DECA PBM Performance Indicators 2018
Explain the concept of economic resources
- Also known as the factors of production, economic resources are inputs to produce finished goods. These include human resources, natural resources, and capital resources - Human resources include the effort and technical knowledge used in production. Human resources are the people who work to produce the goods and services; also known as the workforce or labor, and includes both the physical and mental work performed - Natural resources include naturally occurring goods such as water, soil, minerals, etc... Natural resources are those raw materials we get from the earth, water, and air - Capital resources are man-made resource such as buildings, equipment, and money that is used to produce goods and services -Entrepreneurship is sometimes considered another economic resource in that they innovate new ways to produce new products - Economic resources are defined as the means through which goods and services are made available to consumers. Another term for economic resources are factors of productions - The proposed new convention center will utilize both the city's human and capital resources in a productive manner - To not utilize these available economic resources would stifle continued economic development, a commitment and vision the city has already embarked upon
Determine factors affecting business risk
- Business risk is the potential for business loss or failure - 3 kinds of business risk: economic, natural, and human - Economic: occur from changes in overall business conditions (competition, changing consumer lifestyles, population changes, limited usefulness or stylishness of some products, product obsolescence, government regulation, inflation or recession) - Natural: result from natural causes (weather conditions-floods, fires, hurricanes, etc...) - Human: caused by human mistakes and the unpredictability of employees or customers (dishonesty, carelessness, incompetence, accidents, illness, non-payment of accounts) - In this case, the business risk would be economic as a result of the declining sales - There are many types of risks business face - political, financial, social, economic, legal, theft, safety, etc... - There are many types of risks faced in the restaurant industry - alcohol, underage drinking, fire, burns, food poisoning, spills, broken glass, etc... - It is important that businesses anticipate possible risks and create plans to deal with these risks If possible, businesses should find ways to make certain that the risks are prevented before they occur
Explain the concept of leadership
- Did the student explain 'what is a leader'? - What are the characteristics of a good leader? - What are the criteria of choosing the leader of the team? - someone they respect - someone who has a vision and is able to execute strategy to achieve that vision - Trust and confidence by subordinates - Effective communication-help employees understand company's business strategy, understand how they can contribute to the success of the organization, share information with employees on how the organization and division is doing
Determine economic utilities created by business activities
- Economic utility - a measure of satisfaction - Most people will do things that will improve their utility - In this case, the owner needs to convince the employees that this 4-day work week is in the employee's best interest and will improve their utility - For example: - the employees can save time by only commuting 4 days instead of 5 - the employees will have more leisure time - the employees will be able to spend more time with their children on their day off - 80% have children under 14 - save money on child care and gas
Determine personal vision
- Guiding principles that influence daily decisions as well as overall direction - For a community - personal vision must encompass best interest of general population of community as a whole - In this case, the vision should be one that includes leaders in the community and creating a shared vision - Creativity, personal beliefs, values, and community expectations should be included
Explain the nature of effective written communication
- Identify modern communicative technology and its impact on the field of marketing - Demonstrate knowledge of different methods of written communication including printed and electronic e.g. letters, memos, and reports for intra-department and company communications - Identify appropriate procedures for using communicative technology in a professional manner when considering legal and ethical implications - use of proper netiquette - Demonstrate knowledge of the 5 'C's of communication: Clarity: the message is easily understood, avoid using all capital letters) Concise (include only what is necessary) Correct (proofread and use proper spelling, grammar, and punctuation, check spelling of names) Courtesy (good manners) Completion (include all information, and not forgetting attachments) - Identify the principles of verbal and non verbal communication - speaking, writing, listening, reading, and body language
Explain the need for innovation skills
- Innovation skills are the use of new technology, materials, or processes to improve on existing products or services, or how they are produced and distributed - Background: there are many more innovators than there are inventors. Innovators conceive ways to improve on existing products, processes, or distribution methods. Most innovators develop as a result of the competitive markets; one business tries to become better than another business at something
Apply information to accomplish a task
- Interpreting gathered date to provide to organization so that decisions may be made - Understanding customer/client needs to make organization more successful - Companies can decide on how to proceed; next steps introduce or discontinue products, etc... - Breaking down information so that it is easy to understand - Deciding how to use the information and importance of results
Explain routine security precautions
