BASIC TASKS OF A GM

What Is A Manager?
A person who uses POLC the allocate human,
material, financial and information resources. PLANNING:

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↳ looking at the future of the business (vision)
W/ the view of achieving the businesses vision ↳ ensures proper utilization of tangible and intangible resources
mission and goals

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ORGANIZING:
↳ process of bringing together all resources (physical,financial,
human )

General
⦾ assigning duties to different managers and workers
⦾ assigning the necessary resources
⦾ co-ordinating relationships with teams
Levels Of Management f Management
Business Functions
LEADING:
↳ Influencing guiding, supervising and motivating subordinates towards
an achievement of the business goals
TOP
Strategic Planning

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CONTROLLING:
Long term goals, ↳ measures the accomplishment of tasks against set standards
products, markets, ↳ correction of any deviations
business organization
CEO,CFO, COO 1) establish of standard performing
A

2) measurement of actual performing

Middle 3) comparison of actual performance with the standards and identifying
Interpret Plans & set actions Execution/ Functional Level any deviations
4) corrective action
Regional / plan managers
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↑

Lower
Implementation of plans Supervisory/ operative
Business manager must formulate a
business policy which contains
Team leader, assistant manager, foreman, shift manager vision, mission, goals and objectives
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What is it ?
PRODUCT
Must satisfy the needs of
consumers Activities related to getting the TRANSPORT:
product or service from the Bridges the distance between the producer and consumer
producer to the consumer ↳ transportation costs should be considered when locating your business

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STORAGE:
Marketing Research

PLACE goods are often produced in quantities that are too large to sell straight
Distributed at a convenient away ∴ storing the excess products until there is a demand bridges the
place for the customer time gap
SORTING: distribution channel
Marketing Mix ↳ MANUFACTURERS ➪WHOLESALERS ➪ RETAILERS ➪ CUSTOMERS

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PRICE GRADING & STANDARDIZATION
Sold at the price the B4 large scale production, products must be standardized ( what the
product looks like: quality, design and materials used must be specified)

Marketing
consumer wants
↳ All products must then be identical and adhere to the SABS

FINANCING:
PROMOTION • Business can borrow money from the bank or get credit from other
Consumer must be informed about
the availability of the products Business Functions businesses in order to buy the stock needed. The credit worthiness of the
business needs to be assessed before credit can be approved.

INSURANCE
Bridges the risk gap
MARKET RESEARCH:
B4 selling a product market research must be done in order to see if there
is a demand
Market Research ACTUAL SALES:
Business needs to consider the quality, quantity and type of product to
Helps marketing functions identify: determine the price to sell to consumers.
↳ target market base of characteristics like
⦾ age ⦾ income ⦾ gender
 Sources for borrowing
Tasks of Financial Manager Objectives working capital
Draws up financial needs of the business : • Trade Credit = supplier gives credit based on the credit worthiness of the
↳ Cash budget for short term, • Maximise profits by keeping expenses as buyer
low as possible
Capital budget (long term)
Assists the GM to interpret Financial statements • To increase profitability • Overdraft Facilities = used when money is needed but the business/individual
doesn't have the funds. Interest is charged.
Makes sure the different departments stay within • Make sure the business has enough cash
their budgets to cover expenses • Budgeting for all

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departments • Short term Loans = money borrowed from a bank with a repayment period
of less than one year. Fixed interest rate charged

Sources of Capital
Own= investment made by the owner
32.
Borrowed = borrow money from the bank or
buy on credit
↳ increased risk : must be paid back with
interest
Financial
Function
Business Functions
• Lease accounts = business pays a monthly instalment for the use of an asset
but ownership is never transferred to the business

• Instalment sale transactions = monthly instalment is made to the business for

a purchase of a vehicle, machine/equipment which includes interest. Ownership
is transferred on completion of payment.

