EXTRA CREDIT OPPORTUNITY
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EXTRA CREDIT OPPORTUNITY
MANAGING THE BUSINESSES ASSETS
Asset management refers to systems which manage, monitor or maintain things of value to any business group. It can apply to tangible assets like buildings and to the intangible ones such as goodwill and the intellectual property rights (Longenecker, Justin G (2012, pp456). It therefore refers to an intellectual process of maintaining, operating and upgrading asests and disposing them cost effectively.
There is a number of asset management practices which the business needs to take much into consideration;
Infrastructure asset management
This is a combination of financial, engineering and other practices with the aim of providing the required level of services at the most cost effective manner. The process involves design, construction, operating, repairing, modifying, replacing and disposing of physical equipment.
Financial asset management
This section should the one designed to deal with collecting of investment schemes and segregating of client accounts
Enterprise asset management
Is a business process with good enabling environment which supports management of assets in a business. In any business assets like the physical ones, fixed assets, IT assets, and the digital assets are supposed to be taken care off.
Corporate asset management
This type of asset management incorporates enterprise asset management and extends to municipal jurisdiction thus meeting the customer’s expectations. In this type we also find the use of GIS-Centric asset management which allows users to use the capability to coordinate, share information in an efficient manner through making of GIS geo data base an asset registry. It allows users to use, share and coordinate in usage of information in an efficient and a cost effective manner (Clayton & Patricia 2008, pp.70).
MANAGING OF LIABILITIES IN A BUSINESS
A business can incur a lot of losses if it does not have clear and effective ways of managing of liabilities. Companies with limited liability enjoys than those ones who operate in unlimited liability scenario. The following will be the benefits which shall accrue to these businesses if they operate in limited liability;
Separate legal entity
Limited companies will enjoy benefit of legal existence which is separable from management and its shareholders
They have limited liability for their members
This means that in case of dissolution which might result from insolvency, for example, the shareholders can only lose up to the value of their shares and not the personal property
Protection of the patent rights
This implies that for a limited company, cannot share the names with anyone else. This is the trademark registration for sole traders and partnerships.
continuity
Once the company has been formed, it has an everlasting life, the directors and management and the employees will act as the agents of this company.
Better pension schemes to its employees than those paid people employed in a contract or on in a sole trading business.
New shareholders can join and can freely negotiate on suitable engagement terms and conditions with their clients. It also ensures that there is equality among the members in terms of profit and loss sharing.
REVENUE MANAGEMENT
Revenue management refers to analytical ways that a company and use to predict consumer behavior and the price to maximize revenue growth. It is required that businesses to sell required or the right products to right customers at their right time for the right price.
There are revenue management levels which the business can apply so that to maximize revenue;
Pricing
It involves defining the best pricing policy or strategy. In this case the value set by customers is captured so that the best and specific price is set to capture that value. For example the company might decide to price against its competitors, in this case it should follow closely the market demand conditions at the market segment level.
Inventory
Here management should be concerned on how best to price or allocate capacity. For instance a company may decide to discount products so as to increase sales volume, it can also lower prices of products in order to overcome weak market demand and gain market share.
Marketing
Effective promotion techniques will help maximize revenue in situations where there is uncertainty in market distribution and the willingness to pay. Promotions will help attract more customers who will then commit themselves into signing contracts. The company needs to strategize on good promotion roll off policies so as to capture a large market share to trade in.
channels
Choice of good distribution channels will help the company make more profits than when the channels are complicated (Jaffe, Eugene et al, 2006 pp.276).
For effective operations, it is advisable for companies to reduce brokers on the way so that upon production, the goods are supplied directly to the market so that to make more revenues,
revenue management involves the following process; data collection from the field and in this case they are the customers, market segmentation which is the key market based pricing and revenue maximization strategy, forecasting on various elements of market like demand, inventory levels, ,market share, and the total market, optimizing which defines how customers are likely to respond when products are sold to them, Dynamic re-evaluation requires that a business should evaluate its prices, products and processes so as to maximize revenue.
INCOME MANAGEMENT
Income management refers to the methods applied for the business to maintain and keep good records so that to ensure continuity. Improper income management will imply that business will encounter losses hence resulting to insolvency thus termination. It is recommended that good management with good managerial skills be the one running the business, otherwise it will collapse.
In any company there are four main financial statements which are likely to be affected during the day to day operations of the business, they include: the balance sheet; it gives the financial position of a business as at given date, the cash flow statements; it gives revenues minus expenses, statement of owner’s equity also called the statement of retained earnings, and the statement of such flows; shows funds and whether they are enough to carry out routine operations.
References
Longenecker, Justin G. Small Business Management: Launching and Growing Entrepreneurial Ventures. Mason, OH: South-Western Cengage Learning, 2012. Print.
Clayton, Patricia. Forming a Limited Company: A Practical Guide to Legal Requirements and Procedures. London: Kogan Page, 2008. Internet resource.
Jaffe, Eugene D, and Stephen Hilbert. Barron’s Gmat: Graduate Management Admission Test. Hauppauge, N.Y: Barron’s, 2006. Print.
