Chapter 5 Entrepreneurship and Small Business Chapter 6

Chapter 5: Entrepreneurship and Small Business Chapter 6: Business Ownership and Operations Chapter 7: Business Management Chapter 8: Leadership in Management Chapter 9: Technology and Business

§ What roles do entrepreneurs play in the economy? § How are businesses started in the United States? § What are the main types of business ownership? § How does a business owner decide on a form of business ownership? § What are the important characteristics of a manager? § Why are leaders important in a business setting? § How does technology influence the business community?

§ Define entrepreneur and entrepreneurship § List at least five rewards of being an entrepreneur § Identify at least four challenges of being an entrepreneur § Discuss why entrepreneurs are important to the American economy

§ Small Business § Virtual business or dot-com company

§ You are planning to save for 20 years of retirement. Just before you retire, your annual salary will be the equivalent of about $50, 000 in today’s dollars. You will need 70% to 80% of your pre-retirement income to maintain your lifestyle. Based on this rule you would need a minimum of $35, 000 for your first year of retirement. § How much money will you need to retire?

§ If you want to start your own business you will be called an entrepreneur § This person recognizes a business opportunity and organizes, manages, and assumes the risks of starting and operating a business § Entrepreneurship is recognizing an opportunity, testing it in the market, and gathering resources necessary to go into business § A venture is a new business undertaking that involves risk

§ The Small Business Administration (SBA) § Aids, counsels, assists and protects the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation § Leadership § Decision Making § Self-discipline § Planning § People skills § Etc

§ Serve a limited geographic region (cities, counties, states) § Typically have fewer than 500 employees § Usually owned by one person or a partnership

§ Virtual business or dot-com company § Not a large geographical footprint § Costumers are anyone with an internet connection § Can be small (1 person) or large (Google, Apple, etc)

§ Being your own boss § Set own hours, responsibilities, pay § Profits= higher salary § Typically you do what you enjoy § Be as creative as you want § Do you want to start your own from scratch or buy an existing business to make better? § Researching the market is key to a successful venture

§ In one year, the combined purchasing power of minority groups in the US was $1. 3 trillion or 20% of the country’s purchasing power. § It is estimated that in 40 years, minority groups purchasing power will equal $4. 3 trillion, or 32% of the country’s purchasing power. § By how much will the country’s total purchasing power grow over 40 years? ? § What is the equation for percent change?

§ Sole proprietorships § Characterize the most US businesses § One owner § Gets all profits, but pays all losses § Assumes a great amount of personal risk § Partnership § Owned and run by two or more people § Corporation § Many owners (usually hundreds, thousands, even millions!!)

§ You are an entrepreneur trying to build a new business. One of your MOST important clients is late paying your recent invoice because its computerized accounting system is down. You face a cash-flow problem, Since your client has not paid you, you cannot pay all of your bills. However, you could get by if you don’t pay your rent for the month. § What do you do?

§ Getting funds § Usually have to borrow the money and people are skeptical of a business not succeeding § Full responsibility § At first, maybe top executive, secretary, and janitor for the business at the same time § Job= Life § At first, maybe working 12 -20 hours/ day § Income will vary greatly at first § Failure comes from inadequate financial planning, management, and poor response to change

§ More than 99% of US firms are small business § Employs 50% of the US workforce § 2/3 of all new jobs created are started by small businesses

§ Go on the Occupational Outlook Handbook website and click on the “OOH search A/Z index” link and enter the job title “Operations research analyst”. § Write a 1 page report describing the characteristics of this occupation

§ What are some characteristics of successful entrepreneurs? § What reward is the main reason most people become and entrepreneur? § Identify some challenges of entrepreneurship.

§ The start-up costs for a new business are as follows: § $12, 000 to lease an office § $25, 000 for inventory § $30, 000 for 1 st year payroll § Profit projected at $3, 250 § Would it be more profitable to open this business or invest in a savings bond with would return 5. 99% over 1 year?

