PRELIMINARY BUSINESS STUDIES
Management processcoordinating key business functions and
resourcesoperations goods and/or servicesthe production
processquality managementmarketing identification of the target
market marketing mix finance cash flow statementincome
statementbalance sheethuman resourcesrecruitmenttrainingemployment
contractsseparation voluntary/involuntary ethical business
behaviourmanagement and changeresponding to internal and external
influencesmanaging change effectivelyidentifying the need for
change business information systemssetting achievable
goalsresistance to changemanagement consultantsThe Ascent of
money
NEW TOPIC! MANAGMENT PROCESS txt pg. 98
Management process
Coordinating key business functions and Resources
Use KRB as an example to identify key business functions and
appropriate resourcesCoordinating key business functions and
Resources
Identifying business functions:Core business functionOther
functionsProfit to owners/shareholdersSupply a products/service to
consumersCoordinating business functions Planning each part of the
production of product or any stage or productionPlanning
operationsProduction, marketing, finance and HR are coordinating
unitsMarkets for goods and servicesPlace where the consumer (buyer)
and producer (seller) meet.Wholesalers and retailersToday also have
stock market/e-commerceIdentifying the Business
FunctionsOperationsOrganising the production of goods and services.
Includes:- business location, premises layout, number of employees,
types of equipmentEmployment relationsOrganising the human
resources. Hiring and firing, finding right skills, training,
motivation.MarketingLink between the business and the consumer.
Drives the business. Identifies what consumers want and then plans
to meet these wants at an acceptable price. Includes
promotion.Accounting and FinancingProvides the financial resources.
Controlling how finances are used and regular reports on the
businesss operation.
Operations
Human Resources
Marketing
Accounting and FinanceIdentifying the Business Functions
Operations
Human Resources
Marketing
Accounting and FinanceIdentifying the Business Functions
28 min. Using Holden as a case study, this program looks at the
four key functions performed in business on a daily basis:
manufacturing operations; human resources; marketing and sales; and
finance.Take down five terms on each of the four business functions
to write a paragraph on each at the end of the video.Key business
functions of...
HOLDEN AND KBFsWhich functional area is most important to the
operation of Holden Ltd?
Could the organisation exist without any of the functional
areas?
Would Holden benefit from outsourcing any of the functions?
Holden's new solar powered carImagine that Holden has decided
that it wants to develop a new solar-powered car. Explore how each
of the 4 functional areas discussed in the video might be affected:
Manufacturing Operations, Human Resources, Finance and Marketing
& Sales in terms of the key management roles of planning,
leading organising and controlling.
Vice President GoogleMich Mathews
You have been appointed CEO of Holden! Your first thought is
that you want to know how successful each functional area of the
organisation has been lately. Suggest 3 Key Performance Indicators
that would be appropriate to evaluate the success of the 4
Functional Areas discussed in the video. What evidence of success
was shown in the video?
Coordinating the Business FunctionsThe different functions of
the business are INTERDEPENDENT.Small business owners are closer to
their customers than large business. Large business managers may
even lose touch with their business operations. Shareholders may
have very little to do with the day to day running of the
business.
KRB: key business functions and appropriate resourcesIN PAIRS ON
POSTERS COME UP WITH KRBs KEY BUSINESS FUNCTIONS AND WHAT RESOURCE
EACH FUNCTION NEEDS
Management: Operations goods and/or servicesthe production
processquality management
goods and/or servicesWhat is a good and what is a service...do
any businesses provide both?GOODS VS SERVICESGOOD: An item that is
tangible. It can be seen or touched.;E.g...
SERVICE: An intangible good that is provided by an individual or
organisation; E.g...
The production processWhat is the production process of a
...?SurfboardChocolateCheeseburgerdesigner dressCookiesCar wash
The production processOrganising operations in a business
involves managing the production process.The production process
includes identifying and procuring the inputs that will be
transformed by the business into the final goods and
services.MANUFACTORING transformation in factorySERVICES
transformation in officesIn organising production the business
managers will try to reduce cost, maximise efficiency and provide
quality goods and servicesProduction process
Division of labourBreaking down tasks to the simplest level and
designing jobs and employing people to do these jobs Division of
labour brings advantages to an organisations as people become
SPECIALISTS they become more EFFICIENTSpecialising promotes
efficiencyWorkers rely on other people working in their specialised
job to supply the products and services they need. Who does a heart
surgeon or tennis professional rely on?The way that businesses
create products and services is known as the production
process.
There are three main parts to the production process:A firm must
purchase all the necessary inputs and then transform them into the
product (outputs) that it wishes to sell. For example a football
shirt manufacturer must buy the fabric, pay someone for a design,
invest in machinery, rent a factory and employ workers in order for
the football shirts to be made and then sold.How well-organised a
firm is at undertaking this transformation process will determine
its success. This is known as the productive efficiency of a firm
and it will want to be as efficient as possible in transforming its
inputs into outputs (i.e. using the minimum number of inputs as
possible to achieve a set amount of output). This will reduce the
cost per unit of production and allow the firm to sell at a lower
price.Ultimately, the objective of the production process is to
create goods and services that meet the needs and wants of
customers. The needs and wants of customers will be met if a
business can produce the correct number of products, in the
shortest possible time, to the best quality and all at a
competitive price.
