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”Management Bootcamp”

Dr. Jouni Lyly-Yrjänäinen

Mr. Santiago Velasquez

Name/Title of the presentation to be changed on the master page 12/08/2021

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What is ’management bootcamp’…???

 This course serves as an introduction to an ’engineering MBA’

programme
 This course introduces the basic business terminology and hence
provides a solid foundation for more advanced managerial
studies
 This course briefly discusses the most important concepts used
by managers in different oranizational areas (marketing, product
development…) and some contemporary management trends
 Decisions of different managers have implications in other parts
of the company and that is why it is important to understand the
interrelated nature of managerial decisions
 In a sense this course portrays the ’big picture’ of business
administration that can then be complemented with more focused
courses

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About the lecturer…

• Senior Researcher at Tampere University of Technology

• Responsible of International Master’s Degree Programme in Business and
Technology
“Programme focuses on management of customer-supplier relationships in
international, technology-driven B2B markets”
• Education
• MSc in Industrial Engineering and Management 2002
• PhD (Industrial Engineering and Management) 2008

• Number of scientific publications

• 3 patents in the area of mass customization
• Books on management accounting, cost management, research
methodology, industrial management

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Content of the ’bootcamp’

• International Experience
• Foreign exchange student, USA, Utah 1993-1994
• Internship, Hydroscand Ab, Stockholm, Sweden, Summer 1998
• Internship, Indunorm GmbH, Duisburg, Germany, Summer 1999
• Exchange student, Monterrey Tech, Mexico, Spring 2001

• Personal Interests
• Financial Literacy – the use of numbers in decision making
• Intercultural communication, Teaching multi-cultural groups
• Salsa, Accordion

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Session 1 - Content

 Introduction
 Understanding Businesses
 What is Business?
 Factors of Production, Products, and Profit
 Understanding the Cost Structure
 Understanding the Value Added
 Understanding the Supply Chain and Supply Network
 Creating and Managing the Distribution Channel
 The Business and its Stakeholders

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Industrial evolution - From agrarian

society to knowledge society

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Industrial evolution - From agrarian

society to knowledge society

100100
010001

Agrarian Industrial Service Knowledge

Society Society Society Society

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Industrial evolution - From agrarian

society to knowledge society

100100
010001

Agrarian Industrial Service Knowledge

Society Society Society Society

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Industrial evolution - From agrarian

society to knowledge society

100100
010001

Agrarian Industrial Service Knowledge

Society Society Society Society

12/08/2021
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Industrial evolution - From agrarian

society to knowledge society

100100
010001

Agrarian Industrial Service Knowledge

Society Society Society Society

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Industrial evolution - From agrarian

society to knowledge society

100100
010001

Agrarian Industrial Service Knowledge

Society Society Society Society

 Is such development good or bad???

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Industrial evolution - From agrarian

society to knowledge society

100100
010001

Agrarian Industrial Service Knowledge

Society Society Society Society

 Is such development good or bad???

 When thinking as a businessman…

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Industrial evolution - From agrarian

society to knowledge society

100100
010001

Agrarian Industrial Service Knowledge

Society Society Society Society

 Is such development good or bad???

 When thinking as a businessman…

…there has always been businesses to manage

…such structural changes create new opportunities

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Industrial evolution - From agrarian

society to knowledge society

 Industrial evolution (employment) in Tampere region…

…follows pretty well the same pattern!!!

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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production

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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production

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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production

Natural Resources (Raw materials)

Labour (To work on the raw materials)

Capital (To buy machines and raw materials and pay the labour)

Entrepreneurship (to take the risk by starting a business)

Knowledge (to know what to do, how and why)

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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production

Product

Product Service

Good Service Good

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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production

Profit = Total Income – Total Expenses

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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production
Income and Expenses of Student Rs.
-
-
Total Income
-
-
-
-
Total Expenses
“Net Profit”

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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production
Income and Expenses of Student Rs. %
Family 7 000
Government Scholarship 0
Total Income 7 000 100
Rent 3 000 43
Food 2 800 40
Recreation 800 11
Telephone 200 3
Other Expenses 100 1
Total Expenses 6 900 99
“Net Profit” 100 1
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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production
NET PROFIT
Telephone Other Expenses
1% 1%
3%

Recreation
11%

Rent
43%

Food
40%

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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production
Income and Expenses of Student Rs. Before Rs. After
Family 7 000 7000
Government Scholarship 0
Total Income 7 000 7000
Rent 3 000 3 000
Food 2 800 2 800
Recreation 800 500
Telephone 200 100
Other Expenses 100 100
Total Expenses 6 900
“Net Profit” 100
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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production
NET PROFIT
Other Expenses 7%
1%
Telephone
1%
Recreation
7%

Rent
43%

Food
40%

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What is Business?

Business is an activity that seeks profit

by selling goods and services
with the use of factors of production
100 %
7%1%
90 % 1%

7%
80 %

70 %

60 % 40 % NET PROFIT
Other Expenses
Telephone
50 %
Recreation
Food
40 %
Rent

30 %

20 %
43 %
10 %

0%

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Understanding cost structure

Manufacturer A Manufacturer B

Profit

Administrative costs

Machine costs

Blue-collar work

Purchases

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Understanding cost structure

Manufacturer A Manufacturer C

Profit

Administrative costs

Machine costs

Blue-collar work

Purchases

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Understanding cost structure

Manufacturer A Service Company A

Profit

Administrative costs

Machine costs

Salaries

Purchases

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Understanding value added

Manufacturer A Manufacturer C

Profit

Administrative costs

Machine costs

Blue-collar work

Purchases

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Understanding value added

Manufacturer A Manufacturer C

added
Value
added
Value

Profit

Administrative costs

Machine costs

Blue-collar work

Purchases

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Understanding business networks

Inputs (Factors Outputs

General Management (Firm Infrastructure)

Product Development

of Production) Purchasin
g
Operations
Sales and
Marketing
(Products)

General Management (Firm Infrastructure)

Product Development

Sales and
Purchasing Operations
Marketing

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Supply chain

Customer
.
Raw Material Component System o m ..
Wr o
OEM Wholesaler Retailer
Supplier Supplier Supplier

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Adding value throughout the supply chain

Customer
.
Raw Material Component System o m ..
Wr o
OEM Wholesaler Retailer
Supplier Supplier Supplier

Profit

Administrative costs

Machine costs

Blue-collar work

Purchases

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Supply network
Raw Material Supplier Component Supplier System Supplier OEM Wholesaler

Winches

Dashboard
Steel Brakes Nordic
Countries

Chasis Daimler Western EU

Tires

Eastern EU
Rubber ...
….

...

N for 1 OEM: 2-3 80 - 100 10 - 20 1 15 - 30

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Distributors (Agents and Dealers)

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Distributors (Agents and Dealers)

Raw Material Component

Supplier Distributor Supplier

Agent

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Distributors (Agents and Dealers)

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Stakeholders

THE STAKEHOLDERS OF A COMPANY

COMPETITORS
GOVERNMENT STOCKHOLDERS

INVESTORS COMMUNITY

DEALERS SUPPLIERS

BANKS NGOs

EMPLOYEES MANAGERS CUSTOMERS

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Competences of young managers

 Holistic understanding
 Understanding of customer value
 Technical understanding
 Financial literacy
 Skills to work with multicultural teams
 Language skills
 Skills to get things done without formal authority
 Conceptual thinking
 Business competence

Name/Title of the presentation to be changed on the master page 12/08/2021