§ Describe how to prepare for your own business § Discuss the parts of a business plan

§ Business plan § Executive summary § Vision statement § Mission statement

§ First you need to determine if there would be demand for a particular product/ service § Market research is the process of searching how the market will react to your product/service § Business plan- written description of a new business venture that describes all aspects of the business. § Focus on what to do, how to do it, and what you can expect to happen

§ The business plan for a large corporation called for 15. 5% of annual profits to be reinvested in R&D of new products. § If this company shows $3. 4 million in revenue and $2. 8 million in expenses, how much would be invested in R&D?

§ What will I produce? § Who are my main competitors? § Why is my product or service needed? § How much will my product or service cost to produce? § How many people will I need to run the business? § What physical facilities will I need? § What licenses, permits, or other legal documents do I need? § How much money will I need to get started?

§ Answer the previous questions as it applied to starting a… § Dog walking business § Planting tulip bulbs § Raking leaves

§ There are 16 essential parts to a business plan § It can vary but you want it more specific as opposed to less specific § Part one is the Executive summary § This is a brief summary of the most important points of the business plan § This contains the most important information from each section § It needs to be attention grabbing so people keep reading

§ This presents qualifications of you and your partner § Do you have what it takes to do this? § Are you trying to create an interstellar space ship with no knowledge of math or physics? § Do you plan on hiring some one who can do this?

§ This describes the size, scope and type of business you plan to start. § It also describes why the venture will succeed

§ Describes the product/ service § Note why this product/ service is new or unique § Any potential future products/ services that could grow from original § You are trying to convince a complete stranger to give you money, they need to be impressed in some way.

§ This states the guiding principles that the company will follow when running their operations § Vision Statement- establishes the scope and purpose of a company and reflects its values and beliefs § Mission Statement- expresses the specific aspirations of the company

§ Go to bplans. com § Did the plans include all the information presented in the textbook? § Who sponsors this website? Why?

§ This will present the research into the industry § Every business is classified in an industry § An industry includes companies that provide similar, complementary, or different products and services. § Include recent and future trends in the industry

§ This shows what is your ideal customer profile § This determines your marketing and sales strategies § You will also look into your competition and customers § Include geographic, economics, and demographic data of the target market and business location

§ Describe the advantages your business has over existing businesses § Determine your advantages and disadvantages in the business world

§ This will show the company plans to make their customers aware of their products § It will include market niche, pricing, company image, marketing tactics, a media plan, and marketing budget.

§ Search online for “technology mutual funds” § Find two § List their name, investment strategy, goals, and objectives

§ Includes the business processes that result in production and delivery of the product or service § Who is in charge of what and what type of business is this? § Partnership, sole proprietorship, corporation, etc § The financial forecast- revenue and cost estimates in the future § How will the business expand- organically or inorganically

§ What are the risks of getting into this business and how can you minimize them. § Not too many, alien invasions and such are possible but at this point quite unrealistic

§ Cover page § Company name, address, phone number, web site, email address, and logo § Title page § Company name; the names, titles, and addresses of owners; the date the plan was submitted; and the name of the preparer § Table of Contents § Details the components of the business plan § Supporting documents § Posters or prototypes and such.

§ Go to the Small Business Administration Website § Follow the links for “business plan basics, writing the plan, and using the plan” § Compare and contrast this format to the one in the book § What are the main similarities and differences? § In essence, is there really a difference?

§ Why is a business plan important? § Why should entrepreneurs carefully study their competitors before starting a business? § Why is a growth plan important to include in a business plan?

§ Create a vision or mission statement for the class on your own. § Based on what you know and have learned about the school create your own vision. § The mission statement for GCIT is listed on the website

§ Look for an opportunity that you think can be turned into a business. Write a one- page essay outlining the nature of the opportunity and why you think it has potential

§ Research online the life of any entrepreneur. § Please get the topic approved by the teacher so not everyone does the same entrepreneur § The person can be living or deceased § Write a paper describing their life taking special care to note their influences, obstacles, education, and experiences with starting a business

§ Go to the U. S census bureau’s website and research the latest survey of small business § Determine how many jobs are created and how much income is generated by small business § Record your responses and discuss what you think the impact small businesses have on the United States

§ With a partner, research the requirements for setting up a small business venture in your community. § Investigate the areas such as government regulations, financing, and the cost of leasing space, and buying equipment. § Write a 1. 5 -2 page paper on the topic.

