Five M’s in the business
Efficient management is the lifeboat of any developed business. There are five M’s in the business, which can be called as the resources of the business, viz. Man, machines, materials and money as tangible ones and Method as intangible one.
As said earlier, Management is the art of getting things done by a group of people. Therefore, the availability of qualified, trained, skilled, experienced and competent people is the most important factor in any management, anywhere.
Management is the art of knowing what you want to do, and then seeing that it is done in the best and the cheapest way. It is needless to say that availability of capable machines and equipment is a must to do the things in the best and the cheapest way.
Quality, quantity, availability, cost/market price and transportation of raw materials, semi-finished goods, and finished goods need no emphasis. It is a clearly a very vital factor in the success of management.
Financial capital is money used by entrepreneurs and businesses to buy what they need to make their products or to provide their services to the sector of the economy upon which their operation is based.
Availability of funds for running the business is extremely important particularly for procuring capital goods, raw materials, tools and consumables, and availability of working capital.
If we have to do things in the best and cheapest way, it is also important how the things are processed. That is, by which method the things are processed. The proper method will ensure required quality, quantity, and in-time delivery. It will ensure the accomplishment of management objectives.
Methods from the competitive edge. For example, in our kitchen, two girls are told to prepare a cup of tea each. Same raw materials such as milk, sugar, tea powder etc. are given to both of them.
Girl A prepares the tea as follows:
Puts a cup of milk in the utensil and boils it. Then puts the water and sugar (1 teaspoon) and tea powder (1 teaspoon) and boils it again.
Girl B prepares the tea as follows:
Puts water and sugar in the utensil. After the mixture starts boiling, she puts the tea powder in it and lastly puts milk.
The two cups of tea have different tastes in spite of all four factors (M’s) same. However, the method makes the difference.
If one standardized method is used by any person anytime, the taste will always be the same.
That is why the quality of idli sambar in an Udipi restaurant is always the same. Mc Donald’s restaurant offers the same taste of French Fries all over the world. Standardization of methods is the reason why they are able to do it. It is also an answer to all our problems.
Shampoo produced by Company A and B are different in quality in spite of same raw materials. The Shampoo of Company A is in great demand. So, the company B does detailed research as to what exactly company A is doing to attract customers, then implements a better method, in addition, company B adds some extra benefits to the customer to improve the market share of their shampoo.
If there are four bhelwalas, many times we see that only one of them is in demand and is not able to control the rush. This is because, in addition to the better method of preparing bhel, he offers added advantages to the customers such as good housekeeping, clean workplace, better colors, extra quantity etc. Actually, he offers better value for money to the customers.