Management

Advanced Marketing

What is management?

The process of achieving goals through the use of human resources, technology, and material resourcesTop MGMT (Executive): Responsible for

the entire company, Company presidents and CEO’s

Do a lot of strategic planning (long-range planning for the company/business)

Develop objectives for the companySupervise other managers

Other types of Managers

Middle Management – report to top-level managers and usually have supervisors under them. Vice-President, Department Head, Sales ManagerAct as a liaison between top-level and

supervisory managersUse tactical/short-range planning – 1 year

or lessStrategic planning – what work needs to be

done to reach goals

Management types

First-level/supervisory management (more jobs in this area) – supervisors who work directly with employees, crew chiefs, shift managersResponsible for day-to-day activities of

businessDo schedulingAssign work,Make sure projects meet deadlines

What are some trends in management?

Horizontal organization – involves self managing teams that set own goals and make own decisions (fewer upper level managers)

Empowerment – encouraging team members to contribute to and take responsibility for the management process

What do managers coordinate?Human resources – the people who work

for the company

Financial resources – all sources of money available to the business

Managing resources

Material resources – equipment and supplies needed to produce and/or sell its goods

Information – all forms and information used to run the businessEconomic info., competition, regulations,

trends

Characteristics of management functions

See handout

Effective management techniques

Give clear directionsTrain new employees wellBe consistentTreat employees fairlyBe firm when necessarySet a good example

Ways to motivate employees

Give immediate feedbackReward smart workEncourage creativityReward employees loyalty

Hiring Employees

Job description – a written statement listing the job duties and responsibilities of a job.Educational experienceProfessional experienceSalary amount

Ways to recruit employees

Classified advertising (want ad)Employment agenciesCollege placement centersReferrals from friends and other

employeesPosting job on the World Wide

Web

Interviewing job applicants

Be prepared – make a list of questions to ask

Be courteous – try to make applicants feel comfortable

Avoid dominating the interviewTake notesLook for warnings that employee may

not be a good worker

Interviewing the job applicant

Don’t make snap judgments about a candidate

Thank the candidate for comingWrite a summary of your

impressions of the candidate

Checking job applicant’s references

Get candidate’s permissionAsk previous employers what they can

tell you about the personExplain position and ask if the candidate

would perform well in the positionAsk about people skills, tardiness,

attendance, etc.

Compensation packages

Wages – payments for labor or services that are made on an hourly, daily, or per-unit basis.

Salaries – payments for labor or services done on an annual basis

Bonus – financial reward in addition to a regular wage or salary

Commission – a % of the sale paid to salesperson

Benefits of a job

Paid leave: Vacation (usually get more the longer they

work for a company)Sick leave (use only when sick or family sick)

Insurance:Health benefits – HMO’s (Health

Maintenance Organizations) sometimes have a co-pay or deductible

Dental, life, accident

Benefits of a job

Pension plan: the employer and the employee

contribute moneyThe money is investedWhen employees retire they withdraw

their pensions

Desirable leadership qualities

* Good judgmentHonestyConsistencyEnthusiasmCooperationCommunicationsDependabilityUnderstanding

Ways to train employees

On-the-job trainingCoachingMentoringConferences and seminarsFollow-up to make sure using training

When leaving a job

Give a 2-week written notice

What is Accounts Receivables

Payments due for products or services provided to customersBills that you have sent to your

customersOn-line bills that your customers

owe

Accounts Payables

The payments that you owe to other businesses and your suppliersElectric billsLoans to banksBills for merchandise owedBills for supplies

Why is a purchase order needed?

Record of the fact that an order has been placed with a company

Legal contract between the buyer and the seller

Gives the purchaser the approval to buy the product

Cash flow statement

Describes how much cash comes in and goes out of business (checkbook).

Tells you how much money you have to pay your bills.

Cash going into your business is your revenue Sources of cash flow are:

Money from sale of servicesMoney from sale of productsMoney from late fees owed to you

Operating Expenses

Expenses needed to run your business:Rent/MortgageUtilitiesSalariesAdvertisingSupplies InsurancePayroll Taxes

Income statement

Summarizes the business income and expenses (profit or loss) during a specified period of time (month, year)

Basic calculations are:Total sales – returns and allowances =

net salesNet sales – cost of goods sold = gross

profit

Income statement (cont.)

Gross profit – operating expenses = net income from operations

Net income from operations – income taxes = net profit

Identify the following:

Variable expenses (vary from month to month) – utilities, water, product costs

Fixed expenses (stay the same every month typically) – rent, insurance, loan payments

Allowances – credit given to customer for damaged/exchanged goods

Other key words

Discounts – amount taken off of retail price of the product

Returns – products brought back Mark-up – The difference between the

price of an item and its cost blouse costs $5 and sells for $20 = $15 markup

Markdown – mark merchandise down for clearance, sales, defects, etc.

