Post on 12-Apr-2022
transcript
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Objectives
1. To identify the types of businesses.
2. To identify departments within
businesses.
3. To describe the activities each
department is responsible for overseeing.
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Main Menu
» Types of Businesses
» Human Resources & Management
» Finance & Accounting
» Marketing, Production &
Distribution
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Types of Businesses
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Types of Businesses
» Are classified by the work activities
performed
» Include:
– producers
– processors
– manufacturers
– intermediaries
– service firms
– non-profit organizations
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Producers
» Develop products for distribution from raw
goods
– raw goods – materials derived from natural
resources
» Examples include:
– farming
– forestry
– mining
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Processors
» Change raw goods into a more finished
form
» Produce processed goods
» Examples include:
– cotton mills
– oil refineries
– textile mills
– food processors
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Manufacturers
» Change raw or processed goods into
finished goods
» Examples include:
– juice factories
– clothing factories
– automobile factories
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Intermediaries» Are referred to as the middleman
» Move finished goods from one business to
another
» Buy, store and resell goods
» Examples include:
– wholesalers
• buy finished goods from
manufacturers in large quantities
and sell them to businesses in smaller quantities
– retailers• buy finished goods from manufacturers or
wholesalers and sell them directly to the consumer9
Service Firms
» Provide services to consumers and other
businesses
» Examples include:
– beauty salons
– landscaping companies
– plumbing companies
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Non-profit Organizations
» Provide goods and services to businesses
and individuals
» Operate on donations, volunteers and
philanthropists rather than income/profit
» Examples include:
– Salvation Army
– United Way of America
– American Red Cross
– YMCA and YWCA11
Business Departments
» Human Resources
» Management
» Finance and
Accounting
» Marketing
» Production and Distribution
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Human Resources &
Management
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Human Resources
» Requires following laws and proper
procedures
» Requires people with strong human
relation and communication skills
» Responsibilities include:
– maintaining the employment process
– training and developing staff
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Employment Process
» Is carried out by human resources
» Goal:
– to obtain qualified employees who are well-
matched to the open position
» Steps:
1. assess employment needs
2. recruit potential employees
3. select employee who fulfills goals
4. help employee get oriented15
Employment Process
» Step one: assess employment needs
– determine what openings in the company
need to be filled
– analyze what the open position involves
– obtain or write job description, including:
• qualifications
• duties
• responsibilities
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Employment Process
» Step two: recruit potential employees
– look within the company first
– contact and utilize the following:
• newspaper and/or Internet advertising
• colleges, universities, and technical or vocational
schools
• applications on file
• employment agencies and/or labor and
professional organizations
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Employment Process
» Step three: select employee who fulfills
goals
– review applications, resumes and cover
letters of applicants
– choose applicants appearing to best match
company opening and conduct interviews
• if there is not an appropriate applicant, start again
at recruiting potential employees
– review all obtained information and select
best applicant
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Employment Process
» Step four: help employee get oriented
– introduce to coworkers
– help fill out new employee paperwork
– answer questions about company pay,
benefits, policies, etc.
– assist during adjustment phase
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Training & Developing
» Is also performed by human resources
» Goal:
– maintain well-trained, qualified employees
» Is accomplished through:
– training
– evaluating performance
– focusing on motivation and cooperation
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Training
» Can be done individually or in groups
» Includes the following techniques:– on-the-job training
• companies train employees while they work
• employees have hands-on practice with supervision
• occurs typically on an individual basis
– group training• companies teach new skills to several employees at
once
• employees listen and learn from each other
• employees get the opportunity to express ideas and
share experiences21
Evaluating Performance
» Is often achieved through performance
appraisals
– managers evaluate employee performance
– managers provide feedback to employees
» Helps when making decisions, including:
– transfers
– layoffs
– promotions
– terminations
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Focusing on Motivation
» Can help meet employees needs
» Includes two types:
– extrinsic – motivation through outside sources
• for example: money, benefits, recognition
– intrinsic – motivation occurring internally
• for example: challenge, enjoyment, accomplishment
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What motivates you to do well in school or
hobbies? Are they extrinsic or intrinsic
motivators?
Motivation
» Can be ensured by meeting employees’
needs, including:
– hierarchy of needs proposed by Abraham
Maslow:
24Basic Needs – food, shelter, etc.
Safety – physical & emotional
Belonging & Love – feeling accepted, loved, etc.
Self-Esteem – feeling skilled, useful, etc.
