Occupational Expansion Skills OP21002

51 5. Integrity Condition is also an essential condition necessary for sustaining an occupation. The entrepreneur must be honest, diligent, and patient; for example, he must not put any contamination in the product, and must not cheat at the weight measurement, all of which will create credibility towards customers and thus more products can constantly be sold.

52 Activity 3 The Philosophy of Sufficiency Economy and Occupational Development The learner is assigned to group up with those who have the same occupational interest and analyze the possibility in occupational development according to the philosophy of sufficiency economy. Write down the summary in the form. Form Occupational Development According to the Philosophy of Sufficiency Economy Job .......................................................... No. Things to Improve in Result of Analysis Reason Occupation Align Does not Align Please explain whether each topic includes the components of moderation, reasonableness, immunity, knowledge, and integrity or not and how.

53 Topic 5 Operational Planning Operational planning is the last step of making a business plan for occupational development by using the information from the strategic plan to determine projects / activities that will be required. Moreover, it is necessary for the learner and community leader to determine objective, timeframe, and person in charge of the plan. Operation Planning may refer to a short-term 1-2 year plan that analyzes situation, determines objective and sets a target for the work or the project, and plans the detail of operation, all of which must be in line with the strategic plan. Objective of Operation Planning 1. To determine the objective and strategy to develop people in each community that require skill and occupational development. 2. To prioritize the development of plan / project as well as other measures that align with objective and strategy to develop people in each community that require skill and occupational development. 3. To determine plan, project, and measure that support and in line with the National Development Plan, in order to link them with the execution of people skill development. Making an Operation Plan An operation plan is generally made under the national development framework in which the plan must be started by determining the national development plan framework and use it as a guideline in making an operation plan. However, we may find that some communities have developed certain plans and projects without referring to the national development framework.

54 Activity 4 Operation Planning The learner is assigned to coordinate with the teacher and the community leader to develop an operation business plan to determine the strategy for project / activity that must be done, as well as determining objective, target, timeframe, and person in charge. Memo Form Operation Plan Community Name...........................................................................................Year ……………… Strategy Project / Objective Target Timeframe Person in Activity Charge

55 Chapter 3 Risk Management Essence Risk management is an analysis of potential and management of performance from the past until present by focusing on the revenue, profit management, external and internal environment, weakness, strength, opportunity and threat to see if there is any risk in taking up an occupation and to find a way to mitigate the risk in order to sustainably develop the career. Key Indicator 1. The learner is able to analyze the potential of and manage the past 2-3 year business performance. 2. The learner is able to explain how to mitigate the risk for career sustainability. 3. The learner is able to create the operation plan Scope of Contents Topic 1 Meaning of risk and risk mitigation Topic 2 Analyzing potential and managing performance risk Topic 3 Solving Problem from Risk Topic 4 Risk management planning

56 Topic 1 Meaning of Risk and Risk Management Risk means any event or action which may occur in an uncertain situation and affect, damage, fail, or reduce the chance to achieve target and objective. The example of risk includes the high risk, high return situation in investment. Therefore, risk is uncertainty. Risk management is a process to analyze, evaluate, take care of, examine, and control the risk relating to working activity and process with an aim to mitigate damage from such risk as much as possible since some risks such as an accident is very hard to predict. Importance of Risk Management In general management, one must proceed according to the objective and target, and also control the work to achieve the target. There are things that should be emphasized which are internal audit, internal control, and risk management. Effect of Risk Risk might affect an organization in the following ways. 1. Risk from business loss: the loss of business which occurs from a wrong decision of executives or from an unpredicted natural disaster may lead to the downfall of organization. Even in a non- profit organization such as educational institute, a wrong decision from executives may result in the stagnation or failure of organization as well 2. Risk from the failure of policy or project. A failure in policy implementation will affect the direction of development while a failure of project will result in a loss of such project. Such failure may occur from a lack of feasibility study, a consideration on breakeven point, or a corruption, particularly in a failed government project. 3. Risk from the loss of trust. The success or failure of executive will affect public popularity and trust. Why Risk Prevention is Needed? Everyone generally realizes an importance to prevent and mitigate risk. Car, life, and health insurances are all the examples of individual risk prevention. The objectives of risk prevention for organization can be summarized as follows. 1. To let overall result meet the target performance and determined objective 2. To improve business security and to reduce income fluctuation which will let the business grow steadily 3. To reduce the loss of opportunity from working 4. To add value to individual and related parties. 5. To better integrate with other work systems

57 Topic 2 Analyzing Potential and Managing Performance Risk The entrepreneur must study his own business to see what factors affect risk. To better manage it, risk can be classified into general and specific risks and each of them is different in details. Some risks can be mitigated while others cannot. In studying risk in school, apart from studying internal factors that may affect risk, one will also have to consider risks that might occur from factors such as human resource management, finance, asset management, durable good and equipment, innovation, and technology. An understanding in the system that can be used to manage risk and a study in risk cycle will let executives see the overall picture of risk and allow them to set standards for internal control system to search for, identify, analyze, and prioritize the risk and its cycle. Some Examples of risk management include transferring the risk or taking an internal control. Factors that involve in analyzing potential and managing performance risk include: 1. Product means tangible products such as clothes and shoes, or intangible products such as gas which can be sold and could satisfy consumer. 2. Product Category products can be classified according to purchasing and consumption characteristics into 2 categories which are: 1) Consumer Goods refers to product or service that is directly used or consumed by the consumer or family. It can be further classified into 3 categories which include: (1) Convenient Product is the product that can be conveniently bought. Most of them are bought regularly, used less time to buy, cheap, and customers usually select the familiar brand. The examples of this category are toothpaste, shampoo, soap, and detergent. (2) Shopping Goods is the product that the customer usually compares its quality, price, and appearance before making a purchasing decision such as clothes, shoes, and accessory. (3) Specialty Product is an expensive product with special properties such as car and houses which the buyer will have to select carefully and compare the product price with its quality. 2) Industrial Goods means a product that is purchased for the reproduction or used to operate business such as raw materials, tools, equipment, machines, and construction materials. 3. Expense means the cost that is deducted from the income in a specific operational timeframe. It can be classified into 3 categories: 1) Cost of goods sold means the cost of product sold or service provided. The cost of goods sold in the trading business includes the buying and other necessary prices to make the

58 product ready for sell, while the cost of good sold in production involves the production cost itself which consists of the cost of raw material, labor, and overhead cost. 2) Operating cost means the cost occur from selling product or providing service and the cost in running the business. 3) Other expenses are any expenses apart from the cost of good sold and operating expenses such as interests from loan and income. The expenses in trading business consists of the cost of good sold, operating expense, and other expenses, while those in servicing business include only operating and other expenses. 4. Profit is the return from selling product or service. It may come from the business operation or any other activities that are related to the business. 5. Competitor business competitor is like a stimulus that will strengthen the business and its staffs to effectively operate. It also initiates enthusiasm and creativity and motivates the business to continuously develop its quality in order to compete with competitors in the market. Competitor refers to individual, group of individual, or institution that operates the same or similar business or provides the substitute products. They have to compete with each other in terms of sales, product quantity and quality to gain as much market share as possible. Business competition is important to both individual and economic system in the senses that: 1) It creates product options. The more business competition, the more production / service options which will benefit and create some alternatives for people. 2) It improves product quality. The competition to seize as much market share as possible and as long as possible will indirectly improve the quality in the market since the quality is the motivation of the customer to purchase the product. 3) It makes the product price cheaper. Whenever there are a lot of products supplied in the market, the price based or giving discount strategy will be used to motivate customers. 4) It creates new products. The business that faces a high level of competition often initiates the method to produce a higher quality product, and keeps inventing or improving its product to create customer demand. Things to Note About Competitor The more competitor information possessed by the salesperson, the more advantage in selling the product is witnessed. Selling the product without considering the market condition and competitor will create problems in selling it, so it is necessary for the salesperson to know the competitor information in the following aspects.

