Suguta limited company

AFRICA 2016

SUGUTA LIMITED COMPANYFORM OF ENTITY FOR INCORPORATING A SUBSIDIARY

Private limited-liability companyBusiness owned by shareholders

Run by directors (who may also be shareholders)

Liability is limited (important)

SUGUTA COMPANY SUMMARY The company will be a partnership with James Suguta and other partners and shareholders, each owning 50% of the company. The company will be a limited liability company registered in the nation of Tanzania. The firm will have facilities on 107 1st Longido -Arusha in Northern part of Tanzania, a neighborhood of Kenya. The facilities will contain a two plants (motor industries), two-bay garage, office space and storage space for tools, parts, etc. The company is seeking a loan in order to finance the start of operations for the company. Each of the owners will be putting

up some of their own capital as equity.LIMITED LIABILITY COMPANIES (LLCs)

Planning An entrepreneur sees a gap in the market and wants to found (= start) a new company. First some planning is necessary. The entrepreneur has to: ● Do market research and develop the product. ● Think about pricing, distribution channels, and promotion. ● Raise capital (‘capital’ = money used to start or invest in a business). The capital might come from the founder’s own funds, loans from the bank, or money invested by other people/business partners.

Start-up The founder is now ready to set up (= start) the business. The first steps are to rent premises (= the buildings that a company uses), purchase equipment and supplies, and employ and train staff. The company can now begin its operations. One thing is certain: the first few years will be difficult. Sometimes a start-up company can get help from venture capital (= money invested in a new business by a specialist company who work in high-growth areas like new technology). VC money is used to run the business, pay salaries, etc in the early years. In exchange the VC company will take part ownership of the company and hope to sell it later for a large profit.

Growth

In a successful business the number of customers grows, turnover increases, and eventually the company breaks even and then makes a profit. The company employs more staff and divides them into different functions: operations, sales, marketing, accounts, etc. The company develops a network of suppliers. The brand name starts to become well-known among customers. What happens if the business needs to raise additional capital to expand its operations? There are various options. ● The company can ask the bank for a loan. ● The company can issue new shares and sell them to outside investors. ● The company can attract private equity. Private equity is very similar to venture capital, but it comes at a later stage in the company’s growth.

Measuring size of a business ➽No one measure of the size of the business ➽Options ➥Number of employees ➥Number of outlets (e.g. plants, factories) ➥Total revenues (or “sales” per year) ➥Profit ➥Capital employed –amount invested in business ➥Market value ➽Often need to consider several measures together ➽Business size is “relative”–e.g. how large is a business compared with its main competitors?

Maturity All being well, the company continues to grow. This growth may be organic (through increased sales and developing the product range) or by acquisitions/take- overs (buying other companies).

Exit strategies There are various exit strategies available to the owners if they want to sell the company. ● The business can be sold as a going concern (= as an established, profitable business) to other private individuals. ● The business can be sold to a competitor, or to a large foreign company wanting to enter the market. The company that is taken over may or may not keep its brand name. ● The company goes public. This means it is listed on a stock exchange and its shares are sold to individual and institutional investors. The original owners may continue to run the company. ● Do market research and develop the product. ● Think about pricing, distribution channels, and promotion. ● Raise capital (‘capital’ = money used to start or invest in a business). The capital might come from the founder’s own funds, loans from the bank, or money invested by other people/business partners.

Risks

The majority of businesses fail (= go out of business). There are many reasons, which include: ● The founder can’t get a loan, perhaps because of insufficient collateral (= property you agree to give the bank if you fail to give back the money you borrowed). ● The company can’t meet its monthly repayments to the bank. ● The company fails to get enough customers. ● Competition from other companies. ● Changes in the market (demand for the products falls). ● Poor management of cash flow and/or insufficient capital. ● Management problems (eg the founder finds it difficult to delegate work to other people). ● Failure to integrate an acquired business after a take- over. exchange the VC company will take part ownership of the company and hope to sell it later for a large profit.

Career &Technical EducationAll Aspects of An Industry Framework

All Aspects of An Industry

The Nine Aspects All Aspects of An Industry identify nine aspects that are common to any business or industry. Learners should gain a strong experience in and a comprehensive understanding of these concepts and skills to be successful in their employment experiences.

