Prelim-Final Topic
Three Activities:
- It must Organized
- It must Satisfy Needs
- It must earn profit
Four Resources:
- Human
- Materials
- Money Financial
- Information/ Entrepreneurship
Classification of Business according to size
- Very Small - below 20
- Small - 20-99
- Medium - 100-499
- Large - 500 up
Classification of Business According to Ownership:
1.Small/Sole Proprietorship- owned by single person.
- easily mostly form
- oldest form of business organization
- it has unlimited liability
- easy to form, it requires small capital
- all profit belong to business owner
- lack of stability, it has less access to credit
- limited knowledge and skills
2. Partnership- association of 2 or more person/co-owners
- easy to organized, with high credit available
- it has more capital
- partners get all profit
- more knowledge/skills
- it has unlimited liability/ lack of stability
- management disagreement
- idle investment
- each partner contributes money, services or property
3.Corporations- an artificial being created by operation of law.(article of incorporation)
- limited liability
- easy to raise capital
- perpetual life
- specialized management
- difficult to organized, strictly by the government
- formal and in personal relationship
- existence of shares of certificates of ownership called "STOCK"
Law of demand
- a desire from products to buy.
Law of supply
- result from the desire of consumer for every producers.
"Different Economic Environment"
Capitalism- is an economic system based on the managing of people.
Communism- central planning for economic and social activities.
Socialism- combined the communism and capitalism.
Classification of business by Division
3 categories:
- Genetic Industries-forestry, fish culture, agriculture
- Extractive Industries- from nature ex. mining, fishing
- Manufacturing Industries-working on materials for industrial processing ex. making a gold
Business Organization- two or more persons can pool their resources and work together to attain their common objectives.
Basic Considerations in organizations:
- Clear and competent statement of the objectives
- Thorough analysis of the entire position
- Necessary functions should be determined
- Men best for work & to head each department
Principles of Organization
- Principle of objective
- Principle of analysis
- Principle of simplicity
- Principle of functionalities
- Principle of Department
- Principle of Centralization of authority
- Principle of limited span of executive control
Management:
The pursuit of organizational goal efficiently and effectively by:
Efficiency- use of people
Effectiveness- specialized skills
Integrating the work of people through:
*Planning *Leading
*Organizing *Controlling
Deligation - give authority
Levels of Management
1. Top Manager
2. Middle Managers
3. First Line or First Level of Managers
Management – Capital and Labor
CEO – Cheaf Executive Officers
COO – Cheaf Operating Officers
Top Managers- responsible for long term decisions.
-Stablish operating policies and strategies.
-One of executives, highly competitive condition.
Middle Managers- responsible for implementation of policies
-division head, marketing direction, plant manager, dean of students
1st Line – supervised short term operating decision directing and supervising the activities.
-Foreman / team Leader, departmental head, supervisor, hr department
(Skills of level of management)
The Manager Skills:
1st level * Technical Skills – ability to perform specific tasks.
Top managers * Conceptual Skills – ability to think analytically and strategically
All level * Inter personal Skills – interrupt and work with other people
-coordinate other people to achieve goals.
Managerial Roles:
· Interpersonal – relationship of people with other person.
- Figure role
- Leadership role – responsible of actions.
- Liaison role - interrupting with other people.
· Informational Roles – include receiving and community information with other people.
Monitor Role –
· Decisional Roles – make decision and take advantage of opportunities.
Sports person Role – serves as diplomat inside/outside – spoke person
The Four Principal Functions
Planning
Defined as setting goals and deciding how to achieve them.
Planning is the first function of management. Its absence will make all other functions in total disarray. Management has to plan its goals, and the utilization of its productive resources. It is vital in making decisions.
Planning deals with selecting missions and objective and the actions to be taken to achieve these objectives. It is a rational approach in achieving pre-selected objectives. Its emphasis is on efficiency and effectiveness of operations.
Typical Decisions
· What are the organization’s long term objectives?
· What strategies will best achieve these objectives?
· What should the organization’s short-term objectives be?
· How difficult should individual goals be?
Types of Plans
· Strategic Plan
v Strategic Plan is focused on the entire business operations. Strategy is defined as the determination of the basic long-term objectives of an organization and the use of course of action and allocation of resources necessary to attain these goals.
This involves of two levels
v Top Management – who formulates corporate objective.
v Lower levels of Management – who develops relevant objective, plans and how to attain them.
