Lecture Notes Week 1 (Classes 1 + 2)
Lecture Notes Week 1 (Classes 1 + 2) BA 101
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This 4 page Class Notes was uploaded by howellkaila on Tuesday January 27, 2015. The Class Notes belongs to BA 101 at University of Oregon taught by Tom Durant in Winter2015. Since its upload, it has received 67 views. For similar materials see Intro to Business in Business at University of Oregon.
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Date Created: 01/27/15
Week One Notes BA 101 Class 1 Januarv 6quotl1 3asic Economic Concepts Economic Systems Command communism socialism free market and mixed Command economies The government controls what goodsservices are produced their quantity and prices Free market system private enterprise or capitalist goodsservices produced quantities and prices are based upon consumers demand and supply producers Government s role encourage free and fair competition between private producers 0 Notice the difference in government roles between the two economies Free Market IEconomv Adam Smith promoted the idea of unrestricted free trade He wrote quotWealth of Nations Wealth of Nations Invisible Hand individuals acting freely in a competitive marketplace in the pursuit of their own selfinterest 0 If everyone can choose what they want to sell and what price to sell it at the market will produce prices that are beneficial to everyone in a community lndividualSelfinterest O Promotes competition innovation and greater value usefulness to someone 0 Benefits all members of community I more products more choices I new products more wealth I Lower prices happy people Yields efficient distribution of resources through the division of labor Free Market Requirements Private Property 0 If you don39t own the land you don39t have the right to use the property to benefit yourself Freedom of Choice 0 You are more likely to work hard if you have the choice to do what you want Fair Competition 0 The government makes sure there is a fair marketplace and makes sure that others do not interfere with a company39s selfinterest Right to Keep Profits 0 If you don39t get to keep the money you earn why are you even doing this Class 2 Januarv 8E The Private Enterprise vstem Adam Smith is the father of modern economics and wrote quotWealth of Nations He used the terms Selfinterest O consumers and producers do what they want and it benefits everyone Invisible Hand 0 drives market to benefit everyone Free Market Requirements 0 private property freedom of choice fair competition right to keep profit 0 O 0 What is a market Market a group of people who have similar needs similar buying habits and ability to purchase Markets are specialized have a specific activity attached or many complex uncertain and risky Markets create wealth and make transactions Consumers will only make a transaction when they are better off benefit This results in competition between markets which causes Lower Prices Newer Better Products Finding more efficient ways to do things If a business does not do the above they are less likely to succeed Management Process Definition To deal with uncertainty and risk in complex and specialized competitive markets Managers perform 4 functions Planning Organizing Leading operating Controlling Planning The process of defining intended future courses of action aimed at achieving specific goals of higher level objectives within a specific time frame Involves assessing future conditions and circumstances setting goals based off the assessment making decisions such as 0 work to be done 0 who will do the work 0 When will they do the work 0 What resources will we need to meet this requirement Types of Planning Tvne of Planning Time of Planning Who39s resnonsibilitv Operational 6 months 1 year 1st Line Managers Tactical 13 years Middle Managers Strategic 35 years Senior Managers Strategic What they do Define the marketsproducts necessary to achieve the company39s vision and objectives while keeping up with competitors Also create the purpose statement of the organization and creates visions of how the statement will be realized Tactical Figures out how the company will use resources budgets and how the company will accomplish goals Goals specific statements of what will be done how long it will take to achieve to get the end result Operational Day by day plans for producing and delivering products and services Who what when and how will goals be accomplished Organizing Organizational Process collection of activities that transform inputs into outputs that customers value Organizational Structure the vertical and horizontal configuration of departments authority and jobs within a company Leading Operating What do they do Communicate a vision Inspire and motivate Point out the course of action Controlling Regulating the work of those in which the manager is responsible for Job includes setting standards of performance monitoring ongoing performance toward goal correcting people when needed Business Functions Research and Develonment RampDl design productsservices to meet customer needs Marketinngales know customers to determine how to best serve them and get the product to them Production build products at good quality for the lowest cost possible Finance arrange the tools and money necessary to meet company goals Accounting track summarize and analyze company39s financial position 0 Assets items that have value I knowledge skills and abilities are assets