DECA PIs 2022-2023

Identify the impact of small business/entrepreneurship on market economies (EC:065) (CS)

They produce most of the sales, revenue, jobs, new jobs, make up most businesses, and are unaffected by economic shifts. They are the roots of our economy.

Explain the concept of private enterprise (EC:009) (CS)

The supply and demand system of a free-market economic system but it includes government intervention through taxes, regulations, and halting monopolies.

Identify factors affecting a business's profit (EC:010) (CS)

You determine what factors are affecting the cost and what factors are affecting the revenue.

Determine factors affecting business risk (EC:011) (CS)

competition - who else is selling similar products/how much market share do they have change in consumer demand - self explanatory poor management - mismanaging employees (ethics and/or productivity wise) human factors - stealing, mistakes, lies, etc. tech usage - how heavily do you rely on tech/how likely is that tech to fail policy changes - government laws, regulations, etc. natural disasters - self explanatory

Explain the concept of competition (EC:012) (CS)

Competition in the other organizations/businesses selling similar products/services as you

Some benefits of competition are: Sets market standards Shows you who your potential customers and/or consumers are Shows possible gaps in what's currently being offered Shows where you and your business could provide more value

Determine the relationship between government and business (EC:008) (CS)

Governments profits off of business via taxes and they regulate business to stop monopolies and other major business issues.

Describe the nature of taxes (EC:072) (SP)

Taxes are money paid to the government whether it be on exchanges or assets, they go into governmental services and projects which are meant to help the population (like roads, public attorneys, police, etc.)

Describe the concept of economies of scale (EC:077) (MN)

Fixed costs, or costs that stay the same no matter how much of your good or service you produce (like rent for an office space), allow your cost-per-unit (CPU) to get lower and lower as you scale up

Ex: I'm selling x at $10 per unit I pay $3 on materials per unit and $100 rent per month If I sell 10 units, my CPU is $13 (10 sold units = $30 on material + $100 on rent) If I sell 100 units, my CPU is $4 (100 sold units= $300 on material + $100 on rent)

Describe the nature of entrepreneurship (EN:039) (SP)

Starting a business or organization from the ground up generally with some financial risk in exchange for the hope of profit.

Explain the role requirements of entrepreneurs and owners (EN:040) (SP)

Strong leadership - patience, vision, critical thinking, communication Well-versed in business - decent amount of knowledge on Operations, Marketing, Finances, and R&D

Describe the use of business ethics in entrepreneurship (EN:044) (SP)

Business ethics is doing what is moral even when you aren't legally required to do so. If you don't keep them in check it can lead to lack of respect from your employees, employee tensions and mistakes, unhappy customers, a slandered brand image, and worsened relationships with your suppliers

Describe small-business opportunities in international trade (EN:041) (SP)

Introduction to an international market Larger market You can charge higher (bc you are exporting) New problems to solve and potential products Less competition More resources

Explain the need for entrepreneurial discovery (EN:001) (ON)

What is it? The process of systemically scanning for changes (tech, political, regulatory, social, demographic, etc.) to discover opportunities to produce new goods/services

Why is it needed? -Increases market competition -Inspires more innovation -Leads to industrial progress -Increases jobs and production

Discuss entrepreneurial discovery processes (EN:002) (ON)

Spot the opportunity (tech, political, regulatory, social, demographic, etc.) Assess it (also identify whether it is in an existing or emerging sector)

Assess global trends and opportunities for business ventures (EN:003) (ON)

Population Enrichment Warfare Government Poverty Resources Forests Food Cities Safety

Determine opportunities for venture creation (EN:004) (ON)

Identify an idea understand the opportunity space around the idea look for an idea in a fast-growing opportunity space

Assess opportunities for venture creation (EN:005) (ON

SWOT Matrix Pricing Matrix Boston Matrix Ansoff Matrix (if you don't know these check out "two teachers" on YT, they explain them)

Generate venture ideas (EN:006) (ON)

Come up with the idea Think outside the box Do market research Socialize and network

Determine feasibility of venture ideas (EN:038) (ON)

TMMD Analysis

Time - How much time will it take | How much time do you have Money - How much money needs to be invested | How much are you willing to invest | How profitable will it be Market - Is the market growing, neutral, or shrinking | What is the market size right now | How competitive/saturated is it Determination - How determined are you to succeed at this idea | Given the struggles you could potentially face, will your determination be enough

Describe entrepreneurial planning considerations (EN:007) (ON)

Identify the idea Create a business plan Forecast Funding Marketing Feasibility

Explain tools used by entrepreneurs for venture planning (EN:008) (ON)

SWOT Analysis PESTLE Analysis 7s Mckinsey Model

What is a SWOT analysis? What is PESTLE Analysis? What is McKinsey 7s Model? (Not Deca but good to know)

SWOT- Strengths (Internal), Weaknesses (internal), Opportunities (External), Threats (External) Internal things to be sorted: Market, Finance, and Consumer Standpoint (Brand Image), 7s McKinsey model

External things to be sorted: PESTLE

PESTLE = Political Economic Social Technological Legal and Environmental

7s McKinsey Model- Hard factors or things in your complete control - Structure, Systems, Strategy Soft factors or things out of your complete control - Staff, Style (Management Style), Skill, Shared Values

Assess start-up requirements (EN:009) (ON)

Legal structure Business plan Company bank account Obtain permits and licenses Leasing or buying office space Hire employees Set up accounting and record keeping systems

Assess risks associated with venture (EN:010) (ON)

Market Adoption Risk Market Timing Risk Market Size Risk Execution Risk Technology Risk Business Model Risk Platform Risk Finance Risk Leadership Risk Defensibility Risk

Describe external resources useful to entrepreneurs during concept development (EN:011) (ON)

Research: Direct Research - Speaking to your target market and others involved Indirect Research - Analyzing trends of similar products, Reading reviews on similar products

I recommend "StartUp Nation" and "Profitable Venture" as great sources for research

Assess the need to use external resources for concept development (EN:012) (ON

We need external resources because we never will be able to come up with what our needs are without some external input. So, we must consult data and ppl in the industry to help us know what we need.

Describe strategies to protect intellectual property (EN:013) (ON)

External: File Patents Trademarks Copy Rights Trade Secrets

Internal: Hired attorney Non-disclosure agreement Confidential info and employees trained on how to handle it

Use components of business plan to define venture idea (EN:014) (ON)

PMMOOFIG: Product plan, management team, marketing plan, operations plan, organization plan, financial plan, industry/market analysis, growth plan

Use one or more of those components in your roleplay if you get this performance indicator

Describe processes used to acquire adequate financial resources for venture creation/start-up (EN:015) (ON)

Networking Finding public sector contracts RFP's (Requests for proposal)

Select sources to finance venture creation/start-up (EN:016) (ON)

Personal Investments (your cash/collateral) Patient Capital (personal relations like family) Venture Capital (partners and investors) Crowdfunding (funding from a crowd like gofundme) Business Incubators (an organization made to help you start and grow your business) Grants and Subsidies (Govt. pays, no need to pay them back)

Explain factors to consider in determining a venture's human-resources needs (EN:017) (ON)

Communications team (marketing/sales team) Management team (self-explanatory) Production team (ppl making and distributing the product) Partners (co-owners, investors, etc.)

Affordability (can you pay/afford them) Readiness (can you get them when you need them)

Explain considerations in making the decision to hire staff (EN:018) (ON)

Physical skill/experience Mindset and teamwork Communication skills Written material, references, documents

Describe considerations in selecting capital resources (EN:019) (ON)

PEAS: Productivity Ease of Access Affordability Sustainability

Identify capital resources needed for the venture (EN:020) (ON)

What are capital resources: Goods made and used to produce other goods and services

Ex. Buildings, Machinery, tools/equipment, etc.

Capital resources should improve your productivity

Assess the costs/benefits associated with resources (EN:021) (ON)

Brainstorm benefits and costs Give each a monetary value Compare and determine if your benefits outweigh your costs

Establish banking procedures (EN:042) (ON)

Establish thorough instructions that identify the best way to handle your cash, credit, and other financial transactions

Use external resources to supplement entrepreneur's expertise (EN:022) (ON)

Connect with businesses that do what yours can't (Ex. if you suck at marketing, connect with a marketing firm) Connect with people who will fill in what you lack in expertise (Ex. if you suck at marketing, connect with your friend who is amazing at it and ask him for help)

Explain the complexity of business operations (EN:023) (ON)

Several interdependent and interconnected stakeholders information technology systems organizational structure and infrastructure

Evaluate risk-taking opportunities (EN:024) (ON)

