BUSI 1301 test two

benchmarking

Compares an organization's practices, processes and products against the world's best. Benchmarking is essential to keep an organization relevant in a rapidly changing and global business environment

HOME-BASED BUSINESS/SMALL BUSINESS GROWTH

Computer technology has leveled the playing field. • Corporate downsizing has led many to venture on their own. HOME-BASED BUSINESS/SMALL BUSINESS GROWTH 6-11 • Social attitudes have changed. • New tax laws have loosened restrictions on deducting expenses for home offices. -not easy--Getting new customers is difficult. It is a Marketing Job!

DEVELOPMENTS MAKING U.S. COMPANIES MORE COMPETITIVE

Computer-aided design and manufacturing (CAD) Flexible manufacturing Lean manufacturing Mass customization

quality

Consistently producing what the customer wants while reducing errors before and after delivery.

market

Consumers with unsatisfied wants and needs who have both resources and willingness to buy. Set out to fill the market's needs by offering top quality and great service at a fair price. • One of the great advantages of small businesses is the ability to know the market and quickly adapt to market needs.

Micropreneurs

entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle About half of U.S. micropreneurs are home-based business owners - writers, consultants, video producers, architects, bookkeepers, etc. nearly 60% are men

types of partners

general and limited

Key production processes

Continuous Process -- Long production runs turn out finished goods over time. Intermittent Process -- Production runs are short and the producer adjusts machines frequently to make different products.

going beyond organizational boundaries

Cross-functional teams work best when the voice of the customer is heard. • Teams that include customers, suppliers and distributors go beyond organizational boundaries. • Government coordinators may assist in sharing market information beyond national boundaries.

flexible manufacturing

Designing machines to do multiple tasks so they can produce a variety of products.

formal organization

Details lines of responsibility, authority and position. • The formal system is often slow and bureaucratic, but it helps guide the lines of authority. • No organization can be effective without formal and informal organization.

DOWNSIDES of HOME-BASED BUSINESSES

Difficult to establish work habits Limited support system Isolation Work space may be limited Clients may be uncomfortable coming to your home Zoning restrictions Success is based 100% on your efforts

Strategic Planning

Done by top management and determines the major goals of the organization and the policies, procedures, strategies and resources it will need to achieve them.

cross-functional self-managed teams

group of employees from different departments who work together on a long-term basis. Works well for developing new product lines or services. A way to fix the problem of matrix-style teams is to establish long-term teams. • Empower teams to work closely with suppliers, customers and others to figure out how to create better products.

Types of Mergers

horizontal, vertical, conglomerate

SWOT Analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

WEBER'S PRINCIPLES appeared in the late 1940's

Employees just need to do what they're told. • In addition to Fayol's principles, Weber emphasized: - Job descriptions - Written rules, decision guidelines and detailed records - Consistent procedures, regulations and policies - Staffing and promotion based on qualifications - Bureaucracy - there are many layers of management who set rules and regulations that everyone in the organization is expected to follow - Bureaucrat - middle managers whose job is to implement orders of top management

staff personnel

Employees who advise and assist line personnel in meeting their goals, and include marketing research, legal advising, IT and human resource employees

internal customers

individuals and units within the firm that receive services from other individuals or units

learning about small business

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

limited liability

liability for the debts of the business is limited to the amount the limited partner puts into the company; personal assets are not at risk.

autocratic leadership

making managerial decisions without consulting others

free-rein leadership

managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives

other forms of partnerships

master limited partnership and limited liability partnership

Why take the risk?

opportunity, profit, independence, challenge

human relations skills

skills that involve communication and motivation; they enable managers to work through and with people

technical skills

skills that involve the ability to perform tasks in a specific discipline or department

conceptual skills

skills that involve the ability to picture the organization as a whole and the relationship among its various parts

major forms of ownership

sole proprietorship, partnership, corporation

organizational structures

tall organization structures and flat organization structures

assembly process

that part of the production process that puts together components

Departmentalization

the dividing of organizational functions into separate units. Workers are grouped by skills and expertise to specialize their skills.