§ Describe the advantages and disadvantages of the three major forms of business organizations § Describe how cooperatives and nonprofits are like and unlike corporations and franchises

§ Sole proprietorship § Unlimited liability § Partnership § Corporation § Limited liability § Cooperative § Nonprofit organization § Franchise

§ Linda is investing for retirement 30 years from now. § She wants 70% of her money in stocks, 20% in bonds, and the remaining 10% in a money market fund. § Stocks now compromise 80% of her portfolio so she needs to rebalance her portfolio § If her portfolio is worth $100, 000, what percent of her stock holding should she sell in order to rebalance her portfolio? § What is the value of the stocks, bonds, and money market accounts of the following portfolio? § The account is worth $187, 000, it is divided into 45% stocks, 40% bonds, and 15% money market?

§ The three main types of businesses are § Sole Proprietorship § Partnership § Corporations § The type of business is usually determined in the early stages of the business plan and the needs of the business

§ ¾ of all businesses in the US are classified as sole proprietorships § These are characterized as businesses being owned by one person § While accounting for almost ¾ of all businesses formed in the US, they only account for 5% of the total revenue generated by all businesses

§ Easy to form § Maybe as simple as a license and a permit § Fully in charge of the business § You are the Man or Woman now and people work for you § You get to keep all profits § They will be reported as income on personal taxes § Lower taxes compared to corporations § Tax rate is determined by personal income bracket

§ Unlimited Liability- the owner is personally responsible for the company’s debts § If you have more debt than income then the owner has to make up the difference § Limited access to credit § Credit worthiness is determined by personal credit score § Running out of money is why most small businesses fail § Lack of skills to run a business § Best baker in the world can’t balance the books § The company ends when the owner dies

§ The neighborhood bakery makes bread, cakes, cookies, and pies. § At the end of the day, the prices of all the leftover products are reduced by 75%. § If bread sells for $0. 87 at the end of the day, what was its original price?

§ Is characterized as a business owned by two or more people who share in the risks and rewards of that business § Important to create a partnership agreement stating how profits, losses, and the work load will be divided

§ Very easy to start § Partners may only need a license to start the business § Easier than Proprietorships to get capital § Usually more start-up capital with more partners § Banks are more willing to lend money to partnerships § Income is taxed on a personal level § More people= more skills and knowledge

§ All partners share the same business risk § Partnership ends, when a partner leaves or when a new partner is added § Unlimited financial and legal liability among the partners

§ Why might two people decide to form a partnership instead of a sole proprietorship? § Working as a team member is similar to being in a partnership. What are some of the advantages and disadvantages of working with others?

§ Is a company that is registered by a state and operates apart from its owners § To form a corporation, the owners/ managers must get a corporate charter from the state where their main office will be located. § A corporate charter is a license to run a corporation § To raise money, the business can issue stock § The company must have a board of directors

§ Limited Liability for the firm’s owners, they are only responsible for the money they invested § Can raise large amounts of capital quickly by issuing stock § The business will not end if the owner/ CEO dies

§ Double taxation § The corporation pays taxes on its income, and investors pay taxes on their dividends § S corporations do not have this feature but we will cover this later § More regulated by the government and international law § Difficult and very costly to start

§ In Excel, compile a database of at least 10 businesses from Gloucester county. § Include fields for the name, address, telephone number, and the category of business. § Find at least one business that is a producer, a processor, a manufacturer, an intermediary, and a retail or service business.

§ Cooperative- a business owned and operated by its members § Small farms pooling their resources of buying and selling materials § Allows for cheaper advertising and costs in the long run § An example would be Ocean Spray § Nonprofit organization- a nonprofit that focuses on providing a service but not to make a profit § Must be registered with the government § No profit= no taxes § Franchise- contractual agreement to use the name and sell the products and services of a company in a designated geographic area § You have to invest money or pay franchise fees, or pay a portion of profits back to the organization

§ What is the difference between a sole proprietorship and a partnership? § If a partner makes a bad decision, what responsibility do the other owners have? § Why are cooperatives formed?

