BA 101 1st Edition Lecture 2Outline of Last Lecture I. Course OutlineA. Foundation simulationB. iClickers II. Expectations for Students III. Lecture: Basic Economic Principles Outline of Current Lecture IV. Class rules and some adminA. Class participation scoresB. Email communicationsC. QuizzesV. Lecture: Wealth transactions and PlanningCurrent LectureVI. . Class Rules1. Turn cell phones of2. No internet surfing3. Only use your iClickerA. 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 16B. 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 PlanningMarkets: 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 thingsTo 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 stakeholdersManagement process: To deal with uncertainty and risks in complex and specialized competitivemarkets. 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 requirementsPlanning from top to bottom:Planning horizon Responsibility3-5 years……………………..strategic…………..……………senior managers1-3 years………………..…..tactical……………………………middle managers6 months-1year…….......operational…………………….1st line managersStrategic 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 doneand when. Operational Plans: Day to day plans for producing and delivering products and services. Includesactions; 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-