepare a budget for the factory [b] Explain the advantages of a budget to your factory [c] Draw up an organization plan for the factory [d] Design production plan for the factory [e] Prepare an organization chart you will use in the factory Qn.8 You are to start up dairy farm project [a] Prepare a production plan
54
[b] Prepare an action plan for the dairy farm project [c] Design a marketing plan for the project [d] Prepare an action plan and state its importance to your business. Qn. 9 You have started a carpentry work shop in your locality estimated at 8 million [a] Prepare a production plan for the work shop [b] Design an organizational plan for your carpentry work shop [c] What tools will use to monitor your project [d] Identify the business support organizations you will require and the services they provide [e] Prepare guiding tool you are to use when implementing the ideas of your business Qn.10 You have received sufficient funds and you are to start a mineral water processing business [a] Formulate a mission statement, goals and objectives [b] Design a vision for your business [c] Prepare an organization plan for the business [d] Prepare an action plan for the business
[A] A job description This out lines the responsibilities and duties to be carried out by some one employed to do a specific kind of work or job
The exact content of a job description varies from business to be business but generally it will include the following . - The title of the job e.g. an accountant - Department of the business e.g. accounting section - Who the job holder is responsible to; that is to say who will be in charge of the employee? - The purpose of the job that is to say the a summary of the job its self - Main duties and responsibilities - It may also contain the following information - Conditions of the employee (salary scale, hours and pension scheme) - Training that will be required - Opportunities for promotion An example of a job description
55
Job title: sales manager Department; marketing department Responsibilities : general manager Main purpose of the job - Responsible for marketing the products Main duties - Allocation of duties to different sales persons - Advising and monitoring them - Checking the sales records - Informing the general manager about the consumers tastes Occasional duties - appointment of new sales agents - training and motivating them - dismissing the un necessary participants
Qn. 1
You have received a grant from one of the American NGO totaling to 5,000,000 Uganda shilling to expand your school. In the process you required to recruit one more teacher [a] Design a job description for the of a teacher to be employed in your school Solution A job description for the post of teacher to work in my school
56
St Angela Primary School Ntinda P.O. Box 2111 Kampala Tel: 0401228899 Job description for teacher teacher Job title: entrepreneurship section Department: to the head of department Responsible: Responsible for: teaching entrepreneurship Main purpose of the job - teaching students job duties and responsibilities - teaching entrepreneurship skills - giving and marking tests - organizing seminars - making weekly reports on the performance of the students - guiding and counseling the learners - impacting business ideas before the learners
Qn. 2 Design a job description for the post of a sales manager in your fruit plant Solution A job description for the post of a sales manager in my fruit processing plant
Ssewampuma fruit processing business P.O. Box 2201 Kampala Uganda Tel: 030335577 dealers in producing and exporting all kinds of natural African
fruits
Job description for the sales manager sales manager Job title: marketing Responsible for; Job duties and responsibilities:
-
identifying suitable advertising medium for the business products selecting appropriate ways of increasing sales recruitment of more sales persons reporting customers complains in line with quality and quantity ensuring proper distribution of products to the final consumers
57
processing
A job specification Once a job description has been drawn up, the qualifications and qualities are very important for the job to be specified.
A job specification
is a document that out lines the requirements, qualifications, expertise and physical features needed from a person who is applying for the job. This lists the desirable and essential requirements for the job in question It includes the following - The level of education qualification - The amount of experience needed - Special skills, knowledge or particular attitude - personal features such as the type of personality
An example of a job specification for a house keeper house keeper Job title: house keeping Department: Details of the job Responsible for domestic services Qualifications diploma in house keeping Essential minimum three years of experience Desirable Skills - Effective communication skills - Ability to manage Personal characteristics - honesty - friendly - helpful - organized
Qn. 1 You have contracted a loan from diamond trust bank to expand your business [a] Design a job specification for the post of a sales manager in your fruit processing business [b] Design a news paper advert for the post sales manager Solution [a] a job specification for the post of a sales manager in waira fruit processing business
58
Ssewampuma fruit processing business P.O. Box 2201 Kampala Uganda Tel: 030335577 d e a l er s i n p r o d u c i n g a n d e x p o r t i n g al l k i n d s o f n a t u r a l A f r i c a n
fruits
Job specification for a sales manager Job title: sales manager Responsible for; marketing Physical requirements; good health Qualifications - should possess a bachelors degree in commerce diploma in procurement certificate in computer working experience 5 years of working experience Other requirements perfectly male between 28 to 35 years residing with or near Kampala knowledge about different languages is relevant
Some thing to note Job description outlines the responsibilities and duties to be carried out by the job applicant Where as A job specification out lines the requirements, qualifications and expertise needed from the applicant Qn. 1 Design job descriptions and specifications for the following - An accountant - A sales manager - A hotel manager - A general manager
Job advertisement This will obviously help the employer to convey or pass on information to the public about the existence a given job. In other wards this job advert will have a combination of the job description and a job specification. Components of a job advert - Duties involved, - Salary scale, - Qualification required, - Where to place the applications N B a j o b ad v e r t m u s t h a v e v a c a n c y an n o u n c e m e n t h e ad li n e
[b] Newspaper advertisement for the post of a sales manager
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Ssewampuma fruit processing business P.O. Box 2201 Kampala Uganda Tel: 030335577 Vacancy announcement W e a r e d e a le r s i n p r o d u c i n g an d e x p o r t i n g a l l k i n d s o f n at u r a l A f r i c a n fruits. We a r e t h er e f o r e l o o k i n g f o r a r e s p o n s i b l e a n d i n n o v a t i v e p e r s o n r e a d y t o w o r k u n d e r minimal supervision
Job title: sales manager job duties and responsibilities: identifying suitable advertising medium for the business products selecting appropriate ways of increasing sales recruitment of more sales persons reporting customers complains in line with quality and quantity ensuring proper distribution of products to the final consumers Qualifications should possess a bachelors degree in commerce diploma in procurement certificate in computer working experience 5 years of working experience Remuneration: attractive Age: between 27 to 40years of age All qualified and interested Ugandans should submit in their hand written applications plus certified copies of academic documents and any three addresses referees to human resource manager Ssewampuma fruit processing business. th
Not later than 27 June 2011
Qn. 3 You have obtained a loan worth 250 shillings to start up a metal fabricating project [a] Design an advert for the post of a manager [b] How will you motivate your employees? [c] Explain some of the leadership styles you are likely to implement as a new manager
APPLICATION FORMS AND CURRICULUM VITA’S (CVS) A business will always use the application forms or letters of application and the CVS to see which of the applicants will be invited for an interview and the selection stage. A curriculum vitae is a summary of a person‟s qualifications and qualities Curriculum vitae should contain the following Names Education and qualification Addresses Working experience Telephone numbers Positions and responsibilities Date of birth Interest and habits Nationality Names and addresses of referees
Interview questions The main purpose of interviews is to assess an applicant so as to determine his or her ability to do the job, any other personal abilities that are advantages or disadvantages or the general charter and personality of the applicant. Examples of questions asked in an interview 60
- What do you know about the organization? - Why have you applied for the job? - What qualities do you have to offer the company? - What ambitions do you have for the company? - Do have any question to ask? - Tell us about you hobbies and interest? An example of an application form
APPLICATION FORM
Personal details Name of the job applicant………………………………………………………………… Sex………………………………… Age…………………………………………………. Marital status…………………………… Religion……………………………………….. Experience possessed................................................................................................ From which Organization………………………………………………………………… Education summary Primary………………………………………….Secondary……………………………… Employment back ground………………………………………………………………… Position……………………………… gross salary……………………………………… Responsibilities ……………………………………………………………………………. Accomplishment…………………………………………………………………………… Reason for termination…………………………………………………………………….. Name of the company……………………………………………………………………. Name of the past employer ……………………………………………………………… Language used. English…………… luganda……………………. Availability: Permanent……………….. Temporary…………………. referees name……………………………… company…………………………………………. Telephone…………………………… address………………………………………..
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Recruitment program (6) Recruitment is the process of generating a pool of qualified applicants for organizational job vacancies The process of recruiting and selecting workers involves the following steps
-
Analyzing and collection of data business
-
Determining the number of workers
-
Establishing the levels of qualification
-
Determining the remuneration and fringe benefits
-
Advertising the post in the newspapers
-
Short listing the most suitable candidates
-
Interviewing the short list candidates
-
Organizing an induction plan
Methods of recruitment include
-
Advertising in the media
-
Visiting labor unions
-
Head counting
-
Visiting employment agencies
-
Visiting high institutions of learning
Factors considered for recruiting workers in an organization
-
Working experience
-
Number of workers required
-
Cost of the employee
-
Size of the business
-
Age of the employee
-
The sex of the employee, Language spoken, Marital status
-
Health status of the employee, Religious affiliation among others
Qn. 1 You have been received a loan from diamond trust bank worth 70 million to expand your school that has been operating on in a small ar ea on a small scale
[a]
Prepare a plan for the recruitment of more teachers 62
[b]
Draw up a work plan that you will follow when expanding your school
[c]
Explain the factors you would consider when recruiting workers.
[d]
Explain the methods you will use when recruiting workers.
Solution [a]
a plan for the recruitment of more teachers in st. Angela primary school ST. ANGELA PRIMARY SCHOOL P.O.BOX 78584857 KAMPALA TEL: 0895767838 A PLAN FOR THE RECRUITMENT OF MORE TECHERS
step Step 1
date 2n /05/11
Step 2 Step 3
4 /05/11 6 /05/11
Step 4 Step 5 Step 6
7 /05/11 9 /05/11 15 /05/11
Step 7
20 /05/11
[b]
Activity Collecting and analyzing the school performance to find out the need for recruiting more teachers Determining the number of teachers to recruit Find out the level of qualification and probably the duties for each teacher Determining the fringe benefits to be given to each teacher Advertising the post in newspapers to .known to the public Applications are received and the most suitable are short listed to get ready for the interview Interviews are made and the most suitable are appointed and an induction is made
A work plan I will follow in the expansion ST. ANGELA PRIMARY SCHOOL P.O.BOX 78584857 KAMPALA TEL: 0895767838 A WORK PLAN
activity
Required in puts may
June
Persons responsible
Expected results
Estates officer
A new site ready for construction
July
Purchasing 10 more land, workers clearing and 63
grading the site Construction of four new class rooms Inauguration of new premises
Cement sand workers furniture
Estates manager
Well constructed class rooms
owners
operation a large area
[c] st. Angela primary school would consider the following when recruiting workers. ST. ANGELA PRIMARY SCHOOL P.O.BOX 78584857 KAMPALA TEL: 0895767838
-
The working experience of the applicants. I would consider those with 5 years of experience.
-
I would consider the cost of the employees. I would actually recruit those low costs but very effective
-
The age of the applicants should be considered. I would there fore recruit those between 30 to 40 years
-
young and beautiful ladies to work as my teachers
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the language spoken by the teachers. That is say I would employ those with more than three languages spoken
-
The marital status would also be considered when recruiting teachers I would opt for single but devoted teachers
-
I would consider the health status when recruiting teachers because this would reduce on the rate of absenteeism at work
-
I would consider the skills and qualification of the teachers before recruiting them. At least I would recruit those with a minimum qualification of a diploma in secondary education
-
The nature and kind of work to be done would also be considered when recruiting teachers
[d] st. Angela primary school will use the following methods use when recruiting workers. 64
-
the head counting method
-
employment agencies to recruit workers on my own behalf
-
advertise in the media
-
I will visit high institutions of learning such as MUK, Ndejje University to pick the best students
-
I will also look through the available applications to pick out the best applicants suitable for the job
-
visiting labor unions for example teachers union
-
I will also go through a number of internships. This would help me pick some good teachers still under training
-
promotions. This involves appointing an employee to a position of greater or high responsibilities.
INDUCTION
TRAINNING
AND
ORIENTATION
PROGRAME (7) Induction training is an introduction given to a new employee explaining the firm‟ s activities, customs, and procedures and introducing him or her to the fellow workers An induction is carried out when an employee is new on the job or post this is because one starts at a new place of work when he or she doesn‟t know where to start and begin from, where any thing is , people at the place of work and what is expected from them.
