EDT - 02 - Introduction BusAdmin PDF

Fakultät Für Betriebswirtschaft HBS Hamburg Business School Entrepreneurship and Digital Transformation Introduction to Business Admini...

Fakultät Für Betriebswirtschaft HBS Hamburg Business School Entrepreneurship and Digital Transformation Introduction to Business Administration & EDT © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation Fakultät Your Day Für Betriebswirtschaft HBS Hamburg Business School Business Keynotes Introduction to EDT Research Insights Administration © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 2  Fakultät Operational performance and utilization Für Betriebswirtschaft HBS Hamburg Business School procurement market The company acquires the production factors 1 on the procurement market. 1 In the production process, the production 5 2 factors are converted into products or services. capital production factors 6 Products or services are sold to private market labor 3 households or business customers. resources 7 4 The company receives payments from sales. materials financial 2 Payments to suppliers reduce the company’s 5 resources financial resources. production To finance large investments, the company 6 combination of product factors procures funds on the capital market. 8 7 The company pays dividends or interest on borrowed capital. public 9 products or services 8 Possible state subsidies are paid in. authorities 4 3 9 Taxes are paid to the state. sales market (customers) Source: Wöhe (2020) © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 3 Fakultät Life Cycle of a Firm Für Betriebswirtschaft HBS Hamburg Business School Foundation phase Sector Specialized BA § Market analysis for choice of business area Banking Banking management § Choice of location § Choice of legal form Insurance Insurance management § Provision of initial capital Industry Industrial management § Organizational structure Transport Transport operation management Operational phase § Performance and utilization Tourism Tourism management § Releasing the company from the entrepreneur (going public) § Business combination § Restructuring Liquidation phase § Corporate crisis § Insolvency § Liquidation Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 4 Entrepreneurship and Digital Transformation  Fakultät Economic, social and ecological goals Für Betriebswirtschaft HBS Hamburg Business School Economic goals Social goals Ecological goals (equity provider) (employees) (general public) § Long-term profit maximization § Fair wage § Conservation of resources § Shareholder value § Motivating work conditions § Limitation of harmful emissions § Profitability § Company-sponsored social § Avoidance of waste § Long-term company existence benefits § Recycling of waste § Corporate growth § Job security § Co-determination Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 5 Entrepreneurship and Digital Transformation Fakultät Stakeholder approach Für Betriebswirtschaft HBS Hamburg Business School Stakeholder Groups Claim to the Company Contribution to the Company Equity providers Increase of invested capital (distribution of profit, Equity capital (owner, stockholder) capital growth) Debt capital providers Repayment and interest payment of invested Debt capital (lenders) capital, fixed in terms of time and amount Employees Adequate wages, motivating working conditions, Labor (executive activities) job security Management Salary, power, influence, prestige Labor (dispositive activities) Customers Reasonably-priced goods of high quality Purchase of goods and services Suppliers Reliable payments, long-term supply relationship Supply of goods and services General public Tax payments, compliance with legal regulations, Infrastructure, legal order, respectful treatment of the environment environmental assets Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 6 Entrepreneurship and Digital Transformation  Fakultät Profit Calculation Für Betriebswirtschaft HBS Hamburg Business School 1. Sales OPERATING PROFIT (EBIT) +/- 2. Increase or decrease in finished goods inventories + 9. Income from other participations, of which … from + 3. Own work capitalized affiliated companies + 4. Other operating income + 10. Income from other investments and long-term loans, of which … relating to affiliated companies 5. Cost of materials + 11. Other interest and similar income, of which … - a) Cost of raw materials, consumables and related to affiliated companies supplies and of purchased merchandise - 12. Write downs of financial assets and short-term - b) Cost of purchased service investments 6. Personnel expenses - 13. Interest and similar expenses, of which … to affiliated companies - a) Wages and salaries +/- 14. Taxes on income - b) Social