BUSINESS PLANNING MANAGEMENT

TECHNOLOGY PRODUCTION

SKILLS

PERSONAL WORK HABITS

PRINCIPALS OF TECHNOLOGY

LABOR HEALTH, SAFETY AND

ENVIRONMENT

COMMUNITY ISSUES

FINANCE

LABOR

• Capitol acquisitions• Financial operations

• Strategic planning • Goals/Objective

• Organizational structure/culture • Mission statement

• Regulatory issues • Safe workplace

• Impact of the company on the community• Impact of the community on the company

• Team player skills • Specific production skills

• Employees’ rights and responsibilities • Role of labor organizations

• Positive attitude • Personal fitness and appearance • Readiness for work

• Technology in the workplace• Continued professional training

1. Business Planning How an organization plans (includes goals and objectives), type of owner-ship (public, private), relationship of the organization to economic, political, and social contexts, assessment of needs. • Strategic planning • Goals/Objectives• Assessment of customer needs and expectations

2. ManagementStructure and process for effectively accomplishing the goals and operations of the organization using facilities, staff, resources, equipment and materials.• Organizational structure• Corporate culture• Mission statement• Employee handbook

3. Health, Safety and EnvironmentPractices and laws affecting the employee, the surrounding community, and the environment.• Regulatory issues • Workplace safety

4. Community IssuesImpact of the company on the community, impact of the community on the company.• Community activities and issues• Organization’s involvement in the community• Public perception/image of company• Accessibility of facility and services

5. Principals of TechnologyTechnological systems being used in the workplace and their contributions to the product or service of the organization.• Technology in the workplace• Continued professional training• Adaptability and learning from experience

6. Personal Work HabitsNon-technical skills and characteristics expected in the workplace.• Positive attitude• Personal fitness and appearance• Readiness to work

7. Technical and Production SkillsBasic skills in math, communications, computer, time management, and thinking; specific skills for production; interpersonal skills within the organization.• Basic academic skills• Team player skills• Specific production skills

8. Labor IssuesRights of employees and related issues; wage, benefits, and working conditions.• Job descriptions• Employees’ rights and responsibilities• Role of labor organizations• Employment contracts or agreements• Cultural sensitivity

9. FinanceAccounting and financial decision- making process, method of acquiring capital to operate, management of financial operations including payroll.• Capital acquisitions• Financial operations• Contracts, bidding and estimates

Departments

The list of departments below is typical for many business – each one corresponds to a business function. Companies also have other departments related to their own particular business activity. ● Production might also include Purchasing and Quality Assurance (QA).● Operations refers to all the internal processes of a company and might include, for example, Logistics. ● Sales might also include Business Development. ● Customer Services might include Technical Support. ● Marketing might include Market Research. ● Communications refers to all promotional activities including a strong focus on Public Relations (PR). ● Finance has many subdivisions, such as Financial Control, Treasury, Accounts and Payroll (= managing salary payments). ● Human Resources (HR). ● Information Technology (IT). ● Research and Development (R&D). ● Legal

Chairman ExecutiveChief Executive Officer (CEO) or PresidentChief Financial Officer (CFO)Chairman of Supervisory Board

Legal -Lawyers

PLANNING AND CO-ORDINATINGPlannersEconomistsStatisticiansMathematiciansResearchers

Human Resources ManagerFinanceFinancial ControlTreasuryAccounts and Payroll

Sales Director Chief Marketing Officer Business Development Officer Supply managementProcurement and Logistics

ProductionDirector of DesignEngineersInformation technology

Customer ServicesPublic Relations (PR) or Communications

Senior people at a higher level Junior people at a lower level

Individuals within the structure

THE SUGUTA PRODUCTION SYSTEMHigh Quality and Low Cost

Q. By what method did these new systems come about?

A. Trial and Error

Some Basics Concepts of SPS

Smooth Flow and Produce to Takt Time Produce to Order Make system “observable” and correct

problems as they occur Integrate Worker Skills Institutionalize change

Takt Time: demand time interval

Takt Time= Time Available Demand Product

Calculate Takt Time per month, day, year etc. Available time includes all shifts, and excludes all non- productive time (e.g. lunch, clean-up etc). Product demand includes over- production for low yields etc.

Takt Time Automobile Assembly Line; Available time = 7.5 hr X 3 shifts = 22.5 hrs or 1350 minutes per day. Demand = 1600 cars per day. Takt Time = 51 sec

Aircraft Engine Assembly Line; 500 engines per year. 2 shifts X 7 hrs => 14 hrs/day X 250 day/year = 3500hrs. Takt time = 7 hrs.