§ Differentiate the six types of business § Describe the five functions of business § Discuss how the five functions of business relate to each other

§ Producer § Marketing § Processor § Management § Manufacturer § Finance § Intermediary § Accounting § Wholesaler § Retailer § Production § Procurement

§ Producers- a business that gathers raw goods § Materials gathered in their original state from natural resources such as land or water § Agriculture, Mining, Fishing, and Forestry § Processors- changes raw materials into more finished products § Examples include- sugar cane, gasoline, and steel § Manufacturers- makes finished products out of processed goods § Examples include- cars, CDs, and computers

§ Read and complete the worksheet based on pg. 100 of your text

§ Intermediaries- a business that moves goods from one business to another. § It will buy the goods, store them and then resell them to another business § Wholesaler- a distributor of goods § A clothing wholesaler will buy thousands of jackets, then divide them into different stores in much smaller quantities to sell directly to consumers

§ Retailer- purchases goods from a wholesaler and sells them to consumers. § Service stations, music stores, and auto dealers are examples § Service businesses perform a task. § Medical clinics, law firms, taxi companies, and copy shops § These types of businesses provide about 75% of all jobs

§ Go to the Occupational Outlook Handbook and search for “top executive” in the Ooh seach/ A-Z index. § Write a one page report about the occupation and what you can do to prepare for this position in the future.

§ The five main functions of business 1. Production and Procurement 2. Marketing 3. Management 4. Finance 5. Accounting

§ Production- the process of creating, expanding, manufacturing, and improving goods and services § Procurement- is the buying and reselling of goods that have already been produced

§ The process of planning, pricing, promoting, selling and distributing ideas, goods, and services § Trying to convince some one to buy the product or try a service § Use market research and trends to figure out plan

§ The process of achieving company goals by planning, organizing, leading, controlling and evaluating the effective use of resources

§ Finance- the business or art of money management § Accounting- involves maintaining and checking records, handling bills, and preparing financial reports for a business.

§ Identify what happens during the production, processing, and delivery stages within each type of business responsible for a loaf of bread. § Explain how a producer, processor, and a manufacturer are not involved in producing a service. § How can accountants in a firm provide an idea of the general health of the company?

§ On page 102 of your textbook read the scenario § Go to the following links to assist you in your research § http: //www. computerhistory. org/exhibits/ § http: //vmoc. museophile. com/ § http: //www. cbi. umn. edu/ § http: //photos. si. edu/infoage. html § Write a 1. 5 page paper describing a person, invention, or time period that interests you.

§ The 5 functions of business are interdependent § Without one, the others would fall apart § If you focus too much on one area, the other areas could fail § If you cannot manage all 5, consider outsourcing one or more of the nonessential duties.

§ What is the difference between a producer and a processor? § Identify the 5 functions of business § Give an example of how the accounting and finance functions can affect a businesses' marketing and production processes.

§ 7. 1: Management Functions § Describe the overall purpose of management § Discuss the four functions of management § 7. 2: Management structures § Identify the differences between management structures § Name six skills necessary for effective management

§ Management § Planning § Organizational chart § Top-level manager § Middle manager § Operational Manager § Leading § Controlling

§ Entrepreneurs who start and run their own business do not have to manage themselves but once they start hiring, they are the new manager § Management- includes the processes or functions of planning, organizing, leading, and controlling § Comic book company § Managers supervise and direct the employees to tasks to benefit the company

§ Help businesses focus on setting an meeting goals effectively and efficiently so a profit can be made § Refers to the people who are in charge of running a business § Need to know the overall goals to help employees accomplish them

§ Research the requirements for a management major at GCC or Rowan University § Determine the types of courses that students must take. § Write a. 5 - 1 page paper describing the required course work

§ The four levels are: § Planning, Organizing, Leading, and Controlling § These are listed in order of occurrence § Usually divide managers among these four functions § Trouble is there are usually multiple objectives at each of the four levels going on simultaneously § Suppose your company’s manager discusses plans to produce a new comic book with marking and production teams. The manager directs the marketing team to research the national and global markets for comic books. The manager also tells the production team to prepare and produce the new product § It is up to the managers to make sure these project are completed in a timely matter

§ Is the act or process of creating goals and objectives as well as strategies to meet them § Also need to determine resources needed and standards to be met. § Some people believe that the planning function is the most important one for a manager. Why might that be true?

