BUSA 100 Summary Notes.docx

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Business Admin
BUSA 100
Morty Yalovsky

BUSA 100 Summary Notes 1. Introduction to Management Lecture Slides Role of Managers:  The past- told others what to do; exerted control  Currently- work with others by coordinating and supporting their work activities and helping others achieve organizational goals, all while remaining responsible for the work of others  Top managers- establish plans that affect the entire organization  Middle managers- regional, plant, etc.  First line managers- office managers, dept. heads  Non-management positions  Management is a process that coordinates work activities so that they are completed efficiently and effectively through other individuals. o Efficiency is an input measure, involving the greatest output form least input or resource usage. Measurement of the resource cost of the goal attained. o Effectiveness is the output measure of task or goal accomplished. Mintzberg’s 6 Management Characteristics:  High volume/speed work- time pressure  Variety, fragmentation, brevity, oriented to action  Issue preference current, ad hoc, specific  Complex web of lateral interactions with colleagues and external contacts as it is with subordinates  Strong preference for verbal media through meetings and phone  Limited involvement in execution of work yet they initiate many of the decisions and control the agenda Types of Managerial Skills  Technical Skills: engineering, manufacturing, accounting, etc. (Lower level managers)  Human Resource Skills: Communicate, motivate, lead  Conceptual Skills: think analytically, generate ideas about abstract and complex situations, integrative problem solving (higher level managers) Competitive Advantage  Threat of new entrants  Bargaining power of suppliers  Bargaining power of buyers  Threat of substitutes  Rivalry among current competitors Strategies include:  Cost and quality leadership  Knowledge and speed  Product differentiation barriers to entry  Financial resources Sustainable competitive advantage is the ability to outperform your competition in ways that are not difficult or costly to imitate. Organizations An organization is a deliberate arrangement of people who act together to accomplish a specific common task.  Private sector- publically or privately held  Non-profit sector- museums, universities, etc.  NGOs- independent of government and usually humanitarian or environmental  Public sector- governments  Crown corporations- like private sector but the governments are shareholders Challenges Include:  Intellectual capital and talent management  Ethics and social responsibility  Workforce diversity  Concern for work-life balance  Globalization  Technology  Change and innovation  Becoming a learning organization Organizations need to achieve a yin-yang, intuition/analysis balance. 2. Team-Building/Organizational Behavior Lecture Slides Teamwork is used in every organization- working on multiple teams simultaneously on complex, moving targets with shifting membership and tight timelines. Advantages because:  Performance: Teams out-performance individuals when the tasks require multiple skills, judgment, and experience  Flexibility: Teams can quickly assemble, deploy, and disband.  Expertise: Teams are a better way to leverage specialization and knowledge. Teams require:  Communication, decision-making, relational skills Common information effect: information held by more members before team discussion has more influence on team judgments than information held by fewer members, independent of the validity of the information. Teams spend more time (redundantly) discussing shared information due to probability, mutual enhancement (back-patting), and confirmation bias. How to combat:  Team leader as the information managerincreases focus on unique information.  Suspend initial judgment  Frame as an information-sharing problem, rather than a judgment to be made  Minimize status differences  Psychological safety Organizational behavior is a field of study grounded in the disciplines of sociology, anthropology, social psychology, political science, and economics. Studying the regularities in individual and group behavior in an organizational context. Study of social action, not individual psychology. Not a functional area of an organization. Labor management relations and human resource management are grounded in OB. Readings  Traditional teams are not effective for unprecedented tasks.  Teaming is a way to get work done while figuring out how to do it better; it’s executing and learning t the same time.  Teaming is a form of flexible teamwork, involving the principles of project management and team leadership.  Complex and uncertain situations call for teaming.  The hardware of teaming involves: 1. Scoping out the challenge, deterring what expertise is needed, tapping collaborators, and outlining roles and responsibilities. 2. Structuring a light, temporary scaffold that supports the process of construction. 3. Sorting- consciously prioritizing tasks according to degree of interdependence among individuals. Pooled, sequential, and reciprocal interdependence.  The software of teaming involves: 1. Emphasizing purpose. 2. Building psychological safety. 3. Embracing failure. 4. Putting conflict to work.  Benefits of teaming include: o The ability to solve complex, cross-disciplinary problems o The ability to align divisions and employees by developing corporate culture o Deliver a wide variety of products and services o Manage unexpected events 3. Case Competition/Presentation Skills Lecture Slides How to Present a Case Assertive ≠ Aggressive Know Your Audience:  Social Styles Analytical (Control) Driver Ask-------------------------Tell Amiable (Emote) Expressive Could be a customer, client, or consumer. General Bits:  Keep it simple- avoid unnecessary complexity  Plan ahead Presentations can be used to:  Entertain  Inform  Motivate/inspire  Educate/train  Persuade/convince  Move to action Before your presentation:  Have a clear goal  Know your audience  Manage noise  Choose your delivery mediums  Decide what type of presentation you will deliver  Make sure your message is consistent with values, mission, vision  PRACTICE Presentation Structure 1. Control Your Settings 2. Establish Rapport 3. Agenda 4. Current Situation 5. Executive Summary 6. Decision Criteria 7. Alternatives 8. Decision Matrix 9. Recommendation 10. Finances 11. Implementation 12. Contingency 13. Wrap Up 14. Question & Answer  Know your role in the team  Control flow and timing  Make sure visuals (powerpoint, etc.) are appropriate  Exhibit proper posture Readings Just in Time for the Holidays The problem: Santa’s workshop needs to better respond to shifts in demand. Response 1: Santa should create his own fads instead of just reacting to them.  Use controlled scarcity to build demand.  Combine scarcity with variety (Beanie Babies).  Tie in with other fads.  