Welcome to synerguts. Synerguts, two words : synergy with guts. Created on April 25, 2013, at Bloomington, California, U.S.A. Victor C. Laqui, MBA

 At Synerguts website , we will deal with corporations as business,  finance and marketing consultants . We also deal with executive development and placements on our corporate consulting.We will also manage and even takeover sound or ailing companies, to try to preserve them because families depend on them. We will also develope real estates to improve the community and jump start the economy..All of these will be on BUSINESS, you can click at the left hand corner. We will also start a Foundation with resources from generous companies, to assist regional calamities and help social sufferings.  This is on FUNDS at the left hand corner.    Included on  BUSINESS ,     this website will also feature a management game 'SynergutsCraft' where companies can put their problems and the game will give you options for your decision making.  Check  IDEAS  icon for new ideas and business oppurtunities.

           This   HOME  icon includes SynergutsGuide on executive development "SOME BASIC PRINCIPLES IN MBA".  MBA means "Masters in Business Administration". This is available to anybody who is interested in management. You can be a high school graduate, college or no graduate at all. One can learn some basic  policies in MBA. With this knowledge he or she can relate to an MBA executive or businessman.  The reading structure set up may be a difficult format but this will be a challenge to management training. This can also be an exercise in management which is to find or dig up important management informations in difficult situation. I will try to make it easier by providing this Table of contents. Chapter I. Personnel Management  .  Chapter II. Financial Management    A. Management Accounting.  B. Management Information Systems. C. Investment Management.     Chapter III. Marketing Management.    Chapter IV. Production Management. You can browse on this chapters or just find the words in capital letters , to read on your scope of interest like MANAGEMENT TOOLS on each sections or CRITICAL FACTORS on success or failures.                 Management is a lifetime career. One may not get it in the near future , but as you will  learn in this guide, you should be patient and wait for your time. After my work as an Administrator for a medical group, I worked with the state government of California, as a reviewer, not a management position, because I needed a stable job for my family in the 1990. But when the central management needed, I conducted corporate reviews in some procedures. I held this position for 21 years, until I retired.   With this manual or Guide " SOME  BASIC PRINCIPLES IN MBA",  one can relate to MBA graduates. Executives with MBA, will look for critical factors that will result to success or failure of their  department or business. They identify management tools that are available. Management Tools are used to identify The Critical Factors for the Success or Failure of your company or business. As you go over my Guide, try to identify these management tools and practice how to identify the critical factors for success and failure. You don't have to agree with me, because this Guide teaches you to create your own management skills and stick to them. An executive sticks and defends his decisions, which will be tested by corporate results. Of course , he has to fine tune his decisions by changing some in the future, because a good manager adapts to the situation.  Of course I also encouraged you to get a formal MBA education like I did, if you have time and money.   So lets get started.     One BASIC principle in management, Jesus once said when you harvest, leave some crumbs and leftovers to the poor and unfortunate. This good policy enables business to give back to people ,  who actually creates the business, because they are the consumers. Unconsciously,with this policy,  the business is enabling the poor and unfortunate to have something to increase their purchasing power. In the 1960's and 70's when Japanese companies started selling products like appliances ,cars ,etc. to their neighboring countries , the prices could not be afforded . To lower prices, assembling companies were set up in these neighboring countries. Unconsciously, the purchasing power was given to the employees and people of these countries and jump started the economy of these countries.    So, develope the community around your business , to give your consumers more purchasing power. Espenditures on this can even be regarded as promotional ,or marketing expense and can even be tax deductable as you will see in chapter II, Finance Management.