The Production of Goods and ServicesInvolves the management
of:peoplecapitalinformationraw materialsRole of
OperationsDesignOperation ofControl
ofTransformationProcessesthatconvertRaw Materials, energy and
labourinto Finished goods and servicesEach Step Adds Value
The production process
Discuss the concept of the production process and construct work
flow charts demonstrating production of goods and/or services
http://www.thesourcesurfboards.com.au/homeProduction process
Goods or Services
?
Production processIn worksheets discuss the concept of the
production process and construct work flow charts demonstrating
production of goods and/or services
The future of food productionNo-till agriculture Feeding the
world's growing population will require changes to the way we grow
things. This might mean leaving the plough behind
Chain of command
Chain of commandRefers to the way a business structures its
channels of authority, power, accountability and responsibilityIn a
traditional business the chain of command starts with the
CEOAuthority and power will move down through various levels (or
links) of management, supervisors and workers.Accountability (and
information) moves back u through these links to the CEOChain of
command continuedThe chain of command can be shown as an
organisation chartAuthority refers to the right a manager has to
make certain decisions and to require a subordinate to carry our
certain tasks in a satisfactory way.Power is the ability to cause
subordinates to do what is required of themResponsibility is the
duty an employee has to c ary out certain organisation al tasks or
functionsAccountability who has authority over themAll workers are
responsible for something and accountable to someone. The chain of
command can be organised by function, product, geography or
customers.See pg. 102Chain of command by functionOrganising chain
of command is common and can be effective if each functional area
does not need to collaborate closely with other departments...e.g.?
Head of HR, Finance, manufacturing and marketing and reporting to
CEPE.g.
Benefits of chain of command by FUNCTIONEasy to understandForms
a basis for specialisationStaff with similar interests and skills
can be grouped togetherUpper levels of management are likely to be
aware of the needs and contributions of the functional
areashttp://www.wesfarmers.com.au/
Quality managementDefine quality management and its
importance
Good + Service
Quality managementGoal of every business should be to create the
best possible product and/or deliver the best possible service.
Businesses that can deliver high quality products and services
will gain a competitive advantage over other similar businesses
e.g. http://www.apple.com/au/QUALITY : A FOCUS FOR
OPERATIONSQuality management will only be attained if all the
employees in operations are committed to achieving and maintaining
quality output...
Is this easy to achieve?Quality managementat each stage of the
production processProvide scenarios for an SME .......How do
managers ensure high quality?What would a good manager do to
rectify poor quality products/services?
Total quality managementAll aspects of the operations process
INPUTS, PROCESSES, AND OUTPUTS are all subjected to constant
quality analysis and monitoring..constant assessment and
improvements to promote total qualityQuality
ControlInspectionInternational Quality StandardsTQMContinuous
improvementWorking Capital =the money needed for the day-to-day
requirements of business.DISADVANTAGES of JIT - unable to meet
sudden increases in demand, great reliance on suppliers and
employees, huge problems if any part of the system breaks down,
loss of discounts related to bulk buying.Quality
ManagementCustomers define quality. It is different things to
different people. But customers demand a high level of quality or
they will switch to a competitor.Quality Control =Inspection of
products to see it meets the need of the customers.Quality
managementDefine quality management and its importance at each
stage of the production process
Quality ManagementHow do managers ensure high quality?
What would a good manager do to rectify poor quality
products/services?
TERM TWOManagement processcoordinating key business functions
and resourcesoperations goods and/or servicesthe production
processquality managementmarketing identification of the target
market marketing mix finance cash flow statementincome
statementbalance sheethuman resourcesrecruitmenttrainingemployment
contractsseparation voluntary/involuntary ethical business
behaviourmanagement and changeresponding to internal and external
influencesmanaging change effectivelyidentifying the need for
change business information systemssetting achievable
goalsresistance to changemanagement consultants
Management process: marketingidentification of the target market
marketing mix
The
economisthttp://audiovideo.economist.com/?fr_chl=8c9fb7cb6ccca6fb5c1058e006b34355a6ec141c&rf=bm
What is marketing? Distinguish between marketing and sales
http://www.smh.com.au/
Definition of marketingThose functions in a business that
directly involve contact with the consumer and assessment of their
needs, and the translation of this information into outputs for
sale.
Marketing is the process of developing a product and
implementing a series of strategies aimed at correctly promoting,
pricing and distributing the product to a core group of
customers.Targeting consumersWhy is targeting consumers and
identifying a target market so important?
What sort of magazines/TV shows do you read and watch? What
products are advertised?
Have you heard of a target market what does this term mean in
your own words?
