Business studies preliminary -topic 2- nature of management lesson goals



Download 40,32 Kb.
Date conversion10.04.2017
Size40,32 Kb.

BUSINESS STUDIES

LESSON GOALS

  • learn about:
  • Achieving Business Goals
    • profits, market share, growth, share price, social, environmental
    • achieving a mix of the above goals
  • learn to:
    • Discuss specific examples of business goals, the strategies to achieve them and the dependence/conflict between goals
    • Debate ‘Businesses are only interested in maximising profit’

What are some of your goals?

  • Make my Business Studies teacher proud by achieving a BAND 6 in the 2016 HSC!
  • After school, travel to Europe with my best friend on a one way ticket, work our way around, eventually saving up for our ticket home in 2017.
  • Go to Uni, work my way up to become Marketing Manager and earn $200k by the age of 25.

In class activity: Your Goals

  • Describe 2 personal goals you have
  • Identify when you want to achieve them
  • Outline what planning will be required to achieve these goals
          • Write your 2 goals on a piece of paper and keep it in your diary!

Goals Overview

  • Possible Business Goals
  • Profits
  • Market share
  • Growth
  • Share price
  • Social
  • Environmental
  • Financial goals
  • Non-Financial goals
  • Purpose of Goals
  • Setting targets to know where you’re going and how to get there. Your staff also know what they’re working towards.
  • Benchmark to measure the businesses performance
  • Motivation, employees are encouraged when goals are achieved
  • Employee ‘buy-in’/commitment to the goal

Setting Goals

  • Goals need to be specific and challenging
    • Eg. ‘Increasing sales this year’ is not specific BUT
    • ‘Increase sales in NSW stores by 5% in the next 12 months’ is a specific target over a desired time frame
      • NOTE
  • A business’s goals will alter over time due to changes in the internal and external business environment.
  • S.M.A.R.T
  • Specific
  • Measurable
  • Achievable
  • Realistic
  • Time-bound

Use S.M.A.R.T when preparing effective goals

  • S – Specific :
    • What is it that the business wants to happen
  • M – Measurable:
    • Progress can be measured and change evident
  • A – Achievable/Attainable :
  • R – Realistic:
    • Something the business owner and employees are willing to work towards
  • T –Time bound:
      • Must have deadlines attached otherwise commitment is too vague
  • Business Goals
  • Financial
    • Increase… Profits
    • Increase… Market share
    • Maximise… Growth
    • Improve… Share price

Maximise Profits

  • Profit is what is left after the costs of producing and supplying the product (expenses) have been deducted from money earned from sales (revenue)
  • REVENUE – EXPENSES = PROFIT
  • Profit maximisation occurs when there is a maximum difference between the total revenue (number of sales multiplied by by the price) coming into the business and total costs paid out

Goals Overview

Grocery Market Share

Increase market share

  • Market share refers to the business’s share of the TOTAL industry sales for a particular product. It is measured as a percentage (%) of the total industry e.g. Woolworths has 39% share of the packaged grocery market
  • Market gains often translate into more customers and larger profits

Supermarkets market share 2013

  • Source: http://www.roymorgan.com/findings/5427-market-share-narrows-between-coles-woolworths-while-aldi-makes-gains-201402120013

Your Market share

  • Your Company’s total revenue (Total Sales)
  • Total Market Sales

Activity: ‘A piece of the pie!’

  • Manufacturer
  • Total Sales
  • Share (%)
  • Masterfoods
  • $430,000
  • Cerebos (Fountain brand)
  • $200,000
  • Heinz
  • $200,000
  • Private Label
  • $150,000
  • Other
  • $20,000
  • TOTAL
  • $1,000,000
  • 100%
  • Below is a table of manufacturers that compete in the Tomato Sauce Market in Australia
  • Copy the table below
  • Calculate the Market Share (%)
  • Create a pie chart, based on the data
  • The Tomato Sauce market is estimated at $110 million

Maximise growth

  • Most businesses want to grow or expand – this can be achieved internally (organically) or externally.
  • Internal growth could involve employing more people, increasing sales, introducing innovative products, purchasing new equipment or establishing more outlets. Eg Mc Donald’s has an ambitious growth program by selecting a large number of sales for future expansion
  • External growth is achieved by merging or acquiring other businesses. A merger is when two businesses join to become one. Acquisition is when one business purchases another.