conglomerate merger

the joining of firms in completely unrelated industries

horizontal merger

the joining of two firms in the same industry

tactical planning

the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done

contingency planning

the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives

operational planning

the process of setting work standards and schedules necessary to implement the company's tactical objectives

Management

the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources

merger

the result of two firms joining to form one company

Disadvantages of Sole Proprietorship

unlimited liability (Any debts or damages incurred by the business are your debts, even if it means selling your home, car or anything else.), limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited life span

Disadvantages of Partnership

unlimited liability, division of profits, disagreements among partners, difficulty of termination

knowledge management

Finding the right information, keeping the information in a readily accessible place and making the information known to everyone in the firm. Do you want to know more about your customers? What about competition? What information would make the company more effective in the marketplace? What do I still not know? Whom should I be asking?

How can U.S. businesses maintain a competitive edge?

Focusing on customers Maintaining close relationships with suppliers Practicing continuous improvement Focusing on quality Saving on costs through site selection Relying on the Internet to unite companies Adopting new production techniques i.e. innovation

Major types of partnerships

General Partnership Limited Partnership

Line organization

Has direct two-way lines of responsibility, authority and communication running from the top to the bottom. Everyone reports to one supervisor advantages: Clear Authority & Responsibility, Easy to Understand, One Supervisor Per Employee disadvantages: Inflexible, Few Specialists for Advice, Long Line of Communication, Difficult to Handle, Complex Decisions

online business sales

• All retail sales were up 2.5% in 2013. However, online retail sales grew 13%.

informal group norms

• Do your job but don't produce more than the rest of your group. • Don't tell off-color jokes or use profanity. • Everyone is to be clean and organized at the workstation. • Respect and help your fellow group members. • Drinking is done off the job - NEVER at work.

the changing organization

• Often change in organizations is due to evolving business environments: - More global competition - Declining economy/growing economy, Could be change in industry as well - Faster technological change -Pressure to protect the environment -Customer expectations have also changed--want high-quality products with fast, friendly service and all at low cost.

crowdinvesting

• Sites like Kickstarter and Indiegogo have connected loan seekers to potential lenders. • When the JOBS Act was passed in 2012, the goal was to make crowdfunding more accessible.

small business statistics

• There are 28 million small businesses in the U.S. • Of all nonfarm businesses in the U.S., almost 97% are considered small. • Small businesses account for over 50% of the GDP. • Small businesses have generated 65% of new jobs since 1995. • About 80% of U.S. workers' first jobs were in small business.

Women in Franchising

• Women own about half of U.S. companies, yet ownership of franchises is about 21%. -auntie annes and jazzercise

managing employees

Hiring, training and motivating employees is critical. Entrepreneurs best serve themselves and the business if they recruit and groom employees for management positions.

The International Organization for Standardization (ISO) is a worldwide federation of national standards bodies.

ISO 9000 -- The common name given to quality management and assurance standards. ISO 14000 -- A collection of the best practices for managing an organization's impact on the environment.

small business

Independently owned and operated, not dominant in its field of operation and meets certain standards of size. • Businesses are "small" in relation to other businesses in their industries.

Venture capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership.

disadvantages of corporation

Initial cost Extensive paperwork Double taxation Two tax returns Size Difficulty of termination Possible conflict with stockholders and board of directors

the production process

Inputs: land labor capital entrepreneurship knowledge Production control: planning routing scheduling dispatching follow up Outputs: goods services ideas

1. Find a problem or need. An IDEA is a GOOD OPPORTUNITY IF...

It fills customers' needs. • You have the skills and resources to start a business. • You can sell the product or service at a reasonable price and still profit. • You can get your product or service to customers before the window of opportunity closes. • You can keep the business going.

disadvantages of the matrix style

It's costly and complex. Employees may be confused about where their loyalty belongs. Good interpersonal skills and cooperative employees are a must. It's a temporary solution to a possible long-term problem. Teams are not permanent.

Advantages of a corporation

Limited liability Ability to raise more money for investment Size Perpetual life Ease of ownership change Ease of attracting talented employees Separation of ownership from management

limited liability partnership

Limits partners' risk of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision.

work smarter

Manage output instead of hours. Productivity is the key! • Train workers to be ready for a more complex corporate structure. • Allow lower-level managers to make decisions. • Use new technology to foster teamwork. • Shift hiring emphasis to collaboration.

