Management Introduction PDF

**INTRODUCTION** **What is management?** - Management is a range of decisions associated with the acquisition, allocation, and integration of resources (human, physical, financial, etc.) required to perform a certain economic activity. It is about making decisions and people making d...

**INTRODUCTION** **What is management?** - Management is a range of decisions associated with the acquisition, allocation, and integration of resources (human, physical, financial, etc.) required to perform a certain economic activity. It is about making decisions and people making decisions. - When you perform an economic activity, you have a goal and you have to decide which path you want to follow to reach your goal depending on what resources you have. It's not always easy to make the right decisions, and the right decision depends on which are your priorities (time, money,\...) and which resources you have. - Economic activity: actions that involve the production, distribution and consumption of goods and services at all levels within a society. **Needs** - Economic activities have as a goal to fulfill people's needs. Needs come from goals and values people have (what they want to achieve and what is important to their life). - These factors differ across cultures and socio-economic conditions and they evolve during time (ex. you have different needs if you're poor, or the needs they had a century ago aren't the same we have now). - Pyramid of needs: puts on a scale of priority the needs that people have (from the tangible goods necessary to survive to the intangible ones needed for the self actuation). You can't achieve the upper level towards actualization if you haven't reached the lower ones. We have to satisfy our needs following a designed path. Needs can be divided into: - - - - Needs can be divided into: - - **Types of goods** Goods can be: - - Goods can be: - - Goods can be: - - Goods can be: - - Good can be: - - Goods can be: - - Goods can be: - - A good can also be public (and therefore not private) when it is either (two definitions) - - **Economic activity** Economic activity involves: - - - Money always moves through society in two directions and whenever there is a transaction between two entities money can flow in both directions For example money flows from producers to workers as wages, and then back to the producers when workers pay for a sold product. **People and activities of business** People that are involved in business can be divided into: - - - These three categories are closely related to the three main areas of a business - - - **Role of the entrepreneur, government and ethic in business** - - - - - **THE CORPORATION AND ITS STAKEHOLDERS** **Valeant** - - - - - - **Relation between business and society** - - - - - - - - - But it surely has some cons too: - - - **The purpose of the modern corporation** - - - - - - - - - - - - - - - **Stakeholder analysis, interests and power** - - - - - - - - - - - - - - - -  - **Uber study case** - - - - - - - - - - **SunCal study case** - - - - - **PATAGONIA STUDY CASE** **Introducing Patagonia** - **Mission** - - - - - **Activities** The main activities of Patagonia are: - - - - - - All the activities Patagonia pursuits are meant to follow the firm's mission **Governance** - **Key stakeholders** The key stakeholders are: - - - - - - - - - - **Implementation of mission** In order to follow its mission, Patagonia implements dome concrete practices: - - - - Still, Patagonia was a profitable firm and Chouinard family was making a large profit from it, until they decided to completely follow their mission sacrificing even their income **Billionaire no more: Patagonia change in governance** - - **SHAREHOLDERS RIGHTS AND CORPORATE GOVERNANCE** **Shareholder objectives and rights** - - - - - - - - - - - - - - **Corporate governance and board of directors** - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - **Agency problem** - - - - - **Protection of shareholder interests** - - - **THE NATURE OF MANAGEMENT** **What do managers do?** - - **The major functions of management** - - - - - - - - - - **Level of management** - - - - - - - - - - - - **Decision making** - - - - - - - - - - - **ENRON CASE STUDY** - - **Mark-to-market accounting** - - **Special Purpose Entity or Special Purpose Vehicle (SPE/SPV)** - - **Key stakeholders** - - - - - **Enron collapse** - - **How could it be prevented?** - - **THERANOS STUDY CASE** - - - - - - **Key stakeholders** - - - - - - **Comparison between Enron and Theranos cases**  **ORGANIZATION** **Organizational culture** - - - - **Functional areas** - - - - - - - - - - - - - - - - - - **Organizational structure** - - - - - - - - - - - - - - - - - - - - - - - - - **Forms of organizational structure** - - - - - **Freshii study case** - - - -