It is like when a student joins a new school he or she has to be shown a round the school, introduced to teachers, told about the lessons. This is the type of information that you need to know if you have joined a new company for a new job This induction plan will last for something like two to 4 days. This usually depends on the company‟s procedures and at times the type of job An example of an induction program for general manager NN general agencies
65
NN GENERAL AGENCIES P.O.BOX 5564773 KAMPALA UGANDA TEL: 07576653873737 AN INDUCTION PLAN Format A Day and date Monday2nd/03/11
time 9:00am
Tue. 3r /03/11
11:00am
Wed 4 /03/11
2:00pm
Thurs 5 /03/11 Fri 6 /03/11
8:00am 2:00pm
activity Welcoming the general manger to the factory and introducing him to the heads of departments Orienting the general manager by making him tour around the factory Meeting with the share holders and board of directors to inform the general manager about the last performances of the business in the last five years Equipping the general manager with the office keys General managers first meeting with the heads of department to strategies for better performances
Format B NN GENERAL AGENCIES P.O.BOX 5564773 KAMPALA UGANDA TEL :07576653873737 AN INDUCTION PLAN DATE
TIME
ACTIVITY
PERSON RESPOSIBLE
03/03/11 09:00am New employees submit information/welcoming the new employees 03/03/11 10:00am Introducing the new employees and giving them general information about the business for e.g. moving around the premises 03/03/11 12:00pm Issuing written terms and conditions of employment e.g. hours of work 03/03/11 01:00pm lunch 03/03/11 02:00pm Explaining development 66
Receptionist
Project manager
Personnel manager Welfare Project
COMMENT
opportunities 04/03/11 09:00am Explaining the employees welfare
manager Welfare officer 04/03/11 10:00am Explaining the different levels of Managing hierarchy of the organization director 04/03/11 01:00pm lunch Welfare 04/03/11 02:00pm Explaining about the business its Production self i.e. minimum expected manager standards from an employee
Launching and program and a launching schedule (8) Launching program involves activities to be done on a particular day where as a launching schedule looks at the different places the launching is going to be carried out e.g. on Monday in Jinja, on Tuesday in Munyonyo e.t.c. Example one You have started a biscuits manufacturing business in a rapidly growing town. You are in stiff competition with other firms in the market. You are carrying out intensive campaigns to make the product known to the general public [a] Develop a program for launching your enterprise Below is an example of a launching program
FREE MO INDUSTRIES UGANDA LIMITED P.O.BOX 345 KAMPALA UGANDA d e a le r s i n m a n u f a c t u r i n g . an d s e l l i n g o f q u a l i t y b i s c u i t s
launching program venue: Munyonyo play ground th date: 27 march 2011 day: Sunday time: 2:00 pm time Activity 2:00pm – 3:00 pm Installing musical machines and organize the stage for presentation 3:00pm – 3:30 pm Welcoming people to the launch and giving opening remarks 3:30pm – 4:30 pm Explaining to the people the products that the industry does 4:30pm – 5:30 pm Giving out free samples and gifts 5:30pm – 6:00 pm Music interlude 6:00pm – 7:00 pm Selling some of the products at reduced prices 7:00pm – 7:30 pm Allowing people to ask questions and give complaints about the products 7:30pm – 9:00 pm Music and closure 67
d e a l er s i n m a n u f a c t u r i n g . an d s e l l i n g o f q u a l i t y b i s c u i t s
LAUCHING SCEDULE Day and date Monday 24 march 2011 Wed 26 march 2011 Friday 28 march 2011 Saturday 29 march 2011 Sunday 30 march
time 3:00 pm 5:00 pm 4:00 pm 3:00 pm 3:00 pm
Venue Munyonyo town Kibuye Jinja town Ntinda – Kampala Entebe
An appointment letter (9) This is a written document that shows the terms and conditions of employment and any additional issues regarding the discipline at the place of work. It covers the following issues - Terms and conditions for sickness - Title of the job - Name of the employee - Hours of work - Date at which the employment - Methods and rate of employment begins - Room and arrangement for handling the employees miss understanding An example of an appointment letter
Ssewampuma fruit processing business P.O. Box 2201 Kampala Uganda Tel: 030335577 Date
th
24 /03/11
TO MR. MAYANJA NOAH P.O.BOX 2526 KAMPALA DEAR SIR; RE: APPOINTMENT AS SECURITY GUARD
with great pleasure we are pleased to inform you that you have been appointed as a security guard at Ssewampuma fruit processing premises starting from 24th/03/11 on the following terms and conditions salary: you will be receiving a salary payment of 150,000 Uganda shillings plus housing and medical allowances all totaling to 70,000 Uganda shillings Hours of work: you will be expected to work 12 hours in a day. This will of course depend on the shifts made by security officer in charge. discipline: as a security guard any misconduct like un official absenteeism, 68
drinking during hours of work, poor conduct before the clients shall lead to total dismisal from the work holidays: you will only be granted a holiday period of two weeks in the whole year and that should be in December rules and regulations: as already stipulated on the rules and regulation form, any kind of misconduct shall lead to expulsion yours faithfully Sign…………………… Ssewampuma peter
Pay roll The is a document that shows the names and numbers of employees their basic pay, allowances, gross pay deductions and the net pay they are receive in a given period of time. Some of the components of a pay roll
Name of the employee
Tin number
Basic pay (salary before allowances and any deductions have been catered for)
Allowances e.g. housing and medical allowances
Gross pay ( salary after receiving allowances)
Deductions (like NSSF, pay as you earn)
Net pay (salary received after the allowances and any kind of deductions have been catered for the signature
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name
basic
Remuneration policy This refers to the methods and levels of wages and salaries Different methods of payment include
Time Salary Wage Piece rate Shift pay Commission Fees Bonus payment Standard pay Cost of living allowances Fringe benefits Contract and based payment Payment in kind Factors considered when determining payment for workers - Profitability of the business - Cost of living in an area - Education level/ skills of workers - Risks involved when doing that particular kind work - Bargaining power of the employee - Level of seniority of the worker - Organization‟s wage policy - Productivity of the worker - Government policy regarding wages and salaries - Natural and physical ability of the worker - Elasticity of the supply of labour - Number of applicants \for the job
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rate
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Degree of sustainability of labour for capital Terms and conditions of the job (temporary, permanent or contract)
It is a process of stimulating employees or people to give all his best in order to achieve organizational goals. It is a term derived from a word motive which means desire or need that must be satisfied. Role of motivating employees in an organization
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It encourages team work, cooperation, loyalty and commitment.
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Effective motivation facilitates and creates job satisfaction resulting into warm and good relation ship between the employer and the employee
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It makes it easy to achieve the business set goals and targets such as increased sales, increased production.
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It helps in enhancing work to be carried out successfully. This is because when a person is fully motivated he or she will try to work at his or her best probably put in more effort.
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Through motivation team work can be achieved.
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It is a way avoiding strikes in an organization
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It prevents employee to seek alternative employment opportunities else where.
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An organization that provides motivational incentives like financial and personal developments will always have a good image in the employment market. This helps in attracting more sales
Ways of motivating workers
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Employees can be given special rewards for the extra work Ensuring job security of the employees They can be motivated by giving fringe benefits such as pension, sick pay. By ensuring proper and effective communication in an enterprise By providing on job training Encouraging team work within an organization Proper management of discipline at the place of work Promotion of workers objectively Sharing and showing concern for the workers‟ problems. Practicing transparent management for example administrators have to honest. 71
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Employees should be allowed to take in the ,day today running of the business They can be motivated by under taking performance appraisal Through special monthly recognition Though organizing parties and giving out gifts at the end of each year
Performance appraisal (11) This is the judgment of the employee‟s performance on his job based on various considerations other than productivity alone.
Methods in carrying out performance appraisal -
Ranking method
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The behavioral expectation scale
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Grading method
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Group rating
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The rating scale
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Peering method
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Open ended method
The purpose of performance appraisal -
To determine the amount of pay increase to give to an employee To determine whether the employees have worked according to their required standards in the organization. - To determine the future use of the employee e.g. whether he or she shall remain at the present job or promoted or demoted - To determine the training needs of the enterprise - To ensure effectiveness and efficiency of the workers in delivering their duties - To provide information to the business for human resource planning - To assess effectiveness of the selection process - To motivate employees to do better in their present jobs by giving them results of their merits and opportunities. - To help strengthen the communication between the supervisor and the subordinates - To provide a feed back to the employees this in the long run serves as a means of personal and career development. Qn. 4 You operating a restaurant in your town [a] Explain the factors you would consider when recruiting employees for you business [b] Describe the various techniques you would use to appraise the performance of your employees [c] Describe the importance of performance appraisal to your restaurant [d] Explain the various ways you would use to motivate your workers [e] How would you promote good customer relations to your business? Solution
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[a]
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[b]
The following are factors Mubiru restaurant would consider when recruiting employees for you business The working experience of the applicants. it would consider those with 2 years of experience. The cost of the employees. It would actually recruit those with low costs but very effective The age of the applicants should be considered. it would therefore recruit those between 20 to 25 years of age Young and beautiful ladies who will work in my restaurant The restaurant would consider the language spoken by the waiters and waitresses. That is say I would employ those with more than three languages spoken The marital status would also be considered when recruiting my workers It would opt for single but devoted teachers The health status, it would consider the health status when recruiting the workers because this would reduce on the rate of absenteeism at work the skills and qualification of the workers before recruiting them. At least It would recruit those with a minimum qualification of a diploma in hotel management and catering The nature and kind of work to be done would also be considered when recruiting the workers because there are some kind of work the can be well done by the ladies then men The following are the various techniques Mubiru restaurant would use to appraise the performance of my employees
- I would use Ranking method - The behavioral expectation scale - I would use Grading method - Group rating - I would use The rating scale - Peering method - Open ended method [c] The following are the importance of performance appraisal to Mubiru restaurant -
It determines the amount of pay increase to give to an employee
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It determines whether the employees have worked according to their required standards in the organization.
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It determines the future use of the .employee e.g. whether he or she shall remain at the present job or promoted or demoted
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It determines the training needs of the restaurant
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It ensures effectiveness and efficiency of the workers in delivering their duties
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It provides information to the business for human resource planning
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It assess effectiveness of the selection process
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It motivates employees to do better in their present jobs by giving them results of their merits and opportunities.
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It helps to strengthen the communication between the supervisor and the subordinates
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It provides a feed back to the employees this in the long run serves as a means of personal and career development.
[d] The following are the various ways Mubiru restaurant would use to motivate workers
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By giving employees special rewards for the extra work done because it impresses and motivates them to work so hard
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By ensuring job security of the employees
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by giving fringe benefits such as pension, sick pay, maternity leave
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through ensuring proper and effective communication in an work place is another way of motivating workers
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by providing of on job training
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through encouraging team work within an organization
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by ensuring proper management of discipline at the place of work
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by carrying out promotion of workers objectively
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By ensuring proper sharing and showing concern for the workers‟ problems.
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By practicing transparent management for example administrators have to honest and faithful
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By allowing employees to take in the ,day today running of the business
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Through motivating them by under taking performance appraisal
[e]
Mubiru restaurant would promote good customer relations in the following ways
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Through providing excellent and quality services to my customers
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By giving discounts on my services to the customers
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By expressing knowledge about the business am dealing in 74
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Through carefully handling the customers‟ complaints
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By offering prompt services including office and home deliveries
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By providing free gifts to my customers‟ so that they can be attracted to buy more of my commodities.
Review questions Qn. 1 You are operating a large petrol station along Kampala road. The contracts of a senior accountant and assistant marketing manager have terminated due their misconduct in their offices. In the due process you get suitable and good replacements. [a] Draw up an induction program of the new employees [b] Prepare an appointment letter for the new senior accountant [c] Design an organizational chart you will use when inducting the new manger [d] Prepare an advert for the post of assistant marketing manager Qn. 2 You have received a loan from diamond trust bank worth 70 million to expand your poultry project that has been operating on in a small area on a small scale [a] Prepare a plan for the recruitment of more workers [b] Draw up a work plan that you will follow when expanding your poultry project [c] Explain the factors you would consider when recruiting workers. [d] Explain the methods you will use when recruiting workers. Qn. 3 You have obtained a loan worth 250 shillings to start up dairy farm project [a] Design an advert for the post of a farm manager [b] How will you motivate your employees? [c] Explain some of the leadership styles you are likely to implement as a new manager [d] Out line some factors you would use to determine the payment of workers Qn.4 You have received a grant from one of the American NGO totaling to 5,000,000 Uganda shilling to expand your school. In the process you required to recruit one more teacher [a] Design a job description for the of a teacher to be employed in your school [b] What factors will you consider when paying your newly appointed teachers? [c] Explain the methods you will use to motivate your teachers [d] Present a monthly pay roll for your employees Qn.5 you were a personnel manager of a large company [a] Explain what you would do in carrying out a job analysis [b] Draw up an organization chart of the company [c] Explain the methods you would use to recruit workers in the organization [d] Explain the methods you would use to motivate workers in your organization Qn.6 You have received funds to expand your hospital in your locality [a] Prepare a job description for a senior doctor [b] Design an employee‟s pay slip for hospital use [c] Prepare a job specification for the dentist [d] Present a plan for the recruitment of more nurses to work in the hospital [e] Present a monthly pay roll for your employees 75
[f]
Explain some of the factors you would use to determine the payment of the different workers in your hospital Qn.7 You are operating a bakery in your area and the contracts of a general manager and the cashier have expired. Through internal sourcing you have identified suitable replacements. [a] Draw up an induction program for the general manager [b] Design an organization chart you will use when indicating the new general manager [c] Prepare an appointment letter the general manager [d] Prepare a job specification for the cashier [e] Prepare an advert for the post of a new general manager Qn.7 You are operating a big credit scheme in one of the towns of Uganda . The scheme has an objective of getting so many clients to pick loans. Due to external research, you find out that this can be achieved through performance appraisal and motivation of your employees [a] Explain the various techniques you would use to carry out performance appraisal [b] Show how the performance appraisal system will enable you achieve your objectives [c] Describe how you will motivate your employees [d] Prepare a monthly pay roll for your employees Qn.8 You have obtained a loan to start up floriculture project. [a] prepare an advert for the post of a project manager [b] How will you motivate your employees? [c] Prepare a monthly pay roll for your employee Qn.9 You are operating a large furniture work shop. You have decided to expand your operations by recruiting more employees [a] Prepare an advert for the post of purchasing manager [b] Write a circular inviting all employees for an urgent meeting [c] Draw up a program for the induction of new employees in your enterprise [d] Design an organization chart for your factory Qn.10 You have been appointed as a general manager for a big company producing plastic products and you are charged with a task of filling up the vacant positions by the appointing in the enterprise. [a] Draw up a month‟s program for the re cruitment of the necessary labour required [b] Write a MEMO to the production manager requesting him to attend the interviewing exercise of the job applicants [c] Design a job application form that will be used in the recruitment program [d] Write a letter of termination to the chief accountant for the neglect of duty [e] Formulate an organization chart for the organization Qn.11 You have acquired a large piece of land on which there are large buildings and you want to establish a super market [a] Formulate a program you will use to recruit a supper market attendant [b] Design a job application form that will filled by the applicants
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Production and quality management
skills
in business (12) This chapter will look at the following - Plant layout - Work order form - Work schedule - Quality - How to improve the elements of a work place like on the lighting, material handling and storage among others.
