DATE, TIME AND PLACE

1. DATE, TIME AND PLACE

2. Duties come with being Part of an Organization OBEDIENCE – Laws, Rules and Customs DUE CARE – Participate and Inquire LOYALTY – Opportunities and Conflicts

4. LAYERED PERSONAL VALUES FUNCTION or TEAM ORGANIZATIONAL NATIONAL or CULTURAL

6. Financial:Self-dealing or Insider Trading • Professional:Outside Commitments infringe on Employer Resources • Personal:Family/Employee Conflicts, Nepotism, Fraternization DEFINITION:Employee’s Personal Interests Interfere (“Conflict”) with Obligations to Employer

7. STRATEGYDrives STRUCTURE STRUCTUREisHOW Firm does WHATit’s decided to do…

8. How do Organizations LOOK ? HIERARCHICAL Pyramid-shaped; Strict Superior/ Subordinate relations; Authority and Responsibility concentrated at top FLAT Few (No?) Layers between Management and Staff; Horizontally-shaped

10. How to Solve the “Agency Problem?” • Governance and Management (Checks and Balances)

11. GOVERNANCE MONITORING Performance Review Reward or Punish RATIFICATION Choose Initiatives to be Implemented MANAGEMENT INITIATION GenerateProposals, Utilize Resources or Structure Contracts IMPLEMENTATION Execute Ratified Decisions • Contrast with Textbook at p. 236-237

12. MONITORING STEP • Explain Strategic, Tactical, Ethical and Financial Successes and Failures • EVALUATEEVERYTHING… • Operations (Easy) • Strategic Objectives (Hard) • EQUALLY Reward and Punish

13. Supply Chain Management Mass Production (Batch) Lean Manufacturing: Toyota Production System (TPS)

14. The Inventory Problem How to Balance Need, Availability and Cost?

15. The Inventory Problem

16. Maximum Capacity Variable Costs Fixed Costs LONG-RUN TOTAL AVERAGE COST CURVE Cost Mix determined by Optimal Production Quantity

17. At-Will Employee “HIRED” to Perform Assigned Work “FOR” Firm • May have Protections and Benefits • Dischargeable without Notice ────────────────────── Independent Contractor“CONTRACTED” to Furnish Services “TO” Firm • No Protections and Benefits from Firm; Employer may have Duty • Contractual, not Employment-based

18. SEXUAL HARASSMENT UNWELCOME Advances, Requests for Favors or Other Verbal or Physical Conduct

19. INCENTIVE-BASED COMPENSATION and BENEFITS STOCK OPTIONRight to Buy Stock Contractually Specified: Amount, Timing and Price STOCK GRANT Right to Receive Stock Specified Amount that vests over Time • Add to Text, p. 365-368 • OPTION VALUE = Difference between Option’s “Strike Price” and Stock’s “Market Price”

20. RETIREMENT PLANS DEFINED BENEFIT Participant receives Specific Monthly Amount Advantage No Risk/Guaranteed Security Disadvantage Difficult-to-Define Employer Costs DEFINED CONTRIBUTION Benefit based on Participant’s Account (Employer/ Employee Contributions and Investment Earnings) Advantage Predictable Employer Costs Disadvantage Investment Risks; Latecomer’s Penalty • Supplement Text at p. 369

21. SECTION 6 (487-491) • Forms of Promotional Messages for Push versus Pull Strategies • Purpose for Messages at Stages of Product Life Cycle

23. STRONG DOLLAR WEAK DOLLAR

24. Is it worth it? Do Benefits outweigh Costs? BENEFITS Economic Growth Lower Prices Job Creation • COSTS Shifting Job Distribution Diminished Sovereign Authority Multiple Tax and Regulatory Standards

25. THREE INDEXES

26. EFFICIENT MARKET HYPOTHESIS

27. VALUE = EPS ÷ ERR