Advantages of Franchising

Management and marketing assistance Personal ownership Nationally recognized name Financial advice and assistance Lower failure rate

Participative or Democratic Leadership

Managers and employees work together to make decisions

Advantages of Matrix style

Managers have flexibility in assigning people to projects. Interorganizational cooperation and teamwork is encouraged. Creative solutions to product development problems are produced. Efficient use of organizational resources.

production changed organization design

Mass production of goods led to complexities in organizing businesses. The average cost of goods decreases as production levels rise

Advantages of Partnership

More financial resources Shared management and pooled/complementary skills and knowledge Longer survival No special taxes

vision

More than a goal, it's a broad explanation of why the organization exists and where it's trying to go.

incubators

Offer new businesses low-cost offices with basic services. Many times these are govt funded.

Acquisition

One company's purchase of the property and obligations of another company.

Operations management planning

Operations management planning helps solve problems like: Facility location Facility layout Materials requirement planning Purchasing Inventory control Quality control

ORGANIZATIONS BASED on FAYOL'S PRINCIPLES

Organizations in which employees have no more than one boss; lines of authority are clear. Rigid organizations that often don't respond to customers quickly.

Mission Statement

Outlines the organization's fundamental purposes. It includes: - the organization's self-concept - its philosophy - long-term survival needs - customer needs - social responsibility - nature of the product or service

advantages of small over big business

Personal attention • Products not easily made by mass production • Sales are not large enough for a large firm • Unattractive neighborhood • Franchising • Paying attention to new competitors • The business is in a growth industry

empowerment

Progressive leaders give employees the authority and responsibility to make decisions on their own without consulting a manager. • Customer needs are handled quickly. • Manager's role becomes less of a boss and more of a coach. • Enabling -- Giving workers the education and tools they need to make decisions.

WHO CAN FORM S CORPORATIONS?

Qualifications for S Corporations: Have no more than 100 shareholders. Have shareholders that are individuals or estates and are citizens or permanent residents of the U.S. Have only one class of stock. Derive no more than 25% of income from passive sources. If an S corporation loses its S status, it may not operate under it again for at least 5 years.

staffing

Recruiting, hiring, motivating and retaining the best people available to accomplish the company's objectives.

restructuring

Redesigning an organization so it can more effectively and efficiently serve its customers.

small business prospects abroad

Small- and medium-sized businesses accounted for 99% of recent export growth. Advantages of global trade for small businesses: Overseas buyers enjoy dealing with individuals. Small companies can usually begin shipping much faster. They provide a wide variety of suppliers. They can give more personal service and attention.

Matrix Organization

Specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff structure

enterprise zones

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support

objectives

Specific, short-term statements detailing how to achieve the organization's goals. (Tactical)

How can we get to our goal from here?

Strategic planning (the setting of broad, long-range goals by top managers), Tactical planning (the identification of specific, short-range objectives by lower-level managers), Operational planning (the setting of work schedules and standards), Contingency planning (backup plans)

mass customization

Tailoring products to meet the needs of a large number of individual customers. More manufacturers are learning to customize. Mass customization exists in the service sector too.

goals

The broad, long-term accomplishments an organization wishes to attain. (Strategic)

Production

The creation of goods using land, labor, capital, entrepreneurship and knowledge (the factors of production).

purchasing

The function that searches for high-quality material resources, finds the best suppliers and negotiates the best price for goods and services. The Internet has transformed the purchasing function.

Core Competencies

The functions an organization can do as well as or better than any other organization in the world.

vertical merger

The joining of two firms in different stages of related businesses.

span of control

The optimal number of subordinates a manager supervises or should supervise When work is standardized, broad spans of control are possible. • Appropriate span narrows at higher levels of the organization. • The trend today is to reduce middle managers and hire better low-level employees.

process manufacturing

The part of production that physically or chemically changes materials.

facility layout

The physical arrangement of resources, including people, to most efficiently produce goods and provide services. Facility layout depends on the processes performed: Service: Help customers find products Manufacturing: Improve efficiency

transparency

The presentation of the company's facts and figures in a way that is clear and apparent to all stakeholders

facility location

The process of selecting a geographic location for a company's operations.

problem solving

The process of solving the everyday problems that occur; less formal than decision making and needs quicker action. Problem-solving techniques include brainstorming and PMI -- Listing all the pluses for a solution in one column, all the minuses in another and the implications in a third.

