BUS 200

By selling goods or services

Formed to make money by selling something

Formed to offer products or services purpose is to further its goals

The exchange of goods for an agreed sum of money

Amount of money a business makes after paying its expenses

Most are entrepreneurs

Possibility that the owner of a business may invest time and money and the business may fail

• Natural resources
• Capital 
• Human resources
• Entrepreneurship
• Knowledge

• Economic
• Technological
• Competitive
• Global
• Social

Stakeholders

Uncertainty

Competition

Common Economy

Ethics

Societal differences

Self-development

• Profit
• Law 
• Ethics
• Citizenship

• Embezzlement 
• consumer fraud
• Sexual Harrassment
• Cash payments to avoid taxes

• Making sleazy products
• Canceling company retirement plan
• Avoiding taxes on US revenues by using offshore banks

• Paying more despite union contract limits
• Selling raw milk for human consumption

• Green businesses
• Consumer friendly behavior 
• Employee fringe benefits
• Community contributions

Underlying beliefs that determine human behavior

Standards of right and wrong

Benefiting Society as well as the organization

• Protects whistleblowers
• Provides specific requirements for CEO CFO

• Companies are part of society
• Problem based
• Resources based
• Positive public image
• Companies are set up just to make profit

Positions on political and social issues

Sponsorship, fund raising, donations and other support

Supporting worthy causes

leveraging business for social change

• High costs of employer fraud
• Diminished stock price and sales growth
• Damaging lawsuits

Benefiting customers, owners, employees, suppliers, local and national community, and international community

Studies production, distribution and consumption of scarce goods and services

Risk

Study of large economic units and focuses on things such as GDP job growth and unemployment, CPI, and political factors

• Natural resources
• Capital 
• Human resources
• Entrepreneurship
• knowledge

• Command Economies
• Free-Market Economies
• Mixed Economies

GDP, Price-Changes Indexes, Unemployment Rate

• Importing and exporting
• Franchising
• Global outsourcing
• Joint venture
• Foreign subsidiaries

Limits on how many products are allowed in

bans on certain import or export products

• The World Trade Organization
• The World Bank
• The International Monetary Fund

Technical skills, Human skills, Conceptual skills

The ability to perform a specific job

The ability to interact well with people

The ability to think analytically

• Internal Strengths
• Internal Weaknesses
• External Opportunities
• External Threats

• Have an action plan
• research/environmental scan
• Mission values
• SWOT analysis
• Strategic directions

• Done by top managers
• they look at how they can achieve long term goals with the resource they have
• 1-5 years

• Done by middle managers
• They are looking at what contributions their groups can make with their existing resources to meet the strategic goals of the organization.  
• 6-24 months

• Done by supervisory managers
• They look at how to accomplish specific tasks with existing resources
• 1-52 weeks

• Dealing with uncertainty
• Thinking ahead
• Coordinating activities
• Evaluate progress

What you want to become

Fundamental Purposes

• Identify problem
• Dream up possible solutions
• Weigh alternative solutions and select one
• Implement the solution, then evaluate it

• Market penetration strategy
• Seek to increase sales of existing products to existing markets

• Product development strategy
• Create growth by selling new products in existing markets

• Market development strategy
• Introduce existing products to new markets

• Diversification strategy
• emphasize both new products and new markets to emphasize growth

• Planning
• Organizing
• Leading
• Controlling

set goals and decide how to achieve them

arrange tasks, people, and other resources to accomplish the work

motivate people to work hard to achieve companies goals

monitor performance, compare it with goals and take corrective action if needed

realizing goals

means of realizing goals

• Inadequate management skills
• lack of finances
• difficulty hiring and keeping good employees
• aggressive competition
• government paperwork

Help you get financing, think through different details, and plan for success

• Employment
• innovation

• Producing goods and services
• Providing paychecks and benefits
• Paying Taxes
• Donating Funds and goods to charity

values

Situation in which people have to decide whether to pursue a course of action that may benefit them or their organization, but that is unethical or even illegal.

Integrates the organization's ethics and values initiatives, compliance activities, and business conduct practices into the company's decision-making processes

attempt to prevent criminal misconduct by increasing control and by punishing violators

Creates an environment that supports ethically desirable behavior

• A social audit is a
• systematic assessment of a company’s performance in implementing
• socially responsible programs, often based on predefined goals

• is defined as innovative, social value–creating activity that can occur within or
• across for-profit or nonprofit sectors

• dividing up of an organization into smaller units, or departments, to facilitate management. 
• four arrangements
• functional, division, hybrid, and matrix

Group by work specialization

Grouping by similar products or services

conglomerate structures

groups divisions around similar businesses or industries

• authority, accountability, and responsibility
• division of labor
• heiarchy of authority 
• span of control
• delegation 
• centralization verses decentralization of authority

the legitimacy an organization confers on managers in their power to make decisions, give orders, and utilize resources. Authority has to do not with a manager’s personality but with his or her defined place in the organization. With authority goes accountability and responsibility.

Reporting and justifying results to superiors

an obligations to perform the tasks assigned to you

• heroes 
• stories
• symbols
• rites and rituals

person whose accomplishments embodies the value of the organization

narrative based on true events which is repeated to emphasize a particular value

• first is to help them understand goals 
• also helps sense of organizational identity
• there is a collective commitment to the goals of the organization
• social system stability is where people feel they are a part of the system

• establish standards
• monitor performance
• compare performance against standards
• take corrective action if needed

• ¤ Development
• of the global workplace and electronic commerce

• ¤ Consolidation
• of many national markets into one big world market

• ¤ Development
• of two opposite kinds of international business: huge firms and quick,
• Internet-enabled small firms.

• highest level of management
• make long term decisions

make short term operating decisions

Staying in business means constantly staying on your toes. Some suggestions are:

Keep Good Records & Know When to Ask for Help

Stay in Tune with Your Customers

Learn How to Manage Employees

a document that outlines a proposed firm’s goals, methods for achieving them, and standards for measuring success

the need the firm will fill, the operations of the business, its components and functions, as well as its expected revenues and expenses. basic idea behind the business