survey of business- test 2

what is the first managerial function?

planning and setting the organization's vision, goals, and objectives

Micropreneurs and Home Based Businesses

- more than half of all small businesses are run from owners' homes - many are owned by people combining career and family

what government can do with entrepreneurship

-1990 immigration act created "investor visas" to encourage entrepreneurship -state incubators and technology centers -private entities

you are never too old to be an entrepreneuer

-most entrepreneuer are working over the age of 65 -since 1996, older americans have opened businesses at a higher rate than those aged 20-34 -older have greater resources and more financial resources

empowering workers

-telling employees what to do to meet the organization's goal is directing -progressive leaders empower employees to make decisions on their own. -enabling workers allows them to be able to assume responsibility and decision making roles

small business

-there are over 30 million small businesses in the united States -67 percent of the nations new jobs are in small businesses -theres a very good chance you will work in or start a small business

a business idea may be a good opportunity if

1) it fills customers needs 2)You have the skills and resources to start a business. 3) You can sell the product or service at a price customers are willing and able to pay— and still make a profit. 4) You can get your product or service to customers before your window of opportunity closes. 5)You can keep the business going.

when becoming a entrepreneur ask yourself these questions

1) what do I want but can never find 2)what product or service would improve my life? 3)what really irritates me and what product or service would help it?

what are the five reasons to start a business right away?

1) you have potential for long term returns 2) you don't have a mortgage or kids to take care of 3)you can survive on little funds and work long hours 4) no disruption to your career path it hasn't started yet 5) you're more adaptable

steps used in PERT

1. Analyzing and sequencing tasks that need to be done 2. Estimating the time needed to complete each task 3. Drawing a PERT network illustrating the information from steps 1 and 2 4. Identifying the critical path

Five steps of controlling

1. Establish clear standards 2. Monitor and record performance 3. Compare results against standards 4. Communicate results 5. If needed, take corrective action

Max Weber and Organizational Theory

1. Job descriptions 2. Written rules, decision guidelines, and detailed records 3. Consistent procedures, regulations, and policies 4. Staffing and promotion based on qualification "workers simply do as they are told"

5 mistakes business owners make

1. They're too afraid to commit! 2. They hire the wrong people. 3. They don't want to give up control. 4. They become complacent. 5. They fail to use new technology.

Fayol's Principles of Organization

1. Unity of command 2. Hierarchy of authority 3. Division of labor 4. Subordination of individual interests to the general interest 5. Authority 6. Degree of Centralization 7. Clear communication channels 8. Order 9. Equity

writing a business plan

A good plan takes a long time to prepare. A good executive summary catches interest and tempts potential investors to read on. Getting the plan into the right hands is almost as important as getting the right information in it.

Enterprise Resource Planning (ERP)

A single integrated software program that uses a single database. Results in shorter time between orders and payment, less staff needed to do ordering and order processing, reduced inventories, and better customer service.

mission statement

Addresses an organization's: Self-concept. Philosophy. Long-term survival needs. Customer needs. Social responsibility. Nature of its product(s) or service(s).

what managers do:organizing

Allocating resources, assigning tasks, and establishing procedures for accomplishing goals. Preparing a structure (organization chart) showing lines of authority and responsibility. Recruiting, selecting, training, and developing employees. Placing employees where they'll be most effective.

fixed position layout

Allows workers to congregate around the product

line personnel

achieve the organizational goals

Gantt Chart

Bar chart showing projects' stages of completion. A manager can trace the production process minute by minute to determine which tasks are on time and which are behind, so that adjustments can be made to allow the company to stay on schedule.

what to consider before starting a family business

Clarify Expectations - What will each person contribute? Discuss Work/Family Boundaries - What is the line that separates work from personal relationships? Develop Good Communication - Agree about types of decisions you'll make jointly and on your own. Clarify Long-Term Intentions - Discuss how long everyone will work full time and goals for the business. Have an Escape Hatch - Have a Plan B.

economies of scale

Companies can reduce their production costs by purchasing raw materials in bulk.

benchmarking

Comparing an organization's practices, processes, and products against the world's best.

the united states is more competitive because of

Computer-aided design and manufacturing. Flexible manufacturing. Lean manufacturing. Mass customization. Robotics. 3D printing.

facility location for manufacturers

Considerations include labor costs, resources, access to transportation, etc.

outline of a comprehensive business plan

Cover Letter Section 1-Executive Summary Section 2-Company Background Section 3-Management Team Section 4-Financial Plan Section 5-Capital Required Section 6-Marketing Plan Section 7-Location Analysis Section 8-Manufacturing Plan Section 9-Appendix

Program Evaluation and Review Technique (PERT)

Developed in the 1950s for constructing nuclear submarines. Users analyze the tasks to complete a given project, estimate the time needed to complete each task, and compute the minimum time needed to complete the whole project.

