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What is the function of management?
Planning: Setting goals and deciding actions.
Organizing: Arranging resources and tasks.
Leading: Guiding and motivating employees.
Controlling: Monitoring and adjusting performance.
The roles (tasks) of a manager
Planning (setting objectives)
Organizing
Integrating (motivating and communicating)
Measuring performance
Developing people
The differences between a manager and a leader?
Managers focus on planning, organizing, and controlling resources to achieve organizational goals.
Leaders inspire and motivate their team to reach beyond what they thought possible, setting a clear vision for the future.
Relationship: Employees obey managers, but they follow leaders by choice.
Position: Leaders do not need to hold formal management positions.
The importance of motivation
Increases Productivity: Motivated employees work harder and more efficiently.
Enhances Job Satisfaction: Motivation leads to higher job satisfaction and lower turnover.
Encourages Innovation: Motivated employees are more likely to take initiative and suggest improvements.
Strengthens Commitment: Motivation builds loyalty, aligning employees with organizational goals.
Common types of motivators
Having a challenging and interesting job.
Recognition
Responsibility
Promotion opportunities
Theory X
People are lazy and avoid work and responsibility when possible.
Workers need close supervision and direction.
Motivation comes from threats (e.g., job loss) and rewards (e.g., pay rises or bonuses).
Theory X is often applied by managers in large-scale manufacturing, particularly with factory workers.
Theory Y
Most people have a psychological need to work and be creative.
Given the right conditions, such as job security and financial rewards, employees will be self-motivated.
Employees are driven by the satisfaction of doing a good job.
Theory Y is applied to skilled professionals and "knowledge workers" like managers, specialists, and engineers.
What is Maslow's Hierarchy of Needs
Physiological Needs: Basic survival needs, such as food, water, and shelter.
Safety Needs: Security, stability, and protection from harm.
Social Needs: Love, affection, and belonging within relationships or groups.
Esteem Needs: Respect, recognition, and a sense of accomplishment.
Self-Actualization: Personal growth, achieving potential, and self-fulfillment.
What are the main types of company structures?
The chain of command
Functional structure
Flattening hierarchies
Matrix management
Pros of The chain of command
Control orientation
Clear career and promotion path
Clearly defined authority so that workers know whom to report a problem to
Cons of The chain of command
Poor communication
Slow decision-making
Added costs
Centralized power, bureaucracy
Pros of Functional structure
Allow members to focus on their roles
Increased productivity
Increased specialization
Clear career path, clear hierarchy and define roles
Minimized cost of operation
Cons of Functional structure
Limited cross-team collaboration
Lack of motivation
Slow decision-making
Competition between departments
Narrow scope
Pros of Flattening hierarchies
Lower operating costs: no need for mid-level managers
Improved communication
Increased employee motivation and satisfaction
Cons of Flattening hierarchies
Difficult for large organizations: ratio of employee to manager is disproportionate
Low employee retention: little scope for promotion
Create power struggles: employees do not have an overarching presence of a superior -> confusion, loss of productivity
Pros of Matrix management
Encourage collaboration
Increase efficiency
Develop new skill sets
Cons of Matrix management
Unclear managerial and team roles
Slow decision-making process
Too much work can cause overload
Difficult to measure performance: team members may be performing more than one role
How to sell yourself
Highlight strengths and achievements.
Demonstrate confidence in your abilities.
Understand your audience's needs.
Show enthusiasm and passion for the opportunity.
What are the main types of business sectors?
Primary Sector: Involves natural resource extraction (e.g., agriculture, mining).
Secondary Sector: Focuses on manufacturing and industry (e.g., factories, construction).
Tertiary Sector: Provides services to businesses and consumers (e.g., retail, healthcare, education).
Quaternary Sector: Involves knowledge-based industries (e.g., IT, research, education).
Correlation of Primary and Secondary sector?
Supply chain: providing raw materials to the secondary sector
Demand: creating demand for raw materials, stimulating growth in the primary sector
Correlation of Secondary and Tertiary sector?
