BA 101 1st Edition Lecture 2 Outline of Last Lecture I Course Outline A Foundation simulation B iClickers II Expectations for Students III Lecture Basic Economic Principles Outline of Current Lecture IV Class rules and some admin A Class participation scores B Email communications C Quizzes V Lecture Wealth transactions and Planning Current Lecture VI 1 2 3 A Class Rules Turn cell phones of No internet surfing Only use your iClicker Class participation scores If you forget your iClicker or it dies there is a hard copy of the class participation questions to use but you will only receive 12 points out of the maximum 16 B Email communications emails should follow this format Subject BA 101 12pm topic Body begin email with professor s name how he can help and end it with your name C Quizzes No need to turn in any written materials except for the midterms Online quizzes can be taken multiple times and are the best way of preparing for the midterms Keep current with the readings in class questions and foundation VII Lecture Wealth Transactions and Planning Markets definition A group of people who have similar needs similar buying characteristics and the ability to purchase Markets are Specialized the degree to which activities are broadly or narrowly designed 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 Complex a complex set of activities by many entities to get the product to a consumer Uncertain markets are not easily predictable Risky there is the chance of things going wrong Consumers will make an exchange or transaction when they are made better of wealth As part of these exchanges or transactions competition between suppliers results in Pressure for lower prices Pressure for newer better products Pressure for more efficient ways of doing things To manage the economic part of your life including wealth you have to understand how the system works basic principles And be an informed Citizen Consumer Employee Business owner These are all examples of stakeholders Management process To deal with uncertainty and risks in complex and specialized competitive markets Managers preform 4 main functions Planning Leadership Leading directing operating Controlling 1 Planning the process of defining planning includes Assessing future conditions and circumstances Setting goals based on that assessment Making decisions about work to be done by whom when and resource requirements Planning from top to bottom Planning horizon Responsibility 3 5 years strategic senior managers 1 3 years tactical middle managers 6 months 1year operational 1 st line managers Strategic plans define market products necessary to realize the company s objectives Includes purpose statement which is a short sound bite about the purpose or vision of a company and strategic objectives which are higher level statements of how the vision purpose will be realized Tactical Plans Specify how a company will use resources budgets and people to accomplish goals related to its strategic objectives Includes goals which state what specifically will be done and when Operational Plans Day to day plans for producing and delivering products and services Includes actions who what when and how the goals will be accomplished 2 Organizing A process activities that transform inputs into outputs that customers value Organizational structure the vertical and horizontal configurations of departments authority and jobs within a company 3 Leading Directing Includes communicating a vision inspiring and motivating point out proscribe a course of action More difficult than it sounds all told 4 Controlling Includes regulating work setting standards monitoring performance and taking corrective action when needed Business Functions Primary Research and development R D Marketing sales Production Finance Accounting