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I work for the commercial software developing firm as a sales research analyst. My company has unique and distinctive special features in developing of different and various installations of software applications especially in the fields based on the internet protocol and the infrastructure. And we offer good services and we are well known for the products and software around the world for maintaining the standard we come up with a proposal or installations after the spontaneous research on the companies in and out transactions in the world of competent market of business.
I have come up with the proposal with excellent result of thorough research analysis submitting to the Chief Executive Officer of a Malt Whiskey distillery in the highlands of Scotland which is the distinct brand of a multinational spirits conglomerate. The company well known for its product which maintains the standard and unique brand in producing the real ales .And the ales where sold in multiple public clubs and also in the retail markets, most of the off license shops opt for this brand due the demand . With taking all the assessments done on the surveys which were conducted considering all the existing conditions and analysing the bright future for the growth in sales and profit of the company. I submit this proposal to the Chief Executive Officer of the Multinational spirits conglomerate. And the proposal emphasise on three important factors which were enclosed below. This proposal mainly consists of three major and important factors.
1. Company and Environment.
2. Software Systems.
3. Return of Investment.
1. Company and Environment :
Malt whiskey distillery in the high lands of Scotland owned by the multinational spirits conglomerate
Scotland whisky has a great demand around the world and Scotland stands best among the five whisky producing distilleries, there are three different types of whiskies the distillery has three different brands which has different tastes and they are unique compared to other standards and has a great demand
1. Single Malt Scotch
2 .Valted Malt or a Blended Malt
3 . Scotch Whisky.
Every process involved in the manufacturing a product is valued depending on the certain other factors which are to be considered for the growth of sales and profits and also reaching to the demand of the world with the specific product.
The main principles and strategies existing in the industry truly consisting of
1 Order placement 2. Production 3. Sales and Marketing 4. Purchasing process 5. Supply chain management 6. Research and development 7. Transportation 8. Human Resource Management and Finance all the mentioned steps where involved in the success of a company.
Collecting all the required and related information of the demand and manufacturing the product which satisfies the demand of a customers is known as the business process. The different and various types of business process which are stated and they come under the different categories with a separate function involved in the business management and supporting sections of an industry. The main and core important field in the industry is Management . The management consisting of different process, among the business process there are different categories such as
ECM - Enterprise content management Strategic Management
SCM - Supply Chain Management
ERP - Enterprise Resource Planning
CRM - Customer Relationship Management .
The purchasing of the raw product order placement and also sales and marketing which comes under the operational process of business. The research and development , recruiting ,technical support and accounting comes under the business process of supporting division.
In an industry the first step starts with production and the first principle involved in the production of a malt whisky distillery Scotland conglomerate. The industry purchases the raw materials from the producers like farmers. The raw material like barley, sugars, grain ,sugars yeast ,oak casks and water needed for the production of the whisky. The process starts from the raw stage of product development to bottling in liquid and with final product reaching in to the market including the sales and profit.
The two main resources involved in the production process:
1. Transforming Resources.
2. Transforming Resources.
which include the machinery used for the preparation of malt, and the work force of employees and tools and equipment which are used for the office and work related the place and there working activities comes under the transforming process.
The transformed resources includes all from the scratch the raw products like barley ,yeast, water, grain to produce the malt and unto the finished product of single malt whisky or scotch whisky and in this process which include all the process filling in caskets and stored in separate storages for couple of years and at the final stage of bottling in whisky.
And in the production process there are certain level in a production chain and at the each level the price or cost added to the goods depending upon the stage. This process of price or cost value added id interrelated with which the product has to be delivered to the customer this includes the promotion of the product in market by advertisements, publicity in media news papers articles and magazines and also includes the transportation and distribution to the retail markets, pubs, Areas of public pubs etc. As the final product whisky by the highlands of Scotland spirits conglomerate is sold continuously for 365 days and the process of malt preparation is continuous for 365 days and the process of malt preparation is continuous round the year. The conglomerate company is using the FLOW PRODUCTION process.
The FLOW PRODUCTION process has a separate individual unit for each stage of the process and the units are not inter dependent as the production of the single unit will not stop depending upon the associate unit. Every individual unit completes its operation of work assigned and passes the finished material to the next stage there is no time delay or waiting process for another group to complete. And the production process or chain continues without any breakdown.
There are certain features which causes the drawbacks in the flow production. If the production process is altered depending upon the increase in the demand. The flow production will be distributed and this affects the quality of the product.