A product This is anything that is offered to the market Factors determined when designing a product - Develop a product in line with the customers needs - Ensure that the products‟ external features like shape, name please the customers - Ensure that the quality and quantity of the product are in line with the customers‟ needs - Develop a product that complies with the government regulations - Develop a product that is better than those the market - You should make market research on the needs of the customers - Determine the cost and availability of the raw materials and find out the profit margin
A work place This is where production of goods and services takes place
Elements include -
Material handling and storage Work station area Production machine handling Lighting
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Workers‟ premises Welfare Workers‟ organization
L e t u s l o o k a t h o w a n e x a m i n e r c a n a s k y o u s o m e t h i n g a b o u t t h e e le m e n t s o f a work p lace in paper one
Example one You intend to establish a small scale soap factory worth shillings 80 million. [a] Describe the measures you would put in place to promote the welfare of your employees. [b] How will you manage the hazardous substances in your work place? [c] Explain the measures you will put in place to lower the production costs in your business. [d] Out line some of the methods of packing you will use when packing your products Solution
[a] The following are measures Nomi soap factory would put in place to promote the welfare of my employees. NOMI SOAP FACTORY LIMITED P.O.BOX 54673 KAMPALA UGANDA 77
TEL :0316789453
[b]
[c]
MEASURES TO PROMOTE THE WELFARE OF THE WORKERS By carrying out promotion at the place of work so that employees salaries increase By providing employees with adequate and safe drinking water By taking employees for further education and training Through providing workers with a good and clean working environment at the premises. By providing them with a good job security so that they can be assured of continued employment. By ensuring regular pay to my workers so that they can maintain good standards of living By providing the workers with fringe benefits such as sick leave pay, transport, housing and medical allowances. By giving them enough rest time and ensure that they are not over worked Through providing employees with first aid equipments By providing a comfortable place for meals and resting so as to improve on their welfare. Nomi soap factory will I manage the hazardous substances in the following ways NOMI SOAP FACTORY LIMITED P.O.BOX 54673 KAMPALA UGANDA TEL :0316789453 Management of hazardous substances By ensuring that hazardous substances are properly covered in safe containers. By providing protective shields to my employees to be put on during the production process. Through training my workers on how to handle any emergencies. I will put warning labels on hazardous areas so as warn my employees. There will be proper disposal of hazardous waste products at the place of work. I will ensure proper cleaning of the work place to remove hazardous substances. I will encourage workers to read and clearly understand instructions on how to use and handle hazardous substances I will make sure that workers exposed to hazardous substances are given special and extra medical assistance to improve on their life span. I will substitute hazardous chemicals with non hazardous chemicals where possible. I will encourage my workers to be responsible and take care of their lives when dealing with hazardous chemicals. The following are the measures Nomi soap factory will put in place to lower the production costs in my business.
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NOMI SOAP FACTORY LIMITED P.O.BOX 54673 KAMPALA UGANDA TEL: 0316789453 MEASURES TO REDUCE THE PRODUCTION COSTS By reducing on the number of employees. By reducing on the salaries and wages of my employees. Through ensuring that raw materials are bought from the cheapest source. By producing on a large scale so as to enjoy the economies of scale. Through ensuring high quality production By employing part time workers who are relatively cheaper Through ensuring constant monitoring of the business so that workers do not waste time. By using correct in puts so as to avoid unnecessary wasting of materials By providing good working condition so as to encourage my workers to work to their best I will make sure that responsibilities of my employees are clearly stipulated for easy coordination. I will encourage specialization as it increases efficiency in the production process. I will provide facilities like computers, tools which tend to simplify work during the production process I will ensure efficiency in management so as to eliminate misuse of funds. [d] Some of the methods Naomi soap factory will use when packing my products include the following Putting in plastic containers Putting in boxes Bottling and canning Tinning or putting in tins Putting in bags Example 2 You have obtained a loan worth shillings 50 million to expand your carpentry project. [a] Describe the measures you will put in place to improve
(i) The work station area (ii) Welfare department [b] How would you ensure the safety of machines during the production process? Solution [a] (i) MAYAS FURNITURE WILL PUT THE FOLLOWING MEASURES TO IMPROVE ON THE WORK STATION.
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MAYAS FURNITURE LIMITED P.O.BOX 5467 KAMPALA UGANDA TEL: 7894025309 MEASURES TO IMPROVE THE WORK STATION AREA By providing furniture like chairs, tables of convenient height to workers depending on the on the nature and type of work being done By making sure that the height of equipments is adjusted to avoid inconveniencing workers will dealing with the production process 79
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By using lifts, levers or other machines as a measure to reduce on the efforts required by the workers to move and lift semi and finished products. Through providing a stable work surface at each work station By making sure that cleanliness of the work area is maintained By putting in place storage facilities and other necessities of production with in easy reach for workers. Through using specifically designed devices like clamps and other fixture to hold items while work is in progress By making sure that switches of machines are placed within easy reach. By making sure that I provide chairs, tables and benches which are adjustable and are of appropriate size and height. (ii)
Mayas furniture will put the following measures to improve on the welfare department MAYAS FURNITURE LIMITED P.O.BOX 5467 KAMPALA UGANDA TEL: 7894025309 MEASURES TO IMPROVE THE WELL FARE OF WORKER AT MAYAS FURNITURE - Through carrying out promotion at the place of work so that employees‟ salaries increase - By providing employees with adequate and safe drinking water - By taking employees for further education and training - Through providing workers with a good and clean working environment at the premises. - By providing them with a good job security so that they can be assured of continued employment. - By ensuring regular pay to my workers so that they can maintain good standards of living - By providing them with fringe benefits such as sick leave pay, transport, housing and medical allowances. - By giving them enough rest time and ensure that they are not over worked - Through providing the employees with first aid equipments - By providing a comfortable place for meals and resting so as to improve on their welfare. - By providing working incentives or any other thing to keep my workers mind awake - Through providing storage facilities for my workers‟ clothing - By providing working overall for my workers. [c] Mayas furniture will under take the following measures to improve on the safety of machines during the production process MAYAS FURNITURE LIMITED P.O.BOX 5467 KAMPALA UGANDA TEL: 7894025309 MEASURES TO IMPROVE ON THE SAFETY OF MACHINES
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By providing safety shields and devices for any part of the body that is exposed to danger during the production process. - By attaching proper guide lines to dangerous moving parts of the machines and power transmitting equipments - Through redesigning guards that interfere with visibility - By encouraging workers to clearly read and under stand instructions put on machines before using them. - By making sure that machines are well serviced and maintained - Through organizing safety programs which deal with the prevention of accidents and minimizing on the resulting loss and dangers to employees. - By making sure the machines are oiled and greased to allow them move freely. - Through encouraging the workers not to operate machines while drunk - By encouraging workers to report any mechanical problem to who ever is concern in time - By making sure that all plants and equipments are maintained to the necessary standards - By making sure that productive machines are switched off when not in use and always make sure that plugs are removed from the sockets. Example 3 You are operating a computer repair work shop in your locality [a] In what ways would you improve on the lighting system in your factory [b] How will you minimize on the health risks of workers at the work place? Solution Mayas computer limited would improve on the lighting system in my factory through the following ways MAYAS COMPUTER LIMITED P.O.BOX 564783 KAMPALA UGANDA TEL: 5468903 WAYS TO IMPROVE THE LIGHTING SYSTEM IN THE FACTORY
By painting all walls ceilings with white color to reflect. By providing adjustable lamps depending on the work done. By adding the sky lights fixtures and keep windows open to let in natural light Through maintaining light fixtures and replace worn out bulbs By Including many ventilators and windows to let in natural light. By providing more bulbs in the work place to provide more light by removing out side obstruction which reduces natural light [b] Mayas computer limited will minimize on the health risks of workers at the work place by; MAYAS COMPUTER LIMITED P.O.BOX 564783 KAMPALA UGANDA TEL: 5468903 WAYS OF MINIMIZING HEALTH RISKS IN THE FACTORY
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By ensuring proper sanitation and provision of adequate health facilities like toilets soap for washing hands for the workers at the place of work. By giving instructions and training of workers on health and safety precautions Through ensuring that I provide adequate visibility for perfect vision e.g. provision of windows and proper artificial lighting By making sure that dangerous substances like acids and petrol are kept far a way in containers By putting strict regulations on the code of conduct during hours of work e.g. no drinking during working hours By providing adequate first facilities and employee a qualified person to cater for any health problems resulting from the work place By making sure that all working in hazardous substances are given extra medical allowances to cater for their health. By making sure that the factory provides protective and appropriate shields such as gloves, overalls, and masks among others for my workers. Example 4 You have started up project manufacturing plastic products worth shillings 70 million [a] out line some of the requirements for starting your factory [b] Explain the aspects you would consider when designing a work place Solution [a] The following the requirements for my plastic manufacturing factory - Land to construct the factory - Van to transport the goods - Food and water my workers - Fence to protect the work shop - Raw materials for making plastic - Some trees to provide shade - Power to run the machines Protective gargets like aprons, gloves and gum boots - Labour to work in the factory like machine operators tool boys [b] The following are the aspects Donny plastics would consider when designing a work place DONNY PLASTICS LIMITED P.O.BOX 56479 KAMPALA UGANDA TEL: 65790353757 ASPECTS CONSIDERED WHEN DESIGNING A WORK PLACE
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Availability of enough fire extinguishers with easy reach Availability of enough exits and entrances at the work place such that incase of any problem workers can easily escape Presence of natural ventilation. The factory would increase on the natural ventilation of the work place by providing enough openings like windows doors among others. Availability of a sign post, Donny plastics would provide a sign post on my factory for easy identification Provision of a good arrangement of the work place such that workers move with out any obstruction. 82
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Proper material handling and storage Donny plastics would ensure proper material handling and storage when designing a work place - I would consider proper production machine handling and safety because this will help me maintain machines to serve for a longer period of time. - Provision of proper lighting system in the work place - Availability of cleaning passage ways and provide markings to keep them clean - Availability of a clean and conducive working environment to encourage workers perform as expected. Example 5 You are operating a carpentry project [a] How will you handle and store materials in your carpentry? [b] How will you handle the workers organization in your work place? [c] Explain the factors you would consider when selecting raw materials for the carpentry [d] Outline the support services you would require to market your products Solution [a] Jesca will handle and store materials in the following ways JESCA CARPENTRY LIMITED P.O.BOX 453767 KAMPALA UGANDA TEL: 03155647889 WAYS OF HANDLING AND STORING MATERIALS IN THE WORK SHOP - By ensuring that things that are not frequently used like clamps are out of the work area or kept far away from the entrance of the store - Through providing convenient storage racks for tools like saws, screw drivers among others. - By using specifically designed trays for furniture being lifted and stored to hold and move raw materials - Through using movable racks when moving heavy load like cup boards. - By employing a store keeper for proper storage of materials - By getting metallic chains with pad locks to tie some of the finished furniture like doors and windows - By keeping materials of the same type in one place to avoid destruction of materials of different types - By keeping work in progress near the entrance of the store so that time is not wasted to get materials to work upon. - Through separating storage facilities for raw materials, semi and finished products - By training workers on how to handle and store materials in a work place [b] Jesca carpentry will handle the workers’ organization in the following ways N .B
T h i s e l em e n t t r i e s t o e x a m i n e m a n a g e m e n t o f t h e w o r k s y s t e m i n a w o r k p l a c e . I n o t h e r w o r d s i t i s a w a y o f i n c r e as i n g a n d m a x i m i z i n g p r o d u c t i o n a n d j o b s a t i s f a c t i o n i n a w o r k p l a c e .