Identify risk Analyze risk Evaluate risk Repeat for opportunities

Try to get lower risks and higher opportunities

Explain the need for business systems and procedures (EN:025) (ON)

Keeps things organized Everyone is playing on equal ground (staff) Everyone has a baseline (staff)

Describe the use of operating procedures (EN:026) (ON)

Create an SOP (Standard Operating Procedure or a set of step-by-step instructions compiled by an organization)

Helps workers carry-out complex routine operations Provides a baseline Makes sure all regulations are met

Explain methods/processes for organizing workflow (EN:027) (ON)

Identify the Ultimate Outcome Organize tasks and documents involved Demand time and order Utilize specialization

Develop and/or provide product/service (EN:028) (ON)

-Solve a problem/provide value -Have a USP (Unique Selling Proposition) -Make sure the market is good (watch out for small markets, shrinking markets, and highly competitive/saturated markets)

Use creative problem-solving in business activities/decisions (EN:029) (ON)

Identify the problem brainstorm multiple solutions diverse vote/emergency politics create a detailed plan for decided solution

Explain the impact of resource productivity on venture success (EN:030) (ON)

Resource productivity is how effectively you use your recourses (Basically it's just whatever your yield is)

-Yield = How much of your good/service what produced DIVIDED BY how much resources it took -The higher the yield, the better

Create processes for ongoing opportunity recognition (EN:031) (ON)

Identify the key areas where opportunities may arise, such as new markets, technological advancements, or shifts in customer needs. Create a system for regularly gathering and analyzing information about these areas, such as conducting market research, monitoring industry news, and soliciting feedback from customers and employees. Develop criteria for evaluating potential opportunities, such as their alignment with the company's goals and values, the potential for profitability, and the level of risk involved. Establish a process for regularly reviewing and discussing potential opportunities, such as holding regular meetings with a cross-functional team or setting up a system for employees to submit ideas for consideration. Implement a system for tracking and following up on potential opportunities, including assigning ownership and setting deadlines for further evaluation and action.

Develop plan to invest resources into improving current products or creating new ones (EN:032) (ON)

Make a plan Test the plan Analyze your test results Act on what's successful

OR

Conduct target market research Identify most profitable way to improve products Make new products for same/similar target markets Make sure these developments would be/are profitable

Adapt to changes in business environment (EN:033) (ON)

Define if the change is internal or external Identify what has changed (PESTLE/7S) Formulate a plan on how to adapt to it

Explain the need for continuation planning (EN:034) (ON)

Continuation Planning or Business Continuity Planning: An organization's ability to continue supply of their products/services at pre-defined acceptable levels after a disruptive event

How to do it: Identify important resources Take protective measures and arrangements

Why is it needed: For protection in case of disruptive events (accidents, lack of resources, disruptions, attacks, etc.) More efficiency

Describe methods of venture harvesting (EN:035) (ON)

Harvesting: Final stage of entrepreneurial value creation process (building, growing, harvesting) Basically, your exit strategy

Exit Strategies: IPO's, Merger Acquisitions, Buy-Outs, Strategic Default, and Bankruptcy

Evaluate options for continued venture involvement (EN:036) (ON)

Constantly work on your venture Look to improve Keep members of your team/staff engaged Brainstorm ideas for improvement

Develop exit strategies (EN:037) (ON)

THE BEST 2:

• Merger Acquisitions --- merging your company into another company/that company buying you

• IPO/Initial Public Offering --- allow shareholders to take control and extract monetary worth of your company

Passing on/selling to specific ppl (family, friends, etc.)

Full liquidation/selling at depreciated face value

Describe methods used to protect intellectual property (BL:051) (SP)

File Patents Trademarks Copy Rights Trade Secrets

Describe legal issues affecting businesses (BL:001) (SP)

Disgruntled Employees Discrimination/Harassment Cases Immigration Audits Copyright and Patent Issues Dissatisfied Customers

Identify the basic torts relating to business enterprises (BL:069) (SP)

Business Torts: wrongful acts committed against business entities

Ex. fraud, negligent misrepresentation, breach of fiduciary/trusted duty, civil theft, conversion/using up another business's property, conspiracy, defamation

Describe the nature of legally binding contracts (BL:002) (SP)

Legally-Binding: Not open to interpretation and legally enforced

Contract: 2 entities exchange something of value/specific action or non-action in exchange for something of value/specific action or non-action