59 (1) Market size: it is essential for the salesperson to know the competitor’s market share and the trend of the future sales for customers in terms of gender, age, occupation, and status. (2) Method in selling the product: although the product is classified in the same category, it may have a different method of selling. (3) Promotional campaign: the promotional campaigns at present vary and become more and more competitive. These may include advertising via medias, providing discounts, and sweepstakes. (4) Product characteristic: the salesperson will need to know what product is now competing in the market in terms of brand, its strength and weakness, and what the advantage of competitor’s product is. (5) Competitor’s customer: the salesperson will need to know the competitor’s customer in terms of what kind of people / business they are, their purchasing powers, their needs, their financial status, and their desirable product characteristics. (6) Competitor’s size of business: the salesperson will need to know the capability of the competitor; for examples, whether the competitor is a family business or a large business with high production capability and whether the competitor is a multi-national corporation or not, in order to know other information such as the size of competitors’ fund. (7) Sales strategy of competitor: salesperson is crucial for every business since the position will make the business expands further, so the entrepreneur must encourage his salespersons to acquire more knowledge and skills to compete with other competitors. 6. Market Share refers to a comparison of the product sold by the business and the product sold by its competitors. In analyzing the market share, one will have to find the current market share of his business in comparison with his competitors and analyze what the route cause is and how the market share can be increased. 7. Business Performance means knowledge, skills, and necessary attributes for individual to successfully manage the business and achieve the target performance or better. Example of Performance 1. Individual performance includes communication, self confidence, creativity, and innovativeness. 2. Managerial performance includes communication, planning and administration, team work, strategic capability, international capability, and self management. 8. Internal Aspect means the study of strength, weakness, strategy and method of the competitor to find the retaliation policy. Internal environment consists of:

60 Strength involves an analysis of internal aspects of the organization. An aspect that has some potential such as a good quality product is considered strength. Weakness involves an analysis of internal aspects of the organization. An aspect that has no potential and harms the organization such as the unskilled labor in production is considered weakness. 9. External Aspect means a study of opportunity and threat. One must possess the knowledge of the business structure, customer, competitor, and economic news in both domestic and international and use them to analyze the external aspect based on fact. Opportunity is an analysis of the external aspect of organization. What factor positively affects and supports the organization to achieve its target will be considered an opportunity; for example, a lower oil price is considered an opportunity to gain more profit. Threat is an external factor that harms the organization. Some examples of threat include a situation of economic downturn when the consumer’s purchasing power is lowered and results in a reduction in sales volume and a higher oil price is considered a threat for logistic businesses since it will cut down the profit margin. 10. Risk Cycle The risk cycle involves a decision of every management to face the risk. To mitigate risk, it is necessary for the executive to know and understand the risk cycle in order to use it to manage risk according to the business objective. An establishment of the risk cycle will allow the executive to see an overview of all risks and use them to set internal control standards for both the executive and internal audit, as well as setting audit plans.

7 2 61 Examine Explore 3 Risk Risk Find and 6 1 Identify Risk Manage Understand 4 Risk Organization Risk Objective Analysis 5 Evaluate and Prioritize Risk Figure: The Risk Cycle 1. Understand organization objective: An understanding in the organization objectives is required, in order to let all employees understand its direction and goal, and achieve them. 2. Explore risk: the executive should assign the person in charge, which may be audit or internal audit departments, as a risk management department to explore risks, or assign an adhoc committee, which consists of a group expertise from various departments, for each risk exploration. 3. Find and identify risk: this relates to the search of risk issues from various sources. 4. Risk analysis: an analysis will depend on the risk characteristics and the tools that will be used to analyze. In this case, a widely accepted method is a comparative analysis. 5. Evaluate and prioritize risk: although the risks comprise of tangible and intangible risks, the risk evaluation process must be clear and interpret the result into tangible and measurable result;

62 it must be measured in terms of quantity and time spent. The risk prioritization could be classified as high, moderate, and low risks. The conclusion will then be used in the risk management process. 6. Manage risk: risk management is the key for business success since the risk itself is a key obstacle towards an achievement of the organization according to its objectives. It is, therefore, the duty of management to manage such risk for the benefit of the organization. 7. Examine risk: the process involves controlling, directing, and following up the risk management mechanism to see whether the program is well executed or not. This can be done by the tasks such as risk checking up, internal audit, evaluation of internal audit system, creating an improvement standard, and setting the risk alarm. The executive will have to prevent such risks, or to control them as much as possible.

63 Topic 3 Solving Problem from Risk Solving problems from risk refers to the process to make a desirable situation. Although the conditions of problem seem clear, most people cannot solve their own problems, and also executives cannot solve problems in their organizations. This is because such problems might be severe, complicate, vague, and sometimes come up with other problems. There are 4 processes to solve problems from risk as indicated below. 1. Identify Problem 4. Determine Mean 2. Cause of to Solve Problem Problem 3. Determine Goal in Solving Problem Figure: The Process to Solving Problems from Risk

64 1. Identify the problem: this is the first crucial stage because an unrealized problem cannot be solved, so it is necessary to identify the causes of the problem and logically prioritize them. 2. Cause of the problem: if the true cause of problem is not identified, such problem will not be solved. Most individuals generally keep themselves to original ideas or knowledge, perceiving the problem only in the way that aligns with the same old idea. 3. Determine the goal in solving problem: only after identifying the cause of problem and find a solution based on it that will make the problem solved; for example, there might be a lot of reasons that increase the number of population such as a higher birth rates, a lower death rates, or a higher number of refugees. 4. Determine means to solve problem: this relates to a determination of realistic options in solving problem; not just idealistic solutions. Such options can include both measurable and immeasurable ones. The best way to solve a problem is to compare all alternated options, evaluate each of them, and make a decision on the best solution. In case the problem cannot be solved, one may consider to find a new solution or let the problem be solved by itself.