§ Getting the resources arranged in an orderly and functional way to accomplish goals and objectives § Must be organized to maintain efficiency and reduce down time § Must be trained properly and fit the position § Make sure the employees have the tools needed to succeed.

§ An Organizational chart shows how the firm is structured and who is in charge of whom § Top-level management-responsible for setting goals and planning for the future as well as leading and controlling the work of others § In small businesses maybe only one or two people, in corporations there be as many as 10 - 20 § Middle-management- carries out the decisions of top-management § Responsible for the departments of the business such as production, marketing, and accounting

§ Operational Management- responsible for the daily operations of the business. § Supervisors, office managers, and crew leaders

§ Since companies are using fewer middle managers, how have the jobs to top-level management and operational managers changed?

§ Means providing direction and vision § Vision will help inspire employees to work § Apple or Google § Direction will set the standard of work and who is working toward what goal § Good leaders can delegate work, enforce policies, oversee time management, and provide feedback on employees’ work § Practice what you preach can also help to motivate employees

§ Keeping the company on track and making sure that the goals are met. § Budget, employee work schedule, and quality of product or service § Monitor employees and customers to create the best experience for everyone.

§ Imagine you are in charge of the next school dance, fundraiser, or school function. § In one page indicate some of the tasks you would need to complete in each of the functions of management.

§ What is Management? § What are three levels of management? § Which of the three levels is most involved in day to day supervision of employees? § You are a delivery manager at Blue Bag, a wholesale bakery. The bakery employs two drivers and owns two trucks. Each truck can deliver up to 175 crates of bread per day. The bakery has standing orders for 340 crates per day, but a new supermarket is opening up, and you expect orders to increase 225%. If you hire two more drivers, will it be enough to cover the increase in orders?

§ Identify the differences between management structures § Name six skills necessary for effective management

§ Line authority § Line and staff authority § Centralized organization § Decentralized organization § Departmentalization § Entry-level job

§ Line authority- is an organizational structure in which managers on one level are in charge of those beneath them § An advantage would be that authority is clearly defined § A disadvantage is that managers have few specialists to consult with for help § Line and staff authority- shows the direct line of authority as well as staff who advise the line personnel. § An advantage would be allowing management to get advice § A disadvantage is that this could lead to over-staffing

§ Centralized Organization- put authority in one place, usually at the top § Help managers be consistent in decision making § Decentralized Organization- gives authority to a number of different managers § More common in international business due to the expanded scope of business and an expertise in a certain area.

§ Formal structures § Departmentalization- divides the responsibility among specific units or departments § Geographic location, function, customer groups, product § Informal structure § Smaller businesses can function with less organization § Less units and scope means you need less people § Employees must be more flexible and able to multi-task

§ What are the pros and cons for working under formal management? § What about informal management? § If you had your ideal choice in management, which would you choose to work for? § If you were manager, how would you manage?

§ http: //levine. sscnet. ucla. edu/general/whatis. htm § http: //www. gametheory. net/professionals. html § http: //plato. stanford. edu/entries/game-theory/ § http: //www. mgmtguru. com/mgt 301/301_Lecture 1 Page 13. htm § Use page 117 of your text books and these four websites to create a 1. 5 - 2 page paper on game theory and the science of decision making in business.

§ Most managers start on the bottom level § Entry-level jobs- are considered beginners jobs and get your foot in the door § Used to gain experience and find a niche in the company to be successful (or fired)

§ Ability to multi-task and triage decision making § Solve Macro problems in the business but still manage the day-to-day issues § Communication is also very important § People can’t do what they don’t know or don’t understand § Listening is the same thing as communication, managers need to be effective at both § Need to deal with all types of people with all types of attitudes

§ Must understand how various parts of the business add up to whole sum of the business § Understand outside influence on the business such as economic conditions or competition with other businesses

§ Usually earn more money than non-management employees § Highest level manager (CEO) usually highest paid manager § How many CEOs’ annual salary is only $1? § People look to you for your leadership § Good leaders inspire and influence employees to strive for greatness § Less people to report to § More leisure time and you can choose what to work on

§ Usually gets blamed when things go wrong § Under a lot of pressure to get the job done right, cost effectively, and hopefully earlier than expected.

