Entrepreneurship

Entrepreneurship

Accepting the risk of starting and running a business.

Entrepreneurial team

A group of experienced people

from different areas of business who join to form a managerial

team with the skills to develop, make, and market a new product.

Entrepreneurship

Accepting the risk of starting and running a business.

Entrepreneurial team

A group of experienced people

from different areas of business who join to form a managerial

team with the skills to develop, make, and market a new product.

Intrapreneurs

Creative people who work as

entrepreneurs within corporations.

Micropreneurs

Entrepreneurs willing to accept the

risk of starting and managing a business that remains small, lets

them do the work they want to do, and offers them a balanced

lifestyle.

Small Business

A business that is independently

owned and operated, is not dominant in its field of operation, and

meets certain standards of size (set by the Small Business

Administration) in terms of employees or annual receipts.

Enterprise zones

Specific geographic areas to which

governments try to attract private business investment by

offering lower taxes and other government support.

Incubators

Centers that offer new businesses low-

cost offices with basic business services.

Major Business Functions

6 Major Business Functions

Planning

• Financing

• Knowing customers

• Managing employees

• Keeping records

• Carefully watching cash flow (cash flow is money coming into a

business versus money going out of the business)

Business Plan

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s).

Venture Capitalist

individuals or companies that invest in new businesses in exchange for partial ownership ofthose businesses. (watch Shark Tank)

6 sources of capital for small/medium sized business

Personal savings

•2. Family

•3. Business associates

•4. Banks and finance institutions

•5. Government agencies

•6. Angel Investors--usually give support to start-ups at the initial moments (where risks of the start-ups failing are relatively high) and when most investors are not prepared to back them. In return they often take partial ownership equity.

Small business administration (SBA)

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans.

Empowerment

rather than telling employees exactly what to do, managers today tend to give their employees enough independence to make their own informed decisions about how best to please customers.

Planning

considered to be the most-important step-it is what helps managers understand the environment in which their businesses must operate. When people’s tastes and preferences for restaurant meals change, food service managers need to be ready to respond with menu alternatives.

Vision

More than a goal; an encompassing explanation of why the organization exists and where it’s trying to go.

Mission statement

An outline of the fundamental purposes of an organization, including:

SWOT Analysis

A planning tool used to analyze an organization’s strengths, weaknesses, opportunities, and threats.

Strategic Planning

Determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.

Tactical planning

Developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done.

Contingency planning

Preparing alternative courses of action that may be used if the primary plans don’t achieve the organization’s objectives

PMI analysis

Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.

Autocratic leadership

•Make managerial decisions without consulting others.

•Participative or democratic leadership

•Managers and employees work together to make decisions.

•Free-rein leadership

•Managers set objectives and employees are relatively free to do whatever it takes to accomplish those objectives.

Enabling

Giving workers the education and tools they need to make decisions.

Knowledge Management

finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.

Economies of Scale

Companies can reduce their

production costs by purchasing raw materials in bulk. Therefore,

the average cost of goods decreases as production levels rise.

• Organizations in which employees have no more than one boss;

lines of authority are clear.

• Rigid organizations that often don’t respond to customers quickly.

3 key methods to increase productivity

• Time (uses)

• Methods of work

• Rules of work

the principle of motion. economy - developed my frank and Lillian Gilbreth

Theory developed by Frank and Lillian Gilbreth

that every job can be broken down into a series of elementary

motions. UPS tells drivers how to get out of

their trucks, how fast to walk, how

many packages to pick up and

deliver per day, and even how to

hold their keys.

Human resource management

The

process of determining human resource needs and then

recruiting, selecting, developing, motivating, evaluating,

compensating, and scheduling employees to achieve

organizational goals.

Management Development

The process of

training and educating employees to become good managers and

then monitoring the progress of their managerial skills over time.

Why good employees quit? Inadequate salary/benefits. Unhappy with management. Limited advancement. Boredom. Overworked. Lack of recognition. Don’t know.

Span of control

the optimum number of subordinates a manager supervises or should supervise.

Departmentalization

the dividing of organizational functions into separate units. workers are group by skill and expertise to specialize their skills.

Line personnel

Employeess who are a part of the chain of command that is responsible for achieving organizational goals.

Staff personnel

employees who advise and assist line personnel in meeting their goals

Benchmarking

Compares an organizations practices processes and products against the worlds best

Core competencies.

Those functions that the organization can do as well as or better than any other organization in the world.

Production

the creation of finished goods and services used the factors of production. land, capital, entrepreneurship, and knowledge.

Operations management

A specialized area in management that concerts or transforms resources into goods and services

Form utility

the value that producers ass to materials in creation of finished goods and services. the value of cakes and bagels made from bakers adding water flour sugar…

computer aided design (CAD)

the use of computers in the design of products

Computer aided manufacturing (CAM)

the use of computers in manufacturing of products

Purchasing

the function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services.