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Side ASide B
4 levels- Ownership, Legal Right, Moral Right, Interest (no legitimacy)
Ability to influence the decision (money, public opinion, political power, etc)
Want to influence the decision.
4 business processes
Acquiring customers, acquiring financial capital, managing human resources, creating value.
product (customer), price (cost), promotion (communication), Place (convenience)
Acquiring financial capital
Debt, equity, financial impact (cost and risk)
managing human resources
hiring/firing, retaining the best employees.
raw material from suppliers,
Critical Thinking Skills
(0)confused fact finder, (1) biased jumper, (2) perpetual analyzer, (3) pragmatic performer, (4) strategic revisioner
confused fact finder
looks for the only answer, doesn't seem to get it, quotes inappropriately, illogical/contradictory arguments, appears unable to read carefully, insists professors, textbooks, or other...
jumps to conclusions, doesn't recognize own biases, accuses others of being bias, stacks up evidence for own position and ignores contradicting evidence, uses unsupported personal opinion...
doesn't reach or adequately defend a solution, exhibits strong analysis skills, but appears to be wishy-washy, writes papers that are long and seem to ramble, doesnt stop analyzing,...
considers alternatives before reaching conclusions, incorporates others in the decision process, views tasks as finished when a solution is reached.
seeks continuous improvement, lifelong learning, anticipates change, thinks outside the box, works toward constructing knowledge over time.
sales, the top line, what customers pay
net income, the bottom line, what owners receive after subtracting all business cost.
functions of an HR manager
strategic, associate advocate, administrative
20%=>60%, at the MGT table--collaborative, planning, measurement
30%=>30%, hr development, employee and labor relations, compensation and benefits, health safety and security, staffing.
50%=>10%, government reporting, payroll, osha reporting, legal complianace
employment at will doctrine (common law)
you can start and stop working someplace anytime for no reason
HR statutory laws
civil rights act, age discrimination act, equal employment opportunity act (affirmative action), americans with disabilities act
"at will" exceptions
public policy-protects employees from being fired for refusal to commit crimescontractual actions- protects employees who they believe have contracts or implied contractsbreach of good...
Model Employee Termination Act (META)
requires employers to at least show "good cause" for terminating you in states that have adopted it.
sources of employee rights
statutory rights (government laws), collective bargaining rights (union contracts), enterprise rights (promises from the business)
alternative dispute resolution
hearing procedure-permits employees to be represented by an attorney or neutral partyombusman-a troubleshooter investigates and helps achieve equitable settlements for employee complaintspeer...
size of the U.S. GDP
300,000,000 (300 million)
7,000,000,000 (7 billion)
how much profit do companies
sole proprietorship advantages
easy to start, simple tax rules (business income=personal income)
sole proprietorship disadvantages
unlimited liability, limited resources available, limited growth potential.
more resources available, can share the load, longer survival, no special taxes
unlimited liability in some forms of partnerships, division of profit, potential for disagreements, exit conditions must be spelled out in partnership agreement.
each general partner manages the firm, each has unlimited liability.
at least one general partner with unlimited liability, rest are passive investors with limited liability
limited liability, greater acces to $, separation of ownership from management, ease of ownership transfer
more costly to form, must keep accurate records, potential for conflicts with BOD, taxed twice if dividends given, separation of ownership from management
strategic, owner profit
multi fiduciary, look out for all stakeholders
Blanchard & Peale's ethical check questions
Is it legal? Does it seem fair? How will it make me feel about myself?
equity finance, stockholders, shareholders, investors
not appointed by board, receive health benefits
B2B & B2C, always look from the perspective of company
raw material inputs and debt capital. No health benefits
environmental concerns, potential employees
cash from operations +/- investments +/- financing
assets=liabilities+equitywhat you own=owed others +owed to yourself
contract law requirements
voluntary offer and acceptance, legal, competency, consideration
fiduciary must follow these obligations
loyalty, obedience, notification, accounting, reasonable care
principal has obligations
issuing shares of ownership
who gets paid back first... and then
secured debt, unsecured debt, preferred stock, common stock.
positives of debt
tax deductibility of interest, debt does not dilute control of the firm, lower cost of funds
disadvantages of debt
increases probability of financial distress, uses up potential debt capacity
problems with agency relationship
excessive perks, shirking, agents act in own best interest.
creating value decisions
how many factories, how much capacity at each, low cost or customizable products, what will we make and what will we buy from others, how will we measure quality, how much inventory,...