Mr.Mohan Perera, CEO of Transco Cargo gave a presentation on "Developing Social Capital through Networking" to Senior Sri Lankan Government personnel at the 5th AFF Program held at Clayton Campus of Monash University, Australia. http://www.transcocargo.com.au

1. Mohan A J Perera

2. Introduction
 Topic – Developing Social Capital through Networking
 Structure of Discussion
 Self Intro
Mohan began his career as a Management Trainee at the Transport Arm of Aitken Spence & Co. Ltd and went up to be
Director/ GM of Aitken Spence Cargo by June 1999 and in 2008 July re-designated as Vice President/Chief Operating
Officer - Aitken Spence Cargo (Pvt) Ltd
In 2009 Migrated to Australia. At present MD/ CEO of Transco International (Aus) Pty Ltd

3. Synergy
“When two or more people / organizations combine their efforts, they can
accomplish more together than if you add their accomplishments
achieved separately”
Example - "The synergy between music beat and words of Musician"

4. Origin of the word Synergy
Mid 19th century: from Greek sunergos ‘working together’, from sun- ‘together’ + ergon ‘work’.
Source – Google

5. Synonyms for synergy
Teamwork / Alliance / Co-action / Harmony / Symbiosis / Synergism / Union /
Unity / Combined Effort / Team Effort / Teaming / Working together

6. Source – Google
Synergy....

7. Path to synergy
Source – Google

8. Think Outside the Box
Thinking outside the box is more than just a business norm. It means
approaching problems in new, innovative ways; conceptualizing
problems differently; and understanding your position in relation to
any particular situation in a way you’d never thought of before.
Source – Google

9. Think Outside the Box
11 ways to.....
 Study another industry
 Learn about another religion
 Take a class
 Read a novel in a unfamiliar type
 Write a poem
 Draw a picture
 Turn it upside down
 Work backwards
 Ask a child for advise
 Invite randomness
 Take a shower

10. Change – Mind-set
Self Confidence
Proactive
Positive Action
Determination
& Perseverance

11. Attitude is a key to change.......

12. Social Capital
What is exactly Social Capital?
“The networks of relationships among people who live and work in a
particular society, enabling that society to function effectively.”

13. Social Capital

14. The term Social Capital describes the various resources that people may
have through their relationships in families, communities & other social
networks

15. Social Capital bonds people together and help them to make links
beyond their immediate friends and neighbours

16. Social Capital can be described as the “Social Glue” that holds
people together in a community and gives them a sense of
belonging in a increasingly fragmented and uncertain world.

17. Social Capital develop relationships through doing things for one another
and in the trust that we develop in one another

18. Social Capital may help in bonding people together and promoting a
sense of shared identity, in bridging communities to the wider world
through networks that extend their communications with others

19. Policy makers are interested in Social Capital as a resource that may help
combat social exclusion

20. However Social Capital may also be misused to distract attention from
inequalities in wealth and resources in society and problems of poverty

21. Social Capital
Trust
MaturityReciprocity

22. Trust
One party (trustor) is willing to rely on the actions of
another party (trustee)
Trust
Social Capital

23. Reciprocity
Responding to a positive action with another positive
action
Trust
Reciprocity
Social Capital

24. Maturity
Maturity also encompasses being aware of the correct time
and place to behave and knowing when to act
Trust
MaturityReciprocity
Social Capital

25. Social capital is built through hundreds of little and big actions we take
every day. We've gotten you started with a list of nearly 150 ideas, drawn
from suggestions made by many people and groups. Try some of these
or try your own. We need to grow this list.
Example-
1. Organize a social gathering to welcome a new neighbor
2. Attend town meetings
14. Organize or participate in a sports league
57. Offer to serve on a town committee
72. Hold a neighbourhood barbecue
113. Hire young people for odd jobs
150 THINGS YOU CAN DO TO BUILD SOCIAL CAPITAL -
http://www.bettertogether.org

26. Drill down with a practical approach........

28. Comparison

30. Country Report – MDG
http://countryoffice.unfpa.org/srilanka/drive/MDG-Country-Report-2014.pdf

31. Starting a Business

32.  Step 1 – Why & How
 Why do I want to start my own business?
 Do I have the right skills and experience?
 Step 2 – Will it work?
 Conduct a survey
 Analyse the competition
 Conduct a risk assessment
 Step 3 – Choose your Business structure
 Sole Trader
 Partnership
 Limited Liability Company
 Buy-Over
 Step 4 – Regulation and Protection
 Register Trading Name
 Licence to Operate
 Insurance Contd....
Starting a Business

33.  Step 5 – Resources
 Staff
 Place of operation
 Step 6 – Money Matters
 Breakeven point
 Cash flow
 Cost of goods sold
 Establishment Expenses
 Operating Expenses
 Sales Forecast
 Step 7 – Marketing
Dr. Philip Kotler defines marketing as “the science and art of exploring,
creating, and delivering value to satisfy the needs of a target market at a profit.
Marketing identifies unfulfilled needs and desires.
Starting a Business