65 Topic 4 Risk Management Planning The risk management planning should involve representatives from various functions as a committee. In case such committee is not experienced in risk management, hiring a consultant to work in the committee is appropriate. The committee has a duty to plan how to manage the risk, starting by developing a model to manage risk in the organization. This requires the processes to review, analyze, make a decision, and to evaluate organization’s risk as outlined below. 1. Determine the performance indicator 2. Arrange the training for the representatives to make them realize the impact of risk 3. Develop a questionnaire 4. Conduct an interview session 5. Review the documents in each department by focusing on the risk issue 6. Arrange a series of workshop 7. Develop a risk model 8. Examine and follow up each department 9. Make an analysis based on evaluated information What to Expect from the Process? 1. Able to clearly identify the organizational risk 2. Able to prioritize and evaluate those risks 3. Able to develop a risk management plan 4. Able to report risk issues to the executive 5. Able to prioritize risk management plans according to their importance as an operation plan Risk Management Planning involves the Following Processes 1. Exploring risk in the organization. The process involves exploring the risk in the organization, using the information obtained from questionnaires and interviews to receive the information that might be the cause of organizational risk and write them down as the table shown below. 2. Evaluating risk in the organization. The committee has duties to collect all information from related departments and prioritize them. Those related parties might be invited in the process. 3. Developing the operation plan. The team will have to choose the highest risk issue such as corruption and cost fluctuation as the first priority. 4. Summarizing the risk report to further develop the risk management plan by focusing on the emergency issue first.

66 An Example showing the risk information from technological department No. Risk Cause Effect Existing Risk Effectiveness Control in Controlling 1 An increase in the E-commerce The company has to The system Moderate number of web trend application provide more e- developer has more services knowledge and skill in web structure 2 Need a lot of efforts Lack of Unable to provide a Outsourcing Moderate to maintain larger personnel computers good service 3 Problems in the Fire / All the systems Provide more than Good server earthquake / cannot be operated 1 server / backup bomb / blackout system Conclusion A systematic risk management required supports from every department in the organization. The executive must establish a communication to make everyone realize that this activity involves everyone in the company, making them realize the impact of risks, so everyone will have to regularly and systematically involve.

67 Risk Management Principles include: 1. Strategic planning 2. Risk analysis 3. Risk control In risk mitigation, each department will support in evaluating and prioritizing the risks to see what are the impacts of such risks to manage them in an orderly manner. A consideration of the risk control factors will let the team see the current risk management practices in the organization. The final step is to develop a risk management plan that can be used in the organization.

68 Activity 1 Analyzing Potential and Risk Management in Organization The learner is assigned to group up (5 persons per group) and elect the chairman, presenter, and secretary; then consider the following issues 1. Job……………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. 2. Identify the problem……………………………………………………………………… ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. 3. Identify the cause of the problem………………………………………………………… ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. 4. Determine the goal in solving the problem……………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. 5. Determine the solution……………………………………………………………………. ……………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………….. ………………………………………………………………………………………………………………..

69 Chapter 4 Production or Service Management Essence Business competitions and marketing in the age of globalization like nowadays make businesses to swiftly adapt themselves to response to the consumers’ needs that vary and change all the time. One of the factors that the consumer uses in selecting the product or service is the quality. Therefore, it is essential for the entrepreneur to focus on the production and service management. Key Indicator 1. Able to manage quality control 2. Able to explain how to use innovation and technology in production 3. Able to explain process to reduce the cost for production or service 4. Able to develop production or service plan Scope of Contents Topic 1 Managing quality control process for production or service Topic 2 Using innovation and technology in production Topic 3 Reducing cost of production and service

70 Topic 1 Managing Quality Control Process for Production or Service 1. The Meaning of the Managing Quality Control Process for Production or Service To succeed in a career, one must know and understand how to manage production and servicing processes. The meaning of managing the production and service is summarized below. Management means to continuously operate the work according to the procedure and to coordinate with other parties to achieve the target of the organization or activity. Production means to produce, assemble, or create the product or goods by transforming the raw material into product. Service means to provide service to satisfy customers and make them happy to gain some benefits. Quality control means to conduct activities to make the product that meets the customer’s needs and satisfy them. The concept is based on the idea of good process brings good output. 2. The Objective of Managing Quality Control Process for Production or Service Quality control aims to achieve the following objectives. 1) To make the product qualified according to the agreement 2) To suitably operate the production process 3) To plan the production as determined 4) To suitably pack the product which means the ability to deliver the product to the receiver in a good condition In addition, quality control also benefits production in the senses that: 1) It could reduce the expense and cost by utilizing appropriate factors and processes of production 2) It controls the amount of product supplied to the market 3) It has the product delivered in a timely manner 4) It controls the quality of product and prevents defects 3. The Process of Quality Control in Production can be classified into 4 steps 1) Determining the Policy: this step involves a broad determination of objectives such as level of product, market size, distributing method, and insurance. This will indicate what activity that will be required to achieve those objectives. 2) Designing the Product: this involves a determination of product characteristics; for example, what size of the radio will be produced. It is necessary to know the capability of the production department, so the product design must align with the production system.

71 3) Controlling the Production Quality the process of production quality control can be divided into 3 sub processes which are component quality inspection, production control, and product quality inspection. Random sampling technique is usually employed in these processes since it is difficult to inspect all the products in a limit timeframe. 4) Controlling Sales Quality the process includes an after sales service which is considered one of the important issues in the modern marketing system since certain types of product, particularly tools, equipments, or electronic devices are quite difficult to maintain and take care of. The manufacturer or seller will have to provide a good after sales service to always satisfy the customer because this will affect company’s creditability and business growth in the future.

72 Topic 2 Using Innovation and Technology in Production 1. The meaning of using innovation and technology in production Innovation and technology can be used to improve human capability in production. They help solve problems and creatively satisfy humans’ needs by applying knowledge with technological process to create things, appliances, and methods to improve the quality of life. Innovation and technology can be further explained as follows. 1) Innovation refers to new ideas, practices, or inventions that never exist before or refers to things that are modified or developed. 2) Technology means things that are developed by man to help them work or solve different problems; for examples, tools, equipments, machines, materials, or even other intangible things such as systems or processes used to achieve work target. Technology must cover the following aspects. (1) Workforce is an important resource which includes the entrepreneur and externally hired workforce. (2) Tool and equipment, including other materials (3) Technique and method which are knowledge from self studying (4) Place which includes field, farm, mountain, river, sea, and business premise 2. Benefit and Impact of Technology The benefits and impacts of using of technology in daily life can be summarized as follows. 1) Benefits and impacts toward education. Students are able to learn from home using method such as a distant learning through internet from both domestic and international sources, as well as study and in conducting a research for endless information from internet and learning from different media such as radio, television, video, and computer. However, using technology in education sometimes reduces interpersonal interaction between the teacher and student since it lessens the roles of teacher. 2) Benefits and impacts toward environment. On the one hand, technology takes vital roles in improving soil, water, and air quality, as well as recycling wastes using certain technological processes; on the other hands, technology may pollute the environment since man sometimes misuses the technology, caring only about his own benefits without considering the negative impacts that may occur from using such technology. 3) Benefits and impacts toward society. Technology and society are correlated. Technology makes the world smaller since the convenience to transfer information makes businesses move faster which also results in a faster economic growth. However, an advance in technology may create