- Most stores now incorporate magnetic tags and doorway sensors. Many also now search their employees bags as they exit the store after a shift. The key here is that it must be done for ALL items and for ALL employees. (this however wont be effective when the manager who is checking is part of the theft problem) - Regular rotating inventory checks will find specific areas with shrinking inventory - Security cameras are also an option - In this case it would be wise to inform staff of the situation, that jobs have been lost and that the specific staff who have been fired are not welcome in the store anymore - Hotel security departments usually use preventative tasks such as patrolling, monitoring, and investigating in order to prevent problems. Employees' are properly screened to ensure that they are trustworthy - Guests are offered storage vaults or boxes to store valuables - Adequate lighting is provided in the surrounding environs to ensure that guests and their property are safe from intruders - All staff should be trained in safety and security issues and to consider privacy of information eg. what room a guest is in
Explain the nature of operations
- Operations generate recurring business income - Delivery of goods at a low cost to ensure profits - Converts or transforms resources into goods and services - Includes: inventory management, quality control, production scheduling, facility location, facility layout - In once case-accepting the orders, placing order to manufacturing in China, receiving shipment, mailing orders to individual customers, accepting payment - Problem-small inventory, customers must wait a long time for shipment, complaints have occurred The participant should recognize some of the following characteristics of operations: - identify the job/task - identify the resources or data required to carry out the job/task - impact of job/task on customer satisfaction/experience
Describe types of business activities
- Operations: includes every activity needed to manufacture a product or provide a service. Operations is an essential business function, because without a product or service to sell, a business has no reason to exist. Operations activities will always revolve around acquiring raw resources, converting those resources into something to sell and scheduling and controlling the process of conversion. Activities to accomplish those aims include creating production schedules, taking inventory, equipment maintenance, measuring quality and efficiency, and designing workflows - Marketing: without customers for its products or services, a company can't stay afloat, making marketing another crucial business activity. Marketing activities go beyond merely creating ads that entice customers. Instead, marketing activities are intimately connected with a company's products and services. Indeed, by understanding the needs and desires of consumers those in marketing help shape a company's offerings. Marketing activities determine the needed performance specifications of a company's products and services, the proper pricing, the best distribution channels and packaging. Consumer and marketplace studies, promotion, and sales also fall under marketing's purview. - Finance: the bottom line: money makes business possible. When approached carefully, finance activities build a foundation for a company's security, ensuring future operations. Finance must measure operations to create forecasts predicting a company's ability to meet investments, protecting assets, managing credit and preparing financial reports are other necessary financial activities. Two important statements companies typically prepare are the balance sheet, which shows a company's assets and liabilities, and the income statement. By subtracting expenses from the income, the income statement reveals a company's profit or loss - Other Business Activities: besides operations, marketing, and finance activities, other types of business functions become important as a company grows. With employees comes the need to manage a company's human resources. Important activities under the human resources umbrella include training and hiring. Once a company decides it wants to expand its offering, research and development becomes an important business activity. Finally, though wise management is desirable at any stage in a company's life, growth demands a more conscious and formal approach to leadership, planning and organizations than a one-person business might demand
Enlist others in working toward a shared vision
- Shared vision between community and leaders and Chamber of Commerce - The leaders within the community must be brought on board to share in the vision and be informed of the benefits of working together within the community - Letters/pamphlets to be sent out - Presentations to local businesses
Demonstrate a customer service mindset
A service mindset is an outlook that focuses on creating customer value, loyalty, and trust. A business with this outlook wants to go beyond simply providing a product or service. It wants to create a positive and indelible imprint in the customer's, or even in the prospect's mind. To do this, a business has to care about the customer or prospect experience and work continuously at enhancing it. - Listen carefully to the customer's complaint and acknowledge that you are there to help-in this case that the business meeting has been disrupted - Explain that you appreciate and value the business that the customer has given you and that you would like the relationship to continue - Provide customer surveys to get feedback from the customers. This could be done by a card with the bill, a website address or a phone call to important customers. There could be an incentive such as a discount or free dessert if they fill out the survey - Use interpersonal skills to handle customer requests and questions, understand management's role in customer relations, understand procedures for handling difficult customers, explain business policies to customers and handle customer complaints - You should view negative customer interactions as opportunities to learn even more about the customers' needs and expectations
