MGMT 105 1st Edition Lecture 7Outline of Last Lecture I. Visiting Executive Series Speakera. Jacob Robinson, Northwestern Mutual & former TAMU Student Body President – 2010-2011Outline of Current Lecture II. EntrepreneurshipIII. New VenturesIV. Business OwnershipCurrent Lecture- Obstructionist Stance is when a company does as LITTLE as possible and tries to cover up violationso Example: Chrysler jeeps had an issue dealing with the vehicle and were getting customer complaints, but Chrysler denied that there were any issues with the jeeps- Defense Stance is when a company meets only MINIMAL LEGAL REQUIREMENTS in its commitments to groups and individuals in its social environmento Example: cigarettes can have a minimum amount of nicotine and tar in them in the U.S. therefore the company can put as much nicotine and tar in the cigarette as long as it exceeds the minimum amount.- Accommodative Stance is when a company, IF SPECIFICALLY ASKED, exceeds legal minimums in its commitments o Example: Shell has a matching program if asked - Proactive Stance is when a company actively seeks opportunities to contribute to the well-being of groups and individuals it its social environmento Example: Ronald McDonald House houses families free of charge who have very sick children who are in the children’s hospitals o Example: Anheuser-Busch produced over 40,000 cans of water for victims of a hurricane in 2012- Small Business: a business that doesn’t dominate the market- Almost 86% of all of U.S. businesses have no more than 20 employees- Over ½ of small businesses are in the service industry- Entrepreneur: risk-taker who accepts the risk and opportunities involved in creating and operating a new businesso Characteristics of Entrepreneurs: resourceful; concern for good, personal customer relations; strong desire to be their own bosses; deal with uncertainty and risk- Business Plan: how one plans to implement their businesso Crafting a business plan: setting goals, sales forecasting, and financial planning- Starting the Small Business o Starting from scratch o Franchisingo Buying an Existing Business – a benefit is the business already has a customer-base- Franchising o Advantages: business is already established has a well-known name management expertise- Example: McDonald’s and its golden archeso Disadvantages: Start-up costs- Example: $1 million dollars for Chick-Fil-A Ongoing payments Management rules and restrictions - Example: A McDonald’s franchiser lost both of his franchises for going against management rules by ordering Pepsi products instead of Coke products (McDonald’s uses Coke products) and he couldn’t buy a third franchise - Starting from Scratcho WHO and WHERE are my customers?o HOW MUCH will those customers pay for my product?o HOW MUCH of my product can I expect to sell>o WHO are my competitors?o WHY will customers buy my product rather than the product of my competitors?- The #1 source of financing the small business is from personal