2. SUGUTA LIMITED COMPANY
FORM OF ENTITY FOR INCORPORATING A SUBSIDIARY
Private limited-liability company

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

4. Planning
An entrepreneur sees a gap in the market and wants to found (= start) a new company. First
some planning is necessary. The entrepreneur has to:
● Do market research and develop the product.
● Think about pricing, distribution channels, and promotion.
● Raise capital (‘capital’ = money used to start or invest in a business). The capital might
come from the founder’s own funds, loans from the bank, or money invested by other
people/business partners.
Start-up
The founder is now ready to set up (= start) the business. The first steps are to rent premises
(= the buildings that a company uses), purchase equipment and supplies, and employ and
train staff. The company can now begin its operations. One thing is certain: the first few
years will be difficult. Sometimes a start-up company can get help from venture capital (=
money invested in a new business by a specialist company who work in high-growth areas
like new technology). VC money is used to run the business, pay salaries, etc in the early
years. In exchange the VC company will take part ownership of the company and hope to
sell it later for a large profit.

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

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

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

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

10. BUSINESS
PLANNING
MANAGEMENT
TECHNOLOGY
PRODUCTION
SKILLS
PERSONAL
WORK
HABITS
PRINCIPALS OF
TECHNOLOGY
LABOR HEALTH,
SAFETY AND
ENVIRONMENT
COMMUNITY
ISSUES
FINANCE
LABOR
• Capitol acquisitions
• Financial operations
• Strategic planning
• Goals/Objective
• Organizational structure/culture
• Mission statement
• Regulatory issues
• Safe workplace
• Impact of the company on
the community
• Impact of the community on
the company
• Team player skills
• Specific production skills
• Employees’ rights and responsibilities
• Role of labor organizations
• Positive attitude
• Personal fitness and appearance
• Readiness for work
• Technology in the workplace
• Continued professional training

11. 1. Business Planning
How an organization plans (includes goals
and objectives), type of owner-ship
(public, private), relationship of the
organization to economic, political, and
social contexts, assessment of needs.
• Strategic planning
• Goals/Objectives
• Assessment of customer needs and
expectations
2. Management
Structure and process for effectively
accomplishing the goals and operations of
the organization using facilities, staff,
resources, equipment and materials.
• Organizational structure
• Corporate culture
• Mission statement
• Employee handbook
3. Health, Safety and Environment
Practices and laws affecting the employee,
the surrounding community, and the
environment.
• Regulatory issues
• Workplace safety
4. Community Issues
Impact of the company on the community,
impact of the community on the company.
• Community activities and issues
• Organization’s involvement in the
community
• Public perception/image of company
• Accessibility of facility and services

12. 5. Principals of Technology
Technological systems being used in the
workplace and their contributions to the
product or service of the organization.
• Technology in the workplace
• Continued professional training
• Adaptability and learning from
experience
6. Personal Work Habits
Non-technical skills and characteristics
expected in the workplace.
• Positive attitude
• Personal fitness and appearance
• Readiness to work
7. Technical and Production Skills
Basic skills in math, communications,
computer, time management, and
thinking; specific skills for production;
interpersonal skills within the organization.
• Basic academic skills
• Team player skills
• Specific production skills
8. Labor Issues
Rights of employees and related issues;
wage, benefits, and working conditions.
• Job descriptions
• Employees’ rights and responsibilities
• Role of labor organizations
• Employment contracts or agreements
• Cultural sensitivity

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

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

15. Chairman Executive
Chief Executive Officer
(CEO) or President
Chief Financial Officer
(CFO)
Chairman of Supervisory
Board
Legal -Lawyers
PLANNING AND
CO-ORDINATING
Planners
Economists
Statisticians
Mathematicians
Researchers
Human Resources
Manager
Finance
Financial Control
Treasury
Accounts and
Payroll
Sales Director
Chief Marketing Officer
Business Development
Officer
Supply management
Procurement and
Logistics
Production
Director of Design
Engineers
Information technology
Customer Services
Public Relations (PR)
or Communications
Senior people at a higher level
Junior people at a lower level