Review Q’s

  • In the following examples, identify which financial goal the business is trying to achieve.
  • The business owner wishes to increase revenue so they conduct a large sale.
  • A board of directors announces that the company’s profits are forecast at 23 percent over the next twelve months and the dividend will rise by 28 cents per share.
  • A manager decides to undertake an extensive promotional campaign in an attempt to attract new customers.
  • Senior executives knew there was only one way to expand the business and that was by buying the opposition.

Review Q’s

  • ‘The main goal of a business is to maximise profits’.
  • Define the term ‘profit maximisation’.
  • Recount under what circumstances a manager may be prepared to accept reduced profits in the short term.
  • In your opinion, discuss whether maximising profits should be the only goal of a business.

BUSINESS STUDIES

  • Nature of management
  • L8

LESSON GOALS

  • learn about:
  • Achieving Business Goals
    • profits, market share, growth, share price, social, environmental
    • achieving a mix of the above goals
  • learn to:
    • Discuss specific examples of business goals, the strategies to achieve them and the dependence/conflict between goals
    • Debate ‘Businesses are only interested in maximising profit’

Improve share price

  • A share is part ownership of a public company. Shareholders therefore are the real owners of companies.
  • There are 2 reasons a person would buy shares:
    • They purchase them in the hope of selling them for a higher price
    • Owning shares in a company entitles an investor to a part of the company’s profits which is distributed in the form of dividends (a return)
  • Companies need to maximise the returns of their shareholders. This is achieved by keeping the share price rising – constantly improving the share price – and paying back healthy dividends
  • Activity Scenarios
  • Clothing store
    • Altering prices
  • New Business
    • Setting lower prices in the short-term to build customers
  • Grocery store setting
    • New supplier

NON-FINANCIAL GOALS

  • Social Goals
  • &
  • Environmental Goals
  • (& Personal Goals)

SOCIAL GOALS

  • Why should businesses have social Goals?
  • Businesses operate within the community and so should have responsibilities to the community
  • Businesses develop social goals and adopt strategies that benefit communities. These include:
  • Community Service:
    • Sponsoring community events and programs.
    • Financially support educational, cultural or welfare activities

SOCIAL GOALS

  • 2. Provision of Employment:
      • Some small businesses are committed to employing family members that are unemployed. Other businesses are committed to retaining employee’s even through financially difficult periods.
  • 3. Social Justice:
    • Businesses adopt policies that protect the rights of employees and the community, providing fair and equal treatment.

ENVIRONMENTAL GOALS

  • Demand for Chocolate:
  • http://www.abc.net.au/news/2013-04-01/chocolate-demand-outweighs-production/4603748

ENVIRONMENTAL GOALS

  • What are the environmental demands of a business:
  • Use of the Environments raw materials to produce products
  • Pollution from operations
  • Use of water and power/energy supplies in regular operations
  • The demand for increased productivity and business desires for profits have increased the impact on the environment.
  • This demand cannot be sustained by the environment.

ENVIRONMENTAL GOALS

  • There are parts of society that demand economic growth should not occur at the expense of the environment. There needs to be a balance between economic and environmental concerns — in other words, sustainable development.
  • Societal and government pressure has led to businesses considering sustainable development in their operations.
  • What new opportunities does this provide for business?

The influence of Society on Business operations

  • Business Operations
  • Government
  • Society

BUSINESS STUDIES

  • Nature of management
  • L9

Re:CAP

  • Recall the acronym for setting effective goals
  • Recall 6 categories of goals
  • Contrast the importance of goals with management skills

ENVIRONMENTAL GOALS

  • Westpac Article

PERSONAL GOALS

  • Business owners have their own personal goals for the organisation. These goals motivate the owner and may underpin the business owners actions. They may also influence both ethical and unethical business behaviour.
  • Goals may include :
  • Increase income
  • Improve financial security
  • Establish a sustained family business

Achieving a mix of business goals: Conflicting nature of goals

  • It is difficult for a business to achieve all its financial goals simultaneously because the links between goals make some of them incompatible – ie they conflict with each other.
  • An example is whether the business chooses to maximise profits or increase market share – there may be a compromise or a trade off between goals.

