Introduction to Business
(BBI101)
Functions of a Business
Leadership & H.R.
Types of Leadership
Autocratic
Boss tells what to do
Not open to new ideas
Democratic
All members involved
Supports teamwork
Leader has final say
Laissez-Faire
French meaning:
“Allow to act”
Advice is given when asked
No one is really in charge
Little to no directions
POSITIVE VS. NEGATIVE LEADERS
Positive
Use rewards to motivate employees
Independent
Raises/Bonuses
Acknowledgement
Negative
Are dominant, act superior
with people
eg. Penalties
No pay
Assigning tasks that are unpleasant
Maslow's Motivators
Relatedness Needs
Interacting with people, have personal challenge
and sense of achievement
Show respect
Communication
Existence Needs
Work for money, nothing else
Pay people enough
Set goals
Growth Needs
Work to gain experience to get promotions
Challenge people
Offer support
Roles of Management
Planning
Starts with research
Organizing
Structure of event
Specific tasks
Procedures
Controlling
Ensuring company goals are met
Production
The action of making/manufacturing
from components
Land
Capital
Human Resources/Labour
Entrepreneurship
Productivity:
The effectiveness of productive effort, as measured in terms of the rate of output per unit of input. Increasing productivity leads to increased profits for an organization.
Training
Capital Investment
Invest in Technology
Inventory systems
Production Process
Purchase
Process
Quality Control
Grading
Accounting
Balance Sheet (4 $ Signs)
A = L+OE
Assets
Anything you own
(with value)
Liabilities
Anything you owe
(with value)
Owner's Equity
Net Worth
"Leftover" (Capital)
Income Statement (3 $ Signs)
R - E = NI
Revenue
Money that you earned within business
Expenses
Money you spent for business
Net Income/Loss
aka. Profit/Loss
Marketing
Advertising
Goals of Advertising (RIP)
- Remind
- Inform
-Persuade
AIDA (Selling Formula
- Attention
- Interest
- Desire
- Action
Marketing Mix
4 P's, 2 C's
Product
Labelling
Trademark
Logo
Slogan
(7 words or less)
Jingles
Packaging
aka. Silent Salesperson
Price
Often determined by
quantity demand
Place
Promotion
Informs consumers about a product
and encourages them to buy it.
Personal selling
Telemarketing
Sales promotion
Public Relations
Publicity
Consumer
Target Market
Competition
Indirect
Direct
Personal Finance
Budgeting
plan for wise spending and
saving based on income and expenses
YOU CAN:
Organize and control your financial resources
Set and realize goals
Daily, weekly, monthly
1. Calculate what you own
2. Calculate what you earn (NI)
3. Calculate what you owe
4. Calculate what you spend
Money
Cheques
Components
Name
Address
Name to whom it's sent to
Description
Cheque #
$ amount (standard)
$ amount (words)
Signature
When do we still use?
Income payment
Large Payments
Government Payments
Gifts
Medium that can be
exchanged for
goods and services
Coins
Paper
Notes
Purchasing Power
Spend
Save
Invest
Donate
Gamble
PURCHASE DECISIONS
Money available
Costs
Buyer Behaviour
Quality
Comparison + Product info
Service
Warranties/Guarantees
The more $ you have, the more
you're able to purchase
items in markets in exchange
Deductions
Mandatory: By law, your employer takes deductions off pay cheque and send to government
Voluntary: Optional deductions taken off your pay
Income - Deductions = Net Income
Taxes
eg. EI, CPP
Money is used to pay for:
Police, Health Care, Jails, Education, Roads, Welfare/Social Assistance.
Income/Payroll
Gross vs. Net Income
Gross: $ a person earns BEFORE taxes
Net: $ a person owns AFTER taxes
Payroll
Hourly Rate
Commission
Piecework
Salary
Disposable + Discretionary
Income
Disposable: Total amount of money earned after taxes
Discretionary: Total amount earned after all basic necessities are paid
Entrepreneurship
Entrepreneurship
What motivates entrepreneurs?
Being challenged
Carry on family business
Sense of accomplishments
Money
Roles + Contribution
Recognize
Look for problem
Problem:
Needs & wants expectations not being met
Solve
Find ways to fix problem
Must be able to get customers to buy
for their needs & wants
Act
QUICK
Don't wait for others to figure out the problem
Loscus of Control
Refers to extent to which people believe
they have power over events in
their lives.
Internal: Active
'I can make this happen"
External: Passive
"things happen to me"
Elevator Pitch
Steps
What do you do? Describe what project is about
Uniqueness: What makes project different from others?
what's unique?
Engage: Get customers involved, attract attention
Brief, persuasive speech used to spark interest to what you're doing
20-30 seconds
Setting up business/businesses.
- Taking calculated risks
Invention
Creating a product from scratch
Innovation
Improve on an existing invention
Characteristics
Risk-Takers
Weighs risks before jumping in
(BOTH good and bad risks)
Leadership
Good management abilities
Teamwork
Commitment
Conquer, drive, passion
Motivation to Excel
Doing things for themselves
NOT for power/status
Confidence
Important to have that feeling of
certainty/trust in yourself in order to do well
Creative
Inventive and innovative
(looks for new ways of doing things)
Self Reliant
Control their results
Believes in themselves
Opportunity Obsession
Find and fix problem
COMPNENTS OF
A BUDGET
EXPENSES
Fixed monthly (mortgage, cable, internet)
Variable (gas, groceries, meals, entertainment)
Occasional
REVENUE
Income after taxes (Net)