Just-in-Time (JIT) Inventory Control

The production process in which a minimum of inventory is kept and parts, supplies and other needs are delivered just in time to go on the assembly line.

Pick Your Partner Rule

The strategy that will protect partners is to put the partnership agreement in writing!!!!!:

informal organization

The system of relationships that develop spontaneously as employees meet and form relationships. can promote harmony however • The informal system is too unstructured and emotional on its own. • Informal organization may also be powerful in resisting management directives.

Computer-Integrated Manufacturing (CIM)

The uniting of computer-aided design with computer-aided manufacturing.

Computer-Aided Design (CAD)

The use of computers in the design of products.

Computer-Aided Manufacturing (CAM)

The use of computers in the manufacturing of products.

Form Utility

The value producers add to materials in the creation of finished goods and services.

Organizational or Corporate Culture

The widely shared values within an organization that foster unity and cooperation to achieve common goals. It is "what we do in an organization"

management levels

Top-level managers (The highest level, consists of the president and other key company executives who develop strategic plans), Middle-level managers (Includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.), Supervisory managers (Those directly responsible for supervising workers and evaluating daily performance.)

Partnership

Two or more people legally agree to become co-owners of a business

FAYOL'S PRINCIPLES came to the US in 1949; principles created in 1919.

Unity of Command (Each worker reports to one and only one boss.), Hierarchy of Authority (know to whom do I report), Division of Labor (Specialization), Subordination of Individual Interest to the General Interest Authority (power to give orders and enforce), Degree of Centralization (amt given to top mgmt should vary depending on situations.), Clear Communication Channels , Order (people and materials should be maintained in proper location), Equity (manager should treat all fairly), Esprit de Corps (sense of pride and loyalty)

networking

Using communications technology to link organizations and allow them to work together on common objectives.

lean manufacturing

Using less of everything than in mass production. Compared to others, lean companies: Take half the human effort. Have half the defects in finished products. Require one-third the engineering effort. Use half the floor space. Carry 90% less inventory.

transparency

When a company is so open to other companies that electronic information is shared as if the companies were one.

centralized authority

When decision-making is concentrated at the top level of management.

decentralized authority

When decision-making is delegated to lower-level managers and employees more familiar with local conditions than headquarters is.

hierarchies and command

When following Fayol and Weber, managers control workers. • Hierarchy -- A system in which one person is at the top of an organization and there is a ranked or sequential ordering from the top down. • Chain of Command -- The line of authority that moves from the top of the hierarchy to the lowest level.

line personnel

Workers responsible for directly achieving organizational goals, and include production, distribution and marketing employees. Line personnel have authority to make policy decisions.

today's managers

Younger and more progressive. Growing numbers of women. Fewer from elite universities. Emphasis is on teams and team building. Managers need to be skilled communicators and team players.

Sole Proprietorship

a business owned and managed by a single individual

Corporation

a legal entity with authority to act and have liability apart from its owners

small business investment company SBIC

a program through which private investment companies licensed by the SBA lend money to small businesses A SBIC must have a minimum of $5 million in capital and can borrow up to $2 from the SBA for each $1 of capital it has. • SBICs are able to identify a business's trouble spots early, giving entrepreneurs advice, and in some cases rescheduling loan payments.

Conventional (C) Corporation

a state-chartered legal entity with authority to act and have liability separate from its owners

benefits and concerns of healthcare outsourcing

benefits: provides enough staff to operate the facility cost savings concerns: lower employee morale liability should patients be informed confidentiality and security

leading US manufactured goods

chemicals transportation equipment processed food, beverages, and tobacco computers and electronics leader in nanotech and biotech

managerial skills

conceptual, human, technical

Leaders must

1. Communicate a vision and rally others around that vision 2. Establish corporate values 3. Promote corporate ethics 4. Embrace change 5. Stress accountability and responsibility

Immigration Act passed in 1990

created a category of "investor visas" that encourage entrepreneurs to come to the U.S.

