Engineering Management Essay
Chapter 11 1. How may the marketing concept be explained? Is it applicable to engineering firms? * The marketing concept state that the engineer manager must try to satisfy the needs of his/her clients by means of set of coordinated activities. * It I applicable to an engineering firm because, same in other firms they need to survive, to be able to do so they must continuously generate income by selling enough quantity of their products or services.
2. What is meant by the term “product”? * The term Product is including all tangible or intangible items and its capacity to satisfy a specific need.
. How may an engineer manager meet the threat of a competitor’s product? * The Engineer manager must know the four P’s of marketing. * To meet the threat of a competitor’s product they need to focus on the price of their product, because it is a strong competitive tool. 4. Why is price I said to be a strong competitive tool? * It is because; it can be the other way of convincing a costumer to buy a specific products or services. The price will be a strong factor on whether or not a sale will be made. 5.
What are some possible measures to make products easily available to customers? * By considering the place they will establishing their company or firms, because costumers usually refer to buy from firms easily accessible to them. * The company can also; * Hires sales agents to cover specific areas. * Selling the dealers in particular areas. * Establishing branches where customers are located. * And establishing franchises in selected areas. 6. How may an engineer manager convince the buyer or client to patronize the firm? The engineer manager must know the proper management of marketing function and he/she must also know how to use effectively the four P’s of marketing, because it will help the manager to come up with the ideas that will help them to convince customers’ to patronize their firm. 7. What is advertising? What are the types of advertising media? * Advertising media is a paid message that appears in the mass media for the purpose of informing or persuading people about product, services, beliefs or action. * There are several types of advertising media, they are as follows; * Television Magazine’ * News papers * And even in internet. 8. May the Engineer Manager Use publicity in promoting the firm? Cite an example. * Yes, because publicity is a promotional tool that publishes news and information about a product and services, and with this it will help the engineer manager to promote their product or services. * An example of this is a brand of cell phone “the cherry mobile” where in the show “will time big time” the host is promoting the said brand of cell phone and giving some of its model to the audience. Because of this, cherry mobile becomes more popular to the mass. . In selecting a target market, what must the engineer manager do? * In selecting target market, the following steps are necessary; * Divide the total market into groups of people who have relatively similar products or services needs. * Determine the profit potentials of each segment. * Make a decision on which segment or segments will be served by the company. 10. What Factors must be used in selecting a target market? * In selecting a target market, the following factors must be taken in consideration; * The size of the market and * The number of competitors serving the market.
Chapter 12 1. What is finance function? How important is it to the engineering firms? * Finance function is referring to procurement and administration of funds with the view of achieving the objectives of business. It is a very important management responsibility because in financing an engineering firm, there is a need to assure everyone concerned that funds are available when they are needed. 2. What are the specific funds requirements of firms? * There four specific requirements, they are as follows; * To finance daily operations. * To finance the firm’s services. To finance the purchase of inventory. * To finance the purchase of major assets. 3. Are the various sources of the firm’s cash in-flow? * Cash sales. * Collection of the accounts receivable. * Loans and credits. * Sale of assets. * Ownership contributions. * Advances from the customers. 4. What is the different between short-term and long-term sources of funds? * Short-term sources of funds are those with repayment schedules of less than one year. While the long-term sources of funds are those with repayment schedules of more than two years and can be consider as long-term depts. . What are the suppliers of the short-term funds? Describe briefly each. * Trade Creditors – refers to the suppliers extending credit to a buyer for use in manufacturing, processing, or reselling goods for profit. * Instruments used in trade credit consist of the following; * Open-book credit – in unsecured and permits the customers to pay for goods delivered to him in a specified no. of days. * Trade Acceptance – is a time draft drawn by a seller upon a purchase payable to the sellers as payee. Promissory notes – an unconditional promise in writing made by the one person to another, signed by the maker, engaging to pay, on demand or at a fixed or determined future time. * Commercial Banks – are institutions which individuals or firms may tap as source of short-term finance. * Commercial Paper houses – are those that help business firms in borrowing funds from the money market. * Business Finance Companies- financial institution that finance inventory and equipments of almost all types and sizes of business firms. Factors – institutions that buy the accounts receivables of firms, assuming complete accounting and collection responsibilities. * Insurance Companies – are also possible sources of short-term funds. 6. Describe briefly the long-term sources of funds. * Long-term of depts. Are classified into term loans and bonds. * Term loans. Is a commercial or industrial loan from a commercial bank, commonly used for plant and equipment, working capital, or dept repayment. Term loans have maturities of 2 to 3 years. * Bonds.
Is a certificate of indebtedness issued by a corporation to a lender. * Common stocks – it is the third source of long-term funds consists of the issuances of common stocks. * Retained earnings – referring to corporate earnings not paid out as dividends. 7. How may one determine the best source of financing? * To determined the best source of financing, we should consider the following factors by schall and heley; * Flexibility * Risk * Income * Control * Timing * Other factors like collateral values, flotation cost, speed, and exposure. 8.
How may the financial health of the company be determined? * To achieve its goals/objectives, the engineering firms must be financially classified into the following categories; liquidity, efficiency, financial leverage, profitability. 9. What is meant by risk? Why must it be manage properly? * Risk refers to the uncertainty concerning loss or injury. Risk may be classified as either pure risk where there is only a chance of loss; and speculative risk that is a type of risk where it is not insurable and it is one in which there is a chance of either loss or gain. An engineer manager must manage properly to avoid risk in the company that will lead to the firm from the threat of bankruptcy due to losses. 10. Describe briefly the methods of dealing with risk. * The risk may be avoided. * The risk may be retained. * The hazard may be reduced. * The losses may be reduced. * The risk may be shifted. “Assignment in Engineering Management” Chapter 11 and 12 (Oct. 16, 2011) Submitted by; Talon, Kristal jay N. Submitted to; Prof. Lazaro
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Engineering Management Essay. (2019, May 01). Retrieved from https://graduateway.com/engineering-management/