BUS 1050 1nd Edition Lecture 24Outline of Last Lecture I. ManagementOutline of Current Lecture II. Mill and Management Current LectureFinal: 12/10, 10:45 to 12:05Read God Bless You Mr. Rosewater , Kurt Vonnegut before the 8th Areas for financial analysis: Risk, Skill, Capital-Natural Monopolies-Financial Interventions-Productivity GainsMaimonides->Aquinas->Franklin-> MillSBU- Strategic Business Units (require high skills and education)P376. L10. Natural Monopoly. Capital as a barrier to entry. Example of regulated monopoly: Utilities.P376. L29. Differences in risk to monopolistic equality. L93. Equal Profits. Example: Bagel business: Mill’s theory: Equality average. When all four factors are not in play, we can look for an average. The first affect is financial interventions. Mills: Small gains (low profits), but frequent. Turning over capital rapidly allows higher profits.Borrowed capital (financial intervention through bank, bonds).**turnover rate. Borrowing from bankex: bankInventory 1 2% return then borrow from bank againBank Inventory 2 2% return adds velocityFrequent borrowing (average of 13x over) allows for more inventory with held money. These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.**leveraging for a high velocity. Gross overall is high. Turn inventory rates to high velocities. L72. Magnitude of produce. Productivity. Wages. God Bless You Mr. Rosewater: management and productionP381. L35. Other cause: article for what laborer consumes.Analyze for low cost materials. Pick either high productivity, low cost wages. Or how productivity and high cost wages. Study Mills: justification of profit. Analyst understanding of profit.ManagementThree causes of financial failure of an organization:-Bad financial management-Cash flow-Under capitalization Share and/or profit. Costs come down with good management. Should know that output is productive. The management process:Resources: Functions ResultsHuman PlanningFinancial Organizaing Meeting Goals and ObjectivesInformation DirectingProducts ControllingGeographicalMarketingAccountingProductionFinanceHuman ResourceHuman CapitalBusinesses want to maintain customer satisfaction.Research on hygiene factors and include motivators, require training. Satisfying customers allow higher return. How to increase satisfaction, increase motivation and training?Hire and fire the right people. Carnigie: Capital/labor/resources.Exert controls to know if business is doing well. (Researchers, mathematicians, statisticians.) *Multidivisional structure example: Walt Disney CompanyMcgregor: x and y management. X,y,z,Maslow: impact on
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