intro to business
DESCRIPTION
Intro to Business . Unit Two Business Operations Chapter 5 Business in Our Economy . GOALS. Distinguish between the four basic kinds of businesses. Recognize seven kinds of activities performed by businesses. Understand how jobs are created in our economy. . - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/1.jpg)
Intro to Business
Unit Two Business Operations
Chapter 5Business in Our Economy
![Page 2: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/2.jpg)
GOALS Distinguish between the four basic kinds
of businesses.
Recognize seven kinds of activities performed by businesses.
Understand how jobs are created in our economy.
![Page 3: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/3.jpg)
Four Basic Kinds of Businesses1. Extractors
Grows products or takes raw materials from nature.
Examples: farmer who grows cotton to make jeans silver and coal miners fishers; oil pump; produce farm, lumber mill
![Page 4: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/4.jpg)
Four Basic Kinds of Businesses2. Manufacturers
Takes extractor’s products and changes them into a form that consumers can use. Completely produce a product or a part of many stops Jeans: textile mill makes cotton into yarn, yarn into cloth,
plant dyes & prints cloth, clothing manufacturer takes cloth and makes it into jeans.
3 Types of Manufacturing Businesses1. Custom – specially designed (golf clubs)2. Mass Production – large qty of identical products (cars)3. Processing – changes form or materials (grain to flour)
![Page 5: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/5.jpg)
Four Basic Kinds of Businesses3. Marketers
Businesses that move goods from producers to consumers (Wholesalers, Retailers)
Marketing Includes (4 P’s) : Transporting goods (Distribution – Place) Selling goods at reasonable value (Price) Identify, develop and test new products (Product) Packaging goods (attractive/convenient) (Product) Store goods (Warehouses) (Distribution - Place) Design store windows (Promotion)
All of these marketing activities add value to the products by bringing them to where the consumer is, at the time they are wanted, in the assortment wanted, and at the prices consumers are willing to pay.
![Page 6: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/6.jpg)
Four Basic Kinds of Businesses4. Service Businesses
Business which does things for you rather than making a product for you.
Examples: Hair Dresser or Barber Oil Change or Car Wash Tax Preparation Child Care or Pet Care Transportation (Airlines, Bus, Train) Landscaping
![Page 7: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/7.jpg)
Seven Business Activities 1. Generating Ideas
New Product or Improvement on Product2. Raising Capital
Start-up $ or Improvement $ from Loans 3. Buying Goods & Services
Resale Products or Business Use Supplies4. Using Human Resources
Recruit, Employ, Train, & Appraise Employees5. Marketing Goods & Services
Activities used to Develop, Place, Price and Promote Products6. Producing Goods & Services
Quality, Timely, Appropriate Quantity, Competitive Cost7. Keeping Records
Decision Making – profit/loss, management, Gov. reporting
![Page 8: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/8.jpg)
Jobs Creation New restaurant opens; hires employees Employee gets paid and buys groceries. Grocer works and get paid. Pays Bills. Collector works. Gets paid. Goes out to eat.
Continuous Cycle
More local sales = more business income = more employees needed for high demands
Businesses attract other businesses
![Page 9: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/9.jpg)
Intro to Business
Unit Two Business Operations
Chapter 6Business Structures
![Page 10: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/10.jpg)
GOALS Understand how ownership differs among
sole proprietorships, partnerships, and corporations.
Grasp the advantages/disadvantages of the three major types of business ownership.
Learn the five functions of managers. Recognize three specialized forms of
business organization.
![Page 11: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/11.jpg)
Types of Business Ownership (Pg 69) Sole Proprietorship
Owned by 1 person (Small Firms) Complete responsibility of business decisions
Partnership Managed by small group (usually 2-3 people) Written agreement of shared profits/losses & decisions Unlimited liability for the debts of their business.
Corporation Number of owners (shareholders) Operated under state Certification of Incorporation Acts as individual on behalf of group shareholders Legal entity – existence separate from its owners
![Page 12: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/12.jpg)
Advantages vs. Disadvantages
![Page 13: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/13.jpg)
Five Functions of Managers (Pg 72)
Managers are employees who are responsible for coordinating the resources within a business.
Five Functions of a Manager Planning
Thinking, gathering, analyzing info to make decisions (goals)
Organizing Process of determining what needs to be done and when.
Assigning jobs and responsibilities.
![Page 14: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/14.jpg)
Five Functions of Managers (Pg 72)
Staffing Activities to find, select, hire, train, appraise & reward staff
Leading Direct/influence staff; meet goals, follow plan/procedure Effective leaders inspire workers to willingly perform their
jobs and accept their share of responsibility for accomplishing the goals of the business.
Good human relations and communications skills
Controlling Comparing what actually happened to what was planned. Did business reach it’s goals? Using standards set up in the planning stage
![Page 15: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/15.jpg)
Three Specialized Forms of Business Organization (Pg 77) Franchises
A written contact granting permission to sell someone else’s product/service in a prescribed manner, over a certain period of time, and in a specified territory.