JESCA CARPENTRY LIMITED P.O.BOX 453767 KAMPALA UGANDA TEL: 03155647889 WORKER’S ORGANIZATION IN JESCA CARPENTRY 83
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By making sure that management aims at improving on the efficiency of the workers by eliminating some work that can be done by machines By trying to keep my employees alert and reduce physical and mental fatigue through short breaks Through using quality circles to improve productivity and job satisfaction By re-arranging a layout and order of operation in order to improve on productivity, efficiency and production flow. By encouraging specialization and division of labour. This will bring about increased efficiency and out put [c] The following are the factors Jesca carpentry would consider when selecting raw materials for the carpentry
[d]
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JESCA CARPENTRY LIMITED P.O.BOX 453767 KAMPALA UGANDA TEL: 03155647889 The quality of raw materials such as timber nails among others The terms and conditions of the supplier The lead time The consistence and reliability of the supplier The source of the raw materials i.e. the source should be near the work place. Taxes leaved on the raw materials would also be considered. Communication between the supplier of raw materials and me the producer The following are the support services Jesca carpentry would require to market products JESCA CARPENTRY LIMITED P.O.BOX 453767 KAMPALA UGANDA TEL: 03155647889 Support services to be used by the work shop The transport facilities to move my products to various market areas Insurance services to minimize on the operational costs and associated costs Housing and accommodation services for the raw materials and finished goods Banking services for the safe deposit of my money Communication services to make orders with customers Music and banners to attract customers Trade fair activities to create market for my products Sales persons to promote the products to customers Mass media to advertise my products Sign boards with drawings of the product The security services to provide security to my business The repairing services to help in the business to put back the machines in good working condition
Example 6 You are operating in a restaurant in a rapidly growing and noisy area some thing that has reduced on the number of your customers. You are considering shifting to a new area [a] Explain the aspects you would consider when designing your new restaurant. 84
[b]
Suggest measures you will take to ensure proper premises management in your restaurant [c] Out line the factors that would be considered when choosing a site for my restaurant. Solution
[a] The following are the aspects mama Jesca would consider when designing a new restaurant. MAMA JESCA RESTAURANT P.O.BOX 453767 KAMPALA UGANDA TEL: 0315564788 ASPECTS USED BY MAMA JESCA IN DESIGNING THE RESTAURANT
[b]
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Availability of extinguishers, mama Jesca would provide enough fire extinguishers with easy reach
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Existence of exits and entrances, mama jesca would provide enough exits and entrances on my restaurant such that incase of any problem workers and customers can easily escape
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Provision of the natural ventilation at the restaurant by providing enough openings like windows doors among others.
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Provision of a sign post for my restaurant for easy identification
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A good arrangement of the work place such that workers move with out any obstruction.
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proper material handling and storage when designing a work place
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Proper production machine handling and safety because this will help me maintain machines to serve for a longer period of time.
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Provision of proper lighting system in the work place
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Cleaning passage ways and provide markings to keep them clean
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A clean and conducive working environment to encourage workers perform as expected The measures mama Jesca will use to ensure proper premises management MAMA JESCA RESTAURANT P.O.BOX 453767 KAMPALA UGANDA TEL: 0315564788
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By installing fire fighters to prevent any fire out breaks thus managing the workers‟ premises
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Through constructing a flat house to ensure proper management of of space
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Through using maximum lights to reach every where in all the premises to ensure proper movement
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By using alarms incase of any danger.
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Through ensuring proper lay out of the premises so as increase on productivity and proper premises management.
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By ensuring that I put enough windows and doors to allow in fresh air in the restaurant
[c]
The following are the factors that would be considered when choosing a site for my restaurant MAMA JESCA RESTAURANT P.O.BOX 453767 KAMPALA UGANDA TEL: 0315564788
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Availability of in puts like food
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Nearness to the customers (customers)
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Possibility of expansion
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Availability power
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Availability of labour
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Good transport and communication net work
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Availability of water
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Nearby other businesses
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Availability of security
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Government policies towards the establishment of a given given type of a business in a given area
Example 7 You are operating a manufacturing business
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[a]
Describe the elements of a work place you would consider to increase the productivity of your business [b] Explain the measures you would take to reduce production costs of the business. [c] What factors you would consider when choosing the method of packing materials to be used for your product. [d] Explain the importance of packing goods. Solution [a] The following are the elements of a work place Carol manufacturers will use to increase the productivity business. CAROL MANUFACTURERS P.O. BOX 78593 KAMPALA UGANDA TEL: 031768904544 ELEMENTS OF A WORK PLACE
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Proper handling and storage which ensures the materials used in the production process are well handled and stored. The work shop would provide convenient storage facilities. - the work work station area which would would be designed to promote efficiency and quality products e.g. putting in place switches in easy reach, ensuring cleanliness of the work station area - Machine handling and safety would be considered. This would be done by attaching proper guide lines on how to use machines, proper servicing among others. - Carol manufacturers would ensure proper management of hazardous substances. This would involve giving protective shields like gloves and masks to my workers dealing in dangerous chemicals - The lighting system would be considered. This would be done by providing sky light in case more light is needed, cleaning and maintaining light fixtures. - Welfare is another element that would be considered. This would involve providing free adequate water, resting places, places of convenience, first aid facilities among others. - The work work premises should be clearly laid out so as to increase productivity. This would be done by creating a good arrangement for the work place such that workers move with out obstruction, providing markings to keep the walk ways visible. - There would also be emphasis on proper workers organization. This would involve improving on the workers efficiency by eliminating some tasks that can be done by machines, encourage specialization and division of labour [b] The following are the measures Carol manufacturers would take to reduce production costs of the business CAROL MANUFACTURERS P.O BOX 67598 KAMPALA TEL: 5674578368378 87
[c]
MEASURES TO REDUCE THE PRODUCTION COST OF THE BUSINESS By reducing on the number of employees. By reducing on the salaries and wages of my employees. Through ensureing that raw materials are bought from the cheapest source. By producing on a large scale so as to enjoy the economies of scale. Through ensuring high quality production By employing part time workers who are relatively cheaper Through ensuring constant monitoring of the business so that workers workers do not waste time. By using correct in puts so as to avoid unnecessary wasting of materials Through providing good working condition so as to encourage my workers to work work to their best By making sure those responsibilities responsibilitie s of the employees are clearly stipulated for easy coordination. By encouraging specialization as it increases efficiency in the production process. Through providing facilities like computers, tools which tend to simplify work work during the production process By ensuring efficiency in management so as to eliminate misuse of funds Factors Carol manufacturers would consider when choosing the method of packing materials
CAROL MANUFACTURERS P.O BOX 67598 KAMPALA TEL: 5674578368378 FACTORS CONSIDERED WHEN CHOOSING THE METHOD OF PACKING MATERIALS - The nature of the product e.g. fragile products in boxes liquids in bottles. - The source of the packing material and the one to supply them - The cost of the packing materials should be considered - The aim and purpose of packing the product - The availability of the packing material in required amounts - The method of of transport to be used to distribute the packed materials [d] The importance of packing goods. - Packing protection to the product by protecting the content from rough handling - It facilitates easy display in the shop shelves - It enables the buyer handle and identifies the commodity he or she she wants - The labels put on the packing materials always carry vital information about the item such as how to store or use the commodity - Packing is used in promoting the commodity since the color and shape always appeal to the public. - Packed goods are always sold in conditions they left the factory - Packed goods can easily be delivered to the customers. - Packed goods render self service system easier - It relives the retailer the burden of weighing and wrapping of items. - It enables the advertisements to be printed on the packages Example 8 88
You have established a poultry project on a large scale. [a] With specific examples explain the personnel requirements of a large scale business [b] Explain the factors that should be considered when determining the payments of workers [c] Out line the importance of human resource management to your business [a] The following are the specific requirements of a large scale business -
Job grading: This involves the classifying of jobs into specific grades in order to determine the payment for each worker. E.g. workers in an organization can be graded into engineers, accountants, secretaries among others.
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Job specification: This looks at the requirements, qualification, expertise, physical features among others. E.g. one should have a degree in agriculture. It also shows the physical and mental activities involved in doing the job
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Job performance: This is what is expected to be the out put of a given job as it looks at the capability and competency aspects required for a given job
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Job description: This is the broad statement that shows the purpose, scope, duties and responsibilities of a particular job. It shows what is being done, how, where, why it will be done and why it is done.
[c]
The importance of human resource management to Mayas poultry farm MAYAS POULTRY FARM P.O.BOX 84659002 KAMPALA UGANDA TEL; 78684949309303 SPECIFIC REQUIREMENTS OF A LARGE SCALE POULTRY
It minimizes on the damage of machines by using technically competent people -
It enables a firm to be effective and efficiency in a society
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It minimizes on the costs of of production in an enterprise through minimizing on the wastage of resources
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It enables the organization to recruit the right people with the required technical skills.
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Quality management (13) This is an ability of a commodity to meet the consumers‟ needs and requirements. Or
It‟s defined as the features and characteristics of a product or a service that affect the ability to meet the stated needs Example 1
You have established a milk cooling plant in your locality [a]
suggest measures you will take to ensure quality products in your business
[b]
Out line some of the factors that will influence quality standards of milk in your business
[c]
Out line the elements of quality
Solution [a]
the following measures to ensure quality milk is sold by Amata Dot Com milk center business AMATA DOT COM MILK CENTER P.O. BOX 7869 KAMPALA UGANDA LIMITED TEL: 89904657868875 MEASURES TO ENSURE THAT QUALITY MILK IS SOLD BY THE BUSINESS
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BY making sure that clean milk cans are used in the transportation and storage process of milk.
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By making sure that the work place is kept clean at all times
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Through ensuring that there is constant power supply to ensure that the cooling process is kept constant despite of the rampant power cuts 90
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By providing clean white uniforms for workers in my business premises will be a must this will of course ensure a quality and clean services
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Through employing skilled and experienced personnel to work in the business so as to provide quality services
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By ensuring proper coverage of the milk at all times to avoid contamination
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By making sure that the packaging materials for the milk are very clean to avoid contamination
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Through carrying out strict monitoring and supervision to ensure that workers don‟t add water in the milk to reduce its quality
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By using very first means of transportation to the cooling station so that it reaches while still in good order
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By making sure that milk is sourced from farms that have health and quality milk.
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By making sure that the business is located near busy road that is not dusty to prevent the contamination of the milk at the station
[b]
The following are the factors that will influence quality standards of milk in the business AMATA DOT COM MILK CENTER P.O. BOX 7869 KAMPALA UGANDA LIMITED TEL: 89904657868875 Quality standards of milk
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The technical specifications regarding the quality and quantity of milk will influence the milk quality standards in my business. e.g. in the milk any mistake made during the cooling process easily force the milk to go bad
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Working against the set standards the milk processing set standards i.e they are milk set standards that should be maintained.
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The sales and mode of distribution of products will affect the quality of milk.
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The working environment i.e. in terms of cleanliness of the place where milk is cooled will always determine the quality of milk.
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The source of milk brought at the cooling plant greatly affects the quality standards of milk e.g. milk from a poor source will affect the quality of milk.
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The machinery used in the cooling process of milk will greatly affect the quality standards of milk in my business
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The packaging materials and containers will also affect the quality standards of milk in my business the necessary skills for the cooling process milk will greatly affect the quality standards of milk
[c]
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The following are the elements of quality Cleanliness Packaging Technical specifications regarding the quality and quantity standards Source of raw materials They should always be maximum conformity in the set standards of producing a given product
Review questions Qn.1 [a] [b] [c] [e]
you have established a bakery in your locality out line the requirements for starting up your bakery business Suggest measures you will take to ensure quality products in your business Explain the measures you would take to reduce production costs of the business. What factors you would consider when choosing the method of packing materials to be used for your products. [f] Explain the importance of packing goods. Qn. 2 You intend to establish a saloon in your home area [a] Identify the requirements for starting up the business [b] Explain the factors you would consider when recruiting human resource personnel [c] In what ways will you promote your business? Qn. 3 If are personnel manger of a large company [a] Explain what you would do in carrying out a job analysis [b] Draw up an organization chart for you company [c] Explain the methods you would use to recruit workers in your organization [d] Explain the factors you will consider when determining the payment of your workers [e] Explain the importance of human resource management in your company Qn.4 You have obtained a loan Uganda shillings 20million to start up a metal fabricating project in your locality [a] Out line the requirements for starting up your project. [b] Describe the measures you will put in place to improve on (i) The work station (ii) Welfare (iii) Workers‟ premises [c] How will you ensure the safety of machines during the production process? [d] How will you handle and improve on the Workers organization in your workplace?
