Cursuri Administrare

C13 Ethics and Socially
Responsible Behavior
VIDEO: ETHICS IS MORE THAN
LEGALITY
https://www.youtube.com/watch?v=h-jtaIoSjd8
A Technicality Got Family With Infant Kicked Off Overbooked Delta
Flight
VIDEO: ETHICS IS MORE THAN
LEGALITY
• https://www.youtube.com/watch?v=FfpJxErsd-0
• https://www.youtube.com/watch?v=InlJXXsjhs0
ETHICAL STANDARDS ARE
FUNDAMENTAL
Ethics Ethics Begins with Each of Us
We define ethics as society’s accepted standards of moral
behavior, that is, behaviors accepted by society as right
rather than wrong.
Integrity, respect for

human life, Cheating, cowardice,
self-control, honesty, and cruelty are wrong.
courage, and self-sacrifice
are right.
Some managers think ethics is a personal matter,

but a growing number of people think ethics has
everything to do with management.
MANAGING BUSINESSES ETHICALLY
AND RESPONSIBLY
Setting Corporate Ethical Standards
More and more companies have adopted written codes of ethics.
two categories
Integrity-based ethics codes

Compliance-based ethics codes
Ethical standards that define the organization’s
Ethical standards that emphasize preventing
guiding values, create an environment that supports
unlawful behavior by increasing control and by
ethically sound behavior, and stress a shared
penalizing wrongdoers.
accountability among employees.
AND RESPONSIBLY
Ref. Nickels,
Understanding
Business,
2016
AND RESPONSIBLY
Ref. Nickels,
Understanding
Business,
2016
AND RESPONSIBLY
Here are six steps many believe can improve U.S. business ethics:
1. Top management must adopt and unconditionally support an
explicit corporate code of conduct.
2. Employees must understand that expectations for ethical

behavior begin at the top and that senior management expects all
employees to act accordingly.
3. Managers and others must be trained to consider the ethical

implications of all business decisions.
4. An ethics office must be set up with which employees can

communicate anonymously. Whistleblowers (insiders who report
illegal or unethical behavior) must feel protected from retaliation.
5. Outsiders such as suppliers, subcontractors, distributors, and

customers must be told about the ethics program.
6. The ethics code must be enforced with timely action if any rules
are broken. That is the most forceful way to communicate to all
employees that the code is serious.
CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility (CSR) CSR goes well beyond being

The concern businesses have for the welfare of ethical. It is based on a commitment
society, not just for their owners. to integrity, fairness, and respect.
Critics of CSR CSR defenders
Friedman work
CSR makes more money companies with good
for investors in the long ethical reputations:
run. • attract and retain better
employees,
• draw more customers,
• enjoy greater
employee loyalty.
The social performance of a company has several dimensions
Corporate philanthropy Corporate social initiatives

The dimension of social Enhanced forms of corporate
responsibility that includes philanthropy directly related to
charitable donations. the company’s competencies.
Corporate responsibility Corporate policy

The dimension of social The dimension of social
responsibility that includes responsibility that refers to the
everything from hiring minority position a firm takes on social
workers to making safe and political issues.
products.
The social responsibility of business | Alex
Edmans | TEDx London Business School
https://www.youtube.com/watch?v=Z5KZhm19EO0
Responsibility to Customers
Basic rights of consumers:
(1) the right to safety,
(2) the right to be informed,
(3) the right to choose, and
(4) the right to be heard.
Responsibility to Employees Responsibility to Society and the Environment

green products
carbon footprint
emerging renewable-energy
insider trading
An unethical activity in which
insiders use private company Social audit
information to further their own A systematic evaluation of an
fortunes or those of their family organization’s progress toward
and friends. implementing socially
Responsibility to Investors responsible and responsive
programs.
INTERNATIONAL ETHICS
AND SOCIAL RESPONSIBILITY
VIDEO: STARBUCKS SOCIAL
RESPONSABILITY
https://www.youtube.com/watch?v=Nly_OdvORQY
https://www.wsj.com/articles/starbucks-creates-policy-on-nonpaying-
guests-1526745600?mod=e2fb&page=1&pos=1
OXFORD MBA DEBATE SOCIAL
RESPONSIBILITY IN BUSINESS
Short version: https://www.youtube.com/watch?v=mFQuq_njr3U
To watch the full debate, visit:

Long version: https://www.youtube.com/watch?v=H4Aq-qC_Pdo
VIDEO: How Ethical Are You? Take The
Ethics Guy's Quiz on CNN
…
https://www.youtube.com/watch?v=Lhwhgf01Ozw
Thank you!
C12 Using Technology to Manage
Business
THE ROLE OF INFORMATION
TECHNOLOGY
Knowledge
To manage knowledge, a company needs to share information efficiently throughout the
organization and to implement systems for creating new knowledge.
New technologies that support the exchange of

information among staff, suppliers, and customers.
The way people do business

drastically changes when companies
increase their technological capabilities.
HOW INFORMATION TECHNOLOGY
CHANGES BUSINESS
Ref. Nickels,
Understanding
Business,
2016
CHANGES BUSINESS
Data—unprocessed facts
Information—data that have been processed, or turned into some
useful form
To gather and process data into information and distribute it to people
who need it, organizations develop an information system (IS)—the
combination of technologies, procedures, and people who collect and
distribute the information needed to make decisions and coordinate and
control company-wide activities.
Many large and mid-size

Organizations need to share information, companies rely on a highly
that information must flow, and that it must integrated system called
flow in both directions, bottom-up and top- an enterprise resource
down. planning (ERP) system to
channel information to
multiple users.
CHANGES BUSINESS
Many large and mid-size

companies rely on a highly
integrated system called
an enterprise resource
planning (ERP) system to
channel information to
multiple users.
VIDEO: 10 Grocery Store Innovations
https://www.youtube.com/watch?v=QtkIieeS2n0
CHANGES BUSINESS
VIDEO: Retail 2020 | 5 Technologies that will change the way you shop
https://www.youtube.com/watch?v=iRvaWHk3A8k
MANAGING INFORMATION
Today, businesspeople are faced with infoglut, an

overabundance of data.
Too much information can confuse issues rather than

clarify them.
The usefulness of management information depends on four

characteristics:
1. Quality. (The information is accurate and reliable)
2. Completeness. (Enough information)
3. Timeliness. (Information must reach decision makers quickly)
4. Relevance. (Information must be connected with the matter at
hand)
Organizing information is crucial

(e.g. e-mail and electronic files)
BIG DATA AND DATA ANALYTICS
Data analytics
The process of collecting, organizing, storing, and
analyzing large sets of data (“big data”) in order to Data mining
identify patterns and other information that is most the process of searching and analyzing large
useful to the business now and for making future amounts of data to reveal patterns and trends that
decisions. can be used to predict future behavior.
Companies can gain a competitive advantage

with high-quality data that support management
decisions.
Data mining
Caesars Casinos Example
First, we need to know how the casino gathered the data to conduct
its preliminary analysis. Most customers who play the slots use a
Caesars player’s card that offers incentives based on the amount of
money that they wager on slot machines, video poker, and table
games (Caesars, 2011). To get the card, a customer must supply
some personal information, such as name, address, and phone
number. From Caesars’s standpoint, the card is extremely valuable
because it can reveal a lot about the user’s betting behavior: actual
wins and losses, length of time played, preferred machines and coin
denominations, average amount per bet, and—most important—the
speed with which coins are deposited and buttons pushed (Shook,
2003). As you can see from Figure 15.3 “The Data Mining Process”,
Caesars’s primary data source was internal—generated by the
company itself rather than provided by an outside source—and drew
on a marketing database developed for customer relationship
management (CRM).
What does the casino do with the data that it’s mined? Caesars was
most interested in “first trippers”—first-time casino customers. In
particular, it wanted to know which of these customers should be
enticed to return. By analyzing the data collected from player’s-card
applications and from customer’s actual play at the casino, Caesars
could develop a profile of a profitable customer. Now, when a first-
timer comes into any of its casinos and plays for a while, Caesars can
instantly tell whether he or she fits the profitable-customer profile.
To lure these people back for return visits, it makes generous offers
of free or reduced-rate rooms, meals, entertainment, or free chips
(the incentive of choice for Caesars’s preferred customers).
TYPES OF INFORMATION SYSTEMS
Operations Support Systems
They may be transaction processing
systems, process control systems, or
design and production systems
Transaction Processing Systems Process Control Systems

receive input data and converts Process control refers to the
them into output— application of technology to monitor
information—intended for and control physical processes
various users. Input data are
called transactions—events that
affect a business.
Design and Production Systems

Using technology to design and
make products (CAD, CIM).
TYPES OF INFORMATION SYSTEMS
Management Support Systems

They may include management
information systems, decision support
systems, executive support systems, and
expert systems.
Decision Support System

is an interactive system that collects,
Management Information
displays, and integrates data from
System
multiple sources to help managers
extracts data from a database
make nonroutine decisions.
to compile reports, such as sales
analyses, inventory-level reports, Executive Information System
and financial statements, to help provides ready access to strategic
managers make routine decisions. information that’s customized to their
needs and presented in a convenient
format. Expert systems - programs
that mimic the judgment of
Artificial Intelligence experts by following sets of
is the science of developing computer rules that experts would follow.
systems that can mimic human
behavior. Face-recognition technology
THE HEART OF KNOWLEDGE
MANAGEMENT: THE INTERNET
Extranet
Virtual private
Intranet A semiprivate network
network
A companywide that uses Internet
(VPN)
network, closed to technology and allows
A private data
public access, that more than one company
network that creates
uses Internet-type to access the same
secure connections, or
information or allows
technology “tunnels,” over regular
people on different
Internet lines.
servers to collaborate.
Broadband technology Internet2

Technology that offers users a continuous The private Internet system that links
connection to the Internet and allows them to government supercomputer centers and a
send and receive mammoth files that include select group of universities; it runs more
voice, video, and data much faster than ever than 22,000 times faster than today’s public
before. infrastructure and supports heavy-duty
applications.
SOCIAL MEDIA AND WEB 2.0
Web 2.0
The set of tools that allow
people to build social and
business connections, share
information, and collaborate on
projects online (including blogs,
wikis, social networking sites and
other online communities, and
virtual worlds).
WEB 3.0
Semantic Web The semantic web refers to

powerful intelligent decision making applications.
Mobile Web The mobile web allows users to

use the web as they move from one device to
Web 3.0 another and one location to another. Location-
A combination of technologies that adds based services are tied to devices that can track
intelligence and changes how people interact a user’s whereabouts and suggest places, like
with the web, and vice versa (consists of the restaurants or shops, in the area.
semantic web, mobile web, and immersive
Internet).
Immersive Internet The immersive
Internet includes virtual worlds, augmented
reality, and 3D environments.
Internet of Things IoT refers to technology that enables

ordinary objects to be connected to the Internet by using sensors,
cameras, software, databases, and massive data centers.
VIRTUAL NETWORKING AND CLOUD COMPUTING
Virtual networking
A process that allows
software based networked
computers to run multiple
operating systems and
programs, and share
storage.
Cloud computing
A form of virtualization
The advantages of cloud computing include:
in which a company’s data 1. Reduced software costs.
and applications are stored 2. Improved security.
at offsite data centers that 3. Flexible capacity.
are accessed over the 4. Lower equipment costs.
Internet (the cloud). 5. Easier access.
The Virtual Company
WHY BUSINESS USES THE INTERNET?
Businesses use the Internet for four

purposes:
• presenting information;
• selling products;
• distributing digital products;
• acquiring goods and services.
The Virtual Company

VIDEO: RUNNING A VIRTUAL COMPANY
https://www.youtube.com/watch?v=T0P7fhpxFpA
EFFECTS OF INFORMATION
TECHNOLOGY ON MANAGEMENT
• Human Resource Issues

• Security Issues (Viruses, Hackers,
Phishing, Cyberterrorism)
• Privacy Issues
• Stability Issues
SECURITY ISSUES IN ELECTRONIC
COMMUNICATION
Viruses, Worms, and

Malicious Trojan Horses
Programs Spoofing
Revenue Theft
Denial of
Service Piracy
Password Invasion of
Credit-Card
Theft Privacy
Theft
VIDEO: How social technology changes
the way we do business
London Business School
https://www.youtube.com/watch?v=jRdS2YpjWmY
Professor Costas Markides, London Business School
Reading material
Exploring Business – Chapter 15: Managing
Information and Technology
Thank you!
C11 Human Resource Management
WORKING WITH PEOPLE
Human resource management (HRM)
consists of all actions that an organization takes to attract, develop, and retain quality
employees.
It is the process of determining human resource needs and then recruiting, selecting,
developing, motivating, evaluating, compensating, and scheduling employees to achieve
organizational goals.
Example
Employees at Starbucks are vital to the company’s success. If a
customer has a positive interaction with an employee, the
customer will come back. If an encounter is negative, the
customer is probably gone for good. That’s why it’s crucial for
Starbucks to recruit and hire the right people, train them properly,
motivate them to do their best, and encourage them to stay with
the company. Thus, the company works to provide satisfying
jobs, a positive work environment, appropriate work schedules,
and fair compensation and benefits. These activities are part of
Starbucks’s strategy to deploy human resources in order to gain
competitive advantage.
WORKING WITH PEOPLE
Human resource management (HRM)
is a critical function.
Human resource function is no longer the job’s of one

department; it’s a responsibility of all managers.
Human
resource
management
Career
Recruitment
management
NEW HUMAN Employee -

RESOURCE Selection
union relations Organizational
CHALLENGES Goals
Training and
Scheduling
development
Compensation
Motivation
and benefits
Evaluation
HUMAN RESOURCE PLANNING: DETERMINING A
FIRM’S HUMAN RESOURCE NEEDS
A strategic HR plan lays out the steps that an organization will take to ensure that it has the
right number of employees with the right skills in the right places at the right times.
The five steps in human resource planning are: Job description

which lists the duties and
1. Preparing a human resource inventory of the
responsibilities of a
organization’s employees (age, name, position
education etc.)
2. Preparing a job analysis. A job analysis is a
study of what employees do who hold various Job specifications
which lists the
job titles. The result of job analysis are two
qualifications—skills,
statements: job description and job specifications.
knowledge, and abilities—
3. Assessing future human resource demand. needed to perform the job.
4. Assessing future labor supply.
5. Establishing a strategic plan.
Recruiting and Selecting

Qualified Employees
RECRUITING EMPLOYEES
Recruiting is the process of identifying suitable candidates and encouraging them to

apply for openings in the organization.
Purpose: have the candidates needed to select those who best meet the needs of the organization.
External sources Human Internal sources

• A dedicated section of the • Transfers
corporate Web site resource • Promotions
• College campus recruiting department • Employee
• Internships designed to recommendations
identify future talent among • Retrained employees
college students
• Department
• Announcements on Selection reorganizations
employment Web sites like
Monster.com, Vault.com,
Glassdoor.com, and
SimplyHired.com
Hiring
• Newspaper classified ads
• Facebook and Twitter
• Local job fairs
• In-store recruiting posters Orientation and
• Informative “business cards”
training
for distribution to customers
SELECTING EMPLOYEES
Recruiting gets people to apply for positions, but once you’ve received applications, you still have to
select the best candidate—another complicated process. The selection process entails gathering
information on candidates, evaluating their qualifications, and choosing the right one.
This process is really expensive!
A typical selection process has several steps:

 Obtaining complete application forms
 Conducting initial and follow-up interviews
 Giving employment tests
 Obtaining results of reference checks (and
background investigations)
 Establishing trial (probationary) periods
Hiring contingent workers

Contingent workers include part-time workers, Benefits vs. downsides
temporary workers, seasonal workers, independents
contractors, interns, etc.
Using Social Media as a Hiring Tool
https://www.youtube.com/watch?v=324A3qDIbm0
But, is it ethical?
https://www.youtube.com/watch?v=HMFjbKOWezs
DEVELOPING EMPLOYEES
The term training and development includes all attempts to improve

productivity by increasing an employee’s ability to perform.
Advantages: higher retention rates, increased productivity, greater job satisfaction
Three Steps to training and development

(1) assessing organization needs and employee
skills to determine training needs
(2) designing training activities to meet identified needs
(3) evaluating the training's effectiveness.
MOTIVATING EMPLOYEES
Motivation refers to an internally But what motivates employees to do

generated drive to achieve a goal well? How does a manager encourage
or follow a particular course of employees to show up for work each day
action. Highly motivated and do a good job? Paying them helps,
employees focus their efforts but many other factors influence a
on achieving specific goals; person’s desire (or lack of it) to excel in
the workplace.
those who are unmotivated don’t.
It’s the manager’s job, therefore, to motivate What are these factors? Are they the
employees—to get them to try to do the same for everybody? Do they change over
best job they can. time? To address these questions, we’ll
examine four of the most influential
theories of motivation: hierarchy-of-
needs theory, two-factor theory,
expectancy theory, and equity theory.
Theories of motivation:
hierarchy-of-needs theory (Maslow’s) and two-factor theory (“Herzberg’s)
Theories of motivation:
expectancy theory (Vroom’s)
The equity theory of motivation focuses on

our perceptions
of how fairly we’re treated relative to others. Applied
and equity to the work environment, this theory proposes that employees
analyze their contributions or job inputs (hours worked,
theory. education, experience, work performance) and their rewards or
job outcomes (salary, benefits, recognition). Then they create a
contributions/rewards ratio and compare it to those of other
people.
WHAT MAKES A GREAT PLACE TO WORK?
Job Redesign
Many companies practice a policy of job
redesign to make jobs more interesting
and challenging. Common strategies
include job rotation, job enlargement,
and job enrichment.
Job rotation
Job enrichment
allows employees to rotate from one Job enlargement
is the practice of adding tasks that
job to another on a systematic basis, is the policy of enhancing a job by
increase both responsibility and
eventually cycling back to their adding tasks at similar skill levels
opportunity for growth.
original tasks.
Work/Life Quality Alternative Work Arrangements

Fortunately, many organizations work arrangements designed to accommodate
recognize the need to help employees different employee needs and provide scheduling
strike a balance between their work flexibility (KPMG, 2011).
and home lives (Greenhaus, et. al.,
2003). By helping employees combine
satisfying careers and fulfilling personal lives, Flextime
companies tend to end up with a happier, less- Employers who provide for flextime set
stressed, and more productive workforce. The
guidelines that allow employees to designate
financial benefits include lower absenteeism,
starting and quitting times.
turnover, and health care costs.
Compressed Workweeks
Part-Time Work
Job Sharing
two people share one full-time position, splitting
the salary and benefits of the position as each
handles half the job.
Telecommuting (work from home)
Family-Friendly Programs (dependent care,

paid parental leave etc.)
Wages and Salaries

Compensation and Benefits The largest, and most important, component of a
compensation package is the payment of wages or salary. If
Though paychecks and benefits
you’re paid according to the number of hours you work,
packages aren’t the only reasons why you’re earning wages. Counter personnel at McDonald’s, for
people work, they do matter. instance, get wages, which are determined by multiplying an
Competitive pay and benefits also help employee’s hourly wage rate by the number of hours worked
organizations attract and retain qualified during the pay period. On the other hand, if you’re paid for
employees. Companies that pay their fulfilling the responsibilities of a position—regardless of the
number of hours required to do it—you’re earning a salary.
employees more than their competitors
generally have lower turnover.
Piecework and Commissions

Sometimes it makes more sense to pay workers according to
the quantity of product that they produce or sell.
Bonus Plans
Incentive Programs A year-end bonuses—annual income given in addition to
In addition to regular paychecks, many salary—are based on company-wide performance. If the
people receive financial rewards based company has a profitable year, and if you contributed to that
on performance, whether their own, their success, you’ll get a bonus. If the company doesn’t do well,
employer’s, or both (e.g. bonuses, profit you’re out of luck, regardless of what you contributed.
sharing, and stock options).
Profit-Sharing Plans
A profit sharing plan relies on a predetermined formula to
distribute a share of the company’s profits to eligible
employees. Today, about 40 percent of all U.S. companies offer
some type of profit-sharing program (Obringer, 2011).
Benefits
Another major component of an Stock-Option Plans
A plan that gives employees the right to buy a specific number
employee’s compensation package is of shares of company stock at a set price on a specified date.
benefits—compensation other than
salaries, hourly wages, or financial
incentives. Types of benefits include the
following:
• Legally required benefits
• Paid time off (vacations, holidays, sick leave)
• Insurance (health benefits, life insurance,
disability insurance)
• Retirement benefits
APPRAISING EMPLOYEE PERFORMANCE
Performance Appraisal
is an evaluation that measures employee performance against established
standards in order to make decisions about promotions, compensation,
training or termination.
STEPS
1. Before managers can measure performance,
they must set goals and performance
expectations and specify the criteria that
they’ll use to measure performance.
2. At the end of a specified time period,
managers complete written evaluations that
rate employee performance according to the
predetermined criteria.
3. Managers then meet with each employee
to discuss the evaluation. Jointly, they suggest
ways in which the employee can improve performance,
which might include further training and development.
VIDEO Annual performance review and on-going appraisal

https://www.youtube.com/watch?v=wkaBvOWYr1s
MOVING EMPLOYEES UP, OVER, AND OUT
Promoting and
Reassigning Employees
Terminating Employees
Retiring Employees
READING MATERIAL
Chapter 7: Recruiting, Motivating, and