§ Go to the Occupational Outlook Handbook § Click on the OOH Search/ A-Z index and search for “medical and health services manager” § Write a one page paper describing the occupation, how to prepare for it, and the future prospects of its availability.

§ Describe your ideal manager.

§ What is an advantage of a line and staff authority organization structure over a line authority organization? § Why do some businesses use a decentralized organization? § What are some characteristics of an effective manager?

§ 8. 1 - Leadership Qualities § Define leadership § Describe the qualities of a leader § Name at least three ways in which an individual can develop leadership skills § 8. 2 - Leadership styles § Identify and describe the autocratic, democratic, and free-rein leadership styles § Describe the self-managed team approach and the two ways in which such an approach is organized.

§ Leadership § Initiative § Human relations § Integrity

§ You are in charge of finding a storage facility for your company’s surplus inventory. The inventory is stored on pallets and has a total volume of 2690 cubic feet. You find a storage site with an area that fits your needs. If the floor measures 23 ft x 13 ft, how high would the ceiling have to be to accommodate your inventory?

§ Leadership- taking a company and its employees in a direction based upon a vision § Look at issues on a macro scale § Know the ins and outs of any business or industry § Know their employees strengths and weaknesses § Management does not necessarily equal leadership § Leadership is found in many shapes and sizes § Good at motivating, confidence, communication skills, and integrity

§ Look up and write a 2 page biography about Dr. W. Edwards Deming § Focus on his life and what he did to help out Japan’s economy and some of the specific ways it is still being influenced today by his ideas.

§ Three main components: § Inspire by using energy, charisma, or enthusiasm to assist in getting the job done. § Initiative is the ability to act and make decisions without the help or advice of others § A major vision that is easy to follow and believe in

§ Confidence in knowing what to do and taking action § Confidence usually breeds more confidence § Follow the leader mentality or keeping up with the jones’ § Must be decisive in the good and bad

§ You need to train an employee to manage purchasing. It takes 10. 5 hours a week and the employee needs to work on it two days a week. Your staff has the following work hours: § Maya 8: 00 am-1: 00 pm MWF § Susan 9: 15 am-3: 00 pm M-F with an hour for lunch § Kyle 11: 30 am- 5: 30 pm M-F with a half hour for lunch § Who would be the best choice? How many hours a week will this person have available to work on other tasks?

§ Making sure everyone is on the same page and going in the same direction § Human Relations- the study of how people interact in the workplace and how communication can be improved § Some company’s have their own departments that do this or it can be outsourced § Mentoring can also assist in guiding employees in the right direction § Listening is just as important as talking when it comes to communication

§ Integrity- is an adherence to a code of ethical values such as honesty, loyalty, and fairness § Follow people who model good examples and follow the rules

§ Not everyone is born a leader § Some people develop into leaders based on certain situations or skill sets

§ Go to the Occupational Outlook Handbook. § Click on “OOH search A/Z index” link § Enter the title “education administrator” § Write a one-page report about this type of occupation. Conclude your report with a list of things you can do to prepare yourself to pursue this occupation.

§ Good leadership is needed in the business world as well as in areas such as government, nonprofits, education, and sports. Why do all institutions need leaders? § Why is it essential that a leader have integrity? § Why are professionals such as engineers and doctors usually managed with a frre- rein rather than an autocratic management style?

§ Why are some managers not leaders? § What are three motivational qualities that leaders have? § How can leadership skills be developed?

§ Your manager wants you to sell $350 worth of goods during your shift § Yesterday you sold $330 worth of goods § Today you sell $440 worth of goods § Determine the percentage above or below you were to your goal yesterday, today, and overall.

§ Identify and describe the autocratic, democratic, and free-rein leadership styles § Describe the self-managed team approach and the two ways in which such an approach is organized.

