Presentations text content in Principles of Management – Notes for 2.6.13
Principles of Management – Notes for 2.6.13Chapter 1, Section 1, continued from last class
is a basic truth or law
Most management principles are developed through observation and deduction
Likely to be interpreted differently by different people
Management principles are best viewed as guides to action rather than rigid laws
Dress codes, work schedules…Slide2
Why so few women and minorities?As recently as the 1960’s encouraged to hold support roles (e.g. secretaries, teachers, waitresses, sales clerks)
: invisible barrier that prevents women and minorities from moving up in the world of business
an unofficial but real impediment to somebody's advancement into upper-level management positions because of discrimination based on the person's gender, age, race, ethnicity, or sexual preference.
the Glass Ceiling…”Avon Case Study”
Be ready to discuss next class!Slide3
BUSINESS MANAGEMENTEntrepreneurship & Small Business
Chapter 1 – Section 2Slide4
Is this for YOU?If you were to start your own business or company, what would it be and why?
Would you rather join a company already in existence and work your way up? Why?Slide5
Professional ManagerProfessional managers are paid to perform management functions within a company
Senior, middle, and supervisory managers
Receive salaries for the work they do
Work for companies, but do not own themSlide6
What are entrepreneurs?
People who launch and run their own businesses
Study… “Nestlé's Sweet Organizational Structure”
Be ready to discuss next class!Slide7
Much riskier than being professional manager
Can be more rewarding than working for a company
Opportunity of high income and personal accomplishment
Usually more independent
Often less formal education
Make own decisions
Long hours and lots of decisions about all aspects of a business
Risk of losing entire personal investment
Create exciting developments/innovations
– people who launch and run their own businesses
ActivityAre you a professional manager or entrepreneur?Take this quiz to find out!
Types of OwnershipSole proprietorshipPartnership
Entrepreneurs in Large and Medium-Sized Businesses
Businesses want managers to think more like entrepreneurs
they must find ways to support and encourage people to develop new products and services
Entrepreneurship within a large or medium-sized company is often called
take risks, but not with their own investmentsSlide11
What is a “Small” Business?
is a company that is independently owned and operated, and serves local areas or customers all over the world
Small Business Administration (SBA)
government agency that lends money to small businesses
Considered “small business” if it employs fewer than
of businesses in the US are small businessesSlide12
The Importance of Small Business
Play an important role in the U.S. economy
employ millions of workers
sell billions of dollars of products and services
Tend to produce more innovations than larger businessesSlide13
Industries Attracting Small Businesses
- medical and dental care, repair shops, hair cutting, restaurant meals, dry cleaning, etc.
- industries that are concerned with moving goods from producers to consumers
retailers, wholesalers, transport companies, communications companies
- construction, mining, and manufacturing companies
NOTE: these industries usually require a large initial investment.Slide14
Why Do Some Small Businesses Fail?
lack of experience
- around 40% of all small businesses are started by people who have little experience in their field
lack of money
- don’t have enough money to get them through the growing pains of starting up a business; some businesses don’t make a profit for many years after starting
- many people try to save on rent and find they have a good deal on a bad locationSlide15
Why Do Some Small Businesses Fail?
- carrying improper merchandise is a drain on business; not having good controls
poor credit-granting practices
- the pressure to sell merchandise on credit is great, but credit sales create many other problems which many firms can’t handle
poorly planned expansion
- many businesses expand too quicklySlide16
Famous Entrepreneur Facebook Page
andout on my website
on Friday, Feb.
END OF CLASS!Slide17