Keeping Quality Employees
Exploring Business, 2010, Minnesota Libraries
Publishing, Open Access or download
https://open.lib.umn.edu/exploringbusiness/
Thank you!
C10 Work Attitudes and Behaviors
WORK ATTITUDES
Making sense of how people behave depends
on understanding their work attitudes.
An attitude refers to our opinions, beliefs, and

feelings about aspects of our environment
Organizational commitment
Job satisfaction
is the emotional attachment people
refers to the feelings people have toward
have toward the company they work
their job.
for.
What Causes Positive Work Attitudes?
Why Assess Work Attitudes in the Workplace?
Attitudes
Work/Relation
Behavior
Output
Situational
constraints
WORK BEHAVIORS
Desirable
Undesirable
Job Performance
Job performance refers to the level to which

an employee successfully fulfills the factors Predictors
included in the job description.
quality and quantity of work performed by the employee, the

accuracy and speed with which the job is performed, and the
overall effectiveness of the person on the job
Organizational Citizenship Behaviors
Organizational citizenship behaviors (OCB)

are voluntary behaviors employees perform
to help others and benefit the organization.
Predictors
Helping a new coworker, volunteering to organize the
company picnic, and providing suggestions to management
about how to improve business processes
VIDEO: Citizenship at Work
https://www.youtube.com/watch?v=UhPsKcuTkLs
Absenteeism
Absenteeism refers to unscheduled absences

from work.
Causes
absences are costly - > replacement workers
Turnover
Turnover refers to an employee’s leaving an

organization.
Factors
harmful consequences:
poor customer service and poor company-wide performance
WORK BEHAVIORS
Breaking the rules to drive success
Article: Francesca Gino, Let your workers rebel,

Harvard Business Review, October – November 2016
https://hbr.org/cover-story/2016/10/let-your-workers-rebel
Employee engagement is a problem. To fix

it, managers should encourage workers
to break rules and be themselves.
https://www.youtube.com/watch?v=zTmFFmAqbEc
VIDEO with Francesca Gino, Ph.D.
Harvard Business School
READING MATERIAL
• Ch. 2.5. si 2.7. - Principles of

Management Open Access pp. 78-83, pp. 87-
98, http://open.lib.umn.edu/principlesmanagement/
Additional (not for exam)

HBR Francesca Gino - Let your workers rebel, Harvard Business Review,
October – November 2016 https://hbr.org/cover-story/2016/10/let-your-
workers-rebel
Thank you!
C9 Product Design and
Development
What Is a Product?
A product is something that can be marketed to customers

because it provides them with a benefit and satisfies a need.
It can be a physical good, such as a toy or a car, or a service,
such as a haircut or a taxi ride.
New product developments can be grouped into four major categories:
1. new-to-the-company,
2. improvement of existing product,
3. extension of product line,
4. and new-to-the-market.
How to Take a Calculated Risk?
The introduction of an innovative product to the market is more

unpredictable, and thus more risky, than the introduction of a market-tested
product.
A couple of final words, therefore, about introducing an entirely new