Distinguish between economic goods and services
An economic good is a physical object or service that has value to people and can be sold for a non-negative price in the marketplace - Economic goods are tangible items such as products or materials that satisfy consumer wants or needs - Economic services are intangible and satisfy consumer wants or needs such as haircuts, dry cleaning, or massages. Services cannot be owned or returned by someone as could be with a good. Services are delivered by a service provider who is paid to do so by a consumer - In the case of a food court, businesses provide both a good (the food) and a service (the act of preparing and serving the food) to the consumer
Handle telephone calls in a businesslike manner
Callers should be greeted with a salutation (i.e. good morning, good afternoon, good evening) followed by the company name and employee name - This projects professionalism not only to the customer on the phone, but also the customers in the store who may be around the sales associate - Adding the employee name demonstrates confidence and accountability for the conversation about to take place Project mannerisms and tone that reflect your pride in your job - Smiles are "heard" over the phone - Enthusiasm to help customers demonstrates your enjoyment in working for the company Know about products and services offered by the company and share that information if applicable. Make suggestions of other things you can do to help the customer. Thank the customer for calling; confirm customer satisfaction; allow the customer to disconnect first
Identify ways that technology impacts business
Computer software and hardware provide a manager with the means for capturing, storing, and analyzing information regarding the operations of the business Better technology makes the job of managing easier because it improves the accuracy, timeliness, and usefulness of the information produced Example: computer scanning of UPC codes when receiving eliminates errors made in identifying part numbers, which is an important factor in managing inventory Example: linking the sales processing and invoicing system to the inventory management system also improves accuracy and reduces loss The legal field has expanded due to the impact technology has had on society. Today technology is a term referred to daily in everyday business. It may be relating to ticket sales in the entertainment business or on-line shoe sales in retail. It may be related to a new phone system being installed or new data entry software. There is no end to the impact technology has on communication, productivity, and the overall nature of today's business culture. With this new powerful innovative tool, come concerns and cautions that create a need for counsel in terms of confidentiality, on-line security, trademark and copyright protection, cross-culture issues, and more. Technology has also created concerns for ethics, but the benefits from profits and savings in productivity outweighs these concerns and commerce demands that technology keep rolling in a fast and aggressive manner - Can make it more effective and efficient - Easy to organize information and keep track of it - Can reduce costs for an organization (automated payroll, bookkeeping, etc...) - Can create a secure environment to maintain sensitive business or consumer information - Can improve company communication processes within an organization and with customers
Demonstrate adaptability
Definition - ability to cope with unexpected changes In this case, the intern should be able to show flexibility and willingness to learn, take initiative, share ideas and take direction
Demonstrate responsible behavior
Demonstrating responsibility means being willing to accept an obligation and being accountable for an action or situation. One can demonstrate responsibility in many ways. The participant may point out that the company can demonstrate responsible behavior by: - Accepting responsibility for damage that has been caused and taking measures to ensue that the problem does not happen again, perhaps by investigating the cause of the explosion or hiring an independent investigator - Explaining how they will take steps to ensure that this does not happen again - Offering to compensate injured employees and families - The disclosure of all relevant financial and operating information - Company must make a profit and be responsible to its shareholders - Company has dealt with complaints in a timely and ethical manner - Company has considered all stakeholders
Assess information needs
Determining who users of the information will be What type of information is needed and what they plan to do with the information What type of information is already available? Costs involved Timelines (how soon do they need the information?) A needs assessment is a systematic process for determining and addressing needs, or "gaps" between current conditions and desired conditions or "wants". The discrepancy between the current condition and the wanted condition must be measured to appropriately identify the need. The need can be a desire to improve current performance or to correct a deficiency. A needs assessment is a part of planning processes, often used for improvement in individuals, education/training, organizations, or communities. It can be an effective tool to clarify problems and identify appropriate interventions or solutions. By clearly identifying the problem, finite resources can be directed towards developing and implementing a feasible and applicable solution. gathering appropriate and sufficient data informs the process of developing an effective product that will address the group's needs and wants. Needs assessments are only effective when they are ends-focused and provide concrete evidence that can be used to determine which of the possible means-to-the-ends are most effective and efficient for achieving the desired results. In this case there are 2 sets of needs to be assessed. The needs of those seeking information on the companies through the evaluations of others, and the needs of those companies in wanting fair and ethical assessments.