Explain the nature of human resources regulations (BL:007) (SU)

Safeguard for employees so they are getting rights and treatment they deserve

Explain the nature of workplace regulations (including OSHA, ADA) (BL:008) (SU)

Provides consistency in structure and guidelines of a company Makes sure each employee is protected Keeps company safe from lawsuits

Explain types of business ownership (BL:003) (CS)

Sole Proprietorship: 1 owner unlimited liability

Partnership: 2+ owners --division of profits all contribute to resources

Corporation: Business is considered a separate legal entity from owners Often has stocks and shareholders

Select form of business ownership (BL:006) (ON)

Sole proprietorship Partnership Corporation

Explain the nature of tax regulations on business (BL:009) (ON)

They define what taxes you have to pay

Ex. income tax employment tax self-employment tax excise tax --taxes on certain products, types of business, equipment, etc. (like a nicotine or carbon-emissions tax)

Explain the nature of businesses' reporting requirements (BL:010) (ON)

Makes sure investors and regulators can evaluate a company's financial performance and business operations

Allows public to find discrepancies among reports

gives company transparency

Develop strategies for legal/government compliance (BL:011) (ON)

Establish laws Evaluate what laws mean Study what it affects and how it works Authorize law into effect Train employees to follow the law Involve the law within your business Ensure law gets followed

Prepare complex written reports (CO:009) (MN)

Gather Relevant Data Have an Intro Executive Chart Summary Include Charts/Graphs/Tables Edit and Revise

Write proposals (CO:062) (MN)

Parts of a Proposal: Title Page Cover Letter Table of Contents Executive Summary Proposal Services/Technology/Solution About us Pricing Terms and Conditions Agreement/Contract

Include: Visuals Quantitive Data Brand Follow up after

Explain management's role in customer relations (CR:008) (MN)

Leads and Motivates Team Handles Complaints Sorts Security Issues

Identify company's brand promise (CR:001) (CS)

Benefits and experiences that marketing campaigns try to associate with a product in their target market's minds

Market to the right people Attract the right employees Plan strategic direction Know Goals and go from there

Describe the nature of ethics (EI:123) (CS)

Business ethics is doing what is moral even when you aren't legally required to do so.

Explain reasons for ethical dilemmas (EI:124) (CS)

Ignorance (Not knowing actions are considered unethical) Discrimination (Racism, Sexism, Ageism, Etc.) Management Pressure (Some will bend the rules in order to meet management's goals) Personal Ambition (Some are so ambitious that they will be unethical in order to achieve their goals and dreams) Leadership (If the leader is unethical, everyone else will become unethical because of it)

Recognize and respond to ethical dilemmas (EI:125) (CS)

Recognize the issue itself Identify the issue and who is involved Consider all relevant information (Laws, facts, principles, etc.) Analyze and determine possible courses of action Decide on one and implement the solution

Exhibit cultural sensitivity (EI:033) (CS)

Don't be racist 💀

Leverage personality types in business situations (EI:104) (SP)

Introverts -Prefer to have time to think about ideas on their lonesome -Need solitude, not good with groups

Extroverts -Prefer generating ideas in a group setting -Let them participate in group discussion otherwise they will grow bored and distracted

Sensing -Likes facts and figures

Intuitive -Likes ideas and theories -Likes to figure out how things work/are interrelated

Adapt management style to the personality type of others (EI:105) (SU)

Know their strengths, weaknesses, needs, and wants then to adapt accordingly.

"Sell" ideas to others (EI:108) (SP)

Prepare a professional presentation

• Sell sheet --- States need your idea meets, features/benefits, applicable markets, legal status (are u patented etc.)

• Introductory Letter --- Who you are, Why you are contacting them, Set up dat for a follow-up -Face-to-face persentation ---Sell the idea (sell result not the idea itself), prepare script, close -Practice ---Practice delivery, memorize sell sheet and introductory letter, know your script, prepare for questions

Persuade others (EI:012) (SP)

Sell but on a much more personal, friendly level and tone

Demonstrate negotiation skills (EI:062) (SP)

-Make the first offer/set the baseline -Use concrete numbers (When selling, $750 means $750 but $500-750 means $500) -Only speak when needed to/harness the silence -Use open-ended questions (Ex. instead of "is this your final offer" say "what would your course of action be if i said no) -Your goal is for both sides to win so work with them, not against

Encourage team building (EI:044) (SU)