SPS Implementation

• Physical part (machine placement, standard work etc) • Work practices and people issues • Supply-chain part • Corporate Strategy (trust, job security)

Examples of “Innovative” Work Practices

• Work Teams • Gain Sharing • Flexible Job Assignments • Employment Security • Improved Communications

Barriers to Implementation

• Early abandonment • Costs (training, commitment, benefits..) • Resistance of supervisors • Lack of supportive infrastructure

Product End of Life

Supply of Process

Additives

Manufacturing Operations

DistributionsRaw MaterialsExtraction

Raw Materials

Processing

Use of Product by Consumer Facility

Construction(NEW BUILD)

Key Life Cycles Stages in Manufacturing Sector

Key Life Cycles Stages in Manufacturing Sector

Raw MaterialAcquisition

The Earth and Biosphere

BulkProcessing

MaterialEngineeringandProcessing

Use andService

Retirement

Treatment or Disposal

Component and Auto Manufacturing and Assembling

The Product Life Cycle System

SuppliersSolutions for Product Lifecycle Management (PLM• Consulting • Design/solution development• Implementation • Operation/support

Research and DevelopmentApplication Management (AM)Support and hosting of SAP applications and non SAP applications• Enterprise Resource Planning (ERP) • Product Lifecycle Management (PLM• Others (e.g. CRM, SCM, SRM)

GaragesHarmonization/standardization of processes and IT • Process harmonization in development, production, sales and ser vice • Harmonization for SAP systems and non SAP systems• Harmonization for infrastructure and architecture• Solutions for collaboration and busi ness management

ManufacturingSolutions for manufacturing and assembly • ERP solutions• RFID in production • ERP-MES integration• Production information systems

Service and MaintenanceSolutions for service and maintenance • Increase of production availability • CRM • Remote ser vice • Mobile field ser vice • Spare part logistics

PartnersIT outsourcing Operating, monitoring, support and maintenance of IT systems • Service Desk • Desktop Ser vices • Network Ser vices • Data Center Ser vices • Application Operations

LogisticsSolutions for Supply Chain Management (SCM)• ERP solutions• Supply chain planning and execution• RFID and supply chain

Dealer

Car

manufacturers

Product Development• Product Cost• Engineering

Resources• Vehicle Line Profits

Purchasing • Commodity• Material Cost

Forecast Manufacturing• Plant Labor and

Overhead• Investment• Sourcing

Sales and Marketing• Pricing • Incentives• Sales Analysis• Production

Scheduling

Suguta Credit• Credit / Residual Risk• Operating Cost• Securitization

Customer Service Division• Parts and Service Pricing• Warranty• Parts Depot Sourcing

Corporate Staffs• Foreign Exchange • Accounting• Staff Auditor• Corporate Financial

Statement Consolidator

TYPICAL FINANCE ANALYST POSITIONS

27

Checklist for AnalyzingOrganizational Strengths and WeaknessesManagement and Organization

➥Management qualityStaff quality

➥Degree of centralization➥Organization charts➥Planning, information, control systems

Finance➥Profit margin➥Debt-equity ratio

➥Inventory ratio ➥Return on investment

➥Credit rating

Marketing

➥Distribution channels➥Market share➥Advertising efficiency➥Customer satisfaction➥Product quality ➥Service reputation ➥Sales force turnover Production➥Plant location ➥Machinery obsolescence➥Purchasing system➥Quality control➥Productivity/efficiency

Human Resources➥Employee experience, education

➥Union status➥Turnover, absenteeism

➥Work satisfaction ➥Grievances

Research and Development➥Basic applied research➥Laboratory capabilities➥Research programs➥New-product innovations➥Technology innovations

Suguta’s Action Plan in response to various recalls President of Suguta action plan. •1. Improve quality inspection process. Suguta will inspect again every process, while verifying the causes that led to the recalls, including quality in: •Design •Production •Sales, and service.

•2. Enhance customer research. Suguta will enhance the customer information research offices in each region to collect information faster.

•3. Establish an “Automotive Center of Quality Excellence. ”To further develop qualified quality management professionals, an “Automotive Center for Quality Excellence” will be established in every key region.

•4. Support from outside experts. Suguta will seek confirmation and evaluation from outside experts—in line with the industry’s best practices—of its newly improved quality control management, based on the above improvements.

•5. Increased communication. In addition, Suguta will work to increase the frequency of communication with regional authorities.

•6. Improve regional autonomy. To provide customers with satisfying products in each and every region, Suguta has long promoted the autonomy of its regional subsidiaries. They intend to further enhance this autonomy, listen carefully to each and every customer, and improve quality.

New challenges, new opportunitiesGlobal manufacturing enterprises deal with complex and compelling challenges:

ECONOMIC• Unstable economy

• Fluctuating commodity prices

• Increased competition from regional/local

players

SUPPLY CHAIN• Low inventory and supply chain visibility

• High warehousing and SG&A costs

• Inefficient supplier network

SERVICE• The need to grow service profitability• Shorter time to

market

PRODUCT• High cost of engineering

• Need for automation and suppliers and

partners innovation

Traditionally, most of these challenges have been addressed by solutions that include heavy capital expenditure, expensive IT implementations and optimizing operations, among others. That is because the focus, for most manufacturing enterprises, is on cost efficiency, quality and operational excellence.