Conflicting nature of goals

  • GOAL #1
  • GOAL #2
  • SHORT-TERM OUTCOME
  • LONG-TERM OUTCOME
  • Identify three examples of goals that will conflict:

STAFF INVOLVEMENT

  • All businesses want maximise an employees output and a way to do that is through “Staff Involvement” and recognising the importance of:
  • INnovation MOtivation MENtoring
  • TRAINING
  • Acronym:
  • STAFF IN MOustache’s are MEN in TRAINING

With RHAC as the business create a S.M.A.R.T. goal for each Business Goal, and a strategy to achieve each one (or better yet, strategies that would achieve multiple goals.

  • How would you get staff involved?
  • PEPSI Co Challenge video
  • Draw up 4 columns in your book
  • Use the following titles for each column
    • Profit
    • Market share
    • Growth
    • Share price
  • Students are to identify Pepsi Co’s goals for each of these area’s

REVISION -Topic 1 & 2-

  • Lesson 10

TOPICS TO REVISE

  • Final Management Notes
  • Business Management
    • Management Skills
    • Extended Response
  • Nature of Business
    • Role of Business
  • Terminology
    • Business terms
    • Exam/question terms

PERSONAL GOALS

  • Think of yourself as a product. When you are applying for jobs you are essentially trying to sell your personal ‘brand’ to someone.
  • Why do you do this? What goals are you trying to achieve?
  • What are some personal goals that owners could have for their business?

PERSONAL GOALS

  • Business owners have their own personal goals for the organisation although they may not be made public.
  • These goals motivate the owner and may underpin the business owners actions. These goals may influence both ethical and unethical business behaviour so are not always a positive influence.
  • Goals may include :
  • Higher income
  • Improved financial security
  • Establish a sustained family business

EXTENDED RESPONSE

  • Example Question
  • Discuss how the effective use of management skills can achieve business goals

EXTENDED RESPONSE

  • Review Extended Response answers from homework.
  • Create new extended response question relating to the content we have studied in topic 2 (Nature of Management) – The question must incorporate two sections of information (E.g. Management Skills and purpose of Management , Management skills and business goals etc.)

EXTENDED RESPONSE PLAN

  • Create a plan on how you would answer the question.
  • The plan needs to outline at least 2 key things:
  • The structure of your response (essay type format)
  • The information you would put in your response, showing the connections between content.

NATURE OF BUSINESS

  • Types of business
    • How do we classify a business?
    • Size and Location?
    • Legal Structure?
    • Industry Sector
  • Internal & External Influences matching activity
  • Stakeholders
  • Business Lifecycle
  • Terms to consider:
    • Company, Corporation, Manufacturer, Competitors, Supplier, Multinational, network, retailers
    • Marketing, Brand awareness, promotions, target market identification, Niche market, differentiation
    • Liquidity, solvency, profitability, cash flow, financial management, short/long term investment, capital
    • Buyer, consumer, customer, investors, shareholders
  • Terminology
      • Identify
      • Outline
      • Discuss
      • Evaluate
      • Analyse
  • Exam Terminology

BUSINESS STUDIES

  • Nature of management
  • L10-11

LESSON GOALS

  • learn about:
  • Management approaches
  • Classical approach
    • Scientific and Bureaucratic
  • Behavioural approach
  • Contingency approach
  • learn to:
    • Compare and contrast approaches to management
    • Explain the benefits of quality management practices

ACTIVITY

  • Overview of this topic area.
  • Create groups of two. Each group is assigned a management style to gather information on
  • Students create a table on their style as follows:
  • CHARACTERISTICS OF MANAGEMENT STYLE
  • DISADVANTAGES OF STYLE

ACTIVITY

  • Overview of this topic area.
  • After students have completed their task
    • 10 Mins: match up students with the same management style to share information
    • 15 Mins: students with different management styles match up together

BUSINESS STUDIES

  • Nature of management
  • L12

LESSON GOALS

  • learn about:
  • Management approaches
  • Classical approach
    • Scientific and Bureaucratic
  • Behavioural approach
  • Contingency approach
  • learn to:
    • Compare and contrast approaches to management
    • Explain the benefits of quality management practices

LESSON GOALS

  • Colour coding:
  • Management approaches:
  • Classical approach – RED for being authoritarian
  • Behavioural approach – BLUE for being democratic
  • Contingency approach – ORANGE for being flexible