Strategic planning predicts the external business environment such as government policies, business cycles. Competitions. Etc.
· Tactical Plan
v A series of tactical constitute a strategic plan.
v Division managers are involved in tactical planning and time frame is usually one year or less. They plan what to do, How to do it and Who will do it.
· Operating Plan
v An operating plan provides the specifics as how the strategic plan will be attained.
v Managers make use of operating plans to accomplish their job responsibilities.
There are 2 main types under this category:
1. Single-use Plan. This is applicable to activities that do not repeat. Once the activity has been implemented, the plan is no longer needed.
A program is an example of a single-used plan; it is comprised of goals, policies, procedures, rules, tasks, assignments, steps to be taken, resources to be used, and other mediums necessary to carry out a given course of action supported by a budget.
2. Ongoing Plan. This is utilized for continuing situations, problems, concerns and the activities which are similar and consistent.
Examples of ongoing plans are:
Policies – are basically general statements that guide the thinking of managers in decision-making.
Procedures – are plans spelled out in a detailed manner in which activities must be accomplished.
Rules are regulations governing conduct observes by employees and a plan controlling human behavior at work.
Organizing
Defined as arranging tasks, people, and other resources to accomplish the work.
Typical Decisions
· How many subordinates should be reporting directly to a manager?
· How much centralization should there be in the organization?
· How should jobs be designed?
· When should the organization implement a different structure?
Steps in organizing
Step 1: Evaluate Plans and Objectives
Objectives and plans need to be evaluated. It may change If there is a change in the environment of the organization.
Step 2: Identify the Various Activities
Identify activities to be performed to accomplish various organizational activities.
Step 3: Group Similar or Related Activities
Similar or related activities should be grouped under one department or division.
Step 4: Assign Activities with Appropriate Authority
Competent individuals with adequate authority are assigned activities to execute their jobs efficiently and effectively.
Step 5: Design a Hierarchy of Relationships
Organizational Structures , Vertical and horizontal relationship of the organization.
Leading- Defined as motivating, directing, and otherwise influencing people to work hard to achieve the organization goals.
Leadership Styles
· Autocratic leaders- impose their authority and decision making power on the their subordinates.
· Participative leader- This is a democratic form of leadership.
· Free-rein leaders- This is a laissez faire form of leadership.
Controlling
Defined as monitoring performance, comparing it with goals and taking corrective action as needed.
Typical Decisions
· What activities in the organization need to be controlled?
· How should activities be controlled?
· When is a performance deviation significant?
· What type of management information system should the organization have.
Types of Control
· Pre-action Control- is the proper allocation of budgeting of productive resources prior to the activity.
· Steering Control- is intended to detect deviations from the established standards or objectives.
· Screening Controls- provides the conditions to be met before operations continue.
· Post Actions Control- measures results of a completed activity.
Control Process
The control process according to muckler:
· Establishes standards of performance
Standard of objectives must be clear, specific, measurable and acceptable by the workers and employees involved.
· Measures Performance
Monitoring of performance to collect data and to perceive problem areas.
· Take corrective action
If standards are not met, cause of deviation should be identified and must be corrected.
Marketing- a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
Needs- A state of felt deprivation.
Want- the form taken by a human need as shaped by culture and individual personality.
Demands – Human wants that are backed by buying power.
Product – Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
Service – Any activity or benefit that one party can offer to another is essentially intangible and does not result in the ownership of anything.
Customer Value – the difference between the values the customer gains from owning and using a product and the costs of obtaining the product.
Total Quality Management – Programs designed to constantly improve the quality of products, services, and marketing processes.
Exchange – The act of obtaining a desired objects from someone by offering something in return.
Transaction – A trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement.
Relationship marketing – the process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
Market – the set of all actual and potential buyers of a product or a service.
Customer Value – the difference between the values the customer gains from owning and using a product and the costs of obtaining and using the product.
Customer Satisfaction – the extent to which a product’s perceive performance matches a buyer’s expectations.
· 5C Analysis
Company
Collaborators
Customers
Competitors
Climate
· PEST Analysis
Macro-environmental Political
Economic
Societal
Technological factors
· SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Marketing Strategy
· Market Segmentation – dividing a market into distinct groups of buyers on the basis of needs, characteristics, or behavior who might require separate products or marketing mixes.
· Market Targeting – the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
· Market Positioning – Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
General:
