BUSA 100 Summary Notes
1. Introduction to Management
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
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
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
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
Human Resource Skills: Communicate, motivate, lead
Conceptual Skills: think analytically, generate ideas about abstract and complex
situations, integrative problem solving (higher level managers)
Threat of new entrants
Bargaining power of suppliers
Bargaining power of buyers Threat of substitutes
Rivalry among current competitors
Cost and quality leadership
Knowledge and speed
Product differentiation barriers to entry
Sustainable competitive advantage is the ability to outperform your competition in
ways that are not difficult or costly to imitate.
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
Intellectual capital and talent management
Ethics and social responsibility
Concern for work-life balance
Change and innovation
Becoming a learning organization
Organizations need to achieve a yin-yang, intuition/analysis balance.
2. Team-Building/Organizational Behavior
Teamwork is used in every organization- working on multiple teams simultaneously on
complex, moving targets with shifting membership and tight timelines.
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.
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 managerincreases focus on unique information.
Suspend initial judgment
Frame as an information-sharing problem, rather than a judgment to be made
Minimize status differences
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
Study of social action, not individual psychology.
Not a functional area of an organization.
Labor management relations and human resource management are grounded in
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
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
o Deliver a wide variety of products and services
o Manage unexpected events
3. Case Competition/Presentation Skills
How to Present a Case
Assertive ≠ Aggressive
Know Your Audience:
Analytical (Control) Driver
Amiable (Emote) Expressive
Could be a customer, client, or consumer.
Keep it simple- avoid unnecessary complexity
Presentations can be used to:
Move to action
Before your presentation:
Have a clear goal
Know your audience
Choose your delivery mediums
Decide what type of presentation you will deliver
Make sure your message is consistent with values, mission, vision
1. Control Your Settings 2. Establish Rapport
4. Current Situation
5. Executive Summary
6. Decision Criteria
8. Decision Matrix
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
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
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”.
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
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
Major Areas of 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
o Someone independent who gives the management of a company notice of
problems found in financial statements based on the Generally Accepted
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
o Prepare corporate and personal income tax statements
o Formulate tax strategies
Income statement: A statement to show the operating results of a company
o Bottom line is called 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
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!
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
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.
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
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.
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
Applying an existing brand name to a new product in a different product category
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
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