VIDEO

  • Leadership styles.
  • https://www.youtube.com/watch?v=Mo5Qk0Ed6iA

CLASSICAL MANAGEMENT APPROACHES

  • TWO APPROACHES
  • Scientific: Having a scientific approach of researching a task in detail to find the most productive way of completing a task.
    • Systematise a job (Highly ordered/structured tasks)
    • Tight control
  • Bureaucratic: Managing through a strict hierarchy of authority and a clear set of rules to govern workers.
      • Rules and Processes
      • Hierarchy
      • Impersonal and Specialisation

CLASSICAL-SCIENTIFIC

  • BIO
  • Frederick W Taylor (Philadelphia)
  • 1856-1915
  • Management Belief:
  • Productivity will be improved by three (3) things:
  • Preparing plans based on what needed to be done
  • Designing each task scientifically
  • Providing training and incentives for the workers.

Management Theories Classical-Scientific approach

  • An approach that studies a job in great detail to discover the best way to perform it. (Similar to the production line method of manufacturing).

Classical-Scientific approach

  • Taylor's four principles of scientific management are as follows:
  • Scientifically examine each part of a task to determine the most efficient method for performing the task.
  • Select suitable workers and train them to use the best work methods.
  • Cooperate with workers to guarantee they use the scientific methods.
  • Divide work and responsibility so that management is responsible for planning, organising and controlling the scientific work methods, and workers are responsible for carrying out the work as planned.

Classical-Scientific approach

  • Activity using Taylor's four principles of scientific management:
  • Your task is to develop a paper aeroplane. You will individually conduct step one of Taylor’s model and then we choose the best four and create teams to conduct steps 2 – 4.
  • Scientifically examine the task:
  • Select suitable workers and train them:
  • Ensure workers use the scientific methods:
  • Management plans, organising and controls, and workers make the product:
  • - INSERT
  • INFO ON COMPLETING TASK -

Classical-Scientific approach

  • Henry Ford used these ideas, to develop his famous mechanised assembly line in 1913. This approach utilised an assembly line on a conveyor belt and a small team of workers who fitted the various components along the production line. The end result reduced the hours spent on the assembly of a car from 728 hours to just 1.5! http://www.youtube.com/watch?v=8PdmNbqtDdI McDonald's also uses Taylor's scientific management approach preparing burgers according to a set number of steps.

CLASSICAL-BUREAUCRATIC

  • BIO
  • Henri Fayol (Constantinople)
  • 1841-1925
  • Management Belief:
  • Productivity will be improved by 3 things:
  • Preparing plans based on what needed to be done
  • Designing each task scientifically
  • Providing training and incentives for the workers.

CLASSICAL-BUREAUCRATIC

  • BIO
  • Max Weber (German)
  • 1864-1920
  • Management Belief:
  • Productivity will be improved by 3 things:
  • Preparing plans based on what needed to be done
  • Designing each task scientifically
  • Providing training and incentives for the workers.

Management Theories Classical-bureaucratic approach

Management Theories Classical-bureaucratic approach

  • A classical–bureaucratic approach to management, pioneered by Max Weber and Henri Fayol, advocated:
  • that a bureaucracy is the most efficient form of organisation.
  • the main function of management is planning, organising and controlling.
  • [NOTE: Bureaucracy is a strict set of rules and where those in the highest position make the decisions]

Management Theories Classical-bureaucratic approach

  • Main Points: a strict hierarchical organisational structure
  • clear lines of communication and responsibility
  • jobs broken down into simple tasks; specialisation
  • rules and procedures
  • impersonal evaluation of employee performance to avoid favouritism and bias.

Functions of management Part 1

  • Management as Planning
  • Tactical Medium-term
  • Operational
  • Short-term
  • Strategic
  • long-term
  • Management as Organising
  • Group similar tasks together and allocate to business departments
  • Delegate responsibility for completing work
  • Establish activities required in order to achieve the goals?
  • Organising the resources (financial, human and physical) to achieve the business goals
  • Functions of management Part 2

Functions of management Part 3

  • Management as Controlling
  • Measure progress against the goal to determine goal is on track to completion
  • (Industry Standard
  • Taking corrective action – making changes – if needed to keep goals on track
  • Establish benchmarks/standards to measure goal progress against
  • Ensuring performance matches with the desired goal and making any required changes.