Distribution: the tertiary sector distributes finished goods to consumers. Retailers, transportation companies, and wholesalers facilitate this process.
Services: Secondary sector relies on tertiary sector services like finance, accounting, and legal advice to support its operations
Correlation of Tertiary and Quaternary sector?
Innovation: the quaternary sector drives innovation and technological advancements that benefit the tertiary sector.
Education: the tertiary sector often provides educational services to support the quaternary sector, such as training for IT professionals.
Correlation of Primary and Quaternary sector?
Research and development: the quaternary sector conducts research and development to improve agricultural practices and find new uses for natural resources.
Technology Adoption: the primary sector can benefit from advancements in technology, such as precision agriculture and automated harvesting.
Analyze the interconnected of 4 business sectors in a smartphone manufacturing company
Primary Sector: The primary sector provides raw materials essential for smartphone production, such as metals (e.g., lithium for batteries, rare earth elements for components). Without this sector, manufacturing wouldn't have the necessary resources.
Secondary Sector: This sector involves the actual manufacturing of smartphones. Components from the primary sector are processed and assembled in factories to create the final product. This is where most of the value is added in the smartphone production process.
Tertiary Sector: The tertiary sector plays a crucial role by providing services such as marketing, distribution, retail, and customer support. This sector helps sell the finished smartphones and ensure customer satisfaction through after-sales services.
Quaternary Sector: The quaternary sector contributes through research and development (R&D) to innovate and improve smartphone technology. Companies in this sector work on enhancing software, developing new features, and ensuring product differentiation in a competitive market.
What is the industrial production process?
It is the process of turning raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing.
The industrial production process generally involves the following steps
Planning and Design
Procurement
Manufacturing
Distribution
Customer service
Talk about the main impacts of international supply chain
+ cost reduction
+ increased access to markets
+ innovation and collaboration
+ job creation
+ economic development (collaboration) => most important factor
+ risk management
+ cash flow
+ exploitation of natural resources
How can logistics join in supply chain?
Transportation: Ensuring the efficient movement of goods from suppliers to manufacturers and from manufacturers to consumers.
Warehousing: Storing goods in strategic locations to meet demand and minimize delays.
Inventory Management: Maintaining optimal stock levels to prevent overstocking or stockouts.
Distribution: Coordinating the delivery of products to various locations, ensuring timely and cost-effective fulfillment.
Talk about pull industry
a company manufactures according to current demand, which is satisfied from (a small) inventory. When pieces are removed from stock, replacements are automatically ordered from suppliers
Key characteristics of a pull industry
Demand-Driven Production: Products are only manufactured when orders are received, minimizing excess inventory.
Reduced Lead Times: Production is more responsive to customer needs, leading to quicker delivery times.
Inventory Management: Since production is aligned with demand, inventory levels are kept low, reducing holding costs.
Customization: It allows for greater flexibility in offering customized products to meet specific customer requirements.
Talk about push industry
production is based on estimates of future demand and begins according to the planned production lead time.
Key characteristics of a push industry include
Forecast-Driven Production: Products are manufactured based on predicted demand, leading to larger production runs.
Higher Inventory Levels: As goods are produced in advance, inventory levels tend to be higher, increasing storage costs.
Economies of Scale: Production in bulk can reduce unit costs, but it risks overproduction if forecasts are inaccurate.
Less Flexibility: It may be harder to adjust to changes in customer preferences since production is based on past demand predictions.
JIT production
Just-in-Time, is an inventory management method that makes and delivers what is needed, when it is needed, and in the quantity needed.
Talk about potential supply risk
Supplier Reliability: Risks from suppliers failing to deliver on time or at the required quality, affecting production schedules.
Geopolitical Issues: Political instability, trade restrictions, or tariffs can disrupt the flow of goods across borders.
Natural Disasters: Events such as earthquakes, floods, or hurricanes can damage infrastructure and interrupt supply chains.
Economic Changes: Fluctuations in currency, inflation, or financial crises can impact the cost and availability of goods.
