Developing a Business Mindset (ch1).pdf

LE: Developing a Business Mindset (ch1) Week # of sessions year 1.1.1 Lecture course MTP At every stage, a company adds value to create the product in a way that makes it appealing to the next customer in the chain Revenue Business Model Profit Money a company brings in through the sale of go...

LE: Developing a Business Mindset (ch1) Week # of sessions year 1.1.1 Lecture course MTP At every stage, a company adds value to create the product in a way that makes it appealing to the next customer in the chain Revenue Business Model Profit Money a company brings in through the sale of goods & services Concise description of how a business intends to generate revenue Money left over after all the costs involved in doing business have been deducted from revenue Competition gives customers a wide range of options, it tends to… -Increase quality -Improve customer service -Lower prices Competitive Advantage Aspect of a product or company that makes it more appealing to target customers Risks in Pursuit of Rewards LE: Developing a Business Mindset (ch1) 1 Every company must accept some level of risk in order to conduct its business Reasons Without the promise of rewards, businesess would have no incentive to take on risks Encourage smart and responsible decision making Major Types of Businesses No Profit Org. Goods-Producing B. Service Businesses Organizations that companies that create Companies that create provide goods & services without having a profit motive value by making “things” value by performing activities that deliver some benefit to (Capital Intensive) customers (Labor Intensive) 💡 Many companies can be both goods producing and service businesses Barrier to Entry Resource or capability a company must have it before it can start competing in a given market examples Government testing & approval Strict licensing procedures Limited supplies of raw materials LE: Developing a Business Mindset (ch1) 2 Highly skilled employees Business in Society Contribute to society in useful ways like Offering valuable goods and services Providing employment help employees meet the costs of their living expenses Paying taxes money that helps build highways, education and support other vital functions of government Be aware of the potentially negative effects Generating pollution and creating waste have an impact on the natural environment which all living creatures depend Creating health and safety risks some put in risk the health and safety of employees and surrounding communities Causing financial instability Contributing to national growth, stability and security strong economy helps ensure a strong country Environments of Business social environment trends and forces in society at large -these trends might change the composition of consumer markets and the workforce technological environment forces resulting from the practical application of science to innovations, products, and processes disruptive technologies: those that change the nature of an industry economic environment conditions & forces that affect the cost and availability of goods, services and labor -shape the behavior of buyes and sellers LE: Developing a Business Mindset (ch1) 3 legal & regulatory environment laws & regulations at local, state, national and even international levels -businesses such as electricity and other basic utilities are heavily regulated market environment company’s target customers, the buying influences that shape the behavior of those customers, and competitors that market similar products to those customers. Major Functional Areas in a Business Enterprise Functional areas coordinate their efforts to understand and satisfy customer needs. 1. Research & Development (R&D) Functional area responsible for conceiving and designing new products not all companies have an R&D function, they might simply resell products other firms make Information Technololgy (IT) Systems that pormote communication and information usage through the company or that allows companies to offer new services 2. Manufacturing, Production & Operations Functional area that concerns whatever the company makes or does. Operation managers are responsible for a wide range of strategies and decisions including: purchasing (buy necessary materiald for manufacturing) logistics (coordinating income flow of materials and outgoing flow of finished products) facilities management (planning new buildings to maintaining them) LE: Developing a Business Mindset (ch1) 4 3. Marketing, Sales, Distribution, & Customer Support marketing sales distribution involved customer support identifying developing opportunities in the relationships with potential before the sale (helping customers have the marketplace customers working with R&D to persuading customers to to promote products to support and information retailers) they need develop products buy create branding snd making sure after the sale (physically deliver products) advertising strategies 4. Finance & Accounting Functional area that ensures that the company has the funds it needs to operate. -Monitor and control how these funds are spent and draft reports for company management and outside audiences 💡 financial managers are responsible for planning whereas accounting managers are responsible for monitoring and reporting 5. Human Resources (HR) Functional area responsible for recruiting, hiring, developing and supporting employees. -HR makes sure the company is in compliance with the laws concerning employee rights and workplace safety LE: Developing a Business Mindset (ch1) 5 6. Business Services Exist to help companies with specific needs in laws, banking, real estate, and other areas. -Might be performed by in-house staff, external firms, or a combination of both Careers in Business Operations Manager HR Specialist IT Manager People and processes used to created the goods and perform Plan and direct personnel related Design, implement and maintain services the company sells. activities systems that help deliver the right some tasks are: recruiting info a the righ time production engineering training assembly development to the right people in the organization testing compensation & benefits Accountant employee & Collecting, labor relations analyzing and health & safety reporting on financial matters scheduling quality assurance information technology finance logistics Marketing Specialist identifying and understanding Financial Manager analyzing budgets Leadership and strategic functions assesing the manufacturing market opportunities preparation of income shaping the product statements, pricing balance sheets… communication strategies LE: Developing a Business Mindset (ch1) costs preparing state and federal tax returns 6 Sales Professional Professionals responsible for establishing long term financial goals building relationships with customers and helping them make investing the firm’s funds purchase decisions raising capital Achieving Professionalism True professionals exhibit 7 different traits Striving to Excel Excelling at each level in your career is the best way to keep climbing up to new positions of responsibility -requires commitment to continuous learning and improvement Being Dependable & Accountable Meeting your commitments, including staying on schedule and stayin gon budget -never be someone who overpromises and underdelivers -also means owning up to your mistakes and learning from failure Being a Team Player Pay attention to yout own efforts and skills but also pay attention to the overall team effort to make sure the team succeeds. If the team fails, you fail, too -try making those around you more effective and show loyalty to your organization and your employer’s reputation Communicating Effectively -listen actively LE: Developing a Business Mindset (ch1) 7 -provide practical info -don’t present opinions as facts -present info in concise, efficient manner Demonstrating Etiquette Way you conduct yourself, interact with others, and handle conflict can have a profound influence on your company’s success. -respect -courtesy -common sense Making Ethical Decisions Professionals conduct themselves with a clear sense of right and wrong Maintaining a Confudent, Positive Outlook Believe in what you’re doing, believe in your ability to solve problems and overcome obstacles -Being positive means acknowledging that things may be difficult but getting the job done anyway -No whining or slacking off LE: Developing a Business Mindset (ch1) 8