16. THE SUGUTA
PRODUCTION SYSTEM
High Quality and Low Cost
Q. By what method did these new
systems come about?
A. Trial and Error

17. Some Basics Concepts of SPS
Smooth Flow and Produce to Takt Time
Produce to Order
Make system “observable” and correct
problems as they occur
Integrate Worker Skills
Institutionalize change

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

19. Takt Time
Automobile Assembly Line; Available time = 7.5
hr X 3 shifts = 22.5 hrs or 1350 minutes per day.
Demand = 1600 cars per day. Takt Time = 51 sec
Aircraft Engine Assembly Line; 500 engines
per year. 2 shifts X 7 hrs => 14 hrs/day X
250 day/year = 3500hrs. Takt time = 7 hrs.

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

21. Examples of “Innovative” Work
Practices
• Work Teams
• Gain Sharing
• Flexible Job Assignments
• Employment Security
• Improved Communications

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

23. Product
End of Life
Supply of
Process
Additives
Manufact
uring
Operations
DistributionsRaw
Materials
Extraction
Raw
Materials
Processing
Use of Product
by ConsumerFacility
Construction
(NEW BUILD)
Key Life Cycles Stages
in Manufacturing
Sector
Key Life Cycles
Stages in
Manufacturing

24. Raw Material
Acquisition
The Earth and Biosphere
Bulk
Processing
Material
Engineering
and
Processing
Use and
Service
Retirement
Treatment or
Disposal
Component and Auto
Manufacturing and Assembling
The Product Life Cycle System

25. Suppliers
Solutions for Product
Lifecycle Management
(PLM
• Consulting
• Design/solution
development
• Implementation
• Operation/support
Research and Development
Application Management (AM)
Support and hosting of SAP applications
and non SAP applications
• Enterprise Resource Planning (ERP)
• Product Lifecycle Management (PLM
• Others (e.g. CRM, SCM, SRM)
Garages
Harmonization/standardization of
processes and IT
• Process harmonization in development,
production, sales and ser vice
• Harmonization for SAP systems and non
SAP systems
• Harmonization for infrastructure and
architecture
• Solutions for collaboration and busi
ness management
Manufacturing
Solutions for manufacturing and assembly
• ERP solutions
• RFID in production
• ERP-MES integration
• Production information systems
Service and
Maintenance
Solutions for service and
maintenance
• Increase of production
availability
• CRM
• Remote ser vice
• Mobile field ser vice
• Spare part logistics
Partners
IT outsourcing Operating,
monitoring, support and
maintenance of IT systems
• Service Desk
• Desktop Ser vices
• Network Ser vices
• Data Center Ser vices
• Application Operations
Logistics
Solutions for Supply Chain
Management (SCM)
• ERP solutions
• Supply chain planning and
execution
• RFID and supply chain
Dealer
Car
manufacturers

26. Product Development
• Product Cost
• Engineering
Resources
• Vehicle Line Profits
Purchasing
• Commodity
• Material Cost
Forecast Manufacturing
• Plant Labor and
Overhead
• Investment
• Sourcing
Sales and Marketing
• Pricing
• Incentives
• Sales Analysis
• Production
Scheduling
Suguta Credit
• Credit / Residual Risk
• Operating Cost
• Securitization
Customer Service Division
• Parts and Service Pricing
• Warranty
• Parts Depot Sourcing
Corporate Staffs
• Foreign Exchange
• Accounting
• Staff Auditor
• Corporate Financial
Statement
Consolidator
TYPICAL FINANCE ANALYST POSITIONS