73 unemployment since machines are used to replace workforces. Adaptation for those who do not know how to use new technologies is also an issue which may cause the misuse of such technology. 4) Benefits and impacts toward health. Due to the fact that technology aims to create facilities for human, especially in health aspect, exercise machine, television and other entertaining sources to enhance both physical and mental health can be widely seen. Furthermore, technology creates an advance in curing. Medical information published in the internet allows doctors throughout the world to work together. However, computer technology has a negative impact toward children in the sense that it makes them lack of focus on studying and exercising and put too much attention in playing computer games, become aggressive, unrest, strain, and cause myopia. In summary, technology will be very useful if it is correctly and suitably applied but it will create significant impacts if one does not know what he is doing or overuses it. 3. Technological Process in Production Technological process is the process in solving problems by carefully using initiatives and creativities to effectively create products that benefit and satisfy individuals’ needs. The basic principle of technological process to design the product can be outlined in the figure below. 1. Identify Problem or Need 2. Create Option 4. Design and Produce 3. Select Suitable Option 5. Test and Evaluate Adjustment Figure: Technological Process in Product Design 4. Using Strategy to Improve Product Output and Quality Technology plays a key role in everyone’s life nowadays. Technology has been utilized in the activities of all sectors, from industrial, agricultural, to service sectors since using of technology will improve production efficiency, helping work faster, gain more product quantity, gain better quality product, use less time, and reduce cost of labor. This seems to be more important particularly in industrial

74 or agricultural sectors in which the degree of competition is very high. Those who are the pioneers in using technology will witness success before competitors. Moreover, while developing strategies, one will have to examine the strength and weakness of his own business activity, and make a comparison between those of competitors to further adjust the strategy. When the weakness is spotted, technology can be used to fulfill such weakness, to improve efficiency and product quality. Some examples in applying technology strategically to improve product output and quality are given below. Example 1 In the past, rice harvesting in a large field required a large number of workforces. The use of technology such as harvesting machines in the process can greatly reduce the number of workforce and time spent in harvesting and especially if there is a high competition in the business, agriculturists will have to adjust their strategies using technology in the process in order to harvest more rice while spend less time and able to sell rice before competitors. Example 2 In a chili sauce factory where the vegetable washed, chili and spice ground, ingredient mixed, and packaging processes requires workforces to do so, the output is not so good as expected; for examples, vegetables are dirty, poor mixture, output quality and quantity are not good according to the expected standard, too many workforces required, too costly, and too much time spent which result in the loss of business opportunity. The factory, therefore, adjust its business strategy by utilizing production technologies such as vegetable washing machine, grinding machine, mixing and packing machine, all of which helps improve productivity, reducing time spent and cost and let the business be better competing with other competitors. 5. Using Technology Creatively The principles in using technology creatively are outlined below. 1) Before making a decision to select technology that will be used, the entrepreneur is recommended to study and compare the characteristics of technologies in terms of quality, appearance, material used, convenience in using, and value. 2) Using the product development technology to satisfy individual’s need, the entrepreneur has to study and review whether such technology can benefit or harm the society and environment, since the technology will have certain effects toward society or environment. 3) Try to select and utilize the technology that creatively and positively affects the society and environment.

75 Topic 3 Reducing Cost of Production or Service 1. Concept in Reducing and Controlling the Cost of Production To sustainably run a business, it is necessary for the entrepreneur or business owner to find a way to reduce the cost of production and services. The concept in reducing cost of production is shown below. 1. Analyze and examine the current status of production which includes labor, raw material, and cost of production, in order to find the shortcoming and the method to reduce cost. 2. Find the route cost that creates wastes in production and services. Wastes refer to things that incur cost but give no benefit to the business. 3. Continuously reduce and control the cost of production that is unnecessary or creates wastes until achieving the target. In running a business, one might face a different shortcoming which may obstruct the business or cause a higher cost of production. This limitation may occur from various factors such as higher cost of labor, higher cost of raw imported materials, increasing in the price of gasoline, water, and electricity, more competitors or higher degree of competition. Therefore, it is necessary for the entrepreneur or business owner to reduce the cost per unit of production which will result in a higher profit. Moreover, the entrepreneur will also have to adjust the target of production to a suitable level and improve the business structure, as well as developing a promotional campaign which is the key to success. 2. Factors in Reducing and Controlling Cost of Production In reducing the production cost, the following factors should be taken into consideration. 1. The executive must initiate clear policies and projects to reduce the production cost. This may include international quality standard policies such as ISO, Personnel Capability Development, and etc. or other cost reduction systems and methods that must be executed. 2. It is necessary to encourage the cost consciousness concept among staffs to receive good cooperation. 3. The policy to enhance business management quality does exist All the factors aforementioned are equally important; however, to achieve the target, the executive must seriously determine the target and operate the work task, as well as evaluating the effectiveness of such activity. The production management target should be set as follows. 1. Production efficiency is an indicator that compares the efficiency and performance of the business with other competitors that have similar businesses.

76 2. Product and service quality: the entrepreneur or business owner should make his employees understand the quality control process to maintain the product quality according to the determined standard. 3. Product delivery: the product must be delivered to the customer on a timely manner without any problems. One must place an emphasis on the production planning and product delivery or this will ruin the business. 4. Production cost: the cost reduction must not affect the product quality but it should involve an arrangement to reduce cost in the production process. 5. Safety: this is directly related to the staff and must be strictly controlled since it will make the staff safes and take part in a cost reduction, as well as improving the staff’s quality of life. 6. Staff morale: safety is one of the issues that can increase staff morale; however, the best way to do it is to increase staff wages and benefits. 7. Good environment in the premise: this factor could improve the staff’s quality of life. Nowadays, the business that could manage the environment issue will be regarded as the company that has social responsibility. 8. Ethics: when there is a mistake, the entrepreneur and business owner must accept and adjust their production or service providing process in order to enhance safety and credibility. If the business owner can make everyone in the organization realize and act according to all the issues aforementioned, there will be no problems in production and more importantly, the production efficiency will be higher. 3. Controlling the production or service management To continuously develop and sustain the business operation, the entrepreneur or business owner must have the controlling system for production and service management. The system that is widely accepted is PDCA (Deming Cycle) which is explained below. 1) P (Planning) planning means to see whether there are projects, activities, or methods that can be used in managing the production or service. 2) D (Do) means to act according to the plan. 3) C (Check) means to check the result of the operation to see whether it aligns with the determined target and objective in the plan. 4) A (Action) means to improve, adjust, and set standards in working. It also includes the determination of new method and guideline to solve the problem found in the process. The PDCA Deming Cycle must be pursued regularly to make a continuous improvement.