The Main benefits we get by using the flow production process:
1. The technique and the method is easy and production of product within planned and estimated time eliminating all the waste and with very low coast.
2. Maintains the goods standard level and any alteration in the production method can be recognised very quickly and easily.
3. The product can also to be controlled easily and handled without any involvement of machinery and it is easy to handle.
The Important and the core stage of any company or an industry is Marketing and sales department .This stage includes most important features of the company it deals with mainly promoting the advertisements and sales and distribution of the company's final product . The marketing and sales department analyse and survey the needs of a customer or the public depending upon the need and demand of the certain product by collecting and taking all these requirements of the public dealing to a certain product the department generate a demand for such a product and reach out to the customer with their demand. The marketing comprising of mainly depending upon the demand of a customer requirements.
The Marketing and sales department of a Multinational spirits conglomerate of Scotland mainly deals with the promotion of product services and its distribution and pricing . Depending upon the demand and requirements. The planning for the malt production will be implicated. To get the brand name and to gain the confidence of customer the sales and marketing department plays a main important role for the Industry.
The accounts of the industry and all its business process and every procedure involved in financial issues were controlled and dealt by Accounting Department. The role and features of Accounting department deals with industry financial records and analysing the growth and development and profit and loss to make an important decision regarding the investments with in the organisation seeks the records of accounts and data in the accounting department. By analysing the results of various stages of developing a product and its cash flow. We will know the growth of an industry .To more clearly there is another process. Auditing which controls the accounts and finance deals with mainly the industry's financial status.
Supply Chain Management:
The supply chain management is most important process dealing with the inventory and this process effectively manages depending upon the demand and different types of sales. The inventory system should be running smoothly so that the industry will be reaching to the demands of the customers in time scheduled. The multinational spirits conglomerate of Scotland has started implementing this supply chain process. This process is working but not excellent to somewhat good. There will be hard times and the organisation will be in danger if there is any shortage of stock. The industry taking the advantage of supply chain management concentrating on the track and history of supplies of raw materials and the quality and quantity used for the specific product and also dealing with the inventory stock which is already in possession and order which is placed , having the track record of the supplier. I f there is any minimum variance in the sales and profits will effect and go down.
The industry should ensure the smooth running of the supply chain.
The research and development is the main important part of any industry in developing a product. The customer will expect a superior quality rather than an existing one so R&D department starts its research to new brands of different whiskies like standard whisky, single malt whisky, scotch whisky.
Human Resource Management:
To lift an organisation to all new heights and succeeding all the challenges and dealing with all factors like economic and some other obstacles of the organisation is handled by only Human Resource Management . And this management deals with recruiting and hiring the skilful employees ,dealing with payrolls and sacking the employees if employee is not following the procedure. The department which mainly deals with the work related issues and the company's policies.
2. Software Systems:
Software systems contain the software modules which handles all the possible functionalities of the industry. A software system should enable the use of suitable resources and function within the suitable environment. The multinational spirits conglomerate running the industry with some software systems the process and software were not so effective in all the stages of the industry. The software system should upgrade with the new software system to achieve a good successful business targets and making the industry profitable. There are many multiple software solutions and systems in the market the software should work continually without any draw backs and without any errors.
My company has the best software system solutions in the world and we have come up with a software to the multinational spirits of conglomerate only after the continuous and thorough research on the company's business and market the software what I provide to the industry is the best in the software industry . And we assure that from the implementation of this software system it improves the status of the functionality of a company in the fields of market, production and sales the drawbacks from the old existing software can be easily corrected and will be easily upgraded without change in the methods of the industry which is following from years.
The software what we want to provide for the multinational spirits conglomerate is known as DISTILLERY SUITE 2010. This software is user friendly and very easy to learn and operate the DISTILLERY SUITE 2010 is useful for all the business process like Enterprise resource planning software known as ERP, customer relationship management package known as CRM, and also supply chain management which is known as SCM, . This software is also useful for all the sales, purchases and marketing process. The distiller suite 2010 software provides the sales automation , purchase management , vendor management ,inventory management and also marketing automation management all these services for the multinational spirits conglomerate in the high lands of Scotland . The distillery suite 2010 is the combination of front end that is desktop and webpage application the software has all the access level where ever it is installed it is advantage to use the full access of the software application such as No Access, Read, Write , Full access and read only. This software is accessible to all the employees in the industry for every individual they have been provided there own access identification number to access the application depending upon the status and designation of the employee. This software has a good security backup and application privacy the access of all applications is limited to an employee depending upon the designation in the industry. The software covers each and every area of the organisation this starts from production, marketing, sales, accounts, research and development and also finance has got all the access control option. Before using the software Distillery Suite 2010 every individual chosen to operate the software should be trained to get best use of the software.