27. 27
Checklist for Analyzing
Organizational Strengths and Weaknesses
Management and Organization
➥Management quality
Staff quality
➥Degree of centralization
➥Organization charts
➥Planning, information,
control systems
Finance
➥Profit margin
➥Debt-equity ratio
➥Inventory
ratio➥Return on investment
➥Credit rating
Marketing
➥Distribution channels
➥Market share
➥Advertising efficiency
➥Customer satisfaction
➥Product quality
➥Service reputation
➥Sales force turnover
Production
➥Plant location
➥Machinery obsolescence
➥Purchasing system
➥Quality control
➥Productivity/efficiency
Human Resources
➥Employee experience,
education
➥Union status
➥Turnover, absenteeism
➥Work satisfaction
➥Grievances
Research and Development
➥Basic applied research
➥Laboratory capabilities
➥Research programs
➥New-product innovations
➥Technology innovations

28. Suguta’s Action Plan in response to various recalls
President of Suguta action plan.
•1. Improve quality inspection process. Suguta will
inspect again every process, while verifying the causes that led to the
recalls, including quality in:
•Design
•Production
•Sales, and service.
•2. Enhance customer research. Suguta will enhance
the customer information research offices in each region to collect
information faster.
•3. Establish an “Automotive Center of Quality
Excellence. ”To further develop qualified quality management
professionals, an “Automotive Center for Quality Excellence” will be
established in every key region.

29. •4. Support from outside experts. Suguta will
seek confirmation and evaluation from outside experts—in line
with the industry’s best practices—of its newly improved quality
control management, based on the above improvements.
•5. Increased communication. In addition,
Suguta will work to increase the frequency of communication with
regional authorities.
•6. Improve regional autonomy. To provide
customers with satisfying products in each and every region,
Suguta has long promoted the autonomy of its regional
subsidiaries. They intend to further enhance this autonomy, listen
carefully to each and every customer, and improve quality.

30. New challenges, new opportunities
Global manufacturing enterprises deal with complex and
compelling challenges:
ECONOMIC
• Unstable economy
• Fluctuating
commodity prices
• Increased
competition from
regional/local players
SUPPLY CHAIN
• Low inventory and
supply chain visibility
• High warehousing and
SG&A costs
• Inefficient supplier
network
SERVICE
• The need to grow
service profitability
• Shorter time to
market
PRODUCT
• High cost of
engineering
• Need for automation
and suppliers and
partners innovation

31. Traditionally, most of these challenges have been addressed by solutions
that include heavy capital expenditure, expensive IT implementations
and optimizing operations, among others. That is because the focus, for
most manufacturing enterprises, is on cost efficiency, quality and
operational excellence.
However, today’s dynamic environment requires that manufacturers find
new, intelligent ways to drive long-term value creation and short-term
profitability and become:
• Globally effective, both in terms of their ability to address
different markets and run operations from the most optimal location and
manner
• Connected, by having the visibility and ability to anticipate and
manage the needs of their ecosystem of customers, suppliers and
partners
• Innovative, in addressing both opportunities and uncertainty
• Adaptive, in responding to change with agility

32. Finance and
Accounting
Procurement and
Supply Chain
Aftermarket
Services
• Accounts Payable, T&E
• Billing
• Financial Planning and
Analysis
• Treasury Operations
• Closing and Reporting
• Tax Operations
• General Accounting
• Demand Planning/Sales
and Operations Planning
(S&OP)
• Indirect Source to Pay
• Direct Procurement
• Logistics Engineering
• Order
Management/Fulfillment
• Master Data Management
• Strategic Sourcing Support
• Service Planning and
Forecasting
• Contract and Warranty
Management
• Helpdesk Service Requests
• Remote Installed Base
Support
• Field Service Management
• Parts Management
• Project Management
• Billing and Customer
Loyalty
Genpact advantage – Powering the intelligent manufacturing enterprise
Service offerings

33. Engineering
Services
Human
Resources
• Product Design and
Development
• Engineering Analysis
• Technical Documentation
• Product Regulatory
Compliance
• Payroll Functions
• Benefits Administration
• Recruitment Support
• Learning and Development
• Value Engineering
• Reliability Analysis
• Manufacturing
Engineering
• Engineering IT support
• Employee Rewards
• HR Information Services
• Data Modeling
• Planning and Forecasting
Genpact advantage – Powering the intelligent manufacturing enterprise
Service offerings
Smart Enterprise
Processes (SEPSM)
Smart Decision
Services
Smart Technology