CHAPTER  I  :  HUMAN BEHAVIOR IN BUSINESS ORGANIZATION (Personnel Management) :::: The empoyees are one of the best assets of a company .  Create a relevant employee atmosphere.  The systems and procedures should provide the climate so that the employee can have : a. Efficiency and motivation  b. good morale.  c. Less probability of error. d. counter check and balance- to avoid fraud.   Efficiency : The procedures should be simple because complexity breeds error. The best way is to go to the basic. What does the procedure needs to accomplish ? An employee who spends more time scribbling figures & reports, but whose job is to get out and promote or sell a product is inefficient. :   Motivation and Morale:     What is the purpose of this department ? A quality control dept. in a computer company may lose motivation and morale if they are being pressured by company procedures not to do their job properly by creating impossible deadlines with limited manpower. So analyze the situation. Deadlines may be adjusted by communicating with the central management or coordinating with other departments. Salary and compensation is motivation. Some companies cannot afford industry level salary. Employees can be assured of higher salaries if the company can do well due to emloyees effort and increase in salary will follow. Existing satisfactory salaries can be maintained or increased hand in hand with company performance. Good company performance due to employees effort is good motivation.  Retirement programs are good motivation and enhance loyalty too.     Counter Check And Balance:     In the 1970's, I was a pioneer at a commerciai bank. Blank cashiers check and check writer machines were on the counters, unguarded. A smart employee began checkwriting cashiers check and having them signed by the bank manager, and cashing the check at the teller . The teller cashed the check because the savings bookeeper told her that the customer will get the money late in the day. After 3 months, internal audit found out that the bookeeper had already cashed out 200,000.00 before the fraud was discovered. Being the branch manager of a bank, go back to the basics. Bank procedures will create money. The critical factor in the bank failure is money fraud. So many procedures in the bank operations can lead to fraud. This is the critical factor. The management tool here that was used is 'Going To The Basic "and finding out that the bank operations if not guarded will lead to money fraud.  So, on this case, the bank executives started putting controls.   The blank cashiers checks and the checkwriting machines had to be put inside the vault. Managers should check the attached documents before signing the cashier's check and tellers will only release money to the depositors and never to a bank employee.Other bank procedures were also analyzed to avoid these frauds. For training, try to practice these principles in your work environment. Try to find your management tools and the critical factors for the success or failure of your departmentt or business. You can even make different  business scenarios and analyzing and giving solutions to the problem.          Conclusion:  An employee has motives and the company has policies. His career and day to day procedures has to go hand in hand with the company. What is the interest in the different levels of management ? Adapting his interests on what these various levels, manager level , middle management , and higher management ,are looking for , can help his career. Adaptation can be more education. connecting with company executives and knowing what they need. I used to work for a commercial bank as an investment assistant. I tried to connect with the vice president for finance because my friend knew him.  I was offered an assistant vice president position after I told him that I was on MBA program and I had some experience in opening and closing bank branch offices , which was needed at that time.   Chapter II : FINANCIAL MANAGEMENT AND CONTROLS.          A MANAGEMENT ACCOUNTING :    There are 2 major financial statements : ASSETS AND LIABILITY STATEMENT  and INCOME STATEMENT.     ASSETS AND LIABILITY STATEMENT.    This financial statement shows the assets and liabilities of the business.   Left side are your Assets and Right side are your liabilities( like bank loans)  and Shareholders/ Stockholders account.  The assets are, : cash, equipments, fixed assets ( land, buildings) and receivables. Imagine, you will put in $ 100,000 in a small business Your cash account will be 100,000 on the left side and your Shareholder account  on the right will be 100,000.  Next , get a loan from the bank at 20,000.  Cash will now be 120,000 and Loans at the right side under liabilities will be 20,000. Buy a computer $1000, Equipment on the left side under assets will be  1000 but take out 1000 from your cash which will now be 119,000. This is just to show you a simple accounting.         INCOME STATEMENT :  This shows the income and expenses of the business. At the bottom, you will find the net income, which is added at the end of the year , to the Stockholders account under Surplus Accounts.  There are now accounting software that can be bought like Quick Books that will really do the accounting job.  Accounting is  a Mangement tool. By looking on the financial statements, all the accounts can be anlyzed. Loans and other liabilities can be compared to your shares. Proportions of loans over shares which means how many percent is your loan compared to your invetments. This is called LEVERAGE. If your loans is only 10 % of you investments, you can still get more loans for future investments. The best management tool is using percentages. How many percent is your cash over your investment account. If you have so much cash of about 70 % of the investment account on your asset side, you can add more investment on stocks, or banks, to make it 40% percent. In MBA terms, this is the Horizontal and Vertical Analysis of Financial Statements, which is one management tool to immediately see the financial situation of the company at a glance. What is the percentage of Receivables (unpaid income on collection) on your total assets. If the Receivable is 80% of the total Assets, this means that there may be a