§ Autocratic leadership § Democratic leadership § Free-rein leadership § Delegating § Self-managed teams

§ People are different § Leaders are different § You will have to learn about different working with and for different people with different personalities

§ Autocratic Leadership- one person runs everything and makes all decisions without consulting others. § Think the about the military and to do without question § When they say jump, you respond with how high § Assume people need decisions made for them and then need to be watched so they get it done § Some people tend to have an issue and this can cause animosity or resentment toward the manager § This type of leadership is useful when there is no time to think and muscle memory must take other

§ Democratic Leadership- managers work with employees to make decisions § Everyone has a chance to meet and discuss a situation and then listen to everyone’s opinions § New ideas are encouraged from anyone in the business § The leader will ultimately make the final decision but after input from employees

§ Free-rein- requires leaders to set goals for managers and employees and then leave them alone to get the job done. § This style creates a lot of trust and confidence in the employees § Usually give instructions and the final product, the detail in between are left up to the employees § These leaders are good at delegating tasks to their employees § Managers do not have time to do everything § Managers can focus on more important work § Employees have more ownership of the production process § Employees have a chance to develop their own potential § Delegating tasks is not the same as passing off work

§ You own a business that has 5 employees: § 1 is a bookkeeper with many years of experience § 2 are college students who have working with you for 6 months § 2 are high school interns that started last week § What leadership style will you employ with each/ all of your employees?

§ In 1996 Odwalla Inc. , a producer of fresh-fruit beverages, faced a crisis. Its apple juice cause an outbreak of E. Coli. One child even died. Odwalla executives ordered an immediate recall of all products containing apple or carrot juice, costing the company $6. 5 million. The next step was to tackle the problem of contamination. Odwalla used unpasteurized juice because it tasted best. They moved quickly to introduce a process call “flash pasteurization” to destroy the bacteria, while leaving the best juice possible. § Go on the website to the links for “Contamination Crisis” and write a 2 page paper explaining how decisive leadership and good science helped the company to survive.

§ 30 to 40 years ago autocratic was the only/ most used form of leadership § As employees started to empower themselves, managers learned to allow employees a little more freedom in the workplace § The new trend is in self-managed teams § Work groups that give each jobs and tasks, then set out to manage themselves and the project § The “manager” is now referred to as the team leader

§ The idea started in Japan and came to the US around the 1980 s. § Our culture was to divide and conquer, each individual had a task and it contributed to the whole good. § Japanese companies stressed people working in teams and making decisions as a group. § The leader is still a part of the team, and needs to make the decisions with the group § In this style people learn a range of jobs and skills not just one § This allows for more goal oriented behavior as opposed to task oriented behavior

§ What are some instances in which self-managed teams will not work? § What traits must workers have if self-managed are to operate effectively and efficiently?

§ Michael Eisner, former CEO of Disney, said business leaders must be willing to take intelligent risks. He also said they must encourage failure, because “you will not get success without it”. Write a one-page essay either agreeing or disagreeing with his statement.

§ Either the team picks the leader or each team member employs specialized skills but there is not defined leader § The team leader is more of a captain than a manager § The leader does not give orders, they are more for motivation toward a shared goal § The whole is greater than the individual parts § Some advantages include § More goal-oriented than task oriented § Have a chance to learn more skills or jobs § Learn to participate and cooperate § Learn to solve their own problems § A disadvantage is when the team can’t function together and get the goal completed

§ In which situations is an autocratic leader useful? § Why should a manager delegate authority? § Name a similarity and difference between free-rein management and self-managed teams.

§ Chapter 9. 1: The History of Technology § Describe how technological inventions have an effect on business § Give examples of how technology has changed jobs in business § Chapter 9. 2: E-commerce § Explain why doing business on the internet has become a major factor in many industries

§ Key vocabulary § E-workforce § E-commerce § Digital workflow

§ A business needs to hire 8 more people to fill extra orders. The store owner pays them $11 an hour. § 4 of the employees work 4 hours a day for 10 days, and the other four work 6 hours a day for 10 days. § How much does the business owner owe his employees? ?