77 Activity 1 Analyzing the Production or Service Management The learner is assigned to summarize the knowledge relating to the production or service management according to the following topics. 1. All the information can be summarized as follows. ……………………………………………………………………………………………………………… ……………………………………………………………………………………………………………… ……………………………………………………………………………………………………………… ……………………………………………………………………………………………………………… ………………………………………………………………………………………(no more than 5 lines) 2. Methods in production and service management 2.1………………………………………………………………………………………………. 2.2………………………………………………………………………………………………. 2.3………………………………………………………………………………………………. 3. If you were a business owner, what aspect of production / service would you manage and why? 1.1 …………………………….because……………………………………………… 1.2 …………………………… because ……………………………………………….. 1.3 …………………………… because ………………………………………………... 4. If you have to choose only one aspect of production / service to manage, what is the aspect that you plan to manage and why? ………………………………………………………………………………...…………………….. because…………………………………………………………………………………………………… …………………………………………………………………………………………..........................

78 Chapter 5 Marketing Management Essence Since marketing management takes a vital role in running a business, it is necessary to understand the marketing activity and be able to analyze the market to see marketing opportunities before making an investment decision, in order to let the business run in a less risky direction. In conclusion, market is important to business survivability. Key Indicator 1. Able to manage and bring the product into the market 2. Able to develop a marketing management plan Scope of Contents Topic 1 Marketing Management Topic 2 Developing an Operation Plan

79 Topic 1 Marketing Management The meaning of market and marketing management Market refers to the place where buyers and sellers meet to transfer the ownership of products and services using money as a widely accepted medium of exchange. Examples of markets include Chatuchak Market, Thakhao Kam Nun Song in Phayuha Khiri District, Bangkapi Fresh Market, and Central Plaza Department Store. Marketing Management means a business activity that involves production planning, advertising, public relation, market research, sales promotion, developing customer database, product distribution, price determination, and sales, as well as other activities conducted to satisfy customer needs. Marketing management is a marketing activity that starts from planning to executing such plan. The marketer has to consider factors affecting the success of marketing plan in order to make such plan suits to and aligns with customer needs. The marketing factors consist of product, price, and distribution. 1. Product means the product or service that could satisfy the consumer needs. 2. Price refers to the amount of money the buyer willing to pay for the product or service 3. Distribution is a selection of distribution channel to transfer the product from the place of production to the consumer who needs it. In general, we will see the marketing mix which includes advertising, public relation, market research, marketing campaign, sales promotion, developing customer database, and product distribution as shown in the marketing mix figure below. Target Market Product Price Marketing Campaign Sales Advertising Sales Person Sales Promotion Public relation Figure showing the marketing mix 1. Advertising means to present or to promote idea in selling products or services via different channels of media in which the sponsor pays for the advertising fees. The objectives of

80 advertising are to let the audience perceive and understand the product and service and to provide the information and persuade the audience to buy the product and service. Examples of advertising media include magazines, newspapers, radios, televisions, billboards, and mails. Each of the media has its own strengths and weaknesses, so in choosing a media, one should consider the following factors. 1) Ability to reach the target audience 2) Effectiveness of the media 3) Cost in using the media 2. Public Relation means a communication established to promote the same understanding, as well as to enhance good relationships among customer, institute, government, and individual with an aim to establish creditability and good attitude towards the organization. Public relation activities include distributing brochures, publishing news, customer relation, employee relation, community relation, media relation, social and public services. 3. Market Research is a study of external and internal factors that is related to marketing which allows the entrepreneur to confidently plan the marketing plan and clearly outline the details in operation. The process of market research and studying include: 1) A study of market opportunity and situation is a study that is related to market opportunities, or consumer behaviors, and a study of market situation which is related to internal and external environments of the business. The market situation studying consists of: (1) A study of strengths of product or service (2) A study of weaknesses and problems that may occur from marketing components (3) A study of opportunities including advantages or factors that support the business (4) A study of threats that may occur 2) A determination of marketing objective which emphasizes on production, price, distribution, advertising, and promotion to satisfy the consumers’ need which will lead to sales and profit. 3) A selection of market target: in choosing the market target, one will have to consider: (1) Marketing opportunities (2) Market characteristics and needs (3) Market sizes (4) Organization ability to effectively respond to the market needs (5) Competitor and substitute products

81 4) A method to select the market target includes: (1) Selecting a particular target involves the selection of one particular group to study the business potential to respond to the target’s need. (2) Selecting various targets involves the selection of more than one group of target while conducting the different marketing activities at the same time, in order to suit each group of customers; for examples, a business may produce various types of product to satisfy the need of each target group. (3) Mass marketing involves conducting the marketing activity without considering the market share, while focusing on a low cost mass production to provide indifferent products and sell them to individuals. Some examples of product in this category include sugar, carbonated drink, sand, metal, rock, and cement. 5) A study of consumers’ behavior: consumers’ behavior is an expression of the consumer in finding products or services to satisfy individual needs. The consumers’ behavior can be classified into: (1) Purchasing habit is the habit of the consumer in purchasing the product. The list of question to identify purchasing habit includes: 1) Who is the consumer of our business? 2) What product is needed by the market? 3) How to buy the product? 4) Why the consumer buy the product? 5) When can the consumer buy the product? 6) Where can the consumer buy the product? 7) Who involves in making the purchasing decision? (2) Purchasing motivation means the cause that motivates the consumer to make a buying decision for the product or service. The purchasing motivations may include: 1) Motivation from the product consists of a primary motivation from the product itself such as a decision to buy a refrigerator, and a specific motivation, which arises from the primary motivation, that involves a selection of brand, style, size, and color. 2) Motivation from regular seller who motivates the customer to buy the product from a specific shop. 3) Rational motivation is a decision based more on rational thinking than emotional thinking such as value and durability. 4) Emotional motivation is a purchasing decision based on emotional feeling such as pride, beauty, and fear.

