C1- Developing a Business Mindset PDF

C1- Developing a Business Mindset I. What Businesses Do Firm/Business*: Any profit-seeking organisation that provides G/S designed to satisfy customers’ needs. A. Adding Value B* add value (chain) by transforming lower-value inputs → higher-value outputs ⇒ ↗attractive ↳↗revenue* thanks to ⇒ busi...

C1- Developing a Business Mindset I. What Businesses Do Firm/Business*: Any profit-seeking organisation that provides G/S designed to satisfy customers’ needs. A. Adding Value B* add value (chain) by transforming lower-value inputs → higher-value outputs ⇒ ↗attractive ↳↗revenue* thanks to ⇒ business model*⇒ profit* (wheat → flour → bread → sandwich) B search for competitive advantage* → low-cost / differentiation ↳ ↗customers' range of options + ↗quality + ↘prices B ⇒ accept risks to be rewarded → ⓧ risk = ⓧ insensitive, ⓧ smart/responsible decision making ⚠ Moral hazard! not every business is ethical B. Major Businesses Types Profit organisations ⇒ profit motive + assets building ⇒ capital (apple) / labour (google) intensive Nonprofit organisations* ⇒ + motives than just profit (helping, creating, improving..) ⇒ ⓧ dividends to shareholders, foundations, volunteers ⇒ businessmen contribution = tax reduction (Nike 1,5B $) Main differences between businesses: Product type & range → outputs (G/S), tangible ≠ intangible, number, lines… Company size → billion $ revenue ≠ small businesses Geographical reach → local, regional, national, international + digital Ownership → sole proprietorship, partnership, public corporation… II. From Buyer to Seller A. Seeing business from the inside out Consumer Manager Function useful? Product choice, method, producer, issues.. Marketing what? Communication, outstand, competition Image How will I feel? Brand identity, values, lines, protection Price affordable? Cost, market-acception, competitors, profit Availability where? Retail channels, stores, cost, shipping, Service support? ⇒ Business Mindset*  B. Businesses’ Role in society Managers should find a balance between ⇒ profit motive // society’s shared interests. III. Multiple Environments of Business A. Social Population trends, social values and behaviours, relationship of society and business. Social trends* ⇒ affect composition of workforce / demand / stakeholders* / companies / customers… ↳ huge social impact (Ex: social media, women in work, purpose-driven B..) ⚠ AI + technology + automatisation are disrupting the social E by replacing humans B. Technological Forces resulting from the practical application of science, innovations, products and processes. Tech ⇒ used to achieve market dominance. (ex: Fordism, Taylorism..) ⚠ Disruptive innovation*! ⇔ Creative destruction! (Schumpeter) → resharp, destroys industries C. Economic Conditions & forces that affect the cost and the availability of G, S and L. Economy → shapes buyers’/sellers’ behaviour ⇒ ↗ or ↘ D, P° (due to costs) ⚠ Tech → innovations aim to reduce costs + replace labour = ↘jobs = ↘D = ↘economy ↳ gig economy* then created = precarity Ex: Covid → gvt helped people by printing more money = inflation = + bank interests  D. Legal & Regulatory Laws & regulations that restrain, support, protect businesses at L, S, N and INT levels. L&R ⇒ gvt support + customer/producer protection + define legal/illegal activity! Ex: taxation, fees, permit grantings, licences, rules, environmental restrictions, patents… E. Market Target customers, buying influences, and competitors. When analysing a Market Environment, you have to pay attention to : Target customers Buying influences ⇒ industry? Market growing? Potential? Competitors Ex: Zara = youth/women/men + affordable prices/collect° change/poor stock + h&m/uniqlo Barriers to entry* +/- hard ⇒ define the market’ stability (+/- dynamic) : enormous money investments €€€ too many gvt controls !!! ⚠ Lowering of entry barriers + Undefined M boundaries ⇒ Business innovation & disruption ! IV. Major Functional Areas in a Business Enterprise A. Research & Development R&D = CREATE G/S with designers/engineers ⇒ stand out in competitive M B. Manufacturing, Production, Operations MPO = PRODUCE/PERFORM G/S ⇒ strategies, decisions, purchase, logistics, facilities… C. Marketing, Sales, Distribution, Customer support Marketing ⇒ IDENTIFY M opportunities (dvp products, pricing, advertising, branding) Sales ⇒ DEVELOP relationships with customers + accompany them Distribution ⇒ DELIVER, access, retail Customer support ⇒ SUPPORT + information for them to be satisfied D. Finance & Accounting Finance ⇒ PLAN money access (what/where/how) + FUND expenses Accounting ⇒ MONITOR + REPORT ⇒ make profitable decision-making (C/R balance) E. Human Resources HR ⇒ recruite, hire, + develop + support + train EMPLOYEES HR ⇒ Ensure company’s compliance with employee rights & workplace safety LAWS.  F. Business Services BS ⇒ HELP companies in specific law, banking, real estate… (in-house /external + audit) V. Careers in Business Operations Manager* → Management of the people and processes involved in creating G/S. HR Specialist → Plan & direct personnel-related activities. IT* Specialist → Oversee design, implementation, maintenance of IT systems (share info organizat°) Marketing Specialist → Perform 1+ tasks involved in marketing activities. Sales Professional → Build relationships with customers & help them make purchase decisions. Accountant → Collect, analyse, verify, report on financial matters. Financial Manager → Plan for the company’s financial needs, invest funds and raise capital. VI. Achieving Professionalism VII. Disruptive Technologies and Digital Transformation A. Disruptive Innovations Development so fundamentally different and far-reaching that it can create new professions, companies or even entire industries while damaging or destroying others. ⇨ Christensen/ Schumpeter (Creative Destruction) Predict disruptive technology path : Which tech → 5 Environments ⇒ need to converge before an innovation has a major impact. When → years ⇒ interests + press coverage + “hype” (Gartner Hype Cycle) Impact → redefines, eliminates, creates + ↗/↘wages The Gartner Hype Cycle  1) Innovation captures attention + expectations 2) Disillusionment 3) Experience + capacity’s accurate sense gain 4) Becomes productive resource ⇒ MAJOR PROFESSIONAL IMPACT - Professions change - Need to adapt & dvp new skills ⚠ Moore’s Law : observation that the n° of transistors in an microchip x2 every two years! Personal Hype Detector / Business Radar : As a B manager, we have to find what Solves real customer needs Generates profit Ex: AI, Metaverse, NFT, Blockchains… Hasn’t yet been successfully commercialised ⇒ To convince customers to change their long-held habits + publicity + secure money incomes. B. Digital Transformation The process of reimagining a company’s business model and operations to become a digital enterprise*. ↳ Digital strategies, systems, functions and markets are gaining in importance progressively. ↳ ⚠ Store-based retailing/manufacturing still is major! Digital Business Strategies are useful to : Create + deliver product value Respond quicker to dramatic shutdown/turnup of activity Facilitate market growth + financial performance Optimise existing processes ⚠ Requires people to step out of their comfort zone + give up control + new skills!! Ex: Big data, cloud computing, mobile apps, social media, robotic process automation…