AEM1200_0929 - AEM1200 Introduction to Business Management...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: AEM1200, Introduction to Business Management. AEM1200, Monday 9/29 The business firm Review (I) Operations, organization, and management Marketing Business: Business: An activity that seeks to provide goods and An services to others while operating at a profit services Revenue – Expense = Profit (Loss); Entrepreneurship The higher the risk, the higher the The probability of losing a large amount of money; of Investment of Investment factors/resources/capital will occur only if there is a equally large or only larger probability of winning a large winning amount of money. amount Known likelihood of losing a large amount of money; amount Unknown likelihood of losing a large Unknown amount of money amount An entrepreneur is a person An entrepreneur who risks time and money to start and manage a business start Personal Institutional Ownership Risk Employment Others Uncertainty Customer Supplier Government Management Management Functions of Functions Management Management Managers manage Planning Strategic Tactical Operational Contingency Contingency People Resources Information Management Skills Organizing Leading Controlling Technical Human relations Conceptual Forms of Business Ownership Forms Sole proprietorship A business owned and managed by one person A legal form of business with two or more owners A llegal entity with authority to act and have liability separate from its egal owners owners The right to use a specific business’s name and sell its products or The services in a given territory services A business owned and controlled by the people who use it – producers, business consumers, or workers with similar needs who pool their resources for mutual gain. mutual Partnership Corporation Franchise Cooperatives Corporate, bureaucratic organization Corporate, Setup by function Departmentalization Specialization Divisional organization Matrix organization Derivative organizational forms Legal-rational authority Hierarchical, centralized chain of Hierarchical, command command Span of control Vertical communication Rules and regulations Equal treatment for all employees Specific standards of work and Specific output output Extensive record keeping Organizational Behavior Organizational Hawthorne Effect Maslow’s Hierarchy of Needs The tendency for people to The behave differently when they know they are being observed know Physiological, safety, belonging, Physiological, esteem, self-actualization; esteem, Motivation Herzberg’s hygiene and Herzberg’s motivation factors motivation MacGregor’s X and Y theories The set of forces that initiates, The directs, and makes people persist in their efforts to accomplish a goal; accomplish Ouchi’s Z theory Effort = Instrumentality X Effort Expectancy X Valence Expectancy Employees’ satisfaction Employees’ depends on equitable comparison of rewards with coworkers coworkers Vroom’s expectancy theory Job Performance = Job Motivation X Ability X Situational Constraints Situational Stacy Adams’ Equity Theory Work Team Variables and Stages of Team Development Stages Norms Forming Informally agreed-upon Informally standards that regulate team behavior; behavior; Extent to which team members Extent are attracted to a team and motivated to remain in it. motivated Cohesiveness First meeting Initial impressions Establishment of initial Establishment team norms team Who should do what? How should it be done? Roles Cohesion “Final” norms evolve Storming Size Conflict Norming Cognitive Affective Performing Types of Operations Types Craft production Lean Production High customization and variability High in the product in Eg. Glass blowing, fine musical Eg. instruments instruments The use of productivity The tools and techniques to increase quality and efficiency while reducing use of resources use Total Quality Management Continuous improvement Employee empowerment Just-in-time Mass production, assembly line High standardization and High uniformity in the product uniformity Eg. Car manufacturers Mass production, process plant Undifferentiated products Chemicals, agriculture Six-sigma criterion Quality measure that Quality allows only 3.4 defects per million opportunities Marketing Marketing The process of The planning and executing the conception, pricing, promotion and distribution of ideas, goods and services (products) to create mutually beneficial exchanges. exchanges. Reaching the market Segmentation Targeting Positioning Product Price Place Promotion The Marketing Mix Customer Acquisition Customer and Retention and Product Concepts Product Product Line A group of products that are physically similar or are intended for group a similar market. similar The combination of product lines offered by a firm. Everything that consumers evaluate when deciding whether to Everything buy something. buy The creation of real or perceived product differences. A name, symbol, or design that identifies the goods and services name, of one seller and differentiates them from those of the competition of Development / Introduction / Growth / Maturity / Decline Product Mix Value- Total Product Offer Product Differentiation Brand Product Life Cycle Price Strategies Price Cost-Based Value-Service based Strategies Skim Penetration EDLP High-Low Cost Leadership Non-price competition Add value Educate consumers Establish relationships Why the Distribution Chain? Why Form utility Taking raw materials and changing their form so that they become useful products Making products available when they are needed Making products available where they are needed Doing whatever is necessary to transfer ownership from one party to another, including Doing providing credit providing Opening two-way flows of information between marketing participants The provision of fast, friendly service during and after the sale, including teaching The customers how to best use products over time customers Time utility Place utility Possession utility Information utility Service utility The Promotion Mix The Advertising Personal selling Creates awareness Pull strategy Least cost per customer Sales promotions Most effective in reaching Most first sale / trial first Expensive Both push and pull Highly personalized and Highly expensive expensive Best used in B2B activities Most cost effective for Most small businesses small Push strategy Public relations Develop / maintain brand Develop and “license to operate” and Career Development Career Career Career Development Process Process Career Development Model Understanding yourself Interests Values Strengths Confusion Exploration Crystallization Specification Implementation Exploring options Publications Volunteering Contacts Contacts Internships Internships The skills that make a The person employable are not so much the ones needed on the job as the ones needed to get the job!!! the Take action Networking Applications Resumes Interviews Takeaways Takeaways Business and management are everyday Business realities of our social life; realities There has been an evolution of business, from There hierarchical bureaucracies to flexible, customerhierarchical oriented communities; Marketing is a fundamental part of the customeroriented business Product Price Place Promotion A Peek at the News Peek Intermediate Financial Institutions Investment banks Mortgage originators Investment insurance Hedge funds The collapse of the subprime mortgage market The has resulted in credit crunch and asset deflation; credit asset The Paulson Plan provides the economy with The much needed liquidity and separates the performance of subprime assets from that of the financial sector. financial ...
View Full Document

This note was uploaded on 11/12/2009 for the course AEM 1200 at Cornell.

Ask a homework question - tutors are online