Management

1. Management Advanced Marketing

2. What is management? • The process of achieving goals through the use of human resources, technology, and material resources • Top MGMT (Executive): Responsible for the entire company, Company presidents and CEO’s • Do a lot of strategic planning (long-range planning for the company/business) • Develop objectives for the company • Supervise other managers

3. Other types of Managers • Middle Management – report to top-level managers and usually have supervisors under them. Vice-President, Department Head, Sales Manager • Act as a liaison between top-level and supervisory managers • Use tactical/short-range planning – 1 year or less • Strategic planning – what work needs to be done to reach goals

4. Management types • First-level/supervisory management (more jobs in this area) – supervisors who work directly with employees, crew chiefs, shift managers • Responsible for day-to-day activities of business • Do scheduling • Assign work, • Make sure projects meet deadlines

5. What are some trends in management? • Horizontal organization – involves self managing teams that set own goals and make own decisions (fewer upper level managers) • Empowerment – encouraging team members to contribute to and take responsibility for the management process

6. What do managers coordinate? • Human resources – the people who work for the company • Financial resources – all sources of money available to the business

7. Managing resources • Material resources – equipment and supplies needed to produce and/or sell its goods • Information – all forms and information used to run the business • Economic info., competition, regulations, trends

8. Characteristics of management functions • See handout

9. Effective management techniques • Give clear directions • Train new employees well • Be consistent • Treat employees fairly • Be firm when necessary • Set a good example

10. Ways to motivate employees • Give immediate feedback • Reward smart work • Encourage creativity • Reward employees loyalty

11. Hiring Employees • Job description – a written statement listing the job duties and responsibilities of a job. • Educational experience • Professional experience • Salary amount

12. Ways to recruit employees • Classified advertising (want ad) • Employment agencies • College placement centers • Referrals from friends and other employees • Posting job on the World Wide Web

13. Interviewing job applicants • Be prepared – make a list of questions to ask • Be courteous – try to make applicants feel comfortable • Avoid dominating the interview • Take notes • Look for warnings that employee may not be a good worker

14. Interviewing the job applicant • Don’t make snap judgments about a candidate • Thank the candidate for coming • Write a summary of your impressions of the candidate

15. Checking job applicant’s references • Get candidate’s permission • Ask previous employers what they can tell you about the person • Explain position and ask if the candidate would perform well in the position • Ask about people skills, tardiness, attendance, etc.

16. Compensation packages • Wages – payments for labor or services that are made on an hourly, daily, or per-unit basis. • Salaries – payments for labor or services done on an annual basis • Bonus – financial reward in addition to a regular wage or salary • Commission – a % of the sale paid to salesperson

17. Benefits of a job • Paid leave: • Vacation (usually get more the longer they work for a company) • Sick leave (use only when sick or family sick) • Insurance: • Health benefits – HMO’s (Health Maintenance Organizations) sometimes have a co-pay or deductible • Dental, life, accident

18. Benefits of a job • Pension plan: • the employer and the employee contribute money • The money is invested • When employees retire they withdraw their pensions

19. Desirable leadership qualities * Good judgment • Honesty • Consistency • Enthusiasm • Cooperation • Communications • Dependability • Understanding

20. Ways to train employees • On-the-job training • Coaching • Mentoring • Conferences and seminars • Follow-up to make • sure using training

21. When leaving a job • Give a 2-week written notice

22. What is Accounts Receivables • Payments due for products or services provided to customers • Bills that you have sent to your customers • On-line bills that your customers owe

23. Accounts Payables • The payments that you owe to other businesses and your suppliers • Electric bills • Loans to banks • Bills for merchandise owed • Bills for supplies

24. Why is a purchase order needed? • Record of the fact that an order has been placed with a company • Legal contract between the buyer and the seller • Gives the purchaser the approval to buy the product

25. Cash flow statement • Describes how much cash comes in and goes out of business (checkbook). • Tells you how much money you have to pay your bills. • Cash going into your business is your revenue • Sources of cash flow are: • Money from sale of services • Money from sale of products • Money from late fees owed to you