The Need to Improve Production Techniques and Cut Costs

Goal is high-quality goods and services in response to customer demand.

SBA Financial Assistance

Guaranteed loans.• Microloans.• Export Express.• Community Adjustment and Investment Program (CAIP).• Pollution control loans.• 504 certified development company (CDC) loans.• CAPLine loans.38

what managers do: leading

Guiding and motivating employees to work effectively to accomplish organizational goals and objectives. Giving assignments. Explaining routines. Clarifying policies. Providing feedback on performance.

computer aided design and manufacturing

Has changed production techniques. 3D modeling techniques. Computer-aided manufacturing (CAM). 3D printers. Computer-integrated manufacturing (CIM). Unites CAD and CAM.

Advantages of Departmentalization

In-depth skills. Economies of scale. Coordination of work.

facility location in the future

Information technology makes telecommuting a major trend. Reduced need for companies to locate near sources of labor.

looking for help in managing small business

May need advice in legal, tax, accounting, marketing orfinance.• Lawyers can help with leases, contracts, partnership agreements, and protection against liabilities. Consider an independent marketing research study.• Commercial loan officers and insurance agents. Service Corps of Retired Executives (SCORE).42

what managers do: controlling

Measuring results against corporate objectives. Monitoring performance relative to standards. Rewarding outstanding performance. Taking corrective action when necessary.

process manufacturing

physically or chemically changes materials

evolving business environments

More global competition Declining economy Faster technological change Pressure to protect the environment

free-rein leadership

Most successful when supervising professionals

functions of business

Planning your business. Financing your business. Knowing your customers (marketing). Managing your employees (human resource development). Keeping records (accounting).

disadvantages of departmentalization

Poor communication between departments. Identification with department goals rather than organizational goals. Slow response to organizational changes. Groupthink.

looking at ways to departmentalize

Product. Function. Customer group. Geographic location. Process.

production management

Refers to all the activities managers must do to help their firms create goods

what managers do: planning

Setting organizational goals. Developing strategies to reach those goals. Determining resources needed. Setting precise standards.

modular layout

Teams of workers produce more complex units of the final product

managers has four functions

planning organizing leading controlling

3d printing

additive manufacturing

staff personnel

advise and assist line personnel

decentralized authority

allows for more delegation to lower-level managers and employees

Operations Management

also includes inventory management, quality control, production scheduling, follow-up services and more

span of control

at lower levels, where work is standardized, it's possible to implement a broad span of control (15 to 40 workers) -the appropriate span gradually narrows at higher levels of the organization -the trend today is to expand the span of control

contingency planning

backup plan in case primary plan fails

centralized authority

can provide strong global control -it can also limit the flexibility to immediately respond to regional or local market changes and trends

purchasing

companies may use one supplier or many the internet has transformed the process

manufacturers and service organizations become more competitive

competition from china and other countries has increased innovation is not just a u.s. activity

Matrix-Style Organizations Disadvantages

costly and complex confusing communication problems temporary fix

mass customization

creates a unique product or a specific service for individuals

A key criterion for measurement

customer satisfaction

Using Sensing, Measurement, and Process Control

data control sensors nanomanufacturing

job specialization allows

each person to specialize in a task

autocratic leadership

effective in emergencies or with new, unskilled workers who need clear direction and guidance

cross functional self managed teams

employees from different departments who work together long-term

participative (democratic) leadership

employees participate in decisions, usually increases job satisfaction

enterprise zones

empowerment zones or enterprise communities

most businesses in the united states are started by who?

entrepreneurs

creating a change-oriented organizational culture

firms adapt best when their culture is already change-oriented the culture can be positive or negative cultures should emphasize service to others, especially customers

how can united state businesses maintain a competitive edge?