Outsourcing to protect against currency and political risk. Response 2: Santa should avoid outsourcing production.  Can closely monitor production and enforce strict quality control.  Have a responsibility to the customer that transcends profit. Response 3: There is no foolproof way of obtaining error-free forecasts of the environment.  A combination of postponement and hedging can help Santa balance production planning with demand forecasting. Response 4: The most effective solutions lie in better planning, not real-time technology.  Classify items according to how much value they bring to the business and the degree to which you can forecast demand for them.  Doesn’t require significant investment in new technologies that may or may not actually make a difference. Robin Hood  Debating whether or not to tax the rural and townsfolk for the use of their land in order to sustain the growing number of “merry men”. 4. Accounting Lecture Slides Accounting is the art of recording, classifying and summarizing, in a significant manner, transactions and events in terms of money. Today, it is known as the “language of business”. Used to communicate financial information.  Used to measure a company’s performance in an accurate, fair, timely way.  Enables investors and competitors to compare companies.  Investors and managers can assess relative risks and returns associated with companies. Major Areas of Accounting:  Financial accounting o Historical information o Used by internal and external users  External users include decision makers such as investors, creditors, unions, and government agencies.  Many work as accountants at corporations or auditors at public accounting firms  Auditing o Someone independent who gives the management of a company notice of problems found in financial statements based on the Generally Accepted Accounting Principles  Managerial Accounting o Provides both historical and forecast information o Used only by management (internal users) o Capital budgeting and business analysis o Accounting professionals helping different departments in an organization  Taxation o Prepare corporate and personal income tax statements o Formulate tax strategies Accounting Terminology  Income statement: A statement to show the operating results of a company o Bottom line is called net income  Revenue-Expenses=Net Income  Revenue: Earnings that you have made o E.g. sales, investment income  Expenses: What you paid to generate such revenue o E.g. salaries, loan interest, depreciation  Net Income: If revenue > expenses, you make a profit.  Balance sheet: a statement to show the financial position of a company.  Assets = Liabilities + Equity  What you own (left side) and where your money comes from (right side) must be equal  Assets: What you own o E.g. cash, inventory, investments, buildings, equipment, land, tangibles  Liabilities: What you borrow o E.g. bank loans, IOU  Equity: Ownership stake o E.g. common stock, preferred stock, retained earnings “Crash Course” Section  Revenue Recognition occurs if: 1. Performance is achieved 2. Measurability is reasonably assured 3. Collectability is reasonably assured *We can recognize revenue before or after cash collection! 5. Finance Lecture Slides Glossary of Terms:  Order: An order is an instruction to trade (buy or sell), or potentially trade, a financial security, like a stock or a bond or a derivative. For simplicity, we will limit our discussion to stocks.  Limit Orders: There are two types: o Limit buy order: when someone submits a Limit Buy Order, they must specify a price at which they are willing to buy a stock. For example, you could submit a Limit Buy Order for Apple stock with a limit price of $380. This means that your are informing others that you are willing to buy Apple stock at $380. This does not mean that anyone else will necessarily be interested in selling to you at $380, and so your order may not get executed. o Limit sell order: When someone submits a Limit Sell Order, they must a specify a price at which they are willing to sell a stock. For example, you could submit a Limit Sell Order for Apple stock with a limit price of $390. This means that you are informing others that you are willing to sell Apple stock at $390. This does not mean that anyone else will necessarily be interested in buying form you at $390, and so your order may or may not get executed.  Limit Order Book: When someone submits a limit order to an exchange this limit order gets placed in the Limit Order Book. It remains there until someone trades against the limit order (see Market Order), or until that limit order is withdrawn by the person who originally submitted it.  Bid: Limit Buy Order  Ask: Limit Sell Order  Best Bid: The highest bid price in the limit order book.  Best Ask: The lowest ask price in the limit order book.  Market Order: o Market Buy Order: A Market Buy Order is an instruction to buy a stock at the lowest possible price. A market order will thus execute against the best ask price. o Market Sell Order: A Market Sell Order is an instruction to sell a stock at the highest possible price. A market sell order will thus execute against the best bid price.  Bid-Ask Spread: This is equal to the best ask price minus the best bid price. For example, if the current best (highest) bid for Apple is $390, and the current best (lowest) ask is $395, then the bid-ask spread is said to be $5. The tighter the bid- ask spread, the more liquid the market is said to be.  Market-Maker: A market maker is a professional trader whose main role is to constantly post bid prices and ask prices, against which other people can potentially trade. Limit Orders: Are good because they are precise, are bad because they’re slow. Market Orders: Are good because they’re quick, and give the chance of a better return than a limit order, are bad because they give the chance of a worse return than a limit order. 6. Marketing Lecture Slides A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. A brand is a name, term, symbol, design, or combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competition. It is advantageous to a company to accrue brand equity (i.e. a strong brand). A brand extension is:  Applying an existing brand name to a new product in the same product category (line extension).  Applying an existing brand name to a new product in a different product category (category extension). A great brand-building ad: 1. Attention: breaks through the clutter 2. Clear easy to understand message to the target market 3. Relevant to the target audience Readings In a line extension the parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand. A line extension often involves a different flavor or ingredient variety, a different form or size, or a different application for the brand. In a category extension the parent brand is used to enter a different product category from that currently served by the parent brand. The methods of brand extension include: 1. Introducing the same product in a diff
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