chap03 biz 20091005 (final)

Lecture 03

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楊志遠Jerry Yang

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Chapter 1 Review-1 What is Business?

1. Meanings of business defined as commerce, occupation and organization

2. Four productive resources & cost : land, capital, enterprise, labor.

3. Forces of supply and demand determine market price.

4. Business model makes competitive advantage and the difference between profit and profitability

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Chapter 1 Review-2What is Business?

4. “Invisible had of the market” lead to

increasing profit and wealth.

5. Business organizations creat to

structure business exchanges and

facilitate business commerce.

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Four productive resources & cost : land, capital, enterprise, labor.

3 - 6Meanings of business defined as:commerce, occupation and organization

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Business Functions for Competing Advantages

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Chapter 2 Review-1The Evolution of Business: Commerce,

Occupation, and Organizations

1. The possession of property rights control productive resources.

2. Feudalism( 封建制度 ) disappears and the issues in combining land and labor speed the accumulation of capital.

3. Money functions its development promote the rapid development of capital and enterprise.

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4. Mercantilism （重商主義） system, speed the development in global trade.

5. Industrial revolution and the development of capitalism, unionism, and the middle class system make the society and business evolved.

6. Forms of business organization used to manage business commerce changed over time.

Chapter 2 Review-2The Evolution of Business: Commerce,

Occupation, and Organizations

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Entrepreneurs, Managers, and

Employees

© 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.

McGraw-Hill/IrwinIntroduction to Business

Chapter Three

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Chapter 3Entrepreneurs, Managers, and Employees

• Describe the nature of entrepreneurship and the kinds of entrepreneurial opportunities that can increase the profitability of business commerce, occupations, and organizations.

1. Identify the process of creative destruction leads to the emergence of new companies, the decline of established companies and raises an society’s standard of living.

2. Appreciate( 察知 ) the problems involved in aligning the interests of manager with those of a company’s owners.

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4. Distinguish the three different levels of managers and understand the different roles they perform to increase efficiency, effectiveness, and profitability.

5. Differentiate two main approaches employees can take to performing their roles in a company and the way their performance affects their long term career prospects.

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• Globalization of the marketplace has heightened the complexity and competition in business today

• Entrepreneurs, Managers and employees are being pressured to use resources more efficiently and effectively and become more productive than their competitors

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Entrepreneurs•The person providing the enterprise, that spirit, energy, expertise, and insight not only seize business opportunities but must satisfy the customers product needs at a profit

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• If you behave as an entrepreneur and take

advantage of occupational

opportunities, this will be a major

determinant of your future ability to

build human capital and personal

wealth

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• A first- mover advantage may be thought of as not necessarily the best product on the market but the first on the market

• Competitors then develop “me-too” products.

• Evaluate Pringles – a first-mover or me-too product? Why?

http://www.pg.com/product_card/brand_overview.jhtml?document=/content/en_US/xml/product_cards/prod_card_main_pringles.xml&brand_name=Pringles

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•Intrapreneurship ( 內部創業 )• The entrepreneurial activity that takes place inside an

established company

• G. Pinchot said "Intrapreneurs are employees who

behave like entrepreneurs on behalf of the company.

They are the visionaries who act”

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Intrapreneurship( 內部創業 )• They become the hands-on drivers of a specific

innovation within an organization. Research shows that intrapreneurs are an essential ingredient of the successful innovation process

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• Entrepreneurs are intrinsically （本質上） motivated and driven by personal or inner motives not extrinsically （動機上） motivated and not driven by money or personal wealth

• Evaluate the success of G. Pinchot as an entrepreneur and relate to intrapraneuring

http://www.pinchot.com/MainPages/About/Bios/GiffordBio.html

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• Entrepreneurs may be guilty of “creative destruction” by driving old, inefficient companies out of business by new, more efficient business commerce, occupations, and organizations

• Isn’t this capitalism?