SUPPLY CHAIN MANAGEMENT
In the DISTILLERY SUITE 2010 software one of the module which emphasise on supply suite which manages supply chain . The main business of supply chain is to maintain a good business transaction in the purchasing of the raw material and maintaining the good standards of the quality of the production which is distributing the malt.
This supply suite which plays a major role and very much useful in the handling of material management, managing the inventory , managing the ware house , estimating the supply which is ordered , fore casting the demand of the product, fulfilment of the order , and also managing the transportation.
With a single touch of a button the employees will know all the details of the raw material left for the production of malt and also we will know how the stock remaining and there will automatically updated statistics with in itself with the data entered .All the details of the stock and who taken the material and how about the time period everything will be recorded. If there is any shortage of the raw material a single of the button will place an order for the raw material. The usage of this software is very easy with a single click you will know about the storehouse and its transportation status of the malt caskets. DISTILLERY SUITE 2010 which provides the employees of a particular organisation upgraded and the latest information of an each stage and supply chain allows to take all the necessary actions with this type of process a supervisor or manager will have an detailed idea and all the statistics going in a supply chain process.
In the order processing process. The order which is approved will be automatically saved in to the supervisor or manager's inbox and the order automatically billed.
ENTERPRISE RESOURCE MANAGEMENT:
I have explained the supply chain management in the previous topic . There is another important process is value chain process of multinational spirit of conglomerate . The value chain process is all dealing with the aspects of the company's internal operations and research and development, products of design, process or services, sales and marketing , production , customer service and distribution. In Our software of DISTILLERY SUITE 2010 one of the module named as ERP gives us the good insight of a company's total transactions and improves its control over the productivity of malt whisky. The tool ERP suite access over many functionalities like appointments ,Accounts , Customer relationship management , Banking , delivery , Budgeting , fixed assets of an industry, payroll , sales and marketing , inventory control , purchasing , utilities , workshop and also the ERP suite provides much more added functionalities like , trail balance sheets , balance sheet reporting , real time reports , period wise reports ,VAT reports , charted accounts reports with all these added functionalities the industry has good live account report the industry will analyse the expansion of business and also to know about the money flow.
The company's ERP suite handles all the transactions of the bank and keeps the records of the financial budgeting of a company.
CRM - Customer Relationship Management.
Customer relationship management module this module is very much important and useful to get all the acceptance levels and to gain the confidence of the customer who is marketing or using the product . The most and important part of the business strategies with what we maintain with the customer is Customer relationship management.
The CRM arranges all the business statistics according to the strategy of a customer the quality production of malt and whisky never changes depending upon the demand and need of more stock the quantity may increase with the increase of demand , in pubs , public houses , retail market , this type issues easily manageable with the help of CRM.
DISTILLERY SUITE 2010 concentrates on three areas to provide automation of the multinational spirits conglomerate.
Distiller suite 2010 provides an automation process storing the record of sales made to a certain period of time every data is stored in a records or a separate document file . This selling process record will be easy source of data to analyse the future sales of an industry. With all these records the inventory control will do all sales tracking and it is done in very good procedure within time control.
ROI Return of investment
My Aim is to increase the sales and profits of the multinational spirits of conglomerate in high lands of Scotland. This is possible with the best solutions and good business process. The implementation of good software systems has to be decided by the management body of the industry. I have full analysis of the investment and sales and profit and also about the Return of Investment. And the full details of the process which is explained below.
The word Return of investment has come from the word “return” which is a incremental gain of an product divided by the cost of that individual product in a single word known “ROI” Return of Investment
Suppose if say the product cost estimated is about £ 13000 over coming five years and attains the gain or the profit of nearly £ 20000 which is increased the profit of the same time let us calculate the ROI of individual product.