problem , collecting your income payments. MANAGEMENT TOOL are used to identify CRITICAL FACTORS for the success or failure of your department or business. This is how the MBA mind works. Analyzing Financial Statements is one of the best management tool. Make scenarios in your work environment. Try to take hold of these  financial statements. Compare the different accounts by using the Management Tool of Vertical and Horizontal analysis to try to discover some critical factor for failure and success. Looking at the expenses in the income statement and taking their percentages, you will find out what expenses can be lowered or increased, depending upon the policy of your business. Vertical analysis is when you compare accounts on the same side, like Receivables against Cash on the asset side or like Loans against Shares on the liability side. Horizontal Analysis is when asset on the  left side is compared to liabilities account on the right side. ABILITY TO GET INFORMATION is one management tool. Try to get information from  accountants in the company and apply the principles above.                          CHAPTER II.    B.    MANAGEMENT INFORMATION SYSTEMS. Computers are very sophisticated now. This is how fast managers can monitor the different operations in the company.  Products from factories 50 miles away can be monitored in the head office. Expenses or material use can easily be tracked and ordered through the compu. ter.In minutes the president can see if the factory is efficient in production. MFI (Management Inf. Sys.) is a MANAGEMENT TOOL.. Computer specialist can be hired to device screens that can show graphs and numbers, that can help the managers monitor the operations in their department or the whole company. The managers should just be aware, what and how this screens should be presented. BACK TO THE BASICS. What information should be presented so that the success or failure .Expensive and  sophisticated computer screens can be made, but will not help  the manager monitor the critical factor for success or failure.   So , back to the basic, what is importand information, should be presented.  CHAPTER II.     C. INVESTMENT MANAGEMENT.  PORTFOLIO MANAGEMENT : This manages the surplus or reserve cash of the company. It's like an investment package, where you group your funds into short term and long term funds. Short term funds means that these should be invested on shorter periods because you may need the money. The long term funds are free money and can be invested in longer period. Investments can be stocks ,   futures (gold, oil, corn, sugar ), money market and bank deposits (time deposits, CD). For stocks and futures, contact a stock broker. The CRITICAL FACTOR for success here is your abilty to match your short term funds and long term funds with the short term and long term invetments. You can also contact some Financial Consultants, like Primerica, or financial consultants in your bank. CUT LOSS : is used when investing on highrisk stocks or 'futures'. When your high risk stocks alarmingly goes down, don't wait for them to go bottom and get out. When your  high risk stocks go up, "dont be greedy" and sell. This is the advise in high risk stocks investment. The average profit in the up and down is normally an increasing trend.   Long term stocks investment can be done on big company's stocks which are more stable, like  Microsoft, Chase Banks, BAnk of America, Apple etc.  Your investments here can be left for a long time. These companies are highly profitable .Even if their stocks prices don't really go up, they declare big dividends on their company profits. Dividends will be your earnings at the end of the year and will be added to the value of your stocks. MANAGEMENT TOOL is your ability to identify your short and long term funds. Another CRITICAL FACTOR for success is the return on your investments. In 1995, an investment manager in a County in Orange , California, used to invest the city funds , about 500 million in low rates stocks and bonds, paying 4%, because the owners of these funds were paid 2% per annum.  That was still good. But after so many years, the sources of these funds were being paid 5%. Due to lack of monitoring, the manager did not reinvest the 500 million in higher investments like 6-8% . The manager was not constantly monitoring these funds and was just content with the original investment. This is the critical failure. After 5-10 years of non monitoring, the investment was bankrupt and the manager was held liable. The critical factor for FAILURE here is the lack of monitoring.   In high risk , highly profitable investment, the CRITICAL FACTOR for success , is the stability and ability of the company where the funds are invested, the constant monitoring of the increase and decrease of the price of high risk but profitable stocks and the use of CUT LOSS and DON'T BE GREEDY, strategy as discussed above.                                                                     CHAPTER III. MARKETING MANAGEMENT.     The important thing here is the "selling point. The kind of product will depend opon the kind of market. Always think about  original SELLING POINT. Complex marketing opeerations should not obscure the original selling point of the product. Selling point can be one or a compbination of the following :  a.  Product itself   b. Packaging  c. Promotions  d. Distribution.     PRODUCT :   The necessity of the product is present here. Most products in the supermarket are known products like :colgate toothpaste, In the supermarket business, so many known produccts are sold. Being the executive, what is the CRITICAL FACTOR for success ?  Customers should be attracted to come to the store. Flyers in the mail and TV commercials  can be used. These will show the low price products on meats, fruits etc. So different business will have different strategy. Coca Cola Co. will advertise the soft drink product on TV by using the appealing  shape of the bottle. The CRITICAL FACTOR here is the actual product.      