Franchisee – buys into the franchise, apply for rights Franchisor - parent company/owner, grants the rights
Details: Franchise Agreement – state rights/ duties of both parties Standardized business – same at every location Franchisor collects portion/percentage of sales Examples: fast food, car dealerships, motel chains
![Page 16: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/16.jpg)
Three Specialized Forms of Business Organization (Pg 77) Cooperatives
Owned by the members it serves and is managed in their interest.
Consumer Cooperative – consumers who buy goods more cheaply together than they could individually.
Producer’s Cooperative – farmers organization that markets products together .
Profits split among members and portion often kept to expand business.
![Page 17: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/17.jpg)
Three Specialized Forms of Business Organization (Pg 77) Non-Profit Organizations
Municipal Corporation – municipality Has own officials, police, schools, fire dept Provides street repairs, street lighting, of services Buys supplies like a business but buys them under
corporate name of city.
Examples: Private Colleges, American Red Cross, Boy Scouts of America, FBLA
Unlike a business organization, services are provided for its citizens with money from taxes levied rather than making a profit.
![Page 18: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/18.jpg)
Intro to Business
Unit Two Business Operations
Chapter 7Manager as Leader
![Page 19: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/19.jpg)
GOALS Discuss the common characteristics of
effective leaders. Explain the five human relations skills
needed by managers. Identify four types of influence that
leaders use. Describe the two main types of
leadership styles.
![Page 20: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/20.jpg)
Leadership Characteristics (Pg 88)
![Page 21: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/21.jpg)
Five Human Relations Skills (Pg 89) Self Understanding
Must understand their own strengths and weaknesses before they can assess staff.
Understanding Others Get to know each person, their skills, abilities, strengths
and weaknesses. Treat everyone alike but use their individual skills Recognizing similarities to build stronger team
![Page 22: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/22.jpg)
Five Human Relations Skills (Pg 89) Communication
Extremely important to communicate on all levels.
Formal – presentation, established and approved Informal – common but not official (passing in the hall) Internal – within the company External – with people outside the company Vertical – up and down levels of management Horizontal – across the same levels (tier 2 to tier 2) Oral – word of mouth Written – notes, letters, reports, emails, instant messenger
![Page 23: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/23.jpg)
Five Human Relations Skills (Pg 89) Team Building
Helps people understand each other and their responsibilities
Managers must identify problems within a group and fix them quickly.
Developing Job Satisfaction Managers influence how employees feel about their job Daily difficulties can lead to employee dissatisfaction Showing concern and support and solving employee
problems help avoid employee dissatisfaction.
![Page 24: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/24.jpg)
Four Types of Influence (Pg 91) Position Influence
Ability to get other to accomplish tasks because of the position the leader holds.
Influences based on employee’s job rating, wages, potential promotion
Reward Influence Ability to give or withhold rewards Rewards - $ or job benefits, recognition, praise
![Page 25: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/25.jpg)
Four Types of Influence (Pg 91)
Expert Influence Arises when group members recognize that the
leader has a special expertise area. Experience equals knowledge
Identity Influence Personal trust & respect members have for leader. Leaders looks out for their best interest, gain support.
![Page 26: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/26.jpg)
Two Main Types of Leadership (Pg 93) Tactical Management
More directive and controlling Manger makes decisions Close contact with employees with working
Strategic Management Less directive and involve employees in decisions Trusts employees to work w/o direct supervision Will seek advice on important decisions
Mixed – mixture of both styles b
![Page 27: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/27.jpg)
Intro to Business
Unit Two Business Operations
Chapter 8Producing & Marketing
Goods & Services
![Page 28: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/28.jpg)
GOALS List common marketing activities and
define the marketing concept. Explain the two steps in marketing
planning. Explain the advantage of small businesses
in providing customer service.
![Page 29: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/29.jpg)
Role of Marketing (Pg 102) Product/Service Planning
Assists in design and development by gathering information and testing ideas.
Purchasing Identifies and obtains the product (service)
needed for marketing activities
Financing Makes sure financing and credit are available to
support both the purchase and sale of product.
![Page 30: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/30.jpg)
Role of Marketing (Pg 102) Distribution
Involves getting the products to consumers (methods and locations)
Pricing Sets prices and payment methods
Risk Management Provides security and safety for products and
people and reduces business risk.
![Page 31: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/31.jpg)
Role of Marketing (Pg 102) Marketing Information Management
Obtains and organizes information needed to make marketing decisions.
Promotion Involves communicating with consumers to
encourage purchases.
![Page 32: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/32.jpg)
Two Steps in Marketing Strategy Identify a target market.
Target Market – clearly identified group of consumers with needs (business satisfies need)
Develop a marketing mix Marketing Mix - Combo of marketing elements
designed to meet the needs of target market
Product/Service – anything offered to target market Place/Distribution – location/method of product availability
Price – what the customer pays and method of payment Promotion – communicate/encourage purchases
![Page 33: Intro to Business](https://reader036.vdocument.in/reader036/viewer/2022062521/568168b7550346895ddf97ea/html5/thumbnails/33.jpg)
Customer Service Advantage of small businesses in
providing customer service Personalized attention Know your target market better Specialized products (customize)
Large companies can offer more products but with less personal attention and customization.