34.  Develops financial statements
 Provides taxation advice
 Assists in estate planning
 Provides advice for business restructuring
 Assesses business value
ACCOUNTANT
Negotiates and drafts any necessary agreements, such as a
shareholders agreement
 Provides tax planning advice
 Prepares wills and powers of attorney
 Advises on existing and proposed business structures and
implements any needed corporate restructuring
 Negotiates and drafts any necessary purchase and sale agreements
LAWYER
 Manages ongoing operation of the business
 Needs to “buy-in” to successfully execute business plans
 Provides operational advice and expertise for new owners
 Enables business continuity
MANAGEMENT
TEAM
WHO THEY ARE THEIR ROLE ON YOUR ADVISORY TEAM
The advisory team to assist you in your business transition.

35.  Estimates fair market value of the business
 Provides credibility to asking price
 Provides advice and suggestions on how to maximize business
value
BUSINESS VALUATOR
 Finds a buyer
 Provides market insights
 Provides insights on enhancing business value
BUSINESS BROKER
 Offers business financial advice
 Provides access to a network of SUGUTA experts
 Advises on financing options and may provide alternatives for
financing the acquisition
SUGUTA®
COMMERCIAL
ACCOUNT
MANAGER
WHO THEY ARE THEIR ROLE ON YOUR ADVISORY TEAM
The advisory team to assist you in your business transition.

36.  Support family interests
 Provide an opportunity to understand each member’s
perspective about the business and their future roles in it
FAMILY
MEMBERS
 Facilitates family councils
 Clarifies boundaries and goals
 Examines family values
 Mediator for family resolutions
FAMILY
BUSINESS
FACILITATOR
➢ Provides guidance on the development of the succession planMENTOR
 Offers personal financial advice
 Advises on retirement planning, personal wealth
management and estate planning
 Helps define future goals
SUGUTA
PERSONAL
FINANCIAL
ADVISOR
WHO THEY ARE THEIR ROLE ON YOUR ADVISORY TEAM
The advisory team to assist you in your business transition.

39. Suguta Company: Let's build together (together as one)
Suguta Company: Let's build together (together as one)
Suguta Company – One Road, One People
Suguta Company: Live your dreams
Suguta Company: “get the feeling, thinking ahead”
Let all things be done decently and in order.
SUGUTA COMPANY LIMITED
BUSINESS SLOGANS
Suguta Company: Quality never goes out of style.
Victory won't wait for the nation that's late

40. SUGUTA COMPANY LIMITED
THE DAILY DIARY OF THE SUGUTA DREAM
Nobody can predict the future. However, one thing is clear, it will be very different
to today. We believe that a number of deeply-rooted forces - megatrends - are
driving fundamental changes within the investment management industry.
“ The future belongs to people who see possibilities before they become obvious.”
“We are continually faced with a series of great opportunities brilliantly disguised
as insoluble problems.”
“We are seeing the birth of a new perspective of the world, where ecology and
economics are two sides of the same coin.”
“If you can’t explain it simply, you don’t understand it well enough.”
“Tell me and I forget. Teach me and I remember. Involve me and I learn.”
“If you don’t know where you’re going, you will probably end up somewhere else.”

41. “The first step in exceeding your customers’ expectations is to know those
expectations.”
“Never innovate to compete, innovate to change the rules of the game.”
“Products are made in the factory but brands are created in the mind.”
“Think globally, act locally.”
“It’s not information overload. It’s filter failure.”
“If you want to be incrementally better: Be competitive. If you want to be
exponentially better: Be cooperative.”
“Leaders must encourage their organizations to dance to forms of music yet to
be heard.”
“Changing the answer is evolution. Changing the question is revolution.”
“To a one year old, a magazine is an iPad that’s broken”