§ Technology refers to the tools and machines that people have invented to make life easier § TV and radio are for entertainment § Telegraph and telephone are for communication § Trains, cars, and airplains make transportation easier § Most common/ useful form of technology is the computer

§ Before the telephone, how did people communicate? § How big do you think your circle of friends would be without the invention of the telephone? § Imagine having to write a letter to communicate with any people you don’t see on a daily basis, how long would it take to get a reply? § The telephone thankfully was created, which spurred telephone operators, manufacturing plants, and service operators § Then innovation happened; touch tone, individual house lines, cordless phones, mobile phones, multiple lines in one house/ business and even blue tooth § What useful products has the telephone help create?

§ Countries such as Japan and Taiwan’s economy is based off of high end electronic products § Constantly innovating making products better and faster § Computers were first used on developed for research and government work. § Now in most 1 st world societies, computing devices are becoming a necessity

§ Shannon charges clients a regular rate for the first 40 hours she spends working during the week and twice that rate for overtime. § Last week, she spent 56 hours working for one client and was paid $1152. § Write an equation to show much she makes per hour and list what she makes.

§ E-workforce consists of people who work with computers while doing business § The bureau of labor statistics estimates that 77 million people use a computer daily at work § E-commerce- uses the internet to do business

§ Smart products such as a refrigerator can keep track of food and alert you when food goes bad or you are out of a product. § What other products would be more useful if they had these smart abilities?

§ New markets have created a dynamic workforce § Products and technology are constantly changing and need new smarter workers to make new and better things § Technology has allowed people to work more efficiently, however technology has a very steep learning curve § Digital workflow- links all of the steps in a process digitally § Think Google docs but between an entire company, multiple people working on and editing the same project at the same time. § Creating many new tech based jobs for internet companies, software and hardware companies, and anything in between.

§ Go on the occupational outlook handbook and search for the job “computer scientists and database administrators” § Write a 1 page paper about this occupation and at the end create a list of the skills you will need to acquire to perform this job.

§ What are some examples of inventions that have had a major impact on business? § How is digital workflow different from paper workflow? § What are three examples of new jobs that have been created by the internet?

§ Explain why doing business on the internet has become a major factor in many industries

§ Start-up § E-tail § Multi-channel retailer § Brick and mortar § Clicks and mortar § E-ticket

§ Internet has created businesses that solely exist online § All you need is a computer and an internet connection § Start-up- a new, usually small business § In 2014, we can buy almost anything online from groceries, to supplies, clothes, to …….

§ Go to the website with all my classes listed and click on my links and then the heading for “high tech clothing” § There should be 4 websites listed. § Write a 1 page paper discussing the molecular structure of the material and suggest other ways that this material could be used.

§ Anyone with the internet is a potential customer to an online business § Advertisements on other web pages help to drive traffic § E-tail is electronic retail, where products are exchanged for money over the internet § Multi-channel retailer sells goods over the internet and in physical stores or in some other fashion § Brick-and-mortar refers to businesses that have a physical presence that only sell things in stores. § Clicks-and-mortar refers to businesses that have a physical and online presence.

§ Mail order catalogs are a major change from the pre-internet era. § Most companies used a once a year mailer to get all their products out to their customers § Sears was the first § It costs a lot of money and paper to create and send these things out, now there is the internet § Convenience of online shopping § Almost unlimited choice of stuff online

§ Buying Power- it is easier to spend more online (it’s just a click) § Additional charges such as shipping or sometimes a convenience fee § Immediacy- things take time to ship and make it to their destination § Relying on observation and peer reviews to determine the usefulness of a product

§ How might a brick-and-mortar company be encouraged or discouraged from engaging in e-commerce?

§ How did you get plane tickets before the internet? § E-tickets are tickets redeemable only online where a physical ticket does not need to be present § Almost all airline tickets bought today are bought online or through a travel agent (most people don’t call the airline anymore) § Travel agents and online service companies do charge a fee but the online company is usually cheaper § Airlines have “fast” lanes and much easier check ins § However you are subject to technology errors at times

§ If you could add one and only one more feature to your smart phone, what would it be?

§ How have virtual businesses changed the business world? § How is an e-tailer different from other businesses? § What are two advantages and two disadvantages of buying products and services via e-tail for you as a customer?