Key words

Sales tax – a % fee based on the sale of goods and services: 6% in KY

Extensions – multiplying the # of units by the cost per unit: 10 units X 6 = $60 (the extension)

Exchanges – merchandise brought back to a store and replaced by other merchandise

Balance Sheet

Summary of a business’s assets and liabilities and indicates the financial condition of the business

Assets are: Anything of monetary value that a business ownsLandCash in bank InventoryEquipmentFurniture

Business Plan (continued)

Liabilities are: What the business owesOutstanding debt on merchandise owedLoansMoney owed for salariesTaxes owed

Assets – liabilities = Net Worth (equity)

Depreciation

The amount by which a business’s assets have fallenExample: Company car value will

depreciate every year because the value goes down

Other examples????

Factors that affect how a business prices its products?

Costs and expensesSupply and demand (if you have a lot of

product to sell you may mark it down if not selling fast enough)

Consumer Perceptions of productCompetitionGovernment regulations

Assets - Liabilities =

A. revenueB. owner’s equityC. net worthD. both b and c

Accounts payable are

A. Amounts other businesses owe you

B. discounts + returnsC. Money you owe to other

businessesD. both a and c

Net sales are

A. Total revenue – liabilitiesB. Total sales – returns and

allowancesC. Total revenue – total

expensesD. Total sales – total expenses

The statement that shows whether a business has a profit or loss is the

A. cash flow summaryB. balance sheetC. account receivable

worksheetD. income statement

Expenses that it takes to run your business such as

office supplies are called _____ expenses.

A. DiscountedB. Varied C. Operating D. Depreciation

One-time expenses to start a business are known as what types of costs?_________

A. Accounting costsB. start-up costsC. operating costsD. management costs

Money that is owed to a business by its customers is called

A. Accounts payablesB. Accounting receiptsC. Accounts receivableD. Accounting disbursements

All of the following are assets of a business except

A. buildings.B. equipment.C. inventory.D. people

When a business’s equipment has lost value this is referred to as

A. a liability.B. depreciation.C. an asset.D. an expense

Expenses that stay constant over time such as rent and salaries are known as __________ expenses.

A. variableB. assetC. liabilityD. fixed

An income can be used by a business to

A. evaluate their assets.B. forecast a business’s performance.C. evaluate their liabilities.D. all of these.

The total amount of sales that a business does for the entire month is known as

A. revenue.B. cash sales.C. the sales amount.D. credit sales.

How are net sales calculated?

A. Total sales – expenses = net salesB. Total sales – taxes = net salesC. Total sales – returns and allowances

= net salesD. Total sales – cost of goods sold = net

sales

A bank statement that a person gets to balance their checkbook is the same as a(n)

A. cash flow statementB. income statementC. balance sheetD. equity statement

The amount of sales needed in order to cover all of a business’s costs is known as the

A. stock reorder point.B. inventory reorder point.C. break-even point.D. sales flow point.

A purchase order should be used in all of the following cases except:

A. to get approval to buy an item.B. to micro manage employees.C. for recordkeeping.D. to make sure the funds are available.

In what role do managers find and select workers for their businesses?

A. StaffingB. OrganizingC. PlanningD. Directing

Setting goals and determining how that they will be done is a ____________ management function.

A. OrganizingB. ControllingC. StaffingD. Planning

Providing guidance to your employees is what management role?

A. planningB. OrganizingC. DirectingD. controlling

Bob checks employees performance on a regular basis, this is an example of

A. planningB. controllingC. directingD. organizing

Paul establishes jobs needed to get the work done. He is involved in

A. planningB. organizingC. directingD. controlling

The process of coordinating resources to get the job done is

A. MarketingB. SellingC. PromotionD. Management

Paul works directly with the employees giving them direction and assigning duties at the new Burger King. Paul would be at what management level?

A. Advisory-levelB. Top-levelC. Mid-level or middleD. First-level or supervisory

A job description gives what kind of information?

A. Duties of the jobB. Where you would workC. Hours of WorkD. all of these

Empowerment in management means that

A. You let your employees make all of the decisions

B. The manager makes all of the decisions

C. The manager lets you makes most of the decisions on your own.

D. all of these

Jane is planning on opening a new hairdresser store, before she does this, she would need to

A. Pick a commercial location

B. Get a Family Medical Leave Act permit

C. Get a license to operate

D. Both a and c

Under the Family Medical Leave Act, all of the following applies except

A. Leave is paid for employeesB. Applies to businesses with 50 or more

employeesC. Can take off for up to 3 monthsD. Has to be leave for family medical

care

Which agency regulates discriminatory claims against age, gender, race, etc.

A. Occupational Safety and Health Administration (OSHA)

B. Better Business BureauC. Equal Employment Opportunity

Commission (EEOC)D. Family Medical Leave Act

If a business is participating in unfair practices, who should you report it to?

A. Federal Trade CommissionB. Consumer Product Safety

CommissionC. Equal Employment AgencyD. Better Business Bureau

If there are unsafe working conditions at a business, who would regulate this?

A. Occupational Safety and Health Administration (OSHA)

B. Better Business BureauC. Equal Employment Opportunity

Commission (EEOC)D. Family Medical Leave Act

A company needs to make sure their products are safe or this agency will fine them:

A. Occupational Safety and Health Administration (OSHA)

B. Consumer Product Safety Commission C. Equal Employment Opportunity Commission

(EEOC) D. Family Medical Leave Act