However, today’s dynamic environment requires that manufacturers find new, intelligent ways to drive long-term value creation and short-term profitability and become: • Globally effective, both in terms of their ability to address different markets and run operations from the most optimal location and manner • Connected, by having the visibility and ability to anticipate and manage the needs of their ecosystem of customers, suppliers and partners • Innovative, in addressing both opportunities and uncertainty • Adaptive, in responding to change with agility

Finance and Accounting

Procurement and Supply Chain

Aftermarket Services

• Accounts Payable, T&E• Billing• Financial Planning and Analysis• Treasury Operations

• Closing and Reporting• Tax Operations• General Accounting

• Demand Planning/Sales and Operations Planning (S&OP)• Indirect Source to Pay• Direct Procurement

• Logistics Engineering• Order Management/Fulfillment• Master Data Management• Strategic Sourcing Support

• Service Planning and Forecasting• Contract and Warranty Management• Helpdesk Service Requests• Remote Installed Base Support

• Field Service Management • Parts Management• Project Management• Billing and Customer Loyalty

Genpact advantage – Powering the intelligent manufacturing enterpriseService offerings

Engineering Services

Human Resources

• Product Design and Development• Engineering Analysis• Technical Documentation• Product Regulatory Compliance

• Payroll Functions• Benefits Administration• Recruitment Support• Learning and Development

• Value Engineering• Reliability Analysis• Manufacturing Engineering• Engineering IT support

• Employee Rewards• HR Information Services• Data Modeling• Planning and Forecasting

Genpact advantage – Powering the intelligent manufacturing enterpriseService offerings

Smart Enterprise Processes (SEPSM)

Smart Decision Services Smart Technology

Develops financial statements Provides taxation advice Assists in estate planning Provides advice for business restructuring Assesses business value

ACCOUNTANT

Negotiates and drafts any necessary agreements, such as a shareholders agreement Provides tax planning advice Prepares wills and powers of attorney Advises on existing and proposed business structures and implements any needed corporate restructuring Negotiates and drafts any necessary purchase and sale agreements

LAWYER

Manages ongoing operation of the business Needs to “buy-in” to successfully execute business plans Provides operational advice and expertise for new owners Enables business continuity

MANAGEMENT TEAM

WHO THEY ARE THEIR ROLE ON YOUR ADVISORY TEAM

The advisory team to assist you in your business transition.

Estimates fair market value of the business Provides credibility to asking price Provides advice and suggestions on how to maximize business value

BUSINESS VALUATOR

Finds a buyer Provides market insights Provides insights on enhancing business value

BUSINESS BROKER

Offers business financial advice Provides access to a network of SUGUTA experts Advises on financing options and may provide alternatives for financing the acquisition

SUGUTA® COMMERCIAL ACCOUNT MANAGER



Support family interests Provide an opportunity to understand each member’s perspective about the business and their future roles in it

FAMILY MEMBERS

Facilitates family councils Clarifies boundaries and goals Examines family values Mediator for family resolutions

FAMILY BUSINESS FACILITATOR

➢ Provides guidance on the development of the succession planMENTOR

Offers personal financial advice Advises on retirement planning, personal wealth management and estate planning Helps define future goals

SUGUTA PERSONAL FINANCIAL ADVISOR



Suguta Company: Let's build together (together as one)

Suguta Company: Let's build together (together as one)

Suguta Company – One Road, One People

Suguta Company: Live your dreams

Suguta Company: “get the feeling, thinking ahead”

Let all things be done decently and in order.

SUGUTA COMPANY LIMITED BUSINESS SLOGANS

Suguta Company: Quality never goes out of style.Victory won't wait for the nation that's late

SUGUTA COMPANY LIMITED THE DAILY DIARY OF THE SUGUTA DREAMNobody can predict the future. However, one thing is clear, it will be very different to today. We believe that a number of deeply-rooted forces - megatrends - are driving fundamental changes within the investment management industry.

“ The future belongs to people who see possibilities before they become obvious.”

“We are continually faced with a series of great opportunities brilliantly disguised as insoluble problems.”

“We are seeing the birth of a new perspective of the world, where ecology and economics are two sides of the same coin.”

“If you can’t explain it simply, you don’t understand it well enough.”

“Tell me and I forget. Teach me and I remember. Involve me and I learn.”

“If you don’t know where you’re going, you will probably end up somewhere else.”

“The first step in exceeding your customers’ expectations is to know those expectations.”

“Never innovate to compete, innovate to change the rules of the game.”

“Products are made in the factory but brands are created in the mind.”

“Think globally, act locally.”

“It’s not information overload. It’s filter failure.”

“If you want to be incrementally better: Be competitive. If you want to be exponentially better: Be cooperative.”

“Leaders must encourage their organizations to dance to forms of music yet to be heard.”

“Changing the answer is evolution. Changing the question is revolution.”

“To a one year old, a magazine is an iPad that’s broken”