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Qn. 5 You are operating large scale cereal growing project and you are establish a maize milling factory [a] Design a plant lay out for your factory [b] Choose a suitable media and design an advert for your products
Promotion of goods and services (14) This refers to the ways an entrepreneur uses to influence people buy more of a good a service This looks at: The methods used when carrying out sales promotion Its importance Advertising Forms of advertising Personal selling Steps involved in personal selling Example one You are recruited in a business selling phones as a sales person. [a] Describe the steps involved in personal selling [b] Suggest measures you will under take to become a successful sales person [c] Explain the advantages of personal selling to your business [d] Give reasons as to why you should sell goods on a credit basis Solution [a] Mayas enterprises would take the following steps in creative selling process
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MAYAS ENTERPRISES P.O.BOX 6757894 KAMPALA UGANDA TEL: 096547363737 STEPS INVOLVED IN CREATIVE PERSONAL SELLING Prospecting: Mayas enterprises would first locate my customers and find out where to go, who to meet and what to say. Pre-approaching: the would gather information about my phones and those sold by my competitors
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Approaching: this looks at meeting the customers face to face and carry out self introduction to create a good impression and win the customers hearts
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Sales presentation: Mayas enterprises would attract the buyers‟ attention to create interest in the customers‟ minds by mentioning the benefits of the phones you are selling
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Demonstration: which involves showing customers how the phones operate, their unique functions among others
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Handling objections: this involves listening to the buyers and clear any doubts raised with out going into any confrontation or annoying the customers
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Closing the sales: here the sales person are supposed to ask the customers the type they prefer and promise them 5% discount for any bulky purchase
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Post sale follow up: here some telephone calls are made after one week to say thank you to all my customers and ask them whether they will need more clothes
[b] One will under take the following measures to become a successful sales person
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By finding out what the customers‟ needs are
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By possessing knowledge on the good am selling
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By not arguing with my customers
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Through thanking the customers after buying goods from me
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By trying to be tidy and clean all the time
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through satisfying customers‟ needs by giving them advice and offering suitable goods
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by being polite in handling existing and prospective buyers
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by possessing good communication skills, talk fluently and clearly
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through possessing an attractive personality in other wards one should have interest in people
[c]
I would sell my goods on credit due to the following reasons
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To meet the customers‟ financial requirements
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To out compete other rival businesses
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To attract new customers
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To reduce on the storage costs of some phones
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To create customer loyalty
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To increase on the sales
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To prevent obsolescence of goods to change fashion
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To charge very high prices which increase the profits to be enjoyed by the business
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Selling on credit enhances the buyer‟s bargaining power because of the credit that will be extended to them
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To help in the building of customers‟ good will and relation ship which results into repeated sales
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Example 2
You are operating business dealing in the construction of building in your home district. The district has been facing a problem of a small administration building that cannot accommodate all the offices at the district. Your firm is given a contract to construct a new bigger block [a] Design a sign post contract stipulating the terms of the contract [b] Design a business log for your business [C] Design a business card to promote your business Solution
[a] a sign post showing the terms of the contract SSEWAMPUMA CONSTRUCTION LIMITED P.O.; BOX 78694 TEL: 6759887989 A SIGN POST SHOWING THE TERMS OF THE CONTRACT
Project: construction of Wakiso district administration block
Contractor : Wakiso municipal council
Contractee : Ssewampuma construction limited
Contract period : one year
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Funded by : LGDP FY 2010/2011
[b]
A business log to promote Ssewampuma construction limited SSEWAMPUMA CONSTRUCTION LIMITED P.O.; BOX 78694 Kampala Uganda TEL: 6759887989 BUSINESS LOG
SCL Ssewampuma construction company For construction of durable building
[c]
A business card to promote Ssewampuma construction limited
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Ssewampuma construction company
P.O.Box 67849938 Kampala Uganda For construction of durable commercial and residential building at a relatively cheaper costs. Building of all types and we provide the best terms and condition for construction SSEWAMPUMA PETER MANAGING DIRECTOR LOCATED ALONG MASAKA ROAD WAKISO DISTRICT P.O.BOX 2326 WAKISO TEL: 0310242526 “For durability” [d]
A brochure for use in the promotion Ssewampuma construction limited SSEWAMPUMA CONSTRUCTION LIMITED P.O.; BOX 78694 Kampala Uganda
TEL: 6759887989 Ssewampuma Unique services construction company High quality buildings Durable structures P.O.Box 22526 affordable prices tel: 0312324261 mortgage loans Mission statement Services provided
Location We are located in Wakiso district along Naggalabi road For more information contact us at 0312325244
We aim at solving land Extension of mortgage and housing problems loans amongst the residents Construction of building of Wakiso through Processing land titles construction of building, extension of mortgage loans and land tittles Vision To the leading service provider of all construction and mortgage loan services Example three You are operating a large scale rice growing project and you are to establish a rice processing and exporting business [a] choose a suitable medium and design an advert for your products Solution [A] The suitable medium is a radio 97
Capital radio adverts for Ssewampuma rice processing and exporting business SSEWAMPUMA CONSTRUCTION LIMITED P.O.; BOX 78694 Kampala Uganda TEL: 6759887989Dealers in growing processing and exporting quality rice at relatively cheaper prices Located at plot 26 Mayanja close Wakiso district P.O.Box 2326 Tel: 041232426 try us for the best produce
Example four You are operating a large scale cereal growing project and you are to establish a maize milling factory. You are adopt promotion as a way of increasing sales in the factory [a] out line the forms of promotion you are likely to use in your business when promoting your products. [b] In what ways will you promote your business? [c] Explain the importance carrying out sales promotion to your business [d] How would you ensure proper and good customers‟ relations in your business? [e] Give the importance of advertising to your business Solution [a] The forms of promotion are as follows. - Advertising - Sales promotion - Personal selling - Public relations - After sales service [b] Ssewampuma millers will promote business in the following ways
SSEWAMPUMA MILLERS KAMPALA P.O.; BOX 78694 KAMPALA UGANDA
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TEL: 6759887989 WAYS OF PROMOTING THE BUSINESS By providing high quality flour By using a sign that will be showing that am dealing in maize milling Through giving small gifts and offers to my regular customers Through being honest to my customers Through giving discounts to those who buy in large quantities e.g. above 500kgs of maize flour By extending technical advice as on how to handle and prevent flour from contamination to my customers 98
[c]
Through offering prompt services i.e. ensuring that flour is available all the time The importance of carrying out sales promotion to SSEWAMPUMA millers business are as follows SSEWAMPUMA MILLERS KAMPALA P.O.; BOX 78694 KAMPALA UGANDA
TEL: 6759887989 Importance of sales promotion to the business - It leads to increased sales as it creates market for my products - It also helps the business to retain its customers - It informs new customers about the presence of a given product - It establishes a direct contact between the business and the customers - It helps the business to out compete its rivals in the same business. - It constantly reminds the customers about the availability of a given commodity - It persuades customers to buy more of a given commodity hence increased sales [d] I would ensure proper and good customers’ relations in my business in the following ways SSEWAMPUMA MILLERS P.O.; BOX 78694 KAMPALA UGANDA
[d]
TEL: 6759887989 Ensuring proper customer care in the business By offering prompt services by handling customers complains presented in the best appropriate way By improving on the quality of the commodity would be another that the business would use to ensure proper and good customer relations in a business Through ensuring that am pleasant to my customers that is to say serving them with a smile on my face. The following are the importance of advertising to Ssewampuma millers SSEWAMPUMA MILLERS P.O.; BOX 78694 KAMPALA UGANDA
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TEL: 6759887989 IMPORTANCE OF ADVERTISING TO THE BUSINESS It leads to increased sales through facilitating speedy movement of products It helps in facilitating competition among the different producers It facilitates intelligent buying thus enabling customers to pick the right choice It provides qualitative information about the product thus increased sales It also teaches value to those who are not trained buyers It helps in the expansion and diversification of the product in the market It also helps in stabilizing the prices of a commodity in the market Advertising helps to facilitate and stimulate demand within the customers It creates consumers‟ loyalty i.e. friendly relation ship with the customers 99
Example five You have established a cosmetics shop in one of the towns of Uganda [a] Use the SWOT analysis to determine the competitive advantage of your business [b] Explain what you would do to become a successful sales person [c] What factors would you consider when selecting the advertising medium? [d] Under what circumstances may personal selling be possible? NORMAN COSMETICS UGANDA P.O.BOX 6758 UGANDA TEL: 7889578499 A SWOT ANALYSIS (i) Norman cosmetics has the following strengths - High quality products - Lower but profitable prices - Ability of the products to meet the customers needs - Effectiveness in serving the customers - Good location of the business - Good and trained marketing staff - High and effective entrepreneur spirit (ii) Weakness - Marketing skills are in effective - Narrow product line - Inability to finance market changes - Not used to customers being new in the area - Poor calculations thus losses (ii) Threats - Growing bargaining power of the customers - New businesses being started up - Changes in the buyers tastes - Shifts in the trade policies - Rising sales of substitute goods - The business has more strength than my competitors since they have few goods with in the shop- and lack customer care. There fore the business is more advantaged to operate a cosmetics shop than its competitors - [c] NORMAN COSMETICS UGANDA WOULD CONSIDER THE FOLLOWING WHEN SELECTING THE ADVERTISING MEDIUM
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NORMAN COSMETICS UGANDA P.O.BOX 6758 UGANDA TEL :7889578499 DETERMINANTS WHEN SELECTING THE ADVERTISING MEDIUM The cost of the medium The target customers The media used by other competitors The geographical area to be covered would be considered The language to be used and that used by the potential customers 100
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The availability of the medium would be considered The nature of the product to be advertised has to be considered The channels of distribution to be used when selling the product The income level and the size of the business has to be considered The speed and urgency of information to the customers would also be considered The lead would be considered. This is the period required for placing an advert. It is short for news papers and longest in telephone directories and magazines along lead time means that a firm must place an order six months in advance and risk incorrect messages in the changing environment - the ability of a medium to stimulate the customers - the frequent the medium can be used e.g. frequency is greatest in the news papers, radios where adverts appear every day - The age group of customers would be considered [d] The following are the circumstances under which personal selling may be possible NORMAN COSMETICS UGANDA P.O.BOX 6758 UGANDA TEL: 7889578499 CIRCUMSTANCES UNDER WHICH PERSONAL SELLING IS POSSIBLE - When introducing a new product - Where demonstration is possible - Where the products are of high value, expensive and durable - When the market consists of few customers who are easily accessible - Where the firm is financially stable and can afford to employ sales persons NB one is advised to use words like; when, if, where among others [e] The following are the advantages and disadvantages of personal selling to my business T i t tl e , a n a d d r e s s a n d a f r a m e f o r t h i s d o c u m e n t
Merits - It gives the sales person a chance of explaining the details of the product and to demonstrate how to use the product thus increased sales. - It facilitates the exchange of ideas between the sales person and the customers thus increase in sales - It gives chance to customers to ask questions about the commodity. This helps to clear any doubts about the commodity. - It creates confidence and mutual understanding between the sales person and the customers - It helps my business to target a particular group and class of people some thing that bring about an increase in profits of the business - Under personal selling, customers get personal attention from the sales person thus creating confidence in customers about the commodity they are going to buy - The sales person is sure of the customers‟ position at the end of the sales presentation Demerits
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It is not sufficient therefore it needs to be supported by other forms of advertising like advertising - The resulting cost incurred is passed onto the customers in form of increased prices - It needs specialized training resulting in to higher over head costs - It has a very limited area of coverage as it appeals to a few numbers of people - Resources like cars allocated for sales person can be abused and misused - Success in sales greatly depend on personal attributes and efforts he or she has for a personal selling Example six You are operating restaurant in your locality [a] mention any five criteria that ought to be considered when preparing an advertisement [b] Draw a sign post for your business [c] Using a suitable medium, inform your customers that you intend to shift to a new location 5 months Solution [a] The five criteria followed when preparing an advert include the following
[a]
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Selection of things that attract the attention of the customers
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The headline should emphasize the benefits of product or service to the customers
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The space provided should be clearly used
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They should be honesty in the advert
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The message should be specific and show the items offered
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The advert should be simple and easy to understand
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The advert should easily be seen and recognized
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The advert should possess important information
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The advert should be neat, attractive and persuasive. a sign post for Ninando restaurant Buddo
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NINANDO Peter RESTAURANT BUDDO P.O.BOX 2426 WAKISO UGANDA TELEPHONE: 031242611 HAVE WITH US ALL TYPES OF QUALITY MEALS (BREAK FAST AND LUNCH) SOFT DRINKS DSTV SERVICES LOCATED ON PLOT 26 NAGGALABI ROAD NEXT TO MZEE
[b]
SUPER MARKET
A suitable medium is a poster
A poster to inform my customers that we intend to shift to a new place in 5 months
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NINANDO Peter RESTAURANT BUDDO P.O.BOX 2426 WAKISO UGANDA TELEPHONE: 031242611 P r o v i d e r s o f q u a l i t y m e al s (b r e a k f a s t a n d l u n c h )
s o f t d r i n k s D S TV
services
THIS SERVES TO INFORM THE GENERAL PUBLIC THAT WE ARE PLANNING TO SHIFT TO A NEW PLACE ON PLOT 15 ALONG KAMPALA – MASAKA ROAD OPPOSITE SHELL PETROL STATION WE APOLOGIZE FOR ALL THE INCONVENIENCES CAUSED MANAGEMENT NB
The advert should have the following (a must) - Name and address of the - Logo of the company company - Use of appealing persuasive - Location of the business phrase - Contact i.e. telephone number - Illustrations or diagrams that are - Products advertised relevant - Benefits of the product Example seven You are operating a tomato sauce factory, the contract of your general manager; security officer and factory nurse have expired. You are making plans preparations to communicate the development to your employees to recruit a new general manager [a] Prepare an advert for the post of a general manager Solution
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[a]
an advert for the post of a general manager
Attention!!! Attention!!! Attention!!! Attention!!! MAYAS TOMATO SAUCE FACTORY LOCATED IN KAMPALA WISHES TO INFORM THE GENERAL PUBLIC THAT WE ARE NEED OF A GENERAL MANAGER WHO IS WILLING TO BE IN CHARGE OF THE FACTORY. HE OR SHE MUST BE WITH AT LEAST 3 YEARS OF EXPERIENCE IN THE JOB WITH A DIPLOMA IN FACTORY MANAGEMENT. SHE SHOULD BE ABOVE 36 YEARS OF AGE .ANY ONE WHO IS INTERESTED SHOULD CALL 0412324256 OR EMAIL US AT MAYAS MAYAS POLO @ DOT COMM. IF POSSIBLE COME TO OUR FACTORY PREMISES IN MUNYONYO PLOT 23 ALONG SALAMA ROAD Human resource manager Mayanja Paul
Review questions Qn. 1 You are operating a tomato sauce factory, the contract of your general manager; security officer and factory nurse have expired. You are making plans preparations to communicate the development to your employees to recruit a new general manager [a] Prepare an advert for the post of a general manager [b] Use the SWOT analysis to determine the competitive advantage of your business Qn. 2 You are planning to open up a fruit and vegetable processing plant after securing a loan from Diamond Trust bank worth 10 million [a] Mention any five criteria criteri a that ought to be considered when preparing an advertisement [b] Using a suitable medium, inform your customers that you intend to shift to a new location l5 months [c] What factors would you consider when selecting the advertising medium?
