Dream Company

Members:
• Pham Hai Linh
• Nguyen Dat Khue
• Nguyen Thi Minh Chau
• Do Duc Hoa
• Bui Son Bach

One world… One dream

 The five decision makers

CEO

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 CEO

• Is one of the highest-ranking administrators in total

management and often make final decision as well
• There are three main duties of the CEO
– Setting strategy and vision
– Creating the best working environmental
– Allocating capital
 Production Manager

• To be involved with the planning, coordination and control of

industrial processes.
• Ensure that goods and services are produced efficiently; that they
are of the right quality, quantity, and cost; and that they are
produced on time to satisfy customer at the relevant price.
• Need to take care about product: product process, quality and
quantity of product, the production schedule etc.
 Marketing Manager

• Is the one who determine the demand for products and services
offered by a firm and its competitors and identify potential
customers.
• Develop marketing planning for the firm and its product to get
maximum profits or market share.
• Need to know exactly what customers need and want;
information of the competitors; information about product etc
 Financial Manager

• Have responsibilities for providing financial advice and support to

clients and colleagues to enable them to make sound business
decisions.
• The information that financial manager needs to know is the
sources of finance that company can use in the future; updated
information about the company’s financial in order to manage the
budget, monitor cash flow and predict future trend
 Human Resources
Manager
• Is in charge of recruiting all the staffs in the company
• Manage and oversee the personnel department within the company,
organization or agency.
• Hold in hand all the information about their staffs; have a definite
understanding about the staffs, about their skills, etc.
• Understand the information about safety, insurance and the
government law about working condition.
 Product introduction

• Made from draper and cotton:

– Draper: easy to clean, there’re many colors for
decoration.
– Cotton: light, provide softness, easy to mold into
many shapes.
• Besides its main function is to support our neck
when we sleeping; it can be used for decoration,
or be a souvenir etc.
 Costs
• Direct costs:
– Direct material:
 Draper: 4.000 VND/m2 or 20.000 VND/unit
 Cotton: 60.000 VND/kg or 18.000 VND/unit
– Direct labour:
Make contract with sewing company, with the cost for processing
10.000 VND/unit.
Salesman: 1.300.000/one.
• Fixed overhead cost
– Production cost

Indirect wage 3,200,000

Indirect expenses (Rental, utility) 9,000,000
– Administration cost
• Office salary 18,800,000 VND
• Depreciation 350,000 VND
– Selling cost: Marketing cost 2,000,000 VND
• Variable overhead cost
– Indirect material: needle, threat and package 116VND
 Budgets

There are 6 budgets we prepared for our

company.
• Sales budget
• Production budget
• Direct material budget
• Direct labour budget
• Overhead budget
• Income statement budget
 Sale budget

SALES BUDGET
January February March April May June 1st half of
2010

Units 719 733 763 801 865 951 4,832

Price 104,500 104,500 104,500 104,500 104,500 104,500 627,000

(VND)
Revenue 75,135,500 76,638,210 79,703,738 83,688,925 90,384,039 99,422,443 504,972,856
(VND)

B/E=Total Fixed Cost/Contribution per unit

= 33,350,000/46,384=719 (Units)
 INCOME STATEMENT BUDGET
Jan Feb Mar Apr May Jun 1st half of
2010

Sales 75.135.500 76.638.210 79.703.738 83.688.925 90.384.039 99.422.443 504.972.856

Less cost of sales

Direct material 27.322.000 20.534.640 21.356.026 22.423.827 24.217.733 26.639.506 142.493.732

Direct labour 7.190.000 7.333.800 7.627.152 8.008.510 8.649.190 9.514.109 48.322.761

Variable overhead 7.273.500 7.407.138 7.703.424 8.088.595 8.735.682 9.609.250 48.817.589

cost
Contribution 33.350.000 41.362.632 43.017.137 45.167.994 48.781.434 53.659.577 265.338.774
margin
Less Fixed
overhead cost

Production 12.200.000 12.200.000 12.200.000 12.200.000 12.200.000 12.200.000 73.200.000

overheads
Administration 19.150.000 19.150.000 19.150.000 19.150.000 19.150.000 19.150.000 114.900.000
overheads
Selling overhead 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000 2.000.000 12.000.000

Net profit 0 8.012.632 9.667.137 11.817.994 15.431.434 20.309.577 65.238.774

 Conclusion

• Planning
• Evaluate the performance of the company
• Manage cost
• Make a long term plan
• Marketing strategy