security and pension expenses = 15. PROFIT AFTER TAXES 7. Depreciations and amortization - a) On intangible fixed assets and tangible assets +/- 16. Other taxes as well on capitalized start-up and business = 17. NET INCOME / NET LOSS OF THE YEAR expansion expenses - b) Exceptional write downs on current assets - 8. Other operating expenses = OPERATING PROFIT (EBIT) © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 7 Fakultät Profit & Loss (P&L) Für Betriebswirtschaft HBS Hamburg Business School source: https://www.basf.com/global/en/investors/basf-at-a-glance/key-financial-data/consolidated-statements.html © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 8  Fakultät Balance sheet Für Betriebswirtschaft HBS Hamburg Business School Assets Equity and Liabilities A. Fixed Assets A. Equity B. Accruals B. Current Assets C. Liabilities § Inventories § Receivables and other assets § Securities C. Prepaid expenses D. Deferred income D. Deferred tax assets E. Deferred tax liabilities E. Active difference resulting from asset offsetting Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 9 Entrepreneurship and Digital Transformation Fakultät A Functional View of Business Administration Für Betriebswirtschaft HBS Hamburg Business School Management (Planning, Coordination, and Controlling) Investment Suppliers Production Marketing & Sales Customers & Finance Accounting, Auditing & Taxation, and Information Systems (Information) Environment: Government – Competition/Industries – etc. Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 10 Entrepreneurship and Digital Transformation  Fakultät Management as a coordination function Für Betriebswirtschaft HBS Hamburg Business School Management designs the strategy and its control as well as the process of operational service creation and utilization in such a way that the company goals are achieved to the highest extent. Key Areas Strategy & Corporate Goals Planning and Decision Making Leadership Organization – Structure & Processes Human Resources – Development & Mgmt. Information Management Controlling Source: adapted from Wöhe (2020) © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 11 Fakultät Management & Corporate Governance @UHH Für Betriebswirtschaft HBS Hamburg Business School Compulsory Modules (Semester 1-4): Corporate Management Modules in your Major (Semesters 5-6): The Entrepreneurial Firm: Building & Managing Professional Organizations Personnel Planning European and Public Business Law International Management Seminar Source: Module Handbook B.Sc. BA, 13/05/2020 © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 12  Fakultät A Functional View of Business Administration Für Betriebswirtschaft HBS Hamburg Business School Management (Planning, Coordination, and Controlling) Investment Suppliers Production Marketing & Sales Customers & Finance Accounting, Auditing & Taxation, and Information Systems (Information) Environment: Government – Competition/Industries – etc. Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 13 Entrepreneurship and Digital Transformation Fakultät Production as a core function of operational activity Für Betriebswirtschaft HBS Hamburg Business School Supply & Production a main operational function that can be broken down into four sub-areas: manufacturing, procurement, transport, and warehousing. Key Areas Production Technology Manufacturing Procurement & Warehousing Delivery/Transport Integration of Planning, Optimization and Controlling Source: Wöhe (2020) © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 14  Fakultät Operations and Supply Management @UHH Für Betriebswirtschaft HBS Hamburg Business School Compulsory Modules (Semester 1-4): Production and Logistics Foundations of Operations Research (Optimization) Modules in your Major (Semesters 5-6): Operations Management Operations Research Supply Chain Management Transport and Logistics Seminar Source: Module Handbook B.Sc. BA, 13/05/2020 © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 15 Fakultät A Functional View of Business Administration Für Betriebswirtschaft HBS Hamburg Business School Management (Planning, Coordination, and Controlling) Investment Suppliers Production Marketing & Sales Customers & Finance Accounting, Auditing & Taxation, and Information Systems (Information) Environment: Government – Competition/Industries – etc. Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 16 Entrepreneurship and Digital Transformation  Fakultät Investment & Finance Für Betriebswirtschaft HBS Hamburg Business School Investments are made to achieve a return on money in the future (more back). Finance is the provision and management of financial resources required to invest and keep the organization running. Key Areas Investment & Firm Valuation Internal Funding Liquidity & Capital Management External Funding Financial Planning, Mgmt., and Controlling Insurance Financial Optimization Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 17 Entrepreneurship and Digital Transformation Fakultät Finance, Banking, and Insurance @UHH Für Betriebswirtschaft HBS Hamburg Business School Compulsory Modules (Semester 1-4): Investment and Finance Modules in your Major (Semesters 5-6): Corporate Finance Private Banking Principles of Risk Management and Insurance Maritime Economics and Financial Management Seminar Source: Module Handbook B.Sc. BA, 13/05/2020 © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 18  Fakultät A Functional View of Business Administration Für Betriebswirtschaft HBS Hamburg Business School Management (Planning, Coordination, and Controlling) Investment Suppliers Production Marketing & Sales Customers & Finance Accounting, Auditing & Taxation, and Information Systems (Information) Environment: Government – Competition/Industries – etc. Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 19 Entrepreneurship and Digital Transformation Fakultät Marketing & Sales Für Betriebswirtschaft HBS Hamburg Business School Marketing is the planning and control of all activities aimed at improving one’s own market position through the targeted use of marketing instruments. Key Areas Marketing Strategy Marketing Planning, Execution, and Controlling Market Research Product Policy Pricing Policy Communication Policy Distribution Policy (Sales) Customer Management Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 20 Entrepreneurship and Digital Transformation  Fakultät Marketing & Sales @UHH Für Betriebswirtschaft HBS Hamburg Business School Compulsory Modules (Semester 1-4): Marketing Modules in your Major (Semesters 5-6): Retail and Service Marketing Fundamentals of Customer Relationship Management (CRM) Strategic Marketing Simulation Game Price Management Media Management Seminar Source: Module Handbook B.Sc. BA, 13/05/2020 © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 21 Fakultät A Functional View of Business Administration Für Betriebswirtschaft HBS Hamburg Business School Management (Planning, Coordination, and Controlling) Investment Suppliers Production Marketing & Sales Customers & Finance Accounting, Auditing & Taxation, and Information Systems (Information) Environment: Government – Competition/Industries – etc. Source: Wöhe (2020), Allgemeine Einführung in die © 2024 Prof. Dr. Kay Peters Betriebswirtschaftslehre 22 Entrepreneurship and Digital Transformation  Fakultät Accounting Für Betriebswirtschaft HBS Hamburg Business School Accounting provides information for planning, monitoring, and controlling operational states and processes. Key Areas Bookkeeping Cost accounting Cash-Flow Monitoring Financial Reporting Source: Wöhe (2020) © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 23 Fakultät Auditing and Taxation Für Betriebswirtschaft HBS Hamburg Business School Compulsory Modules (Semester 1-4): Fundamentals of Accounting Balances Modules in your Major (Semesters 5-6): Consolidated Financial Statements and Basics in Auditing International Accounting Business Taxation Seminar Impact of Taxation on Choice and Change of Corporate Legal Form Source: Module Handbook B.Sc. BA, 13/05/2020 © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 24  Fakultät Information Systems Für Betriebswirtschaft HBS Hamburg Business School Compulsory Modules (Semester 1-4): Introduction to Information Systems Modules in your Major (Semesters 5-6): Information Management Modelling Information Systems Introduction to Object-oriented Programming Enterprise Resource Planning E-Business IT-Entrepreneurship Seminar Source: Module Handbook B.Sc. BA, 13/05/2020 © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 25 Fakultät Applied Statistics and Data Science Für Betriebswirtschaft HBS Hamburg Business School Compulsory Modules (Semester 1-4): Mathematics I Statistics I Mathematics II Statistics II Modules in your Major (Semester 5-6): Introduction to Quantitative Risk Management Adaptive Methods of Statistical inference Regression Analysis Time Series Analysis Causal Inference Seminar Source: Module Handbook B.Sc. BA, 13/05/2020 © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 26  Fakultät Industry: Health Care Management Für Betriebswirtschaft HBS Hamburg Business School Compulsory Modules (Semester 1-4): ---- Modules of Area Concentration (Semester 5-6): Introduction to Health Care Management Design and Management of Health Care Programs Hospital Management Health Economics Seminar Health Care Management Current Issues in Health Care Management Source: Module Handbook B.Sc. BA, 13/05/2020 © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 27 Fakultät Your Day Für Betriebswirtschaft HBS Hamburg Business School Business Keynotes Introduction to EDT Research Insights Administration © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 28  Fakultät EDT and your major choices Für Betriebswirtschaft HBS Hamburg Business School Customer Development Model (Part of) EDT content Change of Data- Based Business Customer Models Decision Making Majors: Marketing Mix 1 Marketing Appointment Concept Testing 2 Applied Statistics & Data Science Scheduling 8 1 Diffusion Model 3 Management & Corp. Governance Provision of Vaccines/Treatments 7 2 Conjoint Analyses 4 Finance, Banking and Insurance 5 Auditing and Taxation 6 3 Strategy Blue Ocean Tesla vs VW Roll-Out-Strategies Container Shipping 6 Operations & SCM 5 4 Customer Segmentation Appointment Scheduling 7 Health Care Management Design Thinking Taxes Types Liquidity Mgmt 8 Information Systems Tax Planning Household Finance Auditing & Fraud Financial Regulations © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 29 Fakultät Airbnb – Profile Für Betriebswirtschaft HBS Hamburg Business School General Information Business Model: Revenue § Founded in 2008 Marketplace for home sharing, Jan.-Sept. 2019: - $322M § Founders: ‘offering over 7 million Jan.-Sept. 2018: + $200M accommodations and tens of thousands of handcrafted Airbnb in Germany activities, all powered by local HH: 6.500+ listings in 2018 hosts.’ 150000 Source of Income Brian Chesky Joe Gebbia Nate Blecharczyk Airbnb makes money by charging 100000 § Headquarter: San Francisco, California a service fee — a percentage of the total — to both the hosts and 46400 Fast Facts there guests. 38000 26000 § 7M+ listings are available worldwide Expenditure § 100K+ cities with available listings § Safety issues 2014 2015 2016 2017 2018 § 750M+ Airbnb guest arrivals all-time § Tech & Marketing § Accessible in 62 languages § Acquisitions Number of Listings Source: Airbnb, The Wall Street Journal © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 30  Fakultät It all starts with an idea… Für Betriebswirtschaft HBS Hamburg Business School San Francisco, 2007: 2 roommates couldn‘t afford their rent A conference was coming to SF Marketing Hotels were fully booked And so it started with an idea: „What if we turn our loft into a designer‘s bed and breakfast?“ They created a simple site (airbedandbreakfast.com) and bought 3 air mattresses © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 31 Fakultät …developing into a product or service. Für Betriebswirtschaft HBS Hamburg Business School Nathan, an old roommate, joined the team They started to work on a roommate- matching service for 4 months Marketing BUT…STOP!! That already existed!! PIVOT? – Yes! They started to work on Airbnb as you know it today In the EDT course you learn… q how to develop products and services q what a Pivot is all about q how to use the Business Model Canvas © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 32  Fakultät Airbnb – A business of trust (and risk?) Für Betriebswirtschaft HBS Hamburg Business School Marketing In the EDT course you learn… q how consumers make decisions q what Prospect Theory is all about © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 33 Fakultät Airbnb and its Marketing Mix – some key questions Für Betriebswirtschaft HBS Hamburg Business School 1. What is the product of Airbnb? 2. How does the pricing work? 3. How is the service distributed? Marketing 4. What is the communication strategy behind Airbnb? In the EDT course you learn… q what the 4 Marketing P‘s are q Specifics about product, price, distribution and communication © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 34  Fakultät A little bit like Concept Testing (but not). Für Betriebswirtschaft HBS Hamburg Business School Their first guests, two men and one woman, showed up Each guest paid $80 to stay Statistics & Data on the air mattress One guest, Amol, was another designer who actually helped Joe and Brian on their presentations Concept Field In the EDT course you learn… Testing Testing q how concept tests (really) work 1 2 3 q how PI scores are interpreted Pre- Testing © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 35 Fakultät Airbnb – a case study on the Diffusion of Innovations Für Betriebswirtschaft HBS Hamburg Business School Statistics & Data In the EDT course you learn… q more on adoption behavior q diffusion models & patterns q rules of thumb on takeoff, peak and slowdown © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 36  How did they choose the criteria of Airbnb Plus? Perhaps, they Fakultät Für Betriebswirtschaft did a