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This chapter will look at the following
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Business support organization
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Sources of business information on legal requirements of the business
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Legal forms of businesses
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Business laws
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The process of registering a business
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Business contracts
Business contract -
A contract is a legally binding enforceable understanding between between two or more people - Example one - You are considering selling chickens to restaurant around Kampala on a contract - [a] Prepare the terms and conditions that will be included in the contract - [b] Explain the implications of this contract in (a) above - [c] Under what circumstances may this contract be terminated - [d] How will you ensure that contract you are you make with the restaurant is enforceable by law Solution [a] A contract is a legally binding enforceable understanding between two or more people The terms and conditions of contract between Mutaawe restaurant and the supplier of chicken MUTAAWE POULTRY FARM P.O.BOX 6784563 KAMPALA, UGANDA TEL: 0874573637383 THE TERMS AND CONDITIONS BETWEEN POLO RESTAURANT AND THE MUTAAWE POULTRY FARM - The number of hens to be supplied shall be considered 106
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[c]
The price at which which to sell the chicken shall be included in the terms and conditions of a contract The terms of payment shall be included in the contract i.e. by cash or by cheque The mode of transport shall be included in the contract e.g. by lorry, motorcycle among others where the chicken shall be delivered shall be considered e.g. at the restaurant Incase of a credit facility the credit period to be given given to the restaurant shall be included in the terms and condition of a contract It shall clearly show who will incur any other additional costs such as transportation, taxes The lead time shall be indicated. This refers to a period in which the restaurant places an order and the actual time he receives the chickens The contract shall also be included the kind of of security to be provided for the chickens The quality of the chicken to be supplied shall be included in the contract i.e. broilers, layers among others The possible discounts to be offered shall be included during the transaction i.e. a trade discount or a cash discount In the contract I shall also include what shall happen incase I fail to supply the chickens [b] The implications of a contract include the following MUTAAWE POULTRY FARM P.O.BOX 6784563 KAMPALA, UGANDA TEL: 0874573637383 IMPLICATIONS OF THE CONTRACT It shows that the business involved is legally acceptable It serves to indicate the there is a legal relation ship between the buyer and the seller The contract makes it easy any misunderstanding incase it arises It ensures that I will supply the right amount of chicken since it shows shows the amount to be supplied in a given period of time Chickens will be delivered in time since the lead time and the place of delivery are clearly stipulated The restaurant would be assured of good quality quality chickens since the quality is stipulated The contract implies that breach of of any clause will will lead consequences to the party violating the contract There would would be no disagreements in payments since the terms of payment are clearly indicated in the contract Under what circumstances is contract terminated MUTAAWE RESTAURANT P.O.BOX 6784563 KAMPALA, UGANDA TEL: 0874573637383 Circumstances under which a contract may be terminated 107
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If one of the parties involved was a minor i.e. below 18 years of age When one of party dies i.e. either the restaurant manager dies Incase the lapsed time of the contract has reached then a contract may be terminated - If the two parties can agree to end the contract i.e. by mutual agreement between the parties - In case of breach of contract i.e. if one party fails to perform the duties and responsibilities as expected - if both parties have completed their duties as per the contract i.e. It can be terminated by performance - If the sale of chicken has be rendered illegal by the government. i.e. the contract may be terminated by frustration [b] How will you ensure that contract you are to make with the restaurant is enforceable by law? Make sure that the contract I make with the restaurant is enforceable by law in the following ways MUTAAWE POULTRY P.O.BOX 6784563 KAMPALA, UGANDA TEL: 0874573637383 The consideration of a contract enforceable by law - By making sure that the contract is made in writing and signed by both of us - By making a contract on things that are possible to perform - Through making meaning full contracts by describing all information about my products including quality, size so as to have a certainty of meaning - By making contracts with people who are above 18years of age - By making a contract with people with only sound minds other than drunkards - Through ensuring that the contracts made are intended to create a legal relationship Example two You are operating a large scale farm specializing in the production of beans. You have received a tender to supply quality beans to a secondary school The beans are required at the start of every term i.e. February may and august. [a] Prepare the terms and conditions of a contract you will sign with the school [b] What are the implications of the terms and conditions prepared in (a) above [c] Describe the steps you will take to ensure timely supply of the beans at the school [d] Prepare an action plan which will be used to fulfill your contractual obligations for the beginning of the term Solution [a]
The terms and conditions of the contract produce suppliers will sign with the princess Diana High school include the following
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PRODUCE SUPPLIERS P.O.BOX 657849 KAMPALA UGANDA TEL: 9078857578466 TERMS AND CONDITIONS BETWEEN PRODUCE SUPPLIERS AND THE SCHOOL
[b]
The price at which am to sell the beans shall be included in the contract The quality of the beans I am to offer to the school shall be include in the contract The nature and the type of beans am to supply to the school Provision for terminating the contract in case of failure The means of settling disagreements in case they arise The method of delivery to be used shall be included e.g. by a lorry How the costs of supply are to be covered shall be included e.g. by cheque or by cash The declaration that the terms and conditions mentioned are to be observed by both of us shall be indicated in the contract The place where am to deliver the beans and the source documents to accompany the scale shall be indicated in the terms and conditions The time produce suppliers is supposed to supply the beans to the school shall be indicated in the contract The quantity to be supplied to the school shall be indicated e.g., 10 tones per term Implications of the terms and condition PRODUCE SUPPLIERS has prepared in (a) above PRODUCE SUPPLIERS P.O.BOX 657849 KAMPALA UGANDA TEL: 9078857578466 IMPLICATIONS OF THE CONTRACT
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It shows that the business involved is legally acceptable
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It serves to indicate the there is a legal relation ship between the buyer and the seller
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The contract makes it easy any misunderstanding incase it arises
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It ensures that I will supply the right amount of chicken since it shows the amount to be supplied in a given period of time
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Beans will be delivered in time since the lead time and the place of delivery are clearly stipulated
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The school would be assured of good quality chickens since the quality is stipulated
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The contract implies that breach of any clause will lead consequences to the party violating the contract
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There would be no disagreements in payments since the terms of payment are clearly indicated in the contract
[c]
PRODUCE SUPPLIERS will undertake the following steps to ensure timely supply of the beans to the school PRODUCE SUPPLIERS P.O.BOX 657849 KAMPALA UGANDA TEL: 9078857578466 ASPECTS TO ENSURE TIMELY SUPPLY OF BEANS
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Through preparing a feasible action plan stipulating the actual date of supply
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By planting beans according to the appropriate seasons to over come un steady supply
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Harvesting beans in time to enable easy preparations for supply
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By arranging the method and means of delivery in .advance to ensure easy transportation and timely supply
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Through Communicating to the school incase of any problem that may hinder the timely supply of beans arises
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I will look for another supplier to ,assist me supplying in case I fail or encounter any problem in supplying the beans in the required time
[d] The action plan which PRODUCE SUPPLIERS will use to fulfill its contractual obligations activity
Obtaining land Clearing land Planting beans weeding Harvesting the beans Proper drying
Jan * *
Time frame Feb March April May
* * * * 110
Threshing the beans Thorough cleaning of the beans Packing of the beans Delivery of the beans
*
* * * *
Example three You own an old secondary school that has frequently had problems due to poor management. You have decided to sell it off and use the money to establish a new one [a] Formulate the terms and conditions for the sell of the old secondary school [b] Formulate the terms and condition for building class room blocks in your new school after selling off the old one [c] Explain the uses of a contract to an entrepreneur Solution [a] The terms and conditions for selling my old secondary school include the following ST PETERS SECONDARY SCHOOL P.O.BOX 785766 KAMPALA UGANDA TEL: 0977467389 TERMS AND CONDITIONS FOR THE SELL OF THE OLD SECONDARY SCHOOL The price at which to sell the school shall be indicated in the contract The time to hand over the school shall be stipulated in the terms and conditions of selling off my old secondary school Provision for terminating the contract in case of failure shall be indicated in the contract The means of settling disagreements in case they arise shall be indicated in the contract The terms of payment shall be included in the contract i.e. by cash or by cheque The possible discounts to be offered to the buyers shall be included during the transaction i.e. a trade discount or a cash discount The quality and the number of the buildings to be sold shall be included in the contract. It shall clearly show who will incur any other additional costs such as, taxes The declaration that the terms and conditions mentioned are to be observed by both of us shall be indicated in the contract [b] The terms and conditions for the construction of new class room blocks EMERU SECONDARY SCHOOL P.O.BOX 9058585 KAMPALA UGANDA TEL: 89895959588 TERMS AND CONDITIONS FOR THE CONSTRUCTION OF THE NEW CLASS ROOM BLOCKS The number of new class room blocks 111
NB [c]
Duration of construction Terms of payment Arbitration of misunderstanding Kind of work i.e. quality work Who to provide the materials The type of materials to be used Who to pay or provide the services like feeding the workers Contractual obligations for the parties Provision for the termination of the contract Place of construction Language to use s h a l l Uses of a contract to an entrepreneur include the following It makes parties involved responsible It reduces losses since an agreement made is enforceable by law It encourages hard work It creates mutual relation and understanding between various parities involved It helps to improve on the bargaining skills of the entrepreneur It solves conflicts It also reduces losses when one claims for compensation
Review questions Qn. 1 You are considering selling cattle to a butcher in your town on a contract [a] prepare the terms and conditions that should be included in the contract [b] Explain the implications of the contract in (a) above [c] Under what circumstances may this contract may be terminated [d] Explain the importance of a contract to you an entrepreneur. Qn.2 You are planning to supply Kakira sugar with sugarcanes on a contract basis [a] Prepare the terms and conditions that will be include in the contract [b] How will you ensure that the contract you are to make with Kakira sugar works is enforceable by law? [c] Describe the timely supply of sugarcanes to the factory [d] Prepare an action plan which will be used to fulfill your contractual obligations for the beginning of the term
Business laws You have joined hands with two other partners Ssewampuma and peter to form a partnership business dealing in processing and sale of fruits and juices the partner ship is permanent in nature [a] Describe the various business laws that you will observe when starting and conducting the business [b] Explain the importance of the business laws to your project [c] Show the different procedures you will go through to obtain a trading license
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[d]
Out line the sources of business information available to you the partners of business Solution [a] The business laws SMG fruit agencies will observe when starting and conducting the business SMG FRUIT AGENCIES P.O.BOX 564788 KAMPALA UGANDA TEL :90778537465 BUSINESS LAWS TO BE OBSERVED BY THE COMPANY - Business name and registration act. SMG will first obtain a business name and register the business with the local authority - Trading license act we are going to first get a trading license before starting and conducting the business - The public law will be observed. SMG will choose a clean place to locate our business - The consumer protection law which is protecting the rights of the consumers - The weights and measures law which calls for appropriate weights to be sold as approved by Uganda national bureau of standards - Environment law which looks at the protection of the environment from the effects of business activities - The employees protection law which protects the workers from total exploitation [b]
[c]
The importance of business laws The environment law protects the environment from being misused Consumers‟ protection law protects the consumers from exploitation from producers The trading license law is a source of government revenue The public health law ensures that there is proper hygiene and sanitation in the public The company law protects the company name that helps the entrepreneur to have a strong brand name The land act helps the entrepreneur in avoiding conflicts that may result from land wrangles The foods law protects the consumers from consuming expired foods and drugs The employee act protects employees from unfair dismal from work thus helping to protect the workers rights The environmental law protects the society from harmful effects of the business The different procedures SMG will go through to obtain a trading license
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SMG will first purchase and fill in the application forms at a given fee
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It will then get a recommendation from the local authority (LC1)
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It will then get a Uganda revenue clearance for last year
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An inspection by police fire brigade department will be catered for
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The inspection by the local town council medical team of health is done