The ROI = PROFIT - INVESTMENT COST/ INVESTMENT COST *100
(20000-13000)/ 13000 * 100
=7000/13000 * 100
With the ROI method we can calculate the gains investments and profits very easily .Once we start calculating with the ROI we get a good feed back . Easily and very simply we can predict the investment with the higher return of investment or a good investment .The return of investment which calculates itself there is no prediction of magnitude and also it does not indicate any risk of investment in the higher end of very high investments, it is not always to consider with a particular returns as of increased profits with a unique cost of the product . In this process the return of investment process is less worthy to take any decision or any support of ROI, in simple words ROI will not be considered as genuine worthy principle when the product has indirect price . Where there is no investment directly to specific product. Especially in the business investments the Return of investment varies or differs with the time period for the same existing investment. And when the investment which is extended for several years this will be calculated with the present existing values or with no discounted values. ” The question arises do the results of investment needs of planning and decision making”?
The solution for the above question it depends upon the financial measures evaluated from the project cash flow. Every individual financial metric which gives something which varies the equations of cash flow s and specific financial metric has its own strong hold points and also each of its own weak points.
The main financial matrices in a business case are given below
ROI - Return of investment
PAY BACK PERIOD
NPV - Net Present Value.
NET CASH FLOW
IRR - Internal Rate of Return.
One of the approach of many process is to build a financial business is RETURN OF INVESTMENT. In this the decision is taken by calculating investment comparing with the time taken for gain on investment. The decision making will also consider the sources effecting the profits and loss and also sources causing gains and reducing costs.
COST OF BENEFIT ANALYSIS.
In the business planning and to support the decision the principle which is used frequently is cost benefit analysis. And the cost benefit analysis has whole knowledge of gains and loses of a certain product and also has the current and existence business every aspects of impacts of business weighed comparing one and another in general known as cost/benefit, cost benefit, benefit cost for instance. The idea “ cost benefit analysis is not linked with any particular method .All the evaluations and calculations are predicted with other financial and business consequences which are in progress . All these principles are only for the increase in the business process. Most of them differ with each other from the definition in practical terms of “ cost and benefit”, for analysis what costs and benefits are added, for the important planning and decision making what financial metrics are considered. In most cases of business regarding financial justification does the investment is justified through financial terms. Another term used for the business analysis to help decision making to go forward is done by financial justification.
With the final results most of questions in financial justification business are below.
Can we use the funds for growth with proposed software applications.
Do we get good results by using the proposed software solutions.
Whatever the terms and conditions in case of financial justification mainly depends upon the current environment of the business. If the company going forward with the gains and profits it focus on the company without the growth in sales and profit or different organisations.
An industry with the investment problems or loss in the income statement which has the different principles and rules of financial priorities compared with the good financial health industry. The important result of the decision taken or the steps taken for the growth matters ,which decision is helpful and what financial criteria helps to come out from the present existing situation, depends upon the requirements . The decision should be take from several areas as given below .
NET CASH FLOW PROJECT
NPV - Net present value with analysis of discounted cash flow.
IRR - Internal Rate of Return.
ROI - Return of investment for certain procedure in action.
Total Cost of the project
Payback period of the project
Total capital cost for the project
Total expenses operating on the project
An individual cost per transaction.
All the above mentioned points are derived from the cash flow projection of the business which are calculated for a certain period. Every individual criteria explains about different ideas of decision making.
Calculation of RETURN OF INVESTMENT:
Return of investment gives the exact details of the return percentage calculation over specific time period on the investment on training the employees to get used Distillery Suite 2010 and the principle amount invested on the installation as of the new software installed, the sales may go down only for a certain short limited time this period is very critical for the calculating ROI .
I have come up with some specifications of the period which is good with planning for multinational spirits of conglomerate distillery business cycle ( I have planned only 6 months period for the existing year) . I have calculated the period to the benefits of industry for lifetime. In this period of 6 months we shall know the employee current status and time period or permanent stay in a certain position allocated to him to implement with the knowledge with which they have been trained to use the software.
It's very easy to calculate the RETEUN OF INVESTMENT
ROI % = (Cost/net profit)*100
PAY BACK PERIOD
Another different way to know about the ROI and know the period of time taken to Distillery Suite 2010. Implementation and payment of itself is defined as payback period.
PAY BACK PERIOD = Monthly benefits / Costs.
The powerful solution for calculation of ROI for a limited period is payback period. The payback income will be Low for only few months. The management to show interest on investing on training.
If the Multinational spirits conglomerate of highlands of Scotland has an interest to use the Distillery suite 2010 which is excellent solution for the growth of the business and profit making for the organisation. The payback period, ROI, IRR, NPV are calculated below.
The total cost of Distillery Suite 2010 is £ 80,000. The industry gains and earns about £ 150,000 in the first year and £ 165,000 in the second year with the use of Distillery Suite 2010 Business process