Self-Actualization – realizing full potential
Focusing on Cooperation
» Improves the output produced by working
together in groups
» Is needed to ensure high work quality and
employee job satisfaction
» Requires effective communication in
order to:
– enhance group dynamics
– ensure employees know and understand
their roles
– encourage employees to contribute ideas 25
Management
» Is the process of reaching a company’s
goals and objectives by utilizing its
resources
» Has these four main functions:
– planning
– organizing
– directing
– controlling
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Planning
» Is management’s first main function
» Means determining a direction for the
company
» Includes the following:
– setting long- and short-term goals
– determining strategies to utilize company
resources
– creating a written plan
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Organizing
» Is management’s second main function
» Means obtaining and coordinating
resources to meet company goals and
objectives
» Includes the following:
– creating structure
– dividing up the workload
– arranging resources
– coordinating activities28
Directing
» Is the third main function of management
» Is leading employees to carry out their
assigned tasks
» Includes the following:
– staffing
– motivating
– influencing
– guiding
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Controlling
» Is management’s fourth main function
» Is ensuring results meet expected goals
and objectives
» Includes the following:
– evaluating employee performance
– solving problems
– setting standards for desired performance
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Management
» Is most effective when all four functions
play an important role
» Is responsible for making sure the
company runs smoothly
» Must remember to evaluate progress
regularly and provide feedback to the
appropriate personnel
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Finance & Accounting
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Finance & Accounting
» Are vital because a business cannot exist
without cash flow
» Focus on the following:
– creating up-to-date, accurate financial
statements
– making a plan to create profits
– managing and utilizing company resources
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Accounting
» Is a system used to record, classify,
summarize and report the financial
position of a business
» Responsibilities include:
– recording financial transactions
– creating financial statements
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Financial Transactions
» Are financial entries affecting the financial
position of a business
» Include these classifications:
– assets – items of value owned by a business
• examples include: cash, land, buildings, equipment
– liabilities – debts or obligations of a business
• examples include: credit, mortgage payments
– owner’s equity – amount of capital invested by
owners
• total value of assets minus liabilities35
Financial Transactions
» Include the accounting equation:
» Are recorded, classified and summarized,
providing information used to create
financial statements
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assets = liabilities + owner’s equity
(both sides of the equation must balance)
Financial Statements
» Are the reporting process of accounting
» Are used to make financial decisions
» Include two main types:
– balance sheet – reports totals in asset, liability
and owner’s equity accounts
– income statement – reports net income or net
loss of a company
• net income – when revenue is greater than expenses
• net loss – when expenses are greater than revenue
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Financial Statements –
Balance Sheet Example
Kay’s Kloth Shop
Balance sheet
Assets
Cash in bank $4,000.00
Cloth $8,000.00
Supplies $2,000.00
Total assets $14,000.00
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Liabilities
Accounts payable $ 4,000.00
Owner’s Equity
Capital from Kay $10,000.00
Total liabilities
and owner’s equity $14,000.00
Financial Statements –
Income Statement ExampleKay’s Kloth Shop
Income Statement
Revenue:
Cloth Sales $6,000.00
Expenses:
Advertising $100.00
Utilities $300.00
Rent $600.00
Payroll $3,000.00
Total expenses $4,000.00
Net Income: $2,000.0039
Finance
» Goal:
– determine use of company resources and
funds
» Responsibilities include the following:
– managing use of company funds
– obtained needed funds
– creating a financial plan
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Finance
» Funds are used to do the following:
– buy resources used to create goods and
services
– pay expenses required for operation
» When available, excess funds can be used
in many ways including:
– purchasing assets to help the company grow
– paying unexpected or high expenses
– investing to obtain profit
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Finance
» Sources of funding include:
– borrowing funds
– selling stock
– looking for new investors
– increasing owner contributions
» The financial plan does the following:
– specifies what funds are needed
– documents period funds are needed
– is crucial to the success of a business42
Marketing, Production
& Distribution
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Marketing
» Goal:
– to create products meeting consumer wants
and needs based on the marketing mix
– to guide products through the product life
cycle, capitalizing on opportunities in each
stage
– to understand consumers through marketing
research
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The Marketing Mix» Consists of four interrelated marketing
strategies used to meet consumer needs1. Product
– is a good and/or service designed to meet consumer
wants and needs
– is determined by conducting studies and surveys
2. Price
– must be low enough to attract consumers
– must be high enough to cover costs and create profit
3. Promotion
– activities to persuade consumers they need the product
– includes packaging, commercials, trials, etc.
4. Place
– is a location where products and/or services are sold
– includes stores and location within a store45
Product Life Cycle
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Stage 1
Introduction
Stage 2
Growth
Stage 3
Maturity
Stage 4
Decline
Understanding Consumers» Means understanding the needs they attempt
to meet when making purchases, including:– physical
• for necessities, safety, security and health
• includes food, clothing, transportation, etc.
– social• to feel loved and accepted
• includes fancy clothing, make-up, cologne, etc.
– psychological• for prestige and approval
• includes luxury items which make the consumer feel
important
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Remember Maslow’s hierarchy of needs pyramid?
These apply for consumers too.
Production & Distribution» Goal:
– to produce and distribute goods and services in
the most efficient and cost-effective manner
» Consists of three roles:1. facilities – physical elements needed for
production
• need a good layout and location
2. processing – changing or combining resources
to create a product or service• adds value by transforming resources into products
3. people – invaluable human resource• plan, operate and supervise the process 48
Production
» Must be effective and efficient by doing the
following:
– forecasting demand
– scheduling production of goods and services
– managing inventory
– controlling quality
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Distribution
» Is getting produced goods and services to
consumers in a timely manner
» Is typically from producers to wholesalers
and retailers
» Uses the following four modes of
transportation:
– waterways
– railroads
– trucks
– airlines 50
Acknowledgements
51© MMXIV
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