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Determination of the license fee is then done this basically helps to determine how much is supposed to be paid
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lastly SMG FRIUT agencies will pay for the license fee and collect the trading license
[d] Information regarding business information and support may be obtained from any of the following organizations - The Uganda manufacturers association (UMA) that deals with large scale businesses - Uganda small scale industry which gives information as regards to micro and small scale firms - Uganda national chamber of commerce and industry this mainly for traders and industries - District private sector development and promotion centers - Non governmental organizations
Partnership deed This refers to a written agreement among the partners showing the terms and conditions of their business It looks at the following issues
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Identification of the partners - The purpose of the partnership Amount of capital to be - The duration of the partnership contributed - The promotion in which profits and losses are to be shared - Duties, obligations and responsibilities for each partner - Procedures of settling disputes amongst partners incase they arise - Procedure on death or retirement of any partner - Procedure for dissolution of the partnership Example one You have joined hands with two other partners Ssewampuma and peter to form a partnership business dealing in processing and sale of fruits and juices the partner ship is permanent in nature [a] Prepare a partner deed for your business [b] As partners what are some of your duties and rights [c] Under what circumstances may this partnership be dissolved Solution A partnership deed between Ssewampuma, Mubiru and Peter
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SSEWAMPUMA, MUBIRU AND PETER FRUIT COMPANY P.O.BOX 7859003 KAMPALA UGANDA TEL: 09876543264 SSEWAMPUMA, MUBIRU AND PETER PARTNERSHIP DEED
Name of the firm: SMP fruit and Juice Company Names and addresses of the partners: Ssewampuma is resident of Buddo, Mubiru from Nakasozi and peter is from Kyengera The nature of the partnership: the partnership is permanent The nature of the partners: Ssewampuma is an active partner; Mubiru is active one whereas peter is a dormant partner Capital to be contributed by each partner: Ssewampuma has contributed 4 million, Mubiru 2million and peter 1 million The purpose of the business: the purpose of the is to enable every one get money to start up a personal similar project Interest on capital: an interest of 10% is to given to partners depending on the capital contributed Interest on drawings: an interest of 14% is to allowed on partners drawings Share of profits or losses: they are all going to be shared according to the capital contributed Books of account are to be kept in a place where all partners have access to them Date of agreement: 03/24/2011 Signed by……………………………………………………
[b]
The following are some of our duties and responsibilities as partners
[c]
SSEWAMPUMA, MUBIRU AND PETER FRUIT COMPANY P.O.BOX 7859003 KAMPALA UGANDA TEL: 09876543264 DUTIES AND RESPONSIBILITIES OF THE PARTNERS Every partner who has got access to the companies‟ funds and any other property of the business must display utmost good faith Every partner has got a right to act on behalf of the business, sign documents on its behalf as long as he of she acts with in the provisions of the deed All partners are fully liable for the debts incurred by the firm No new partner will be registered without the consent of the other This partnership be dissolved due to the following ways
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SSEWAMPUMA, MUBIRU AND PETER FRUIT COMPANY P.O.BOX 7859003 KAMPALA UGANDA TEL: 09876543264 Dissolution of the partnership When the partners agree to dissolve the partnership 115
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If one of the major partners dies If the partnership has not paid its debts, the creditors may appeal to court for it to be dissolved If the partnership is continuously operating at a loss, the court may dissolve it If the partnership lacks funds to carry on with business If it was for a single venture i.e. specified purpose and the work has been completed If it was formed for a specified period time If it was entered into for undefined time, therefore any partner giving notice to other partners an intention of dissolving the partnership then it may be put to an end. If the law banning the activities is introduced then it can be dissolved.
NB Circumstantial questions like that above are approached in a different way as seen below Points should begin or start as If………………………………… or incase …………………… or when…………………..
Environment refers to man‟s surrounding and what is found in it. The following environment standards always need to be considered by entrepreneurs when carrying out business activities. T h e q u a l i t y o f a i r , w a t er , s o i l , s h o u l d s t r i c t l y b e c o n s i d e r e d Example one You have started a brick laying project [a] Out line the requirements of your project [b] Explain the possible dangers your project may pose to the natural environment [c] Suggest measures you would take to reduce the negative effects of your project on the natural environment [d] Explain how your project will benefit the society [e] in what ways will your depend on the natural environment Solution [a] the requirements include the following Lobour, water, jerry cans, land i.e. soil, clay e.t.c. fire wood, grass to cover the bricks, hoes among others [b]
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Mugabe brick making project may pose the following dangers to the natural environment The project may result into air pollution during the burning of the bricks
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[c]
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It may result into deforestation because many trees will be cut down in the process of burning the bricks It may result into land degradation because it leads to the digging of soil to used in the making of bricks It may lead to the displacement of animals and birds because their homes like trees are cut down to burn the bricks Grass cutting to be used in covering the bricks may lead to soil erosion as the soil is left bare and exposed to the agents of erosion The burning of bricks may slightly increase on global warming just because during the burning process a lot of heat is produced into the atmosphere Holes dug when making bricks can act as breeding places for mosquitoes The brick making project may affect the inhabitants in the wet lands such as frogs, and other aquatic life some thing that can lead to their displacement Mugabe would suggest the following measures to reduce on the effects of the project on the natural environment I would under take re- afforestation so as to rep[lace the cut down trees By following the guide lines set up the nation environment management authority in regard to the use of wet lands By taking an environment impact assessment to clearly determine the negative that result from activities of my project I would cover the holes with soil dug when getting soil for making the bricks. This will reduce on the breeding grounds for mosquitoes In cases where fertile top soil was used for the bricks I would improvise manure top regain the fertility There would be controlled cutting of trees and grass so as to reduce on soil erosion I would adopt soil conservation measures Recycling would be carried out. This will involve the re burning of half and un burnt bricks I would suggest the use of alternative sources of energy other than fire wood e.g. i would use coffee husks to burn the bricks
[d]
The project will benefit the society in the following ways - It will provide employment opportunities to the surrounding e.g. people to make the bricks - It will be a source of revenue to the government mainly through taxation - It will provide bricks to the people in need of building - It would act as a case study for other members of the society - It will be a source of income to the surrounding people thus increasing on the standards of living. - It will provide market for fire wood produced the society - It will equip members of the society with skills of making bricks some thing that can increase on self employment thus decreasing on the unemployment problems Example two You have started start up a manufacturing plant 117
[a] [b]
In what ways may your business be harmful to the natural environment Suggest measures to minimize on the dangers of your business to the natural environment solution [a] Mubiru manufacturing business may be harmful to the natural environment in the following ways
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MUBIRU MANUFACTURERS LIMITED P.O.BOX 5646 KAMPALA UGANDA TEL: 76894037655 EFFECTS OF BUSINESS TO THE NATURAL ENVIROMENT Through polluting the water. The industrial effluents will pollute the water, air especially when they are exposed before they are treated By causing deforestation as trees are cut down for timber used in the construction of the office premises Through noise pollution because machines will be used and yet they make a lot of noise. Through exposing people working in the business to health problems since they inherit toxic gases Through emitting gases that affect the surrounding vegetation Vibration may be produced during the production process which may affect the buildings around Through producing products that may be using others products say in packing like polythene bags that are dangerous on the environment. [b] Measures to minimize on the dangers of my business to the natural environment include the following
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MUBIRU MANUFACTURERS LIMITED P.O.BOX 5646 KAMPALA UGANDA TEL: 76894037655 Measures to minimize the dangers of the business to the environment Through conservation of the sources of raw materials e.g. afforestation incases where the business deals in furniture By making a compulsory environment impact assessment the business has on the environment either negatively or positively By using noise silencing machines to avoid the problem of noise making By ensuring proper disposal of waste products from the business Through recycling which involves the re-use of already produced products should be undertaken Through treating gases before releasing them into the atmosphere should be encouraged so as to reduce on air pollution By providing employees with protective gears and health allowances to reduce on the dangers of the toxic produced during the production process By abiding with the environment standards in relation to its conservation
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You have acquired a Shs. 10,000,000 loan to set up a furniture workshop [a] what would be the responsibilities of your work shop to: (i) The society (ii) The environment [b] Mention some of the requirements of your business that would affect the natural environment [c] In what ways will your business depend on the natural environment? Solution [a] The following would be the responsibilities of MM furniture workshop to the society in the following ways MM FURNITURE WORKSHOP P.O.BOX 6758 KAMPALA UGANDA TEL: 909084975785 RESPONSIBILITIES OF THE BUSINESS TO THE SOCIETY AND ENVIRONMENT
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[b]
It would provide market for the timber provide by the society The business would make contributions to some development programs such construction of feeder roads, education and health programs The business would provide social services like schools hospitals among others It would provide employment to the society It would ensure proper disposal of waste products so as to reduce the dangers of the business on the environment It would help in payment of taxes to the taxing authorities It would help in preserving the norms and culture of the society To the environment It would help in educating customers on the usage and proper disposal of our products which helps in conserving the environment It has the responsibility of developing new techniques which demand for less use of natural resources like timber It has the responsibility of encouraging re-use and recycling of products and bi products. This will help in reducing on the rate of deforestation for timber It has the responsibilities of ensuring that raw materials like timber are used effectively It has the responsibility of planting trees so as to replace the trees that have been cut for timber It has a responsibility of checking and treating harmful effluents before the are exposed into the atmosphere The following are some of the requirements of MM furniture that would affect the natural environment MM furniture p.o.box 7689 kampala Uganda tel :09876544321 requirements of the business that affect the natural enviroment 119
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Land which is required for the construction of the work shop some thing that leads to clearing of the natural environment for construction Machinery used in productive operations like graders affect the natural environment. Energy where my industry will need biogas in preserving some of the, timber through boiling. This of course requires man to cut down trees
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The transport required in the movement of people raw materials like vehicles produce toxic which are dangerous on the natural environment
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The human resource for labour to manage business use the natural environment differently
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Raw materials like timber involved in manufacturing furniture are extracted from the natural environment
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The disposal grounds for rubbish consumption and productive operations
[d] -
or waste products produced through
The following are the ways my business will depend on the natural environment For raw materials like timber Disposal grounds For land for construction of the premises For energy like bio gas to be used in the manufacturing process UNEB QUESTIONS 2004
You intend to start a project manufacturing plastic products worth 60 million [a] design a financial plan for your project [b] Explain the factors you would consider when assessing the target market population of your product [c] Outline the support services of you would require to market your product [5mrks] [d] Describe the measures you would take to manage the hazardous substances in your project. [6mrks] You intend to start a brick making project [a] out line the requirements of your project. [5mrks] [b] Prepare a marketing plan for your project. [5mks] [c] Explain the possible dangers your project may cause to the natural environment. [5mrks] [d] Suggest measures you would take to reduce the negative effects of your project to the natural environment. [5mrks] You intend to start a hot culture project receiving Uganda shillings 2 million [a] make a budget for the proposed budget [b] Describe the methods you would use to „ensure the production of quality products [c] Explain how the project will benefit the society. [8mrkks] [d] Suggest the measure you would take to reduce production costs in your project. [5mks] 2005 You intend to operate a restaurant in you town 120
[a] [b] [c] [d]
Explain you would consider when recruiting employees for your business Outline the techniques you would use to motivate your employees. [6mks] Describe the methods you would use to appraise the performance of your employees [8mks] How would you promote good customer relations in your business? [5mks]