product to the market. First, this type of product introduction is about
carefully calculated risks, not unnecessary risks. Second, though little
is certain in the entrepreneurial world, most decision making can be
improved with input from one or both of two sources:
1. Information gathered from research
2. Knowledge gained from personal experience
Again, you can’t be certain about any results, but remember that
uncertainty reflects merely the lack of complete knowledge or
information; thus, the more knowledge and information that you can
bring to bear on a situation, the less uncertain—and the less risky—the
decision becomes (Coulter, 2001).
Where Do Product Ideas Come From?
Nobel Prize–winning chemist Linus Pauling suggested that “the best way to have
a good idea is to have lots of ideas”.
Entrepreneur and marketing consultant
Seth Godin refers to truly remarkable
Purple Cows Ideas products as “purple cows” (Godin,
2003).
Product ideas can originate from almost He came up with the term while driving through
anywhere. Success is more likely to result the countryside one day. As he drove along, his
interest was attracted by the hundreds of cows
from a truly remarkable product — dotting the countryside. After a while, however, he
started to ignore the cows because looking at
something that grabs the attention of them had become tedious. For one thing, they
consumers. were all brown, and it occurred to him that a
glimpse of a purple cow would be worth writing
home about. People would tend to remember a
purple cow; in fact, they might even want one.
Entrepreneurs and small business owners are a rich source of new product ideas (according to the Small Business
Administration, 55 percent of all new product innovations come from small businesses).
Example:
Jacob Dunnack had an entrepreneurial start. At age six, Jacob became frustrated one day when he took his baseball bat to his grandmother’s house
but forgot to take some baseballs as well. His solution? A hollow baseball bat that holds baseballs. Dunnack’s invention, now called the JD Batball,
was quickly developed and sold in stores such as Toys “R” Us (The Great Idea Finder, 2011; SolidWorks Express, 2011).
For other examples, read subchapter 10.2 from the assigned reading material.
Where Do Product Ideas Come From?
To remain competitive, medium and large organizations alike must also identify
product development opportunities.
Identifying Business Opportunities
An idea turns into a business opportunity when it

has commercial potential — when you can make
money by selling the product.
Not all ideas generate business opportunities. Consider the following products that made the
list of the “Top 25 Biggest Product Flops of All Time” (WalletPop, 2011).
Bic underwear. When Harley Davidson Bottled water for Colgate kitchen
you think of Bic you perfume. Even its loyal pets. OK, so people entrees. Colgate’s
think of inexpensive fans found the idea of love their pets and entrance into food
pens and disposable Harley-Davidson cater to them, but does products wasn’t well
razors and lighters. But perfume peculiar (and it really make sense to received. Maybe the
disposable underwear? they weren’t terribly serve Thirsty Cat! and company believed
Women didn’t find the fond of the Harley- Thirsty Dog! bottled customers would buy
idea of buying intimate Davidson aftershave, water to your four- into the idea of eating
attire from a pen either). Perhaps they legged friends? Even one of its prepared
manufacturer were afraid they would though the water came meals and then
appealing, and the end up smelling like a in tantalizing flavors brushing their teeth
disposability factor was motorcycle. such as Crispy Beef with Colgate
just plain weird. and Tangy Fish, it toothpaste. For most of
never caught on. Do us, the name Colgate
you wonder why? doesn’t get our taste
buds tingling
What Should Be Offered? UTILITY
It’s about the customer. Successful Customers buy products to fill unmet
businesspeople don’t ask themselves “What do I needs; they expect to derive some
want to sell?” but rather “What does the customer value or utility from them.
want to buy?”
Products provide customers with four types of utility or benefit:
Time utility. The value Place utility. The value Ownership utility. Form utility. The value
to a consumer of to a consumer of Value created by to consumers from
having a good or a having a product transferring a product’s changing the
service available at a available in a ownership. A real composition of a
convenient time. A convenient location. A estate agent helping a product. A company
concessionaire selling street vendor selling young couple buy a that makes apparel is
bottled water at a hotdogs outside an home is transferring turning raw material
summer concert is office building is ownership from (fabric) into a form
making liquid making fast food someone who doesn’t (clothing) that people
refreshment available available where it’s need it to someone need. A company that
when it’s needed. needed. who does. produces liquid
detergent, rather than
powdered detergent, is
adding form utility for
some consumers.
How can you decide whether an idea provides utility and has the potential
to become a business opportunity?
Key Takeaways
• An idea turns into a business opportunity

when it has commercial potential—when you
can make money by selling the product.
• Time utility provides value by having a
product available at a convenient time.
• Place utility provides value by having a
product available in a convenient location.
• Ownership utility provides value by
transferring a product’s ownership.
• Form utility provides value by changing the
composition of a product.
VIDEO: DREAM DINNERS FOOD TO GO
Business Idea:
Meal assembly
concept
https://www.youtube.com/watch?v=UeFKDBoy2bo
VIDEO: DREAM DINNERS FOOD TO GO
The Convenience Trend