Budgeting
Allocation of money to each business function

• Financial manager makes these estimates based on historical data,

Purpose of Capital inflationary projections and predictions of the economy in general.
• Financial manager will compare the budgeted figures to the actual
Fixed Capital :
↳ fixed assets - land and buildings, vehicles and equipment
Function
Make sure there is enough capital in
figures and make recommendations (strategies) on how to deal with the
differences
↳ remain permanently in the business the business and that it's used in the
best possible manner
Working Capital National Credit Act
Provides guidelines for granting of credit
↳ used to purchase stock or finance debtors CASH VS CREDIT PURCHASE
↳ used to cover day to day running of the business and can also be GRANTING CREDIT TO CUSTOMERS
• Cash =
used to pay expenses • Assess creditworthiness of the potential client as well as a policy for debt no interest charge but must have
collection (Has the customer previously paid back his creditors?) money readily available
• Strategy to encourage customer to pay on time or before the due date • Credit =
incur a interest charge but payment
ASKING FOR CREDIT is delayed and not required
immediately
• Financial manager needs to consider the time period for repayment of the
loan as well as what security is required in case the business cannot afford
to pay their repayments
• Cash flow of the business and cash available is vital
 Duties and Activities Types of stock
hase of required goods and services = ‘ Right ‘ Definition Raw Materials = products obtained from the primary sector
ching and sourcing the materials required by all departments Ensure they buy the right products & services @ the
right time from the right supplier @ the right of the
right quality and have it delivered to the right place • Semi-finished goods = goods that are bought with the aim of
negotiation = manufacturing a finished product .
sible for ensuring the organisation has the right goods at the right

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t the right time. • Finished goods (manufactured goods) = Goods that are ready
to be sold to the final consumer
opment and maintenance of good relationships with suppliers =
ure they have a good relationship with the supplier in order to • Perishable stock = goods that are kept on cold storage
p trust. This means they can count on them in times of crisis. otherwise they are unsafe to consumer
• Dangerous materials = Materials which can cause harm to the
rdination and communication with other departments = user or others

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unication with finance department in order to sign off the budgets

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sting of the purchase of raw materials. Communication with
ing and production as they need to purchase the materials for the • Maintenance stock = items that are used and consumed within
tion process and in order to develop a product that satisfies the the business
f the target market which has been identified by the marketing
• Capital goods = machines and equipment used in the

Purchasing
ment.
manufacturing process which are subject to wear and tear over
a long period of time

Business Functions
Importance of Purchasing Department
Need to know what PRODUCTS ARE IN DEMAND ∴ products can
be bought at the lowest possible cost
Find suppliers with reasonable prices, so the business can sell its
product at a good price to maximize profits
Ordering and Receiving of Goods
Stock shortages must be avoided bcz if a business runs low in stock it
gives competitor an advantage Make sure it's the correct quality and quantity of goods needed by business
Ensure sufficient stock in case of problems. E.g. Political risks, physical ↳ products need to be in demand ( know through market research)
risks, economic risks. ↳ PURCHASING sources the products using the internet, sales representatives, and supplier catalogs
Monitor exchange rate for imported goods ↳ PURCHASING then places an order: telephonically, via email or completing a printed order form
↳ Manufacture/ Wholesaler receives order, they prepare the goods to be dispatched, then send an invoice
Stock holding costs (storage and insurance costs) must be kept as low ↳ delivery note is sent w/ the goods, the buyer must then sign it to acknowledge the goods are correct and
as possib received
 Trademarks
A picture/ symbol used to distinguish products from competitors
Brand= name of business
Management of Stock
Quality control Used to promote a product

Purpose : have enough stock on hand for

operational purposes without wasting Process through which a business seeks Commercial Standards
money of unnecessary storage to ensure product quality is maintained METHODS If a business uses mass production,the quality of the
and improved products are standardized. ( SABS)
Economies of Scale: buying in bulk to get a discount ↳ system of maintaining standards in
↳ only use when stock is really needed manufactured products

