1 / 23

1.1 What is a Business & Management

1.1 What is a Business & Management. Objectives. Define business. Define management & manager. Explain the relationship between business & management. Identify & describe the 3 major functions of a business. Group Activity.

nguyet
Download Presentation

1.1 What is a Business & Management

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 1.1 What is aBusiness & Management

  2. Objectives • Define business. • Define management & manager. • Explain the relationship between business & management. • Identify & describe the 3 major functions of a business.

  3. Group Activity • Brainstorm and invent a product. Use the top ½ of poster paper for the following; • Title = name for your business • Product Description = explain what your product does. • Diagram = product sketch or flow chart (service) • Competitors = list of other existing products that you compete with • Core Competencies = factors that are essential for success • Business Statement = The purpose of our business is to _______________

  4. What is a business? • An organization that creates & satisfies customers

  5. 9/12 Warm-up • Identify the purpose of a business (why does a business exist?) • Explain the role of management in a business; • Why is management needed? • What does management do?

  6. Objectives • Define management & manager. • Explain the relationship between a business & its management. • Identify & describe the 3 major functions of a business.

  7. Mind Mapping Activity • Brainstorm a list on what you need to start and run your business and write on bottom ½ of poster. • People • Materials, Equipment, Machinery

  8. Management& Managers Management Managers Anyone responsible for contribution to the results of an organization Results = impact on organization Generate income Define its direction Its performance • Businesses grow, become complex & require organization • Variety of tasksperformed in cooperation, synchronization and communication

  9. What do Managers Do? • Integrate resources into a viable growing organization • Set objectives – organizational goals • Organizes • Motivates & communicates • Measures– establishes targets & yardsticks • Develops People – including themselves

  10. 9/13 Warm-up • Which sector (Primary, Secondary or Tertiary) dominates the U.S. economy? • Explain why this sector dominates? • Give an example of a business in each sector.

  11. Three Major Business Functions

  12. Marketing is … • Defining customer’s needs & designing products that answer these needs • Done from the customer’s viewpoint • Does target customer want to buy what we are selling? • What is the customer buying? • Not- What are we selling? • How does the customer distinguish us from the competition?

  13. 9/14 Warm-up • Explain how and why marketing impacts all aspects of a business.

  14. The Marketing Function Target Customer Identify their needs, realities and values. What do they want to buy? What satisfactions are they looking for? Product Benefits – how it improves customer’s life Differentiation – how & why customer believes it is better than competitors “Process” Development, Pricing, Promotion & Distribution

  15. The Operations FunctionTransforming Inputs into a Product Customer Feedback • Inputs • People • Facilities & Processes • Technologies • Materials • Outputs • Goods • Services The Transformation Process Performance Information

  16. The Finance Function Obtaining the money to fund the start-up, expansion and day-to-day running of the business • Paying for fixed assets • long-term function • used repeatedly • define the scale of the business (production capability) • usually expensive • decline in value over time (depreciation) • Paying Expenses • Direct costs • Wages, raw materials, stock (inventory) • Indirect (overhead) costs • Rent, Advertising, Insurance, Electricity • Interest, Taxes Capital Expenditures Revenue Expenditures

  17. Functions for Your Business • Marketing • Describe your target customer • Identify the benefits (how product improves their life) • Differentiation (how is your product different from competitors) • Operations • Resources needed (human (labor), capital (equipment), materials) • Transformation process • Finance • Funding needed to start-up business? • Sources of funding (where will you get this money?)

  18. Objectives • Identify how a business adds value. • Describe business activity in the primary, secondary & tertiary sectors.

  19. Warm-up • For a business, what is the function of profit? • Do all businesses need to make a profit?

  20. Adding Value = “Utility” How Business makes a product capable of satisfying customer’s needs • Form Utility • Place Utility • Time Utility • Information Utility • Possession Utility

  21. Utility Types • Form Utility • creating use • putting pieces together • combining ingredients • Place Utility • put product where people can buy it • Time Utility • available when people want to buy it • Possession Utility • facilitating exchange • Information Utility • communicating to customer • branding

  22. Adding Value Selling cookies that cost $0.23 for $0.33 How is that $0.10 of value created? Information Utility Possession Utility $0.10 Profit (per cookie) Time Utility Place Utility Form Utility

  23. Group Activity • Explain how your business creates value

More Related