What is the product life cycle and its stages
A product life cycle is the length of time from a product first being introduced to consumers until it is removed from the market. There are 4 main stages:
Introduction: The product is launched, and sales grow slowly. Marketing efforts focus on creating awareness.
Growth: Sales increase rapidly as the product gains market acceptance and competitors may enter the market.
Maturity: Sales peak and then stabilize as the product becomes widely accepted, leading to intense competition and possible price reductions.
Decline: Sales begin to decrease due to market saturation, technological advancements, or changing consumer preferences.
What is international supply chain?
an international supply chain refers to the network of production, distribution, and logistics that spans multiple countries to produce and deliver goods.
What is international supply chain impacts on other countries
Economic Growth: Countries involved in international supply chains can benefit economically by creating jobs, fostering trade, and attracting investments.
Market Access: Companies in one country can access international markets and expand their consumer base by participating in global supply chains.
Dependence on Global Factors: Countries may face vulnerabilities if supply chains are disrupted by external factors such as geopolitical issues, natural disasters, or pandemics.
Technology Transfer: Participation in international supply chains can lead to the sharing of technology and knowledge, improving local industries in developing countries.
What are steps of marketing?
There are 9 steps:
Market Research: Collecting data about customers, competitors, and market trends.
Segmentation: Dividing the market into distinct groups based on characteristics like demographics or behavior.
Targeting: Selecting the most appropriate market segment to focus on.
Positioning: Establishing a unique image of the product in the consumer’s mind.
Product Development: Creating or modifying products to meet customer needs.
Pricing: Determining the right price for the product based on costs, competition, and consumer demand.
Promotion: Developing communication strategies, such as advertising or public relations, to promote the product.
Distribution: Deciding on the best channels to make the product available to customers.
Evaluation and Control: Assessing the effectiveness of marketing activities and making necessary adjustments.
Types of advertising and examples
Traditional Advertising: leaflet, poster, magazines,...
Digital Advertising: Social media ads (FB, TikTok)
Outdoor Advertising: panels, billboard…
Types of financial statement and short explanation
Income Statement: Shows a company's revenues and expenses over a specific period, resulting in either a profit or a loss.
Balance Sheet: Provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time, showing what the company owns and owes.
Cash Flow Statement: Shows the inflows and outflows of cash within a company, categorized into operating, investing, and financing activities, helping to assess liquidity.
Statement of Retained Earnings (SRE): showing changes in equity - including the sale or repurchase of shares, dividend payments, and changes caused by reported profits or losses - during a given reporting period.
What is financial statement (cash flow statement)?
detailing how well the company generates cash to pay its debts and fund its operating expenses and investments
What is business cycle and its phases?
The business cycle represents economic growth and decline through distinct phases
Expansion: When real GDP is increasing and unemployment is decreasing
Peak: The point where the economy reaches its highest point before slowing down.
Contraction (Recession): When output is decreasing and unemployment is increasing
Trough: The lowest point of the business cycle, marking the end of the recession before recovery begins..
What are the causes of the business cycle?
External factors
- Wars/ Political shocks
- Technological interventions
- Natural disasters
- Population expansion (demographic changes)
Internal factors
- People’s spending/ consumption decisions (changes in demand)
- Fluctuations in investments
- Macroeconomic policies
- Supply of money
Talk about the Keynesian
This theory emphasizes the role of government intervention in stabilizing the economy.
Key Concepts of Keynesian Economics:
+ Keynesian economics advocates using active government policy to manage demand to address or prevent economic recessions.
+ Government intervention can support and strengthen the economy.
+ Activist fiscal and monetary policies are the primary tools recommended by Keynesian economists to manage the economy and fight unemployment.
how about Monetarism
This theory contrasts with Keynesian economics by emphasizing the long-term effects of monetary policy in maintaining price stability and economic growth.
Key Concepts of Monetarism:
+ Monetarism is a macroeconomic theory stating that governments can foster economic stability by targeting the growth rate of the money supply.
+ Associated with economist Milton Friedman, who argued that the government should keep the money supply fairly steady, expanding it slightly each year mainly to allow for the natural growth of the economy.