Structuring an Organization

1. Create a division of labor (dividing the required work among a group of employees.) 2. Set up teams or departments (-The process of setting up individual functional units of the business to do specialized tasks) 3. Allocate resources 4. Assign tasks 5. Establish procedures 6. Adjust to new realities

rational decision making model

1. Define the situation. 2. Describe and collect needed information. 3. Develop alternatives. 4. Decide which alternative is best. 5. Do what is indicated. 6. Determine whether the decision was a good one and follow up. This builds institutional knowledge.

Disadvantages of Departmentalization

1. Departments may not communicate well. 2. Employees may identify with their department's goals rather than the organization's. 3. The company's response to external changes may be slow. 4. People may not be trained to take different managerial responsibilities, instead they become specialists. 5. Department members may engage in groupthink and may need outside input.

Six Sins of Staffing

1. Don't hire someone because someone else says so. 2. Don't get caught up in applicants' appearances. 3. Don't give someone the wrong job. 4. Don't forget about feedback. 5. Don't give promotions just because it's time. 6. Don't cheat your employees.

Major Benefits of Sole Proprietorship

1. Ease of starting and ending the business 2. Being your own boss 3. Pride of ownership 4. Leaving a legacy 5. Retention of company profit 6. No special taxes

Advantages of Departmentalization

1. Employees develop skills and progress within a department as they master skills. 2. The company can achieve economies of scale. As a firm produces more, the average cost of goods or services goes down. 3. Employees can coordinate work within the function and top management can easily direct activities.

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 feedback--are standards realistic

Disadvantages of Franchising

1. Large start-up costs 2. Shared profit 3. Management regulation 4. Coattail effects 5. Restrictions on selling 6. Fraudulent franchisors

Advantages of LLCs

1. Limited liability 2. Choice of taxation 3. Flexible ownership rules 4. Flexible distribution of profits and losses 5. Operating flexibility 1. No stock, therefore ownership is nontransferable 2. Limited life span 3. Fewer incentives 4. Taxes 5. Paperwork

four ways to structure an organization

1. Line Organizations 2. Line-and-Staff Organizations 3. Matrix-Style Organizations 4. Cross-Functional Self-Managed Teams

Four Functions of Management

1. Planning 2. Organizing 3. Leading 4. Controlling

Grove's Basic Production Requirements

1. to build and deliver products in response to the demands of the customer at the scheduled delivery time 2. to provide an acceptable quality level 3. to provide everything at the lowest possible cost

Small Business Administration (SBA)

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans. Program judges worthiness based on the borrowers' integrity and soundness of their business ideas.

Gantt Chart

A bar graph that shows what projects are being worked on and how much has been completed.

Limited Liability Company (LLC)

A company similar to an S corporation but without the special eligibility requirements.

Materials Requirement Planning (MRP)

A computer-based operations management system that uses sales forecasts to make sure parts and materials are available when needed.

Intrapreneur

A creative person who works as an entrepreneur within a corporation

business plan

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and owners' qualifications. • A business plan forces potential owners to be specific about what they will offer. • A business plan is mandatory for talking with bankers or investors.

Entrepreneurial team

A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make and market a new product.

Program Evaluation and Review Technique (PERT)

A method for analyzing the tasks involved in completing a given project and estimating the time needed.

Enterprise Resource Planning (ERP)

A newer version of MRP, combines computerized functions into a single integrated software program using a single database.

Master Limited Partnership

A partnership that looks much like a corporation, but is taxed like a partnership and thus avoids the corporate income tax.

limited partnership

A partnership with one or more general partners and one or more limited partners.

Six Sigma Quality

A quality measure that allows only 3.4 defects per million opportunities. control improve analyze measure define

Operations Management

A specialized area in management that converts or transforms resources into goods and services. Operations management includes: Inventory management Quality control Production scheduling Follow-up services

Virtual Corporation

A temporary networked organization made up of replaceable firms that join and leave as needed.

