Introduction to Business Administration: The Company

Introduction to Business Administration

• The notes cover the first unit, focusing on the company and the entrepreneur.
• The primary question addressed is how to further knowledge and professional career upon graduating.
• Aspects to consider includes starting own company, working as a freelancer, working for another company, or working for a third-party organization.

The Case of Too Good To Go

• The case questions the concept of venturing into one's own business.
• Mette Lykke, cofounder of Endomondo and CEO of "Too Good To Go", took a leap of with her startup, not just once, but twice, driven by a desire to do something meaningful.
• Lykke's company employs 450 people, and implementing expansion in Sweden.
• The company is one of Europe's fastest-growing apps, boasting 18 million users and gaining 45,000 more daily.
• The app's customers range from students seeking cheap deals to environmentally conscious families, while older women are another key demographic.
• "Too Good To Go" has partnered with over 30,000 food suppliers, including Yo Sushi and Accor Hotels.
• The company considers itself to have "social impact".
• Its goal is to generate profit, but the timeline isn't defined yet.
• All revenue gets reinvested into growing business and expansion.
• To date, it has helped save over 25 million meals.

Motives for Starting a Company

• Losing a job can motivate individuals to create their own business.
• There is a drive for independence for people who dislike being told what to do, giving them flexibility and control over their work and personal lives.
• Identifying a niche market or business opportunity after talking with friends and family leads to starting business.
• Earning more money than working for someone else.

Entrepreneur vs. Intra-Entrepreneur

• Both launching businesses and managing internal corporate projects require equal levels of skill and talent.
• People who develop a buisness require "entrepreneurship" skills.
• People developing a product or service within a company need “intra-entrepreneurship” skills.
• Entrepreneurs launch new business based on an idea, invest their savings, manage responsibility, and accept risks of failure.
• Intra-entrepreneurs do not risk capital, and the consequences of failure are accepted by the organization.
• Intra-entrepreneurs can drive new product ideas, helping organizations become more innovative and adaptable.

The Company as Center of the Economy and Society

• The course aims to provide an overview of business and its role in economics and society.
• The new demands on employees include technical knowledge, social skills, and strategic capabilities.
• Essential attributes include a positive attitude toward change and a capacity for learning.
• The main goal is understand the business and work inside professionally.
• Aim is to provide the skills to better preform the tasks of a company's management.

Understanding the Business and the Entrepreneur

• An analysis of the concept of a business and the evolution of this idea throughout history, from an economic perspective to modern strategic consideration.
• Businesses can be viewed as organizations comprised of various groups (or stakeholders).
• Stakeholders include shareholders, managers, workers, customers, suppliers, creditors, the government, and the community—each with unique goals.
• It is crucial to analyze the corporate objective and how it shifts from profit to multiple objectives, set by engagement with stakeholders.
• Gaining maximum profit is one of the key main goals, but there are several objectives to reach.

Learning Objectives for The Unit

• Learn different concepts of a company.
• Learn and understand theories of companies.
• Learn about different objectives of a company.
• Learn the limit of maximum profit objective.
• Learn value creation as objective of a company.
• Learn who are all the different groups involved in setting company objectives.
• How to identify goals of shareholders or stakeholders.
• Learn the stakeholder map as tool to check how the degree of power affects goals of a company.

The Company as an Economic Production Unit

• A business is an entity that uses resources to meet needs, supplying goods or services.
• Production involves adding value to resources like raw materials to make them more desirable to buyers.
• The company identifies consumer needs and buys factors of production to get finished goods.
• Firm is a productive unit transforms factors inputs, to create a final product output.
• Companies decide how to use production resources and what amounts to produce to maximize profits.

Theory Based on the Neoclassical Approach

• A bussiness' economic action is made to maximize profits.
• From this approach a corporation is an autonomous unit that produces for the market using capital and labor to obtain profit.
• The corporation takes risks, which can be reduced via innovation or control.
• Bussiness' abide economic market and balance.

Criticisms of the Neoclassical Approach

• The neoclassical theory focuses more on markets than on the internal structure or social dimension of a company, it also fails to credit the entrepreneur figure for innovation or decision making.
• Economics questions capacity and rational thought, asymmetric information, asset integrity, and opprotunism.
• Alternative perspectives on the nature and function of business: the theorie of transaction costs, the theory of agency, and the theory of resources and skills set.

Theories of Transaction Costs

• The theory of transaction costs, attributed to Coase (1937) and Williamson (1975).
• This considers the company as a way of organizing the transaction.
• The theory of Neoclassical, doesn't consider transaction costs since it is based on a great market.
• Considering market information, negotiating with economic parties create costs that need to be managed in order to make production more efficient.
• Different methods to manage transaction costs creates unique results from each company for its compeditors.
• Example costs- Attorney or notary fees, business registration, accounting or data storage.

Agency Theories

• This way to see the business has relations due to signed agreements.
• These are between the director and the agent, where the director delegated rights, obligating the agent to defend needs, for payment.
• Preferences cause disagrements, causing "agency costs'.
• Minimizing these costs, while being a priority for the group.
• For example- The accionist is the director, depending on corporate governing.