26. Operating Expenses • Expenses needed to run your business: • Rent/Mortgage • Utilities • Salaries • Advertising • Supplies • Insurance • Payroll Taxes

27. Income statement • Summarizes the business income and expenses (profit or loss) during a specified period of time (month, year) • Basic calculations are: • Total sales – returns and allowances = net sales • Net sales – cost of goods sold = gross profit

28. Income statement (cont.) • Gross profit – operating expenses = net income from operations • Net income from operations – income taxes = net profit

29. Identify the following: • Variable expenses (vary from month to month) – utilities, water, product costs • Fixed expenses (stay the same every month typically) – rent, insurance, loan payments • Allowances – credit given to customer for damaged/exchanged goods

30. Other key words • Discounts – amount taken off of retail price of the product • Returns – products brought back • Mark-up – The difference between the price of an item and its cost blouse costs $5 and sells for $20 = $15 markup • Markdown – mark merchandise down for clearance, sales, defects, etc.

31. Key words • Sales tax – a % fee based on the sale of goods and services: 6% in KY • Extensions – multiplying the # of units by the cost per unit: 10 units X 6 = $60 (the extension) • Exchanges – merchandise brought back to a store and replaced by other merchandise

32. Balance Sheet • Summary of a business’s assets and liabilities and indicates the financial condition of the business • Assets are: Anything of monetary value that a business owns • Land • Cash in bank • Inventory • Equipment • Furniture

33. Business Plan (continued) • Liabilities are: What the business owes • Outstanding debt on merchandise owed • Loans • Money owed for salaries • Taxes owed • Assets – liabilities = Net Worth (equity)

34. Depreciation • The amount by which a business’s assets have fallen • Example: Company car value will depreciate every year because the value goes down • Other examples????

35. Factors that affect how a business prices its products? • Costs and expenses • Supply and demand (if you have a lot of product to sell you may mark it down if not selling fast enough) • Consumer Perceptions of product • Competition • Government regulations

36. Assets - Liabilities = • A. revenue • B. owner’s equity • C. net worth • D. both b and c

37. Accounts payable are • A. Amounts other businesses owe you • B. discounts + returns • C. Money you owe to other businesses • D. both a and c

38. Net sales are • A. Total revenue – liabilities • B. Total sales – returns and allowances • C. Total revenue – total expenses • D. Total sales – total expenses

39. The statement that shows whether a business has a profit or loss is the • A. cash flow summary • B. balance sheet • C. account receivable worksheet • D. income statement

40. Expenses that it takes to run your business such as office supplies are called _____ expenses. • A. Discounted • B. Varied • C. Operating • D. Depreciation

41. One-time expenses to start a business are known as what types of costs?_________ • A. Accounting costs • B. start-up costs • C. operating costs • D. management costs

42. Money that is owed to a business by its customers is called • A. Accounts payables • B. Accounting receipts • C. Accounts receivable • D. Accounting disbursements

43. All of the following are assets of a business except • A. buildings. • B. equipment. • C. inventory. • D. people

44. When a business’s equipment has lost value this is referred to as • A. a liability. • B. depreciation. • C. an asset. • D. an expense

45. Expenses that stay constant over time such as rent and salaries are known as __________ expenses. • A. variable • B. asset • C. liability • D. fixed

46. An income can be used by a business to • A. evaluate their assets. • B. forecast a business’s performance. • C. evaluate their liabilities. • D. all of these.

47. The total amount of sales that a business does for the entire month is known as • A. revenue. • B. cash sales. • C. the sales amount. • D. credit sales.

48. How are net sales calculated? • A. Total sales – expenses = net sales • B. Total sales – taxes = net sales • C. Total sales – returns and allowances = net sales • D. Total sales – cost of goods sold = net sales

49. A bank statement that a person gets to balance their checkbook is the same as a(n) • A. cash flow statement • B. income statement • C. balance sheet • D. equity statement

50. The amount of sales needed in order to cover all of a business’s costs is known as the • A. stock reorder point. • B. inventory reorder point. • C. break-even point. • D. sales flow point.