82 5) Impulsive motivation is a buying decision that is unplanned. 4. Sales Promotion refers to any activities such as advertising, sales person, sales promotion, and public relation that aim to motivate buyer to buy the product or service. Marketing activities and advertising could motivate and make the consumer interested in the product. This can be done from using certain channels such as exhibiting in a trade fair, giving a free gift, discounting, conducting sweepstake, sponsoring a competition, providing coupon, stamp, or using a salesman. A salesperson is one of the important channels in selling product since he can establish a direct interaction with the potential customer, is able to adjust the selling price according to the customers’ need, and more importantly can informally and flexibly persuade and provide information to the customer. Consumers’ behavior analysis means to look for causes that influence the consumer purchasing decision. Such analysis will let the marketer know the true characteristics of the market and allow the marketing administrator to develop and adjust the marketing plan according to the reality. The marketer should apply an analysis of consumers’ behavior by considering: 1) Who the consumer is by using market segmentation based on geography, demography, psychology, and behavioral science. 2) Market need: the entrepreneur will have to study what is the customer need in buying the product; for examples, some might use a luxurious car because they need to be proud, some might select an expensive restaurant because they not only need good quality food but also good services and conveniences. The marketer will have to analyze what is needed by the customer to arrange the element of product according to the need. 3) Purchasing decision: the entrepreneur must learn the purchasing decision process of the consumer which consists of: 1) Need recognition: at this stage the consumers’ need is triggered by stimuli such as hunger, desire, survival need, recognition, and imitation. 2) Information search: when a need is triggered, the consumer will look for information related to the particular product and service from friends, family, neighbors, advertising, public media, and those who have experienced in using the product / service. 3) Evaluation of alternative: after receiving all the relevant information, the consumer will evaluate each option to make a purchasing decision. Most consumers utilize his past experiences, attitudes toward merchandize or brand, and opinions from friends to make a selection. 4) Purchase decision: the consumer then chooses the brand that he likes most after an evaluation process, so the marketer has to put effort in feeding information to the consumer and make a product recommendation.

83 5) Post purchasing: this happens after the customer has used the product. If the product is able to meet the customer’s expectation, it will create a good image for the brand and vice versa. 1. Need Recognition 2. Information Search 3. Evaluation of Alternative 5. Post Purchasing 4. Purchase Decision Figure: Purchasing Decision Process The whole process starts from the need of product to the post purchasing attitude. Such process will take a lot of time and effort or not will depend on types of product, individuals who purchase it, decision makers, promotions, etc. The time used in each process will not be equal since the consumer may change his mind, there might be an obstacle to prevent the purchase, or some might decide to prolong the purchase. 4) Why the consumer purchases the product: this is a consideration of purchasing objectives or purposes. 5) When the consumer purchases the product: a marketer must know when his consumer buys the product and this will vary according to the characteristics of product, in order to suitably plan the marketing strategy based on the purchasing behavior. In doing so, one might consider the following factors. 1) Purchase of product used in daily life. This includes inexpensive products that must be bought regularly and consumers are familiar with its type, characteristic, appearance, and brand. They will buy the product when it is used up, nearly used up, or some might want to store it for later uses. 2) Sometimes consumers may not be familiar with the product brand, although they know the product well; for example, eating out, upcountry traveling, and selecting hotels. Consumers will have an opportunity to buy such services at the weekend or on annual vacation. 3) An analysis of when consumers will buy the product will let the marketer determines promotional strategies that match the time of purchase; for examples, providing discounts, giving a free embodying service, or providing a discount for socks if shoes are purchased in the period prior to semester-open.

84 6) Where the customer purchases product: this is related to a question of distribution channels that are appropriate to products. One might consider where consumers buy the products; for examples, from large department stores, or grocery shops nearby. 7) Who involves in making the purchasing decision: to see the roles of each group that influences or takes part in decision making. In summary, the entrepreneur and marketer will have to study factors affecting consumers to identify their needs and to suitably arrange the marketing mix that includes product, price, promotion, and distribution. Marketing planning refers to a determination of target customers, a creation of credibility for the business and its investors, and methods to attract new customers and retain those old ones. Marketing strategy planning involves a determination of objectives and a selection of market target. It is also related to a development of long-term planning to make the business survive and sustainably gains profits for a long time. The benefits of marketing information include: 1. It provides an understanding of problems 2. It helps us speculate the need 3. It helps us spend budget reasonably 4. It clarifies how to manage and set target 5. It helps seeing business problems 6. It improves productivity 7. It foresees business situation 8. It provides information of market, customer, and current situation of the industry, as well as its trend 9. It provides information on competitors’ products, promotions, and their business expansions 10. It provides information on results and problems from sales or sales report 11. It creates chances to enter new market 12. It provides information on the changes of competitors 13. It provides information on customer’s needs and attitudes, and the effectiveness of existing strategies

85 5. Developing Customer Database 1. The meaning of developing customer database: information will help in a determination of marketing gap, strategies of marketing, advertising, media, as well as helping in any analysis. It is an important factor in direct marketing since the business will not be able to communicate to or understand the target group of customer without such database. 2. Objective in developing customer database 1. To realize the importance of listing a customer name list 2. To understand the basic principle in making a customer’s name list 3. To understand the type of database 4. To know the component of customers’ data base 1) The customer’s name list can be created by: (1) Filling in the customer blank sheet: firstly, one will have to prepare a blank sheet to collect customer’s information while selling the product or being contacted by customers. It should indicate reason to the customer such as to inform product news, to give promotion, to provide an after sales service, or to create a member card for the customer. This will make the customer more willing to give his information. In addition, one might have the customer who is interested in the product fill in his information in the form provided in various channels. (2) Directly asking information from the customer himself. The sales person or telephone operator might assist the customer by prior informing and asking for such information from the customer himself. (3) Collecting information from attendances in trading expo or exhibitions. Those who attend such trading expo or exhibition are those who tend to be interested in the product. To collect information from these attendances, one might consider to set a special campaign telling that there will be a lucky draw or certain prizes for those who fill in the form. This will make audiences willing to give their information. (4) Collecting data from after sales. Certain types of product have its own after sales service and generally have a product warranty which contains customer details, so this is considered to be a good database containing more details of customer than any other things aforementioned. The necessary details that should be obtained from customers will be identified in the following topics. (5) Sending a gift card in the festive season. Some might order a product as a gift for other people and let the producer deliver the product. Therefore, this is a good chance to ask for receiver’s details and store them in the database for a later use.

86 (6) Sending a gift voucher or questionnaire. When the customer comes and uses the voucher, it is recommended to record his or her name and address. (7) Collecting data when the customer uses his credit card. (8) Collecting data from customer’s recommendation. One might ask regular customers to recommend their friends that might be interested in buying the product or might motivate the customer to recommend their friends; for example, giving a special gift for customer who recommends at least 4 friends. 1) Benefit in making a customer database (1) Gain the information of high profit groups of customer (2) Able to provide other services for existing group of customer (3) Able to select the target customer more precisely (4) Able to determine how to turn the expected customer into real customer (5) Gain information that can be used to arrange customer’s activities (6) Able to develop suitable promotional campaigns (7) Able to create new market opportunities (8) Able to develop strategies attracting this group of customer (9) Able to evaluate advertising and promotion effectiveness (10) Able to reduce wastes and improve productivity (11) Able to evaluate promotional results (12) Able to reduce cost and increase sales volume