Analyze employer expectations in a business environment
Employer expectations are communicated in the job description and in detail through the job training process. They form the basis of performance evaluations which may be used to determine performance bonuses and/or promotions. Both the employer and employee are responsible for ensuring communication of these expectations are clear and understood so they can rely on each other to achieve common goals. Expectations may include professional development for employees to upgrade and stay on top of the latest trends in the industry Did the participant explain their expectations of their employees in terms of: - Job performance - Customer service - Professionalism - Ability to handle conflict - To be on the job as required - To be punctual - To be reliable - To be honest and ethical - To take initiative
Discuss the nature of information management
Information management is the collection and management of information to one or more audiences. It also refers to the organization and control over the structure, processing, and delivery of information. Students may summarize this by saying that IM is the ability of a business to use information about its products, customers, and competitors to its advantage - Could include gathering, storing, and distributing information - May be electronic or physical - Managing the information that a company has (collecting, organizing, composing, analyzing) - May come from various sources - May be distributed to one or more audiences - Contributes to the organization's goals - Use of information withing an organization
Explain the role of information systems
Information system refers to a network of communication and data channels used within a business. Typically the system consists of both hardware and software and is used to facilitate a variety of processes. Information systems can be used for inputting, storing, and analyzing and/or distributing data and information In this case, the participant may point out that information systems are used for: - Keeping records about customers and providing information about customers to hotel staff - Coordinating hotel reservations that are made through various channels, including the hotel website, third party travel websites, or by phone
Determine the relationship between government and business
NB: students may struggle with this unnecessarily confusing phrasing ("determine") crafted by US DECA Inc - Government and business can work separately or in partnership with each other - They can work separately - They can work together to provide goods and services to people in P3s - public - private - partnership. Often these partnerships are formed to build expensive infrastructure like hospitals, roadways, and even athletic stadiums or to provide essential goods and services to those in need Government-run businesses can also be sold to private people (privatization)
Describe the concepts of economics and economic activities
Participant demonstrates and adheres to the following policies and procedures as stipulated in the case study. Economics deals with the production, distribution, and consumption of goods and services. Economic activities include: - manufacturing - buying - selling - transporting - investing Resources of a nation will help determine which economic activities should be pursued. Economic factors and activities that affect business include supply and demand of goods and services, labor market conditions, and inflation. These factors cannot be controlled by individuals, but they can be anticipated. Successful businesses know how to adapt to economic changes. Other economic activities students may mention: - Microeconomics - markets, specialization, supply and demand, market failure, firms, public sector - Macroeconomics - growth, the business cycle, inflation, monetary policy, fiscal policy, and regulation
Identify company's brand promise
Participants should make the connection between the company's slogan, "A positive place for positive results" and the mindset of the employees. Brands are names, terms, and designs, or symbols that distinguish a product from their competitors and they communicate features, benefits, qualities, and value. Effectively using the slogan will help build product recognition, customer loyalty and ensure consistent quality. In this case the company's brand promise is delivered through their brand name (the name of the company), and their slogan to build that into their entire business through employee behavior and customer's expectations and the importance of living up to it to mantain their image
Describe the functions of prices in markets