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↳ consider the type of stock ( is it perishable) Market Grades
Used to describe the quality of agricultural products
Diseconomies Of Scale: if you buy goods in bulk
but do not have sufficient customers, you're Grading is a type of quality description

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going to result in loss of profit
• Economic Order Quantities (EOQ) entails working out what the best Samples
quantity to order is to achieve the lowest possible cost. An item given to the supplier to

Purchasing
• Important to consider "Lead Time" which is the time period between indicate the quality that is required by
ordering and delivering. It is important to know how long it will take the purchaser
for your stock to be delivered so that you can order in time to avoid
stock loss.

Business Functions
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Consumer Protection Act
The act applies to all transactions for the sale of goods or the rendering of services

PURPOSE
Purpose of Electronic Stock Control protect the consumer form dishonest suppliers
↳ establish how much stock you have on hand w/o doing a physical
count • Aims to ensure that contracts are in easy to read language and grants consumers certain
↳ determine theft rights to refuse contracts.
↳ JIT system::goods are only purchased when needed ( just before
you run out of stock), reduce stock holding costs • Improve labelling – accurate information in understandable language with appropriate
warnings regarding potential allergens or danger

• Supplier details and contact numbers

• Increases consumers rights to return unwanted goo

 Office Practice
Methods and policies created to ensure the admin
function runs smoothly Definition Collecting of Data
• Admin department needs to be able to access documents Collects all data in a business, which is then • Data is raw information that needs to be processed in
quickly in case other departments require the documents processed into information which is stored and order to create information
made available to management when needed
• Storage and back ups Sources: sales figurines, market surveys, questionnaires, company records

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• Referencing systems
• Job responsibilities Primary Data= og data that is collected for the first time

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• Documentation procedures
Secondary Data = data that has been published before

CENTRALISATION
• Head Office would have a large administration
Management of Info
department that would control all data processing Computer= record data and the. Process data into meaningful info
↳ makes it easy to store and multiple records can be kept
DECENTRALISATION
• Each branch will be in charge of its own administration Administration Computer finds it difficult to recognise incorrect data entered
∴ it is important that correct data is being received.
Business Functions Incorrect data in will result in incorrect data coming out.

Statistics Data needs to be constantly updated so that management can receive

relevant an current information
MEAN/AVERAGE
• Sum of all elements and divided by the number of Certain legislation requires that document be kept and stored over a
elements certain number of years to ensure the business is compliant with the law.
FREQUENCY DISTRIBUTION
• Refers to the number of times a certain element
Interpreting Information
appears in a range of data • identify trends and patterns in
info
MODE Presenting processed Data and Information
• Item that appears most often • This information and trends
can then be used to base future The information must be presented in a way that is easy to understand
MEDIAN decisions on ↳ correct and up to date
• Middle of the data set when arranged from high to ↳ pie charts, graphs etc
low
RANGE
• Difference between the highest value and the lowest
value
 What HR does?
=C Positive environment
Determine how many workers the business requires Human Creating a positive workspace
( environment) for staff that ensures

Resources
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Train employees to gain the skills required productivity ∴ the business is able to
achieve its goals object
Motivate employees by recognizing and rewarding hard work
Business Functions

Introduction
Efforts to build relationships with institutions outside the business
↳ manufacturers
~ Aims of PR
↳ suppliers Improve the image of the business by continually
↳ whole sales
↳ retailers
Public sending out positive messages to the outside world.

↳ government department
↳ consumers
Relations This will gain te business a good reputation

↳ the media Business Functions Good PR increases sales and profitability

PR is aimed at all people and businesses in the external

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business environment
n

Business Threats
=C Impact of Risk Management
↳ INTERNAL : strikes, employee errors.
↳ EXTERNAL: crime, extreme weather, political issues
Risk The way a business prepares for and manages
their risks will have an impact of weather the

Management
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business is successful or fails

Business Functions