9 C's -Clear Expectations -Context -Commitment -Control -Communication -Consequences

• Culture Change

Explain the concept of leadership (EI:009) (CS)

The Concept: Establish goals, values, and concepts that make up the organization's personality and brand image

Types of Leadership: Authoritarian - Strictly professional, direct supervision Paternalistic - Father-figure like, more personal Democratic - Social Equality Laissez-Faire - Workers have the power Transactional - Reward/Punishment System Transformational - leads change and initiative

Determine personal vision (EI:063) (CS)

What is your purpose and meaning behind your business Set goals to achieve your purpose and meaning

Demonstrate adaptability (EI:006) (CS)

Be able to change with market/industry trends Adjust goals/vision based off of market predictions

Develop an achievement orientation (EI:027) (CS)

Striving to meet or exceed a standard of excellence Welcoming feedback Continually seeking to improve Being able to balance one's own personal drive with the needs of the organization

Enlist others in working toward a shared vision (EI:060) (CS)

Set the goal Establish steps to work towards it Communicate and motivate

Act as a role model to fulfill the organization's standards/values (EI:111) (SU)

Be a role model people want to become follow standards and values so others follow

Recognize/Reward others for their efforts and contributions (EI:014) (SU)

Make it personal Provide opportunities Magnify recognition Offer beyond the call of duty perks Motivate through financial incentive facilitate peer-to-peer recognition

Determine stakeholder expectations (EI:113) (MN)

Identify stakeholder's and their preferred mode of communication Keep stakeholders engaged throughout the process/relationship Accurately map expectations Classify level of communication with each stakeholder Identify which stakeholders will be advocates Engage with stakeholders in decision making Be positive even when things go bad

Establish strategic relationships with others (EI:114) (MN)

Strategic Relationships:

• Between 2 commercial enterprises

• Formalized by 1 or more business contracts

Falls short of legal partnerships, agencies, and corporate affiliate relationships

Share best practices with key individuals and groups (EI:115) (MN)

Best Practices: -practices determined to be effective and practicable for business operations

Identify and share them with key individuals and groups

Leverage business relationships (EI:116) (MN)

Keep selling clients Talk on a regular basis Send them notes Ask for introductions Take initiative

Obtain insurance coverage (FI:082) (ON)

Compare different insurances and get the best one

Explain the concept of accounting (FI:085) (CS)

Used to understand business finance and to know the revenues/costs in order to properly address them

Explain the nature of balance sheets (FI:093) (SP)

Lays out business' assets, liabilities, and stockholders' equity Helps business make sure everything is in balance

Describe the nature of income statements (FI:094) (SP)

Revenue - Cost = Net Profit

Shows how much money you made, financial status, whether you had a profit or loss, and all revenues and costs

Prepare cash flow statements (FI:092) (MN)

-They show where your money comes from and goes to -4 Sections of a Cash Flow Statement --- Cash flow resulting from operating activities --- Cash flow resulting from investing activities --- Cash flow resulting from financing activities --- Disclosure of non-cash financing activities

Explain the purposes and importance of obtaining business credit (FI:023) (ON)

THE PURPOSE : Secure lines of credit, lease equipment, finance a company vehicle, and obtain business loans/credit cards without putting personal credit at risk THE IMPORTANCE : Keeps your credit safe and gives unique financial advantages in the marketplace

Analyze critical banking relationships (FI:039) (ON)

Relationship Banking - Banking strategy that targets clients' multiple needs / more personal and client focused relationship

Analyze the status, perks, changes, etc. of your banking relationships

Make critical decisions regarding acceptance of bank cards (FI:040) (ON)

Bank Cards: -Issued by banks -Allow you to withdraw money from ATM's and Debit Cards

Determine financing needed for business operations (FI:043) (ON)

angel investors loans grantscrowd funding personal investment stocks

Identify risks associated with obtaining business credit (FI:041) (ON)

Personal liability Credit bureau reporting --have to report it correctly Card act protections are limited --Risk-based repricing --still liable for employee cards --APR (interest rates) aren't low

Explain sources of financial assistance (FI:031) (ON)

crowdfunding angel investors bank loans government grants personal investment stocks/shareholders

Explain loan evaluation criteria used by lending institutions (FI:034) (ON)

min credit score of 640-750 max debt: 40-100% of your total income goes to debt payments interest rates: 8.5-18%