focusing on customers maintaining close relationships practicing continuous improvement

staffing

getting and keeping the right people

Planning and Decision Making

goals and objectives -setting goals is often a team process -objectives detail how to achieve goals

robotics

great for mass customization improve productivity but have reduced number of human jobs

Flat Organizational Structure

have fewer layers and a broader span of control

tall organizational structures

have many layers of management

online businesses

in 2018 online retail sales reached over 517 billion or approximately 14 percent of all retail sales - they must offer unique products or services

knowledge management

is giving employees the info they need to do their job

production

is the creating of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge

managing a small business

knowing your customers -first know your market -fill your customers' needs by offering top quality at a fair price with great service -listen to your customers and adapt quickly

learning about small business operations

learn from others, get some experience, take over a successful firm

continuous process

long production runs turn out finished goods over time

flexible manufacturing

machines that can do multiple tasks

small business failure

managerial incompetence and inadequate financial planning and choosing the wrong type of business

managing a small business

managing your employees -It's critical to hire, train, and motivate your employees. -Employees tend to find their jobs more challenging, their ideas more accepted, and their bosses more respectful. -Keeping Records -Need accurate accounting and record keeping

Bureaucracy

max weber called an organization that has many layers of managers

managers roles

most managers tend to be collaborative (emphasis on teamwork and cooperation rather than discipline and order giving) managers need to be a skilled communicator a team player a planner an organizer a motivator a leader

Transparency and Virtual Organizations

networked organizations take place in real time and have transparency tend to be flexible virtual corporations

line organizations

no specialists who provide managerial support, no departments

facility location

one strategy is to find a site that makes it easy for consumers to use the companys services and to communicate about their needs Rising numbers of Internet businesses means brick-and-mortar retailers must find great locations and outstanding service.

Reasons to become an entrepreneur

opportunity, profit, independence, challenge

assembly process

puts together components

just in time inventory control

requires an accurate production schedule and coordination w/ suppliers

What does it take to be an entrepreneur?

self-directed, self-nurturing, action-oriented, highly energetic, tolerant of uncertainty

departmentalization

setting up individual departments to do specialized tasks is called

intermittent process

short production run

quality

should be part of the operations management planning process

an organizational chart

shows line and staff positions within an organization

process layout

similar equipment and functions are grouped together

entrepreneurial teams

teams can Combine their creative skills with production and marketing skills from the start. Ensure more cooperation and coordination among functions.

small business prospects

small and medium sized business account for 98 percent of all exporting firms in the united states - technological advances -hurdles: financing getting started understanding cultural differences paperwork

SWOT analysis

strengths, weaknesses, opportunities, threats

hierachy

system of ranking groups

creating a unified system

tasks and skills at different levels of management -technical skills -human relations skills -conceptual skills

top managers, middle managers, first-line managers

technical skills, human relation skills, conceptual skills

informal organization

the human side of the organization that doesn't show on the organization chart -includes the grapevine

tactical planning

the identification of specific, short-range objectives by lower-level managers

chain of command

the line of authority that moves from the top of a hierarchy to the lowest level

formal organization

the lines of authority shown on the organization chart

Strategic Planning

the setting of broad, long-range, major goals by top managers

operational planning

the setting of work standards and schedules

weighing the advantages and disadvantages of departmentalization

traditionally done by function groups workers according to skills, expertise, or resource use

problem solving teams

two or more workers assigned to solve a specific problem

Intrapreneur

use a company's existing resources—human, financial, and physical—to launch new products and generate new profits

lean manufacturing

uses less human effort, manufacturing space, investment in tools, and engineering time

materials requirement planning

uses sales forecasts to ensure needed parts are available at the right time/place

production adds what

value, or utility to materials or processes

assembly line layout

workers do only a few tasks at a time

advantages small business have over large businesses

• Overseas buyers often enjoy dealing with individuals rather than with large corporate bureaucracies. Small companies can usually begin shipping much faster. Small companies can provide a wide variety of suppliers. Small companies can give customers personal service and undivided attention because each overseas account is a major source of business to them.45

matrix-style organizations advantages

•Managers have flexibility in assigning people to projects. •Interorganizational cooperation and teamwork is encouraged. •Creative solutions to product development problems are produced. •Organizational resources are used efficiently.

interfirm operations management

•Outsource engineering, design, and manufacturing to other companies.