PACKAGING:      DISTRIBUTION:    Some products are sold through existing networks. I knew a product and called the TURBOBROILER. This portable oven looks like an ordinary 1.5 ft by 1.5 ft pot . The cover lid has the hot range with air fan for convection. I know, this product is already know to the Filipino (Philippines) immigrants. MY problem was to sell this product in the USA , nationwide. This is the CRITICAL FACTOR for success. L knew some Filipino families in different states. This can be a marketing network. I tried to contact some families who knew about this product and told them to invite people of 3 or more , cooked  a whole chicken with salt & pepper for 30 minutes. This will create  a crispy skin juicy inside meat chicken in 30 minutes. The pricing was simple. Sell the product for $350 and get a $50 commission. In one month, I was shipping 40 to 50 units.   The MANAGEMENT TOOL here was identifying the selling point. Analyse the product and come to conclusion that a network is available.        CHAPTER  IV. PRODUCTION.    A. EFFICIENCY IN PRODUCTION.    Depending on the product, cost of production can be analyzed. If you are the production manager, analyze the cost of production. Extracting information is a MANAGEMENT TOOL. This can be extracted from technological persons or engineers in the factory. This depend on the product. The quality of the product , the safety of production has to be maintained. Coordination with other department is important. Some production procedures can be made efficient when coordinated with other departments.  B. PRODUCTION STRATEGY.    Some products ,like cell phones, maini pads lap top computers really depend on the consumer use. These pdroducts are highly condumer-gadget friendly-dependent. Some production executives control the appearance, pricing, product gadgets, launching of the product , and even the store displays . High profile production executive can do this. This is true with Iphones and Ipads.  But some companies without this highprofile executives can still be successful with these products. BACK TO THE BASICS. The production dept. can coordinate with the marketing dept. , depending on what the product needs. This is the critical factor for success/failure of these products. These products are highly dependent on the gadget- friendly consumer . A specialized coordination between production and marketing department will be THE CRITICAL FACTOR  for the success and failure.   C. PRODUCTION , INNOVATION AND CORPORATE STRATEGY.  During the recession of 2009, the american car companies were bankrupt. The U.S. government financed the recovery of these companies.  These companies started to focus on the quality, design and engine efficency of their cars. These was the advantage of the imported cars over the american cars.  After 4 to 5 years, the american cars are back and their companies are starting to recover. Without the recession, this may not have happened. The innovation design and the introduction of electric motors and hybrid cars may have happened because of the change in the MANAGEMENT CULTURE ( traditional, continued management style among company executives)  Some new executives were even hired from other companies that were not in the car business. Innovations in some products cannot be done without a change in corporate management. For exercise, analyze the production strategy, cost of production, and product innovation in your company or in your busines. MANAGEMENT TOOL is to analyze the product. The consumers should be included in the equation. What was the ORIGINAL INTENTION why this product was manufactured and how it has to be produced. This will be the CRITICAL FACTOR for the success or failure in production management.           IV PRODUCTION.    A. EFFICIENCY IN PRODUCTION.    Depending on the product, cost of production can be analyzed. If you are the production manager, analyze the cost of production. Extracting information is a MANAGEMENT TOOL. This can be extracted from technological persons or engineers in the factory. This depend on the product. The quality of the product , the safety of production has to be maintained. Coordination with other department is important. Some production procedures can be made efficient when coordinated with other departments.  B. PRODUCTION STRATEGY.    Some products ,like cell phones, maini pads lap top computers really depend on the consumer use. These pdroducts are highly condumer-gadget friendly-dependent. Some production executives control the appearance, pricing, product gadgets, launching of the product , and even the store displays . High profile production executive can do this. This is true with Iphones and Ipads.  But some companies without this highprofile executives can still be successful with these products. BACK TO THE BASICS. The production dept. can coordinate with the marketing dept. , depending on what the product needs. This is the critical factor for success/failure of these products. These products are highly dependent on the gadget- friendly consumer . A specialized coordination between production and marketing department will be THE CRITICAL FACTOR  for the success and failure.   C. PRODUCTION , INNOVATION AND CORPORATE STRATEGY.  During the recession of 2009, the american car companies were bankrupt. The U.S. government financed the recovery of these companies.  These companies started to focus on the quality, design and engine efficency of their cars. These was the advantage of the imported cars over the american cars.  After 4 to 5 years, the american cars are back and their companies are starting to recover. Without the recession, this may not have happened. The innovation design and the introduction of electric motors and hybrid cars may have happened because of the change in the MANAGEMENT CULTURE ( traditional, continued management style among company executives)  Some new executives were even hired from other companies that were not in the car business. Innovations in some products cannot be done without a change in corporate management. For exercise, analyze the production strategy, cost of production, and product innovation in your company or in your busines. MANAGEMENT TOOL is to analyze the product. The consumers should be included in the equation. What was the ORIGINAL INTENTION why this product was manufactured and how it has to be produced. This will be the CRITICAL FACTOR for the success or failure in production management.                   

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