You intend to establish a bakery project [a] Design a business for your proposed project [6mks] [b] Explain the factors you would consider when choosing suppliers materials for your project [10mks] You intend to start a manufacturing business [a] Describe the elements of a work place you would consider to increase the productivity of your business [8mks] [b] Explain the measure you would take to reduce production costs of the business 8mks] [c] In what ways may your business may be harmful to the natural environment? [5mks] [d] Suggest measures to minimize the dangers of your business to the natural environment [4mks] 2006 You are considering selling cattle to a butcher in your home town [a] prepare the terms and conditions that should be included in the contract[14mks] [b] Explain the implications of a contract prepared in (A) above [6mks] [c] Under what circumstances may this contract be terminated If you were a personal manager of a large company, explain what you would do in carrying out a job analysis.[5mks] [b] Draw an organizational of the company [10mks] [c] Explain the methods you would use to recruit workers in the organization [10mks] You intend to establish a small scale soap factory worth 80 million shillings [a] prepare a budget for your proposed business[5mks] [b] Describe the measures you would put in place to promote the well fair of your employees [10mks] [c] How will you manage hazardous substances in your work place [10mks] [d] Explain the measures you will undertake to lower the costs of production in you business [5mks]
2007 You have obtained a loan of Ug Shs 100 million to start a mental fabrication project [a] design an advert for the post of a project manager [5mks] [b] Describe the measures you would put in place to improve (i) The work station [6mks] (ii) Welfare facilities [c] How will ensure the safety of the machines during production [3mks] [d] Prepare a marketing plan for your project [5mks] You have obtained a loan to start a project producing animal feeds [a] explain the factors you will consider when selecting machinery for the project [8mks] [b] How will you motivate your employees? [6mks] [c] Design an organization plan for your project [5mks] [d] Prepare an action plan for the project [6mks] You intend to establish a milk cooling plant in your locality [a] Identify the requirements for starting your business [4mks] 121
[b]
Explain the factors you will consider when choosing the distribution channel for your products. [8mks] [c] In what ways will you promote your product? [5mks] [d] Suggest the measures you would take to ensure quality products. [8mks] 2008 You are operating a large scale cereal growing project and you are to establish a maize milling factory [a] prepare a purchase order for machines for your factory[5mks] [b] Design a plant lay out for your factory [5mks] [c] Prepare a marketing plan for your products [10mks] [d] Choose a suitable medium and design an advert for your products [5mks] You are a partner in a rapidly growing restaurant operating in a small noisy and congested area. You would like to shift to a new a location [a] write proposal for the construction of a new spacious work place[8mks] [b] Write a letter inviting environmental officer to advice you on the setting and construction of your proposed premises [6mks] [c] Draw a site plan for the new premises [5mks] [d] using a suitable medium inform your customers that you intend to shift to new location in four months[6mks] You have set aside 15 million to start a micro finance business in your town [a] write an application letter to the town authorities for a trading license. [6mks] [b] Prepare a budget of Shs 5.000.000 to cater for the pre-operating expenses [5mks] [c] Using a fixed installment method design a loan repayment schedule for a customer who borrowed Shs 1,000,000 at an interest rate of 2% per month payable in 5 equal monthly installments [8mks] [d] Prepare a payment voucher to record the debtor‟s payment to the business. [6mks] You are a partner in a large scale business dealing in goods and transport services [a] write an inquiry to the supplier of various house hold goods . [5mks] [b] Write a delivery note for use by the transport department [8mks] [c] Make a job description for the post of a transport manger [06mks] [d] Prepare a daily time sheet for the workers [[6mks] You are operating a furniture work shop producing various types of products [a] write the mission statement of your project [4mks] [b] Design the lay out of your furniture work shop [8mks] [c] Design a sign post foe advertising your products. [5mks] [d] Prepare a marketing plan for your project. [8mks] You have obtained sufficient funds to start a saving a credit [a] prepare a mission statement for the project. [4mks] [b] Develop a credit policy for the project.[8mks] [c] Prepare a job description for the loans officer. [8mks] [d] Design a deposit slip for the customers‟ use. [5mks] [e] Design a balance of account requ est form for customers‟ use You intend to start a project manufacturing plastic products worth Ug. Shs 60,000,000 [a] design a financial plan for your project [b] Explain the factors you would consider when assessing the target population for your product. [c] Out line the aspects you would require when designing a work plan lay out to increase productivity in your business [d] Out line the support services you would require to market your products 122
You are the owner of a fast growing business dealing with the sale of stationary and you are planning to shift to a spacious place for effective business operation [a] prepare a purchase order form MM suppliers for the supply of construction materials worth 20,000,0000 shillings [8mks] [b] Write up a cheque in full settlement of the materials of the materials supplied. [6mks] [c] Design a marketing plan for your business. [4mks] [d] State any four benefits of your business to the society You intend to set up a carpentry workshop in your locality [a] out line the requirements for your business [b] Prepare a production plan for the project [c] How would you handle and store materials in your work shop [d] What possible dangers may your project cause to the natural environment? [e] Suggest measures you would take to minimize the negative effects of your business to the environment You are dealing in the sell of computers and your customer wants you to supply him on credit but you are not aware of his credit worthiness [a] prepare a credit status inquiry [b] Design a quotation you will send to your customer [c] prepare a delivery note you will send to your customer You intend to start a fruit processing factory in your home area [a] prepare a marketing plan for your business [b] What methods would you use to collect information while conducting market research for your products? [c] In what ways would you improve on the lighting system in your factory? [d] If you intend to sale your products on both cash and credit basis, how will you manage credit sales? You are operating an orchard in your village. Due to the increased demand for the juice and the expansion of the scale of operation you intend to install a beverage processing plant [a] formulate the vision for your project [b] Draw up a financial plan [c] Develop a weekly work schedule for your employees You intend to set up a sugar processing factory worth 100 million [a] prepare an organization plan for your project [b] What tools would you use to monitor your business operations? [c] Identify the business support organizations you will require and the services they will provide [d] Identify (i) Products (ii) bi-products You intend to establish farm growing millet on a plantation basis [a] what factors would you consider when choosing the site for your farm [b] How would you ensure high quality yields in your farm? [10mks] [c] Prepare a weekly work schedule for the activities in your business. [5mks] [d] Design a sign post for your plantation. [5mks] You intend to establish a cosmetics shop in one of the suburbs of Kampala town [a] use the SWOT analysis to determine the competitive advantage of your business [b] Explain what ways you would do to become a successful sales person [c] What factors would you consider when selecting an advertising medium? [d] Prepare an action plan for the business You have achieved a piece of land on which there large building and you want to establish a super market 123
[a] draw a retail lay out of your market [b] Prepare a guide line to be used by the security staff to ensure security of the retail project You have been recruited in a business selling baby wear as a sales person [a] describe the steps you would take in the creative selling process [b] Suggest measures you would take to become a successful sales person [c] Give reasons why you would sell your goods on a credit basis After completing “O” level, you decide to use your acquired entrepreneurship skills to start up a small maize milling factory [a] state the steps you will go through and follow when insuring your project with an insurance company. [5mks] [b] Design a suitable sign post for your business [c] Draft a payment voucher to be used by the newly appointments for the project [d] what factors would you consider when selecting the machinery for your project You have joined with two other partners Mayanja and Ssewampuma to form a partnership business dealing in processing and sale of fruits and juices. The partnership is permanent in nature [a] prepare a partnership deed [b] Describe the various business laws that you will observe when starting and conducting the business [c] Describe the books of account you will use for the different types of transactions You have received funds from crane bank worth 50 million for enlarging your metal fabricating industry [a] prepare a budget for your project [b] Prepare a production plan for the project [c] Draw weekly work schedule for your employees [d] Design a pay roll for your employees for the month ending March 2011 You have been given a grant from Diamond trust bank to expand your biscuit project [a] prepare a plan for the recruitment of more sales persons [B] Prepare a marketing plan for your business [c] Design a news paper advert for the post of a marketing manager [d] Draw a purchase order for the required raw materials You are operating a coffee hulling factory. The contracts of your general manger receptionists and transport officer have expired. Through internal sourcing you have identified a suitable replacement for the receptionist and transport officer. You are making preparations to communicate the changes to your employees and recruit a new general manager. [a] write a circular inviting the heads of department for an urgent meeting to discuss the matter [b] Draw a program of induction of a new manager [c] Design an organizational chart which you will use when inducting a new general manager [d] Design a plant lay out for your factory You are operating a restaurant in your town [a] prepare an operational budget for your restaurant [b] Design a petty cash voucher you will use to pay small expenses [c] Design a menu card for your restaurant [d] Design a sign post for your business You are operating a current account you have received a loan of 5,000,000 from Cairo bank to expand your business you have been granted a credit period of 5 years at annual interest of 5%. You are required to pay the principal in 5 equal installments while the annual interest is to depend on the outstanding balance [a] prepare a loan repayment schedule 124
[b] (i) [c]
Estimate Total costs (ii) total capital requirements for your project Design (ii) A with draw cheque slip (ii) A cheque you will use in your business operations with the bank [d] Design a letter of inquiry you will send to a supplier of machines [e] Design a sample of a cheque deposit slip you will use in the bank while depositing your cheque You have established a maize milling factory in your locality you been asked to do the following [a] write a letter to the city authority chair person to attend the promotion program of the factory [b] Prepare a marketing plan for your factory [c] Write an inquiry for use in the factory [d] Prepare a stock card for use in the factory You are operating a small scale business dealing in the of metallic products and you have found it necessary tom expand it using a loan from your bank [a] prepare financial plan [ 8mks] [b] Draw up weekly distribution schedule for your products [06mks] [c] Given the expanded business requires more employees, prepare a job advert for the post of purchasing manager. [6mks] [d] Design a program of induction of the newly recruited employees You are a farmer and you have won a Shs 10 million contract to supply poultry products to UHURU restaurant [a] prepare a marketing budget for Shs 4,0000,000 for one month [5mks] [b] Prepare a delivery note for the initial supply of the products [6mks] Develop the terms and conditions ton be included in the contract with UHUURU restaurant [8mks] [d] Thieves have broken into your farm and made off with more than half of your chicken. How will you sustain the contract? [6mks] You have started a new mineral water bottling company competing with other firms in the market [a] give the mission of your company [04mks] [b]; design an advert for promoting your products. [06mks] [c] Develop a program for launching your products [10mks] [d] Write a letter of credit to one of your customers who is complaining about having been over charged. [5mks] You have decided to expand your bakery to satisfy the existing market [a] prepare a marketing plan for your project [08mks] [b] Design a questionnaire for conj ducting a market survey [8mks] [c] Design a poster to advertise your products [5mks] [d] Prepare a purchase order for the raw materials for your business [4mks]
You have saved 5 million to expand your supermarket [a] prepare a budget for the expansion of your supermarket [07mks] [b] Write a job description for a sales supervisor [06mks] [c] Prepare a receipt for use in your business. [6omks] [d] Design a business card for promoting your business [6mks] WAKISSHA JOINT MOCK 2011 125
You are operating Mineral Water Company whose sales are declining [a] write a news paper advert for the post of a marketing manager [7marks] [b] Design a market survey guide to gather information concerning the declining sales [c] Draft a share certificate to be issued to new share holders. [6marks] [d] Write a letter inviting fellow share holders for an urgent meeting about the declining sales. [5marks] You are operating a juice processing plant in your locality and you are entering into a contract with the manager of a near by school to supply juice to the school canteen [a] prepare the terms and conditions which will govern the contract. [7mks] [b] Prepare an invoice to the director for the juice supplied for the previous week. [6marks] [c] Prepare the hygiene guidelines to be observed by the workers in your company. [7mks] You are the owner of a fast growing construction company and you have been contacted by MM ltd to construct a hotel in Salaama [a] prepare a site plan for the project [7marks] [b] Prepare a memo to the company secretary requiring him to prepare an agenda for a meeting with the company employees. [6marks] [c] Design a notice cautioning the public about the risks associated with the construction work [5mks] [d] Prepare a program for the official hand over of the building to MM ltd. [7marks] You are involved in the production of honey in your home town [a] draw up a program to promote your products [b] Formulate guidelines to be followed by your workers to ensure production of high quality products [c] Prepare a weekly distribution schedule for your products [d] Write a tender inviting a potential supplier of packaging materials You are a member of the entrepreneurship club that wants to start up a medium sized business [a] write a letter of inquiry to maganjo millers to quote the grades and prices of floor stocked by them [b] Design a menu card for the restaurant [c] Prepare a production plan for your business [d] Formulate the hygiene conditions for your employees to observe the cleanliness of the enterprise You have been hired by Uganda clays as a human resource manager [a] design a sample of an arrival and departure book page to be used in your country [b] Design a news paper advert for the post of production manager [c] Prepare a program for the recruitment of more sales person [d] As a way of mobilizing additional capital, you consider to issue out some shares. Design a sample of a share certificate to be issued to the new members
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