Price is the value in money placed on a good or service. One function of price is that it can affect the value that a customer places on an item. Price helps establish a company's or product's image - many customers use price as a gauge to make judgments about products and companies Price can give a competitive edge as well as ultimately allow the business to satisfy their end goal to make a profit The participant could discuss the pricing and how it creates an image for the retailer, as a higher price typically alludes to a higher end image, while a lower price usually indicates a lower end store - The point at which supply and demand meet sets the ideal price for consumers and for producers - If demand is higher than supply, suppliers will make a product or service more expensive - As the price increases, demand decreases and consumers seek substitute products or services at lower prices - As well, price often reflects the perceived value of a product or service. High priced items are perceived as being of higher value or quality than comparable lower priced items
Explain the concept of private enterprise
Private enterprises are organizations owned and operated by individuals and not on behalf of government institutions. Individual people can earn profit or provide services on a not for profit basis for their own benefit
Demonstrate ethical work habits
Reliability - a reliable employee is punctual, follows through on his tasks and shows up ready to work. Business owners cannot afford to keep employees who are not reliable. If an employee consistently arrives late to work and routinely fails to follow through or complete his tasks, the company loses time, money, and business Positive, Helpful, Character - Small businesses often have a close, tightly knit, familial atmosphere. It is natural to experience some growing pains or rough days. In general, your employees should have a positive attitude and be willing to help each other out. Negativity and dissent can spread like a disease and damage workplace morale and productivity. Employees should show initiative to make themselves useful and act as teammates to one another Proper Communication - Strong interpersonal skills can help form cohesive teams among employees and make handling challenges easier. Employees must communicate effectively and understand the difference between constructive criticism and destructive griping. Related to interpersonal skills is an employee's outward appearance. If the job calls for professional attire, the employee should dress the part. Strong interpersonal skills involve understanding a little about office politics-the employee should know when to speak up and when to listen Altruistic and Goal-Oriented - Good employees are often altruistic and goal-oriented. While receiving a paycheck is a strong motivator, a good work ethic is also putting yourself aside to work toward the greater good of the company as a whole. Doing so leads to working toward goals rather than putting in the minimum effort. To foster good work ethics, an employer must also possess strong work ethics. If you treat your employees as a means to an end, they will not respect you or the business. Work on team-building, show respect to your employees, but also be stern and mete out discipline when necessary
Explain the nature of effective verbal communication
Student answers can be vary, however they should indicate that communication is effective if it is well matched to the target market or target audience of the particular product or message - it should "speak to" the target audience in a clear and interesting manner. Effective communication should also include consistency between communication methods. Communication is the process of exchanging messages between a sender and a receiver - Effective communicators need to understand channels of communication and media, effective listening skills, barriers to communication, and non-verbal cues. In addition, one must be prepared to read for meaning, speak properly, and write effectively - Channels (or media) are the avenues through which a message can be delivered. The choice of medium depends on the nature and importance of the message - Effective listening allows a person to identify the purpose of the speaker, give feedback, and evaluate the speaker's message - Communication may be impeded by a number of barriers, including physical such as distance and position from the speaker, and verbal as in using vague or unclear language Lastly, a person's non-verbal cues - such as his or her tone of voice, emphasis, and body language - are critical because they often communicate much as the speakers actual words
Identify desirable personality traits important to business
Students may cite the "7 habits of highly effective people" (Independence-proactive, begin with the end in mind, putting first things first, interdependence - think win-win, seek first to understand then to be understood, synergize, continuous improvement - sharpen the saw) or they may simply discuss desirable traits such as: confidence, flexibility, motivation, enthusiasm, creativity, intelligence, emotional intelligence, etc...