87 6. Distribution of Product Marketer nowadays place an importance on product distribution no less than other marketing factors. If the product is needed by the market but its distribution is poor; for instances, failed delivering or delay, this will cause a great loss due to the decrease in sales and number of customer. 1) The main objective of product distribution is to deliver the right product to the right place at the right time with the least expenses. 2) The role and importance of product distribution: it is the link between the producer and the consumer; in other words, to sell the product to the consumer as soon as it is required. Therefore, it is necessary for the entrepreneur to carefully take into consideration the following factors when delivering the product. (1) The right product is delivered (2) It is delivered in the right time (3) The quantity of product delivered is correct (4) It is delivered into the right place (5) It is delivered in the desirable pattern / form Product distribution is a delivery of product to the consumer or customer. The process is related to the work in other functions; starting from the sales forecast that involves production and selling plans. Next it involves product distribution process which is related to an arrangement of transportation system, procurement channel, sales channel, and inventory system in order to gain procurement effectiveness in purchasing raw materials for production and to gain marketing effectiveness and be able to sell products and services to customer. 3) The concept of marketing can be classified into 2 categories which are: (1) Production Concept which emphasizes on an arrangement of resources to produce the product and sell it to the customer. (2) Marketing Concept that mainly focuses on the customer’s need and try to satisfy it. It is the duty of the entrepreneur and marketer to achieve any target set. A guideline in doing so is outlined below. (1) Conduct an analysis of environment and a market research by checking the consequence of economic condition and competition toward the marketing issues. (2) Conduct a consumer analysis by evaluating the consumer’s purchasing decision process. (3) Conduct production and service planning by developing the product, brand, package, as well as calling off certain products.

88 (4) Conduct a price planning by determining price ranges, pricing technique, and deciding whether to use offensive or defensive pricing strategies. (5) Arrange a distribution plan by determining the distribution channel, means of transportation, preservation method, product screening method, and whether to use retailing or wholesaling. (6) Arrange a sales promotion plan by advertising, using sales person, and public relation. (7) Consider social responsibilities in terms of safety, ethics, and focus on product and service values. (8) Manage marketing by developing the marketing plan and evaluating the risk and benefit of marketing decision. Topic 2 Arranging an Operation Plan Arranging an operation plan is a systematic process to evaluate marketing opportunity and resource, to balance between the business objective and existing resources, as well as the changing in long- term marketing opportunity, profit target, and long-term growth. An operation plan is therefore a utilization of resource in the long-term. In operation planning, one should apply strategies to answer 2 questions which are: (1) What is the core activity at the moment? (2) How can the business achieve its target? Strategic marketing planning will let all the employees know how to achieve business target in the long-term. Marketing plan is a written document used by a marketing manager, as a guideline for marketing activities. Marketing plan will identify its objectives and activities that must be executed to achieve such objectives. Marketing is the most difficult activity that requires an understanding from both employees and executives because: 1. Developing a clear marketing plan not only takes time but also requires good communication in the organization. 2. Marketing plan will have all employees realize their own responsibilities and timeframe to work. 3. Marketing plan indicates the objective and activities required to achieve such objectives. 4. Marketing plan provides only framework and direction while execution involves dealing with problems, opportunities, and situation.

89 5. Although the marketing plan orderly prioritize its work tasks; those tasks might occur at the same time. The development of the plan will depend on the business, its vision, mission, objective, target, and marketing mix of the business. The process in developing a marketing plan is indicated below. Determining Business Mission Identifying Marketing Objective Analyzing Situation Developing Marketing Strategy Executing and Controlling the Plan Figure: Elements of marketing plan Determining Business Vision: this will have us know what the business is, what makes it different from competitors, and what are the objective, philosophy, and image of the business. A good business mission should focus on benefits that the customer will receive and it must reflect the business vision. Identifying Marketing Objective: an objective is a message identifying the target that the business aims to achieve using marketing activities. A good objective should be “SMART”: 1. Specific: an objective must be specific, clear, and showing a clear expected result. 2. Measurable: it must be measurable in terms of both quantity and quality. 3. Achievable: it must be encouraging, based on fact, and constant. 4. Relevant: it must align with the company’s policy. 5. Time-bound: an objective must indicate the start and end time of the activity. An objective without a timeframe will likely be less achieved.

90 Analyzing Situation: the marketer must understand current situation and future of the product. This can be done by analyzing business strengths, weaknesses, opportunities, and threats, using SWOT Analysis technique. Developing Marketing Strategy: this is related to a selection of market target and a creation of marketing mix to satisfy the target market of the business. This involves 3 steps which are to achieve the target, to develop the marketing mix, and to set the product positioning. Executing and Controlling the Plan: the marketer must work according the set plan with confidence in achieving its objectives. The details of the plan will indicate activities, timeframe, and budget which must be well communicated. Evaluation is a necessary step after an implementation of the plan, to see how far the objective is achieved and whether there is anything that should be adjusted or not. Planning is closely related to controlling because it identifies things that the business needs to achieve.

91 Activity 1 1. The learner is assigned to group up in 5 and elect the chairman, secretary, and presenter of the group. 2. Select 1 occupation in your community and develop a marketing plan for it using the knowledge in the previous chapter, as well as explaining each step of the plan. 3. The presenter is assigned to present the result. ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………

92 Chapter 6 Driving the Business Development Essence Driving the business development is a learning process that focuses on a problem settlement, seeking of knowledge, managing community resources, managing and driving a plan, using cognitive analysis to create a concrete result and able to develop oneself from being a middle class to achieve sustainable and sufficient level of economy. In the end, one will be able to tell oneself that he lives in good environment that includes good society, good family, and sufficient economy. Key Indicator 1. Able to analyze the feasibility of a business development plan 2. Able to develop an occupational development plan 3. Able to drive an occupational development plan 4. Able to explain problems, obstacles, and methods in solving problem occurring from driving a business plan Scope of Contents Topic 1 Analyzing the possibility of occupational development plan Topic 2 Developing an occupational development plan Topic 3 Step in driving an occupational development plan Topic 4 Problems, obstacles, and methods in solving problem occurring from driving a business plan

93 Topic 1 Analyzing the Possibility of Occupational Development Plan 1. The Element in Analyzing the Possibility of Occupational Development Plan Analyzing the possibility of occupational development plan is a process to build a confidence that the plan has been developed in the right direction and goes along with the social capability. The element in analyzing such possibility includes: 1. Community’s capital 1) Natural capital such as clay, sand, water, nature, and environment. 2) Religious, artistic, and cultural capitals: -Religious capital such as Buddhist architect, statue, history, and monk specialized in practicing and preaching. -Artistic capital such as Buddhist architect, art, cloth, handcraft, and traditional recreation. -Cultural capital such as making merit according to the local custom, Mahachat preaching, and Buddhist candle festival. 3) Community knowledge: this is the knowledge in a specific community such as Phetchaburi custard desert recipe and the pickled fish recipe of Ban Kluay (Baanmee district, Lopburi province), as well as experts such as Por Kum Dueng of Phetchaburi and Kru Sommai of Lopburi who are the experts in agricultures and Kru Ya Suttinun of Burirum and monk Siengsin of Sing Buri who are experts in the field of environmental management. 2. Community’s core capability An important aspect to analyze in occupational development of a community is its capability in order to determine its value creation strategies and growth, as well as to suitably developing and sustaining its competitiveness. For example, Ban Tab Prig is capable in growing asparagus, papaya, winged bean, and chili, so the place is the source of agricultural knowledge, capability, and integrated skills and technology in production. The benefits of community’s core capability can be described below. 1) The core capability helps enhance community’s potential which can be used to penetrate various markets. 2) The core capability will benefit the customer in purchasing community’s products. 3) The core capability is difficult to be imitated by competitors.