S corporation

A unique government creation that looks like a corporation but is taxed like sole proprietorship and partnerships have shareholders, directors, and employees, plus the benefit of limited liability profits are taxed only as the personal income of the shareholder

organization chart

A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.

BENEFITS of HOME-BASED BUSINESSES

Ability to start your business immediately Minimal start-up capital needed No rent or excessive set-up charges Comfortable working conditions Reduced wardrobe expenses No commuting Tax benefits Elimination of office politics Low risk for trial and error

Entrepreneurship

Accepting the risk of starting and running a business. Entrepreneurs are important to the economy because their businesses employ LOTS of people

General Partnership

All owners share in operating the business and in assuming liability for the business's debts.

Production Management

All the activities managers do to help firms create goods.

Franchise Agreement

An arrangement whereby someone with a good idea for a business (franchisor) sells the rights to use the business name and sell a product or service (franchise) to others (franchisees) in a given territory.

Leveraged Buyout (LBO)

An attempt by employees, management or a group of investors to buy out the stockholders in a company

inverted organization

An organization that has contact people at the top and the CEO at the bottom of the organizational chart.

Tall Organization Structures

An organizational structure in which the organization chart would be tall because of the various levels of management.

Flat Organization Structures

An organizational structure that has few layers of management and a broad span of control.

General Partner

An owner (partner) who has unlimited liability and is active in managing the firm.

limited partner

An owner who invests money in the business, but enjoys limited liability.

steps involved in pert

Analyzing and sequencing tasks Estimating the time needed to complete each task Drawing a PERT network illustrating the first two steps Identifying the critical path Critical Path -- The sequence of tasks that takes the longest time to complete.

Facility Layout Options

Assembly Line Layout - Workers do only a few tasks at a time. Modular Layout - Teams of workers produce more complex units of the final product. Fixed-Position Layout - Allows workers to congregate around the product. Process Layout - Similar equipment and functions are grouped together.

external customers

dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use

Bureaucratic Organization

Bureaucracy -- An organization with many layers of managers who set rules and regulations and oversee all decisions. • It can take weeks or months to have information passed down to lower-level employees. • Bureaucracies can annoy customers.

cooperatives (co-ops)

Businesses owned and controlled by the people who use them- producers, consumers, or workers with similar needs who pool their resources for mutual gain. For Example: True Value Hardware, The University Coop, Grain Elevator Cooperatives Members democratically control the business by electing a board of directors that hires professional management

Ways to departmentalize

By product By function By customer group By geographic location By process

Community Development Financial Institutions

CDFIs are playing a big role in the economic recovery. First formed in the early 1980s; by 2009, over $1 billion flowed into CDFIs from investment companies. Only 1% of loans were not paid back in the last 30 years!

Global Franchising

Canada is the most popular target for U.S.-based franchises. • China, South Africa, the Philippines and the Middle East are becoming popular despite high cost. • International franchising goes both ways - some foreign franchises have come to the U.S.

decision making

Choosing among two or more alternatives.

economies of scale

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

affiliate marketing

an online marketing strategy in which a business rewards individuals or other businesses (affiliates) for each visitor or customer the affiliate sends to its website

Who can incorporate?

anyone Normally stock is not issued to outsiders when individuals incorporate, so the advantages and disadvantages are not exactly the same as for large corporations. • Major advantages are limited liability and possible tax benefits.

Small Business Development Centers (SBDCs)

are funded jointly by the federal government and individual states. • SBDCs are able to evaluate the feasibility of your idea, develop your business plan and complete your funding application - for no charge.

Leadership Styles

autocratic, participative/democratic, free-rein

advantages and disadvantages of broad control

advantages: -reduced costs -more responsiveness to customers -faster decision making -more empowerment disadvantages -fewer chances for advancement -overworked managers -loss of control -less mgmt expertise

advantages and disadvantages of narrow control

advantages: -more control by top mgmt -more chances for advancement -greater specialization -closer supervision disadvantages: -less empowerment -higher costs -delayed decision making -less responsiveness to customers