Explain the principles of supply and demand
Supply and demand determine the prices and quantities of goods and services produced. Supply is the amount of goods and services producers are willing to make and sell. Demand is the willingness and ability of consumers to buy goods and services. - The law of supply states that the price and quantity supplied move in the same direction (a direct relationship) - As price increases, the amount of goods and services supplied increases. The law of demand states that as price increases, the amount desired by consumers will decrease (an inverse relationship) - When the amount of a product/service being supplied equals the amount being demanded, equilibrium exists in the marketplace at that price - A surplus exists when there is more supply than demand, leading to lower prices - A shortage exists when there is more demand than supply, leading to higher prices
Describe health and safety regulations in business
The participant should address the requirement for businesses to operate according to municipal/provincial/state/federal regulations. Additionally, the participant may state that adhering and exceeding such regulations are imperative when providing a service to the public and contributes to the customer experience - In Ontario as in most states, there are the Occupational Health & Safety regulations that relate primarily to a safe working environment for employees - Governments have also established health and safety regulations to protect the consumers from harm emanating from products e.g. Food & Safety and product labeling regulations - Buildings open to the public such as restaurants and hotels have to have clear signage for emergencies such as fire, or medical emergency - As for what a hotel itself does to ensure the safety of its guests, they are required to ensure that their employees are bondable and trust worthy so that guests do not suffer harm or loss from unscrupulous employees
Explain the nature of positive customer (customer/client) relations
The participant should demonstrate an understanding of this concept through examples A positive customer relations mindset means believing that your customers: - Deserve the very best - Are you your employers - Deserve your focused attention - Have the right to expect things of you - Have important problems and complaints Positive customer relations yield benefits to the: - Business - Employees - Customer Businesses benefit by being: - Employees may receive: - customer compliments - perhaps a raise or promotion for good customer service skills Customers may benefit from: - a more pleasant, satisfactory buying experience Positive customer relations need to be demonstrated when speaking to customers in person, over the phone, or online. It should also be evident while handling customer complaints, inquiries, and requests. Demonstrate good customer relations by doing the following: - considering and attempting to meet their needs - concentrating on them without distractions - follow up with them - following through on what you say you are going to do - being efficient in handling issues
Determine ways of reinforcing the company's image through employee performance
The participant should identify the need for positive employee performance and mention some of the ideas listed below: - Employee performance can reinforce a company's image through suggestion selling, order processing and fulfillment, and effective selling skills - Suggestion selling is useful for making the customer happier with his/her original purchases - Sales employees can improve customer satisfaction by the speed and care in which they handle orders, returns and refunds - Selling skills, such as an appropriate, pleasant greeting and a reassuring departure are useful tools in maintaining a good image - Offer helpful comments during and after a sale and always thank the customer in order to build a good relationship - Follow up on all promises made to a customer. and check on their level of satisfaction after a purchase - Positive customer-client relations require compassionate and immediate action when dealing with complaints and inquiries Participants should mention that particular attention should be made to the needs of male customers and they should focus on responding to their needs to ensure that they have a positive shopping experience. They should also mention that an effective sales presentation, to either male or female customer, will have a positive effective on the buying experience, the overall image of the store, and will likely lea to repeat business from the satisfied customer and an increase in future customer sales
Explain the concept of competition
The rivalry between two or more businesses to gain as much of the total market sales or customer acceptance as possible. Helps to maintain reasonable prices, provides consumers with new and improved products, and results in a wide selection of products from which to choose. Forces businesses to operate efficiently. In this case there is a competition between the companies being evaluated, and the evaluations can have a great effect on the competition Competition - Did the student discuss the pros and cons of competition? - Did the student address issues related to competitive advantage? Competitors - Who are the direct/indirect competitors? - What target market are they competing for?