94 3. Development in Needed This occurs from a comprehensive understanding based on important facts relating to oneself, family, and community, of people in the community which can be identified immediately. Although the analysis on development needed is generally conducted by asking and assessing information that is related to economics, society, and household from people in a community, the result of the need might be incorrect due to changes in social and economic condition. Therefore, in order to be on facts as much as possible, an analysis of development in needed should be conducted according to the following steps. 1) Arranging a public debate to create an understanding and necessity of the analysis. The information required in occupational development planning includes: (1) Economic data Economical target for household Wealth creation Income creation Career development and expansion (2) Expected income according to one economic status (3) Existing capital Land possessed Number workforce Financial capital 2) Summarizing all aspects of information and analyzing the possibility of occupational development plan

95 Topic 2 Developing the Occupational Development Plan Developing the occupational development plan is a systematically arrangement of information obtained from the feasibility analysis of occupational development plan to execute it according to one’s potential. It is outlined in the figure below. Developing the Occupation Development Plan Understan Design Determine Manage Examine d the plan Operating Performan and Drive Activity (1) Procedure ce Knowledg (5) (2) Indicator e (3) (4) Follow up and Solve Shortcoming (6) Summary Sustainabl Manage Multimedia and Present e System that Support to Public Developm Activity and Report (7) ent (9) (8) 1. Try to make all the people in the community understand the development plan to let them take part in solving problems. 2. Design the operating procedure according to the plan in order to see the details of operating goal and process, and to determine policies to effectively execute the plan. 3. Determine the performance indicator by identifying the indicator of activities in the development plan. 4. Manage and drive the knowledge required to success by promoting the community leader to manage and drive such knowledge.

96 5. Examine internal conditions of the activity by equipping people in the community with skills to examine activities for a continuous development. 6. Follow up and solve problems arise from executing the plan and promote the community leader to do that too. 7. Present the outcome to the public by arranging an activity to let the community leader and members exchange their knowledge. 8. Sustainable development: both community leader and members analyze and determine how to sustainably develop their own community. 9. Manage multimedia system and encourage the community leaders and members to store the knowledge gained from activities in the plan and apply it with their own working.

97 Topic 3 Process in Driving Occupational Development Plan To drive an occupational development plan, the Office of the Non-formal and Informal Education, community leader, development association, working team, and community members must work together in these following issues. First issue: Analyzing the feasibility of an operation plan Second issue: Developing an operation plan Third issue: Managing the knowledge in driving an operation plan to success Details of each issue are outlined below. 1. Analyzing the feasibility of an operation plan: this is the process of the learner, community leader, working team, community members, and associating networks to consider the appropriateness of the plan compared to the fact in community. This can be considered from: The acceptance of community members The approval from community members The readiness of community resources The need to import resources from external parties 2. Developing an operation plan: this involves an analysis of operational feasibility and improve or develop it to make it suits community potential. 3. Managing the knowledge in driving an operation plan: teachers from the Office of the Non-formal and Informal Education, the leaner, community leader, community members, and development associations must work together to manage the knowledge in driving an operation plan to success. This can be done by:

The Process to Manage Learning 98 (1) (2) Success Analyze Determine Seek for Exchange Project / the such and store Activity Knowledge knowledge the used in in knowledge working community Unable toหoาbคtวaาiมnรsู้ไuมc่ไhด้knowledge (3) - Create Apply the Evaluate own knowledge the knowledge to drive the quality of work - Import project knowledge (4) Follow up the quality of work 1) Analyze project / activity: this involves an analysis of project / activity to see which project / activity is ready to operate and which is not based on the existing knowledge. This requires an arrangement of knowledge prior to the execution of work to drive it. 2) Knowledge management process: this is the process to bring all necessary things into knowledge management process which involves: 2.1 Determining the knowledge used in working by listing all the knowledge that is required in executing the plan, as shown the following example.

Project / activity Objective 99 Knowledge used in working 2.2 Seeking for knowledge in the community and locality by assigning each working group with the task to seek for knowledge that will be needed from experts, business premises, and other sources of knowledge. This can be done by using various methods such as learning from lessons and training until gaining an insight in the knowledge. 2.3 In case the necessary knowledge cannot be obtained from the community or locality, one might consider to: 1) Conduct a public hearing to mutually think, determine and develop working methods, experiment, and store it as community knowledge for a later use. 2) Import knowledge: since learning some knowledge requires experts in those specific fields, it is appropriate to invite those experts or to study from them 2.4 Exchange knowledge: this can be done after the knowledge seeking process by encouraging each working group to share their knowledge and to analyze and apply that new knowledge in working. 2.5 Apply the knowledge to drive the project: this involves working while applying the knowledge in each step of work. 3) Evaluate the quality of work: this will include: (1) Assigning the evaluation and follow up team consist of 3-5 members to see what should be done in the project / activity. (2) Developing a follow up plan and considering which part of the project / activity that should be focused and when. (3) Making a clear mutual understanding that to follow up is not to find fault but instead is a mutual work between the follow up team and the working team to find any shortcomings that may damage or reduce the quality of work, and find a solution for it.

100 (4) Evaluating the quality of work by letting the evaluation team and working team in each project / activity present their own work to public in order to let the community members know and take part in the process, as well as making a decision on how to move forward. Topic 4 Problems, obstacles, and solution from driving a business plan Driving a business plan is a continuous work in which one might find certain problems and obstacles, so to control such problems, obstacles and to find solution without letting the damage occur, it is necessary to: 1. Examine problems / obstacles from condition in the activity 1) Try to understand that one will have to investigate problems and obstacles in his own project / activity, in order to utilize them as a tool to develop the execution of the plan. Such process is described below. (1) Try to understand the working process (2) Examine whether the work is operated according to the plan or not and what problems, obstacles, and shortcoming exist. (3) Overcome such shortcomings and develop the process 2) Examining the process of execution to see if it runs according to the standard and summarizing any shortcomings. 3) Making an improvement and development by using the shortcoming to determine how to deal with it or develop it by using technologies. 4) Summarizing and recording the result of examination and the outcome of improvement as an integrated knowledge in order to develop it into an intellectual capital. 2. Examine, follow up, and solve the shortcoming according to plan 1) Examining, following up, and solving shortcomings in order to process the work according to plan, to create working efficiencies, and to create the return on investment by: (1) Planning the examination (2) Inspecting and improving shortcomings (3) Acting according to the result of improvement 2) Making a follow up plan to see at which step the activity is operated 3) In examining and improving shortcomings, the community leader should act as follows. (1) Informing the person in charge prior to an inspection, in terms of what will be inspected, to let the working team take part in such process of inspection