34. Business Plan

35. Business
Plan
Objective
Strategies
& Tactics
Target
Market
Financial
Forecast

36. Ideally speaking, each corporate,
department, and section objective
should be:
 Specific – target a specific area for
improvement.
 Measurable – quantify or at least
suggest an indicator of progress.
 Assignable – specify who will do it.
 Realistic – state what results can
realistically be achieved, given
available resources.
 Time-related – specify when the
result(s) can be achieved.
Business
Plan
Objective
Strategies
& Tactics
Target
Market
Financial
Forecast

37. Breakeven Analysis
The break-even point (BEP) in economics, business, and specifically
cost accounting, is the point at which total cost and total revenue are
equal: there is no net loss or gain, and one has "broken even." A profit
or a loss has not been made
Contd....

38.  The break even point is the point at which income and expenses are exactly equal.
The business has not made a profit or a loss, but you have recovered all business
expenses.
 Another way to look at it, is that at the break even point each unit you have sold has
paid for itself (cost of goods sold (COGS) or variable costs) and contributed a share
toward the total operating expenses (fixed costs or overheads) for the period.
 The break even analysis is critical for any business owner, because you will know
exactly when you begin to make a profit. The break even point is the lowest limit
when determining profit margins. You will know how low a price you can offer, and
the effects of discounting on your net profit.
 You can calculate the break even for any period of time – a year, quarter, month,
week, day – just make sure all three estimates relate to the same time period.
 The formula used to calculate the number of units for break even:
Number of units = total fixed costs
(unit selling price - variable unit cost)
Contd....

39.  The formula used to calculate the value in dollars for break even:
Dollar value = total fixed costs
1 - (total variable costs ÷ total sales)
 Fixed Costs
Fixed costs are paid whether or not you make any sales and are also known as business
expenses, overheads, outgoings or operating expenses. Fixed costs do not vary in
proportion to sales or production.
 Variable costs
Variable costs vary directly with the volume of sales or production and are also known as
the cost of goods sold (COGS), cost of sales, or direct costs of sales.
 Semi-variable
Some costs are semi-variable, that is, they contain both a fixed component and a variable
component. Semi-variable costs can be incurred without sales, but are affected by
volumes of trade. For example, telephone charges have a fixed line rental component and
a call charge component that will increase with increased sales.
For all practical purposes, a small business won't divide these semi-variable costs into
fixed and variable components. Exactly how the cost is classified is not critical, but it will
impact on your break even analysis. If you underestimate the variable costs (cost of goods
sold) you will underestimate your break even point.
Source - www.smallbusiness.wa.gov.au

40. Gross profit margin ratio
The gross profit margin ratio expresses the gross profit as a proportion of sales.
Note: gross profit is used to calculate the gross profit margin ratio
The gross profit margin ratio is used as one indicator of a business's financial health. It
shows how efficiently a business is using its materials and labour in the production
process and gives an indication of the pricing, cost structure, and production efficiency
of your business. The higher the gross profit margin ratio the better.
Gross profit margin ratio = gross profit ÷ income

41. The gross profit margin is simply the gross profit margin ratio expressed as a
percentage:
Gross profit margin (%) = (gross profit ÷ income) x 100
Larger gross profit margins are better for businesses
The higher the percentage, the more the business retains of each dollar of sales,
which means more money is left over for other operating expenses and net profit.
A low gross profit margin ratio means that the business generates a low level of
revenue to pay for operating expenses and net profit. It indicates that either the
business is unable to control production and inventory costs or that prices are set
too low.

42. Net profit margin ratio
The net profit margin ratio is the net profit as a proportion of sales.
The net profit margin ratio shows the proportion of every dollar of sales that is
left after all expenses have been paid, and remains as net profit.
Net profit is used to pay for interest, tax and distribution to the owners. The
higher the net profit margin ratio the better.
Net profit margin ratio = net profit ÷ income
The net profit margin is simply the net profit margin ratio expressed as a
percentage:
Net profit margin (%) = (net profit ÷ income) x 100

43. A high net profit margin ratio demonstrates how effective your business is at
converting sales into profit. It may mean that you are capitalising on some
competitive advantage that can provide your business with extra capacity and
flexibility during the hard times.
A low net profit margin ratio may mean that you are not generating enough
sales, the gross profit margin is too low, or that you are not keeping your
operating expenses under control to leave an acceptable profit.
A decrease in the net profit margin ratio over time may indicate cost blowouts
that require efficiency improvements. A business with a low ratio might need to
take on debt to pay its expenses.
Source - www.smallbusiness.wa.gov.au