Sm Bus Mng exam 3

an organization that takes inputs of raw materials, capital, labor and management skills to produce useful outputs of goods and services so as to earn a profit.

business

one who organizes/manages & assumes the risk of a business firm.

• 1. actively managed by the owner
• 2. highley personalized
• 3. largly local in its area of operation
• 4. largly dependent on internal sources of capital
• 5. independtly own & operated & does not dominate the field of operation

principal goverment agency concerned with the financing, operation and management of a small business

combat growing monopolies by the larger businesses

to encourage competition by small business as a bases of free enterprise

• minning/manufacturing- 500 to 1500 ppl
• wholesale- up to 500 ppl
• retail- 25 to 300 ppl
• service- 25 to 300 ppl

3 1/2 million on up depending on type of business

• manufacturing business
• merchandising business
• service business

one who makes finished goods from raw materials by hand or machinery

they purchase finished goods for resale

provides a service as oppose a product

small business are essential to enable a few large ones to concentrate on those economic where their efforts are more effective.

• 52% of all private employment
• 51% of the nations total output of goods & services (as of 2002)

economic development of the U.S. has resulted from the efforts of small business

individuals and small business provide the major source of new ideas, inventions, and innovations

the art & science of motivating people into achieving

• competitors
• technological change
• economic conditions
• societal values and attitudes
• political process
• physical condition

important for managers to recognize and understand the activities of their competitors in a market in order to make decisions about pricing, product, modifications and advertising

this can lead to decrease in price due to the discovery of a cheaper method for manufacturing a product (steel) or can result in an organizations product becomingf obsolete

inflation rate, intrest rates

environment vs. cremation, 7-11 vs. playboy

federal, state, local taxes

natural events, sunny, rainy, snowy, tornadoes, hurricanes, earthquakes

• like employee's
• research in development (R & D)
• financing
• marketing
• advertising

• technical skills
• human skills
• conceptual skills

the ability that are nessary to carry out specific task that have been assigned

the ability to work with, motivate and direct individuals for a common goals

ability to understand that degree of complexity in a given situation and to reduce that complexity to a level at which specific courses of action can be derived

• 1. Planning
• 2. Organizing
• 3. Motivating
• 4. Directing
• 5. Controlling

the selection of ordering of task that are required to achieve an organization goals

the assignement & coridination of task & resources necesary to perform each task

Goal directing forces that organize the tension caused by unsatisfy needs

the process of motivating, leading & influencing activities of subornates

selection, evaluation & comparison of information in order to correct any task improperly preformed

desired state of affairs which the organization tries to realize

• A. Goals affect the way the organization relates to the enviroment, serving to clarify the connection between organizational activities and other organizations, groups and individuals in the enviroment
• B. Goals guide the internal activites of the organization, providing employees knowledge of task scope, decision guidelines, methods of motivations, performance criteria and a rational for organizaing.

reason for the organization's existence. Without purpose the organization need not exist. This is determined by the creators.

the path that managers choose to achieve the purpose

the acceptance of the organization's activites by non-memebers of the organization

written statements of actions and decisions that will lead the company to its goals or mission

10 yrs

2-9 yrs.

1 yr. or less

• human resource planning
• capital shortage

developing a comprehensive strategy for meeting future human resource needs for qualified employees to perform necessary activities

the lack of avalible money

EPA, OSHA, EEOC, FTC, IRS

• economic factors 45%
• finance causes 37.2%
• experience causes 10.5%
• neglect causes 3.12%