conjoint analysis. HBS Hamburg Business School Statistics & Data In the EDT course you learn… q About conjoint analyses (CA) q how statistics can help to make good business decisions © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 37 Fakultät First or second mover? Für Betriebswirtschaft HBS Hamburg Business School Management Did Airbnb create a new market? A so-called blue ocean. In the EDT course you learn… q more on blue ocean strategies q Platform businesses as blue oceans © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 38  Fakultät Start small, thing big. Für Betriebswirtschaft HBS Hamburg Business School “Going out and meeting our community in person: We flew to New York and took photos of the apartments ourselves with a Management professional camera. We met all of the hosts and explained the Airbnb concept to them - including how to use the website and the service. We collected feedback, helped them set the prices and formulate the descriptions. In the end, we had 40 really good accommodations in New York. After that, the business finally took off. And it ultimately led Sequoia Capital to invest. “ In the EDT course you learn… Nathan, Airbnb q about roll-out strategies q about advantages of waterfall- & sprinkler strategies © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 39 International Market segmentation Fakultät Für Betriebswirtschaft – Airbnb and its the "glocal" challenge HBS Hamburg Business School "It's really good to understand what’s global and what’s not.” Management (…) "What of your product needs to change to work and what doesn’t? Sometimes people even go too far to be local. You have to keep the global essentials pristine too.“ In the EDT course you learn… Zadeh, Airbnb q about heterogeneity of customers q how segmentation works © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 40  Fakultät Is it possible to design for trust? Design Thinking @ Airbnb Für Betriebswirtschaft HBS Hamburg Business School Management In the EDT course you learn… https://www.youtube.com/watch?v=16cM-RFid9U q more about design thinking q and its applications © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 41 Fakultät Airbnb & Finance Für Betriebswirtschaft HBS Hamburg Business School How to finance business development and growth? revenues: demand & supply side (commissions, listing fees, refundable?) costs: Finance advertisements, onboarding of supply and demand, trust building, conflict resolution Þ network effects and regulation operational costs human resources, i.e. employees and office advertisement expenses IT – software and servers In the EDT course you learn… payment and trust service q value of internal financing (who pays/gets when and how the money) q regulation matters legal costs q theory and behavior may differ © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 42  Fakultät Airbnb & Taxes Für Betriebswirtschaft HBS Hamburg Business School Taxes and licenses (tax, competition, and health issues) company (transfer of tax liability to low tax environment) Auditing & Taxation hosts guests Þ tax collection procedure Þ rental law as a major issue In EDT lecture you will learn… Þ ensure regulation compliance q regulation may matter q licensing to reduce tax payments © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 43 Fakultät Airbnb & Accounting Für Betriebswirtschaft HBS Hamburg Business School Accounting (especially prior and subsequent to IPO) cost accounting (internal cash flow, self-financing potential, profit sharing) Auditing & Taxation financial accounting (mainly for tax purpose) future revenues and growth Þ valuation of equity and debt In EDT lecture you will learn… q customer behavior changes over time and due to regulation © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 44  Fakultät Airbnb & Logistics Für Betriebswirtschaft HBS Hamburg Business School booking calendar and request handling (instant vs. explicit confirmation) access to property Operations (e.g. comydo.com guest lecture on Monday) verification (does the property exist? maintenance?, cleaning (even w/o Covid-19)) ensure regulation compliance In EDT lecture you will learn… (AirBnB might be liable for customer failures: q appointment scheduling state, reputation, owner, customer) q insurance and regulation compliance © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 45 As you just learned, every business model has to keep evolving. Fakultät Für Betriebswirtschaft Entrepreneurship is a challenge. HBS Hamburg Business School © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 46  Fakultät Any Questions? Für Betriebswirtschaft HBS Hamburg Business School © 2024 Prof. Dr. Kay Peters Entrepreneurship and Digital Transformation 47 47