Control Methods:

  • Control Methods:
  • Quality control: Inspectors checking finished products, and detecting and removing any components or final products that do not meet the required standard. Can result in considerable waste as products are scrapped.
  • Quality assurance: Quality checks occur both during and after production in order to stop faults occurring in the first place. This is less wasteful than quality control. It is the responsibility of the employees working in teams, rather than of the inspectors.
  • Functions of management Part 3

Control Methods:

  • Control Methods:
  • Total quality management (TQM): A comprehensive form of control management. It focuses on empowering employees to think about quality in everything they do. Every employee sets out to satisfy customers, placing them at the centre of the production process.
  • Functions of management Part 3

Functions of management ACTIVITY

  • Management as Planning
  • How does Rouse Hill Anglican College do this?
  • Management as Organising
  • Management as Controlling
  • HOMEWORK
  • Questions 1-4, 6, & 8
  • Pg 176 – 177
  • &
  • Article Questions

Hierarchical Organisational Structure

  • How is RHAC structured?
  • Draw and label character-istics
  • HOMEWORK
  • Questions 1-4, 6, & 8
  • Pg 176 - 177
  • Leadership Styles
  • Read Pg174
  • Create table and discuss
  • Style
  • Pros
  • Cons
  • Authoritarian
  • Democratic
  • Leadership Styles
  • Style
  • Pros
  • Cons
  • Authoritarian
  • Strong organisation & leadership
  • When leader has the most knowledge
  • Employees can focus on their task and not worry about complex tasks
  • Can be beneficial in stressful situations where people just focus on their task
  • Leadership Styles
  • Style
  • Pros
  • Cons
  • Democratic
  • Encourages collaboration from all workers
  • Enables many ideas to be brought forward from people involved in the task/workplace
  • Realises that there isn’t just one (or a few) ways to do a task
  • Greater acceptance of decisions due to wider involvement of people
  • Sometimes decisions need to be made quickly
  • You won’t be able to please/satisfy every worker
  • Too many ideas makes decision making difficult
  • Some workplaces need strict and clear lines of authority

BEHAVIOURAL

  • BIO
  • Elton Mayo (Adelaide)
  • 1880-1949
  • Management Belief:
  • Discovered the ‘Hawthorne Effect’
  • Meeting peoples social needs has significant impact on productivity
    • Satisfaction is non-economic
    • Feeling part of a team increases satisfaction and output

BEHAVIOURAL

  • “MANAGERS CONTROL,
  • LEADERS EMPOWER
  • Management Focus:
  • People should be the main focus of the way the business is organised. A manager needs to understand and work with people (who we know are highly divers).
  • FEELING LIKE PART OF THE TEAM
  • PRODUCTIVITY
  • SOCIAL NEEDS
  • Behavioural Management Theory
  • ECONOMIC NEEDS
  • ‘Creating good staff is about more than just money’.

To be an effective manager you need to:

  • Teamwork
  • A ‘team’ allows people to interact regularly and coordinate their tasks in order to achieve a common business goal.
  • Work teams have created a ‘flatter’ organisational structure. Managers become facilitators rather than controllers. Staff have more responsibility.
  • Matching leadership and management styles
  • Autocratic
  • Classical styles
  • Democratic
  • Behavioural styles
  • Work teams
  • Good for a changing environment:
  • More responsive to change
  • Diverse opinions and ideas
  • Your Goal:
  • Question 1-11 (Odd # questions)
  • pg184
  • P. 189
  • CONTINGENCY APPROACH
  • Lesson 16
  • Contingency Theory
  • Managers need to be…
  • Adaptable and Flexible In their technique to solving problems
  • And need to borrow from various management approaches to handle each unique situation.
  • Paper Plane Business
  • Read instructions for activity (pg178)
  • Create a criteria for evaluating each business and its product
  • Form teams of 4
  • Write down everything you decide (E.g. Your roles, your organisational structure, your goals etc)
  • NOTE: You will be ‘peer-reviewing’ those in your group at the end of the activity.
  • PEER REVIEW
  • How did the person work with the team?
  • Were they a team player
  • Did they fulfill their role?
  • What did they do well (1 thing)
  • What could be improved (1 Thing)
  • What happened during the activity in regards to Planning, Organising, and Controlling. Did any leaders in your group emerge?


The database is protected by copyright ©sckool.org 2016
send message

    Main page