Professional Documents
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THIS WEEK
Introducing the lecturer Purpose/Aims Expectations of you Plagiarism HELP! Course topics Who are you? What is Business Management?
COURSE AIMS
Knowledge of small business opportunities and operations, including ownership options and business structures. Knowledge of control techniques, accounting and financial processes, evaluation processes and marketing options for small business operations. Skills in analysing information and identifying appropriate solutions for the management of small business operations.
TOPIC 1
Analyse options for self employment
Identify characteristics of successful small business enterprises Identify and assess new business opportunities Evaluate assistance programmes Identify specialist services available for small business development.
TOPIC 2
Analyse ownership options and business structures Assess options for acquiring a small business Evaluate small business financing options Interpret legal requirements for small business operations Evaluate operational requirements for small business operations.
TOPIC 3
Manage the day to day accounting function
Interpret financial and accounting information Develop profitability and cash flow budgets and compare operating results to these budgets Using basic costing tools to ensure the business is running profitably.
TOPIC 4
Select and implement control systems and techniques and evaluate results against business plans.
TOPIC 5
Analyse the potential market for products/services and confirm market demand
Determine the mix of products/services to be provided Develop options for effective marketing of the business.
LEARNING OUTCOMES
LO1 :Students will describe characteristics of small business. LO2:Students will compare business options, business structures and finance options of small business. L03:Students will identify sources of advice and assistance available for a small business.
LO4:Students will explain the importance of marketing choices for a small business. LO5:Students will describe performance measures and controls used for small business.
EXPECTATIONS OF YOU
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Read the myCourseDetails Read the cases before coming to class Do readings as applicable Turn off your cell phones before entering class Respect each other Help each other Regular course attendance Attend all lectures on-time If you cannot attend class I want to know by e-mail beforehand (if possible).
PLAGARISM
Plagarism is cheating Plagarism is using someone elses ideas or words and saying they are your own. If you use material from a text and do not acknowledge the source, you are committing plagarism. Several penalties can be imposed if you plagarise. Zero marks and ultimate removal from the paper are possible.
EXAMPLES OF PLAGARISM:
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Copying from another students assignment with or without the students knowledge. Submitting the same assignment in two different papers. Getting someone else to write an assignment for you. Paraphrasing or copying directly from a text without acknowledging the source. Copying directly from a text, acknowledging the source but pretending that you are paraphrasing. You allow other students to copy your work You write an assignment for another student.
What is your origin? Born in NZ OR arrived in NZ: Over 10 years ago 5 to 10 years ago 1 to 5 years ago 6 to 12 months Less 6 months You are from: Auckland, or overseas? Homeland? First language? Single language? Family Background?
DEFINITION: BUSINESS
A commercial or industrial establishment
Commerce, trade
Profession, occupation
Synonyms: Company, corporation, enterprise, firm, organisation, venture
DEFINITION: ORGANISATION
A collection of people working together in a division of labour to achieve a common purpose Synonyms: Association, corporation, federation, consortium, institution, league, syndicate Examples???
EXAMPLES: ORGANISATION
Sports club
School University
Hospital
Army, Navy, Air Force Bank
A BUSINESS ORGANISATION
An organisation established with the purpose of; 1. making a profit for its shareholders by
PROFIT
A financial gain, esp. the difference between
21
22
QUESTIONS
Is a one man/or woman business an organisation?
DEFINITION: ENTREPRENEUR
1. 2.
A person who attempts to profit by risk and initiative. To undertake a project that is especially difficult, complicated, or risky, engaging in daring action, that is a systematically purposeful activity. A person who habitually creates and innovates to build something of recognised value around perceived opportunities. (Bolton & Thompson)
3.
Habitually not just seeking a comfortable lifestyle they just cannot stop being entrepreneurs
Creates start with nothing and bring into being something that was not there before. Innovates they overcome obstacles that would stop most people. Build recognised value financial, aesthetic, or social capital. Not just a a good idea.
DEFINITION: INNOVATION
Innovation is commonly defined as:
The act of introducing something new Innovation does not imply that an idea, product or service has been taken to the market, but merely provides a suggested conclusion to a problem.
Entrepreneurship is best defined as taking a good idea, product or service, and organising, operating and assuming the risk for a new business venture This definition can be extended to include taking the idea, product or service to the market for potential wealth creation Therefore, entrepreneurship is the answer to inactive innovation.
TYPES OF ENTREPRENEURS
Legendary Henry Ford, Thomas Edison, Bill Gates, Walt Disney, Steve Jobs, Sony Co., James Dyson, Richard Branson
Read the David Slack case study and answer these questions:
4.
5. 6. 7.
What special challenges did he face in setting up his business? How did he meet those challenges?
What are some of the distinctive features of the business that David established? Is this a successful business? What makes his business valuable?
REFLECTIONS ON DAVID SLACK Would you buy this business? Business value intellectual property:
priceless domain name Database of customer contacts Database of speeches Proprietary software eg Auto Speechwriter Distinctive reputation in market niche
SMALL-MEDIUM SIZED BUSINESSES (SMES) No standard definition. 85% of NZ SMEs employ less than 5 full-time people Examples of small businesses: Family businesses such as - dairies, cafeterias, hair salons, bakeries, garages, restaurants
Many small business founders lack organisation and management skills. They are often the BEST people to start a business, (entrepreneurs) but the WORST people to run that business (managers).
QUESTIONS
Why is the number of SMEs growing, and the % employed in SMEs growing?
What other forced career changes (e.g. health status) can you imagine? What are some of the reasons that smaller businesses can compete successfully with larger business?
QUESTIONS
Excellence
Natural talent
Bolton & Thompson, 2004, Fig 2.2
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BUSINESS PLAN ESSENTIAL ELEMENTS Business description (includes org & mang) Market analysis Competitor assessment Market plan Operation plan Financial plan Executive summary