Identification of the target marketA business needs to clearly
establish who the consumers of the product are and them aims its
efforts to gain sales towards that market.
E.g. Skim milk, chocolate, surfboards...who are their target
market?TARGET MARKETSMost product promotions will be targeted so
they appeal to a specific:AgeSocial group: middle aged men/women,
affluent, young womenEach specific group is a TARGET MARKETAs a
class look at different websites and notice the different ads
TARGET MARKETSMass marketing: product used by a large proportion
of the population: food, household items: usually not specific
Niche marketing: small and exclusive market. Ski equipment,
luxury cars, adventure holidays> IMAGE promoted is most
important
Wise to target a specific group?? YouTube clipTake five points
down from this clip!
MARKET SEGMENTATIONMarket segmentation occurs when the total
market is subdivided into groups of people who share one or more
common characteristics.Otherwise known as target markets.Markets
can be segmented on the following four variables;Demographic age
gender, ethnicity, income, occupation etc.Geographic Urban, rural,
climate, regionProduct related regular user, new user, brand
loyalty price sensitivityPsychographic personality, motives,
lifestyles
Eg. Nova 96.9 only wants 18-39 year olds to listen so they dont
play Frank Sinatra. They then have a valuable product to sell to
advertisers.
The Toyota Tarago has also been developed for a certain market
segment.
Processes used to identify target marketsMarket research:
surveys in person/via telephone, demographic/social group, specific
questions about the productFocus group: a group of potential
consumers chosen at random, brought together and asked to respond
to a campaign developed to promote a particular good or
service..Advertising agencies, check whether there is a demand
MARKETING MIXTHE 4 PsPRODUCT PRICEPLACEPROMOTIONMarketing
MixSummarise product, price, place and promotion
Read text then summariseMarketing MixProductBrand, packaging,
positioning (healthier)PriceMatching its cost of production to the
needs of its targeted customers. Will the price be set low and
aimed at the mass market or will it be set high and aimed at a
specialised market? What is problem with too low/too high
pricing?PromotionSales promotionPersonal sellingAdvertisingPrint,
radio, TV : choice of medium will depend on the products, audience,
frequency of publication, coverage, cost of reading
audienceCustomer servicePlaceTransporting/storing goods and getting
them to the consumer at the right time. 1/5th of the cost of a
product is taken up in distribution.
Warehousing/storage/transportInventory: Just in time (JIT) in
modern businesses stock is held in the form of finished goods,
component or raw materials.
MarketingIn worksheets Discuss the meaning of
marketingDistinguish between marketing and salesDefine the concepts
target market and marketing mixUsing examples in worksheet identify
relevant target markets
Marketing Australian red meatin Australia and around the
globeBrochureHandout to be completed
Marketing Mix: recap/promotion/advertisingM&C Saatchi is a
global marketing services business working for clients across a
wide variety of industry sectors.The Company was founded in 1995.
Starting with a strong base in the UK and Australia, we have added
new agencies and disciplines in Asia, USA and Europe, employing
over 1,2850 staff in 22 countries. The Company was listed on AIM in
2004.http://www.lse.co.uk/SharePrice.asp?shareprice=SAA
M&C Saatchi wins Austrade contest to market Australia Simon
Canning
From: The Australian
April 26, 2010 12:00AM
FORMER Tourism Australian and Tourism New Zealand advertising
agency M&C Saatchi has won the job of building brand Australia
for Austrade. The agency, which has also been involved in
nation-branding and tourism projects in the US and the Middle East,
will assume the $20 million project to market Australia as an
export and investment nation.More than 60 advertising agencies from
around the world pitched for the Building Brand Australia project
announced by the federal government last year, with four agencies
making the shortlist.Austrade took a number of concepts from the
agencies and put them into research in 14 countries before handing
the account to M&C.The contract will run for four years and
will see an overarching brand developed to promote Australia. It
will run separately from tourism campaigns.The concept will not be
unveiled until next month.M&C developed New Zealand's lauded
100 per cent Pure campaign before resigning the account to take on
Tourism Australia.The agency's "So where the bloody hell are you?"
campaign shot bikini model Lara Bingle to fame but faced criticism
from some industry sectors.Last week Media revealed that two local
executives, chairman Tom Dery and regional creative director Tom
McFarlane, had bought a 20 per cent stake in the agency for $5m
from the parent company in London.
In the age of the brand, logos are everywhere. But why do some
of the worlds best-known brands find themselves on the wrong end of
the spray paint can the targets of anti-corporate campaigns by
activists and protesters?No Logo, based on the best-selling book by
Canadian journalist and activist Naomi Klein, reveals the reasons
behind the backlash against the increasing economic and cultural
reach of multinational companies. Analyzing how brands like
Nike,The Gap, and Tommy Hilfiger became revered symbols worldwide,
Klein argues that globalization is a process whereby corporations
discovered that profits lay not in making products (outsourced to
low-wage workers in developing countries), but in creating branded
identities people adopt in their lifestyles.