Consumers are seeking solutions that allow them to
maximize their free time and disposable income,
Meal assembly and spend more time doing the things they value.
concept The convenience trend is driven by this desire to
create more leisure time.
Meal Assembly Stores

The concept of meal preparation stores began to
appear in the U.S. in the early 2000s as a response
to the convenience and health needs of consumers.
These stores allow customers to make a month's

supply of evening meals at a local franchised outlet
in a one or two-hour session, using pre-cut and pre-
measured ingredients and following predetermined
recipes. This successful meal prep store concept
satisfies two key consumer demands of suburban
working moms: health and convenience.
https://www.youtube.com/watch?v=UeFKDBoy2bo
Segmenting Your Market
Understand Your Industry

Before you invest a lot of time and money to develop a new product, you need to
understand the industry in which it’s going to be sold.
An industry is a group of related businesses: they do
similar things and they compete with each other.
Be as specific as
Segmenting Your Market possible
Within this industry, there are several groups of customers, each of which is a market. Example: The segment you’re
You’re interested in the consumer market—retail customers. But this, too, is a fairly broad interested in consists of older
market; it includes everybody who buys shoes at retail. Your next step, then, is to people (a demographic
variable) living in the
subdivide this market into smaller market segments—groups of potential customers with
Southeast (a geographic
common characteristics that influence their buying decisions. You can use a variety of variable) who jog (a
standard characteristics, including demographics (age, sex, income), geography (region, psychographic variable).
climate, city size), and psychographics (lifestyle, activities, interests).
Assessing Your Competition

Now that you’ve identified your industry and its various sectors, you’re ready to consider
such questions as the following (Allen, 2001):
Is the industry growing or contracting? Are sales revenues increasing or decreasing?
Who are your major competitors? How does your product differ from those of your
competitors?
What opportunities exist in the industry? What threats?
Has the industry undergone recent changes? Where is it headed?
How important is technology to the industry? Has it brought about changes?
Is the industry mature, or are new companies successfully entering it?
Do companies in the industry make reasonable profits?
Segmenting Your Market
Forecasting Demand
Without enough customers, your business will go nowhere. So, before you delve
into the complex, expensive world of developing and marketing a new product, ask
yourself questions like:
After you’ve identified a group of

potential customers, your next
step is finding out as much as you
can about what they think of your
product idea.
Precisely what are their unmet
needs? Ask them questions such as
these (Ulrich & Eppinger, 2000; Allen,
2001):
• What do you like about this product
idea? What don’t you like?
• What improvements would you
make?
• What benefits would you get from
it?
• Would you buy it? Why, or why not?
• What would it take for you to buy it?
Product Development
Process
 The success of a business depends on its ability to
identify the unmet needs of consumers and to develop
products that meet those needs at a reasonable cost.
 Accomplishing these goals requires a collaborative effort
by individuals from all areas of the organization: operations
management (including representatives from engineering,
design, and manufacturing), marketing, accounting, and
finance.
 Representatives from these various functional areas
often work together as project teams throughout
the product development process, which consists of a
series of activities that transform a product idea into a final
product.
This process can be broken down into seven steps:
1. Evaluate opportunities and select the best product
mix
2. Get feedback to refine the product concept that
describes what the product might look like and how it
might work
3. Make sure that the product performs and appeals to
consumers
4. Design with manufacturing in mind to build both
quality and efficiency into the manufacturing process
5. Build and test prototypes, or physical models of the
product
6. Run market tests and enter the ramp-up
stage during which employees are trained in the
production process
7. Launch the product
READING MATERIAL
Chapter 10: Product Design and

Development,
Exploring Business, 2010, Minnesota Libraries
Publishing, Open Access or download
Thank you!
C8 Marketing:
Providing Value to Customers
WHAT IS MARKETING?
Marketing means different things to different people.
AMA Definition: marketing is ‘the activity, set of institutions,

and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients,
partners, and society at large’.
AMA: The American Marketing Association Marketing includes everything that organizations do to satisfy
customer needs:
• Coming up with a product and defining its features and
benefits
• Setting its price
• Identifying its target market
• Making potential customers aware of it
• Getting people to buy it
• Delivering it to people who buy it
• Managing relationships with customers after it has been
delivered
Marketing is a team effort involving everyone in the organization .

VIDEO: MARKETING