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•Capitalism is grounded in the

protestant ethic that we are stewards

（服務者） of all resources and we

have an obligation to use these

resources to the best of our ability

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• Compare this to the Industrial

Revolution, IT revolution and

the changing role of the

computer

• Evaluate the IT versus

Industrial Revolution and

relate to Capitalism

http://showme.missouri.edu/~socbrent/timeline.htm

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•Enterprise and entrepreneurship is a

vital 重大的） ingredient （組成部分） of business survival and success

and needs a catalyst （催化劑） to

allow a business to prosper and grow

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•As the business grows, the

entrepreneurs needs to delegate – give

up decision-making authority over

work activities to other people

•Managers, coordinate and control to

achieve a goal

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Management

• A process of the skillful use of resources

to accomplish a purpose or goal

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•Top managers, especially, are provided with extremely high financial rewards （高鐵董事長殷琪）

•Stock options – the right to buy company stock at a fixed price in the future

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•Stock options not only motivate

managers to make competent

decisions but help the company build

its capital and thus its stock price

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•Public stock corporations are usually created with a board of directors to protect the stockholders interests

•The chief executive officer (CEO) reports directly to the Board

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•The CEO creates a hierarchy of managers including top, middle and first-level managers or supervisors

• This hierarchy is usually illustrated as a triangle because of the number of managers in each level

• Evaluate the role of the CEO and relate to the hierarchy of management

http://en.wikipedia.org/wiki/CEO

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• A second dimension to managers is their

business functional expertise and need to

be both effective and efficient

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Effectiveness vs. Efficiency • Effectiveness is “doing the right thing” • Effectiveness focuses on task• Efficiency is “doing things right” • Efficiency focuses on resource • Evaluate the value, importance and significance of effectiveness and efficiency -- $299.00 ?

http://delphi.louisville.edu/cont_prof/prodev/Organization_Productivity/maximize_efficiency.html

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Effectiveness vs. Efficiency

•A high level of efficiency and effectiveness facilitates high profitability

• Low efficiency and low effectiveness leads to bankruptcy

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Business Functions•Production•Distribution•Finance•Personnel

• Most businesses are structured and managed in a similar functional model

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Management Functions

•Planning•Leading•Organizing •Controlling resources• Interrelated functions within the management

process

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•Planning is choosing the business model and allocating resources and selecting goals

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•Organizing is creating task, culture and reporting relationships to coordinate and motive individuals to achieve the firm’s goals

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•Leading is creating a vision using power, influence, and persuasion for individuals to follow

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•Controlling is evaluating the

accomplishment of the planned

goals and adjusting as needed

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管理四大功能

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•Employees, not decision makers, perform a role or a set of tasks within a specific job in the organization

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Performing job tasks more efficiently and effectively or “going to the next step” will help you to build human capital

•You are investing in yourself and your increasing capital will give you the opportunity to build personal wealth

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•This “extra effort” is the first step in managing your career

•Education is the single most important factor that will build your human capital, wealth and well being

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•Searching for the right occupation is challenging

• If you send out 100 resumes, you may get as many as five interviews

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•Employers look for similar

work styles and values and

norms in their employees and

tend to hire within these

characteristics

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• There is a very specific work culture or climate with any given organization

• You need to recognize this culture or “firm fit” in order to increase your attractiveness to the company in the initial interview

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•Your resume needs to reflect not only the perquisite skills, attitude, and abilities but also dress and appearance （照片與裝扮）

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Five Career Stages

• Preparation for work• Organizational

• Early career• Mid-career • Late career

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• How well you manage the challenges involved at each stage determine your long-term prosperity and well-being

• Evaluate Switching Careers video as an employee and relate to it also as a Manager

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SWOT Analysis –

a strategic planning tool to identify:•STRENGTHS

•WEAKNESSESS•OPPORTUNITIES

•THREATS

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chap03 biz 20091005 (final)

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