Agency Analysis

• Agency is made to have business to incentivise congruence through motivations.
• With this incentives breack interests through contracts.
• An important part is to give the agent a chance to be productive as if they where the owner.
• Agent's that are not kept an eye on will bring economic consequences.
• Business will take up extra expendatures.
• Employees will fail to meet time set goals.
• The main set objective of the business will be forgotten.
• Value will not be given.
• Phrase: "The group will paddle in the same way that the director want's to".

Theory of Skills Set and Resources

• Barney's theory comes from using strategies, based on resources to have advantages.
• The company has physical stuff, human assets or, intangible (reputation).
• And "Know- how" (how to mix these resourses).
• The company will use skills to make its comptetition do good.

BARNEY Theory Breakdown

• The BARNEY model of resource analysis includes strengths, weaknesses, risks.

Organization Focused Bussinesses

• bussiness use resourses to meet the clients needs'.
• the definition of the company is a mix of human capital, techniques, with view of meeting a purpose.
• space of interation, which helps a group reach for ends.

Company's Basic Organisation

• A group that's socially set.
• To develop tasks, a cooperative plan must be made.
• Each task had set differences from another.
• There has to be a structure with some in charge of helping with a guide.
• The goal is to have a constant re-innovating plan.
• A plan that links with the outside.

Company Systems

• To identify system, parts have to link and identified (Kast and Rosenzewig, 1987).
• The businnes is said to be an artifical, orientated to ends, can comunicate, order and is also self control itself.

Comitted system.

• Knowing set goals.

• Making system.

• Act knowing limits.

• Revision of controlled results.

• Objectives must configure to be asegurated to work.

• Has access to degree of objectives and why there are changes.

The Bussiness as Systems

• The bussiness runs due to objectives, picking ways to get it, as well as being in-check. A continuos circle.

Controling a Bussiness

• Admistration for the bussiness is needed, seting up an objective as a first step.
• Meeting the goals and having organazation to make the company great.

Subsystems for Controlling The Company

• A real system will need the acctions to get clients, while making product.
• Financially, you will need the sources and a plan in process.
• The direction set to knowing how to make desicions
• Having group goals.

Business and Financial Value

• A company produces many riches that add to a nation's value.
• Interior product, value by company.
• Nationally made makes value interior and exterior.
• PIB rates production income.
• PNB rates the income for residents.

Extra notes

• Value is key for bussiness.

Market Factors of Service

• The consmer and bussinesses are in dual paper.
• Consmers want good and get income.
• Bussinesses seel goods and use factors that needed.

Objective of a Bussiness

• Objective is meet clients, help service.

• Good add value and made good desicion.

• To stay made sure the company gets values.

Critics of Perspective

• Idea is vague .
• Risks must be a factor.
• Having a timeline to see outcome.
• It takes perfect market.

Current objective

• Increase wealth for the ones that bought the bussiness.

Basics

• The creation comes with funcion of profits.
• The value mesure the indication.
• The creation of the value depends where market lands.

Value of bussiness

• The control of numbers.
• Market depends how bussiness looks.

Economic Value (EVA)

• Mears what creation will value and if the the new project will be the price to help company.
• The bussines has to create real cals.

Value Program

• Value comes feom making good desicions
• Working together.

Owners and Shareholders

• Share hodlers and stakeholders are the the people who value objectives.
• Theory shows that business are combined of heterogenous.
• Holders are person, organization thats affected.
• Shareholders and owners are the ones that want to put in capital for bussiness.
• Owners want to get payed in a shot period.

Owners Vision

• They want value.
• Have a diff profile.
• Have great requirements.

Conclussion points

• To compare good and help with problems.
• Having great plans, good items, makes the company amazing.
• Some recuerses will get better outcomes.

Power Struggle

• Having informstion helps.
• The power the owners has creates goals.
• Knowing what it is to be one lets stay safe.
• By having control lets people be on top.

Types of StockHolders

• Stockholds depend relationships with the enterprise .
• Stockholders come with a relationship that affects it.

Freeman's Analysis

• Freeman identifies 2 groups.
• The primary.
• Secundary.

Carlsons Categoreis

• Are grouped in 2 types.
• The group that wants to.
• The unwilling.

Common Types

• Consmisers is a commun group.
• They are in 2 classes, to have a good relationship.

Main Responsibility

• Suvival depends on people.
• You have to see group as one.
• One affects one.

Stakeholder Power

• Is a tool to see powers.
• Tool is important due to what the enterprise shows it.

Importancce

• What has to be on the look out!
• Have great respect.
• It should get met.

Goals and Models

• In a good conidtions it will come.
• It will depend to the cominbations of parts.
• Must have more than 2 of this stats.
• Comes with goals.

Relations

• The power is helpful.

Types

• Has have a great plan and keep inform.
• Dependently, stay safe.
• Has stay to get involved.

Results

• There is what ever happens to get to balance.

Conclussive Notes

• Its see from theorys
• Its base from the great thing one wants