+ Monetarism emphasizes the use of monetary policy over fiscal policy to manage demand.
+ Although most modern economists reject the emphasis on money growth that monetarists encourage, some core tenets of the theory have become a mainstay in non-monetarist analysis.
Concepts of social responsibilities (Main responsibility in CSR)
Legal responsibility: Requires companies to comply with laws and regulations on labor, consumer protection, environmental standards, and fair business practices.
Ethical responsibility: Efforts made by companies to adopt fair and ethical business practices. That could mean anything from offering equal to or better than minimum wages to employees, to using ethically sourced raw material.
Philanthropic responsibility: Some companies may opt to give away a portion of their earnings or executive time to charities or towards charitable causes.
Economic responsibility: maximizing profits consistently was the firm's responsibility. Business practices that not only help maximize profits but help make an impact.
Analyze the contrasts between efficiency and employment
Focus on Productivity vs. Job Creation:
Efficiency aims to maximize output with minimal input, often leading to automation and process optimization, which can reduce the need for human labor.
Employment emphasizes creating job opportunities, even if it means lower productivity per worker in some cases.
Cost Reduction vs. Workforce Expansion:
Efficiency seeks to reduce costs, which may involve downsizing or outsourcing tasks to lower-cost regions.
Employment focuses on maintaining or increasing the workforce, potentially increasing operational costs.
Short-Term Gains vs. Long-Term Social Impact:
Efficiency can lead to immediate profitability and competitiveness but may result in job losses.
Employment strategies contribute to social stability and economic growth but may compromise short-term profits.
Technology Use vs. Human Skills:
Efficiency often relies on advanced technology and automation to streamline processes.
Employment supports the development and utilization of human skills, even in roles that technology could replace.
What is free trade agreement?
Free Trade Agreement (FTA) is an arrangement between two or more countries to reduce or eliminate barriers to trade, such as tariffs, quotas, and import restrictions.
What is FTA’S benefit?
Elimination or Reduction of Tariffs:
Member countries agree to remove or significantly lower customs duties on goods traded between them.
Removal of Non-Tariff Barriers:
Reduction or elimination of quotas, licensing requirements, and other regulatory restrictions that hinder trade.
Rules of Origin:
FTAs specify that goods must originate from member countries to qualify for tariff benefits, ensuring fair trade within the agreement.
Market Access for Services:
In addition to goods, many FTAs provide better access to service sectors like finance, telecommunications, and transportation.
Investment Protection:
Some FTAs include provisions to protect investments made by businesses in member countries, promoting foreign direct investment (FDI).
Dispute Resolution Mechanism:
FTAs establish a framework for resolving trade disputes between member countries efficiently and fairly.
Protectionism and Free trade
Protectionism and free trade are contrasting approaches to international trade
Protectionism:
Definition:
Involves government policies aimed at restricting imports to protect domestic industries.
Methods:
Includes tariffs (taxes on imports), quotas (limits on import quantities), and subsidies (financial support for local businesses).
Goals:
Protect jobs, prevent dependency on foreign goods, and safeguard emerging industries from foreign competition.
Criticism:
Can lead to higher prices, less consumer choice, and retaliation from trading partners.
Free Trade:
Definition:
Advocates for minimal government interference in trade, allowing goods and services to move freely across borders.
Benefits:
Promotes competition, lowers prices, increases efficiency, and provides consumers with more choices.
Challenges:
Domestic industries may struggle to compete with cheaper imports, potentially leading to job losses.
Support Mechanisms:
Often supported through Free Trade Agreements (FTAs) that reduce trade barriers between member countries.
How can we evaluate the effectiveness of advertising for your business?
budget
business goal
target market
sales funnel
How to conduct an advertising campaign?
Step 1: Determine Your Objective and Budget
Step 2: Identify Your Target Audience
Step 3: Create Your Message: create your slogan or story
Step 4: Develop Your Media Strategy
Step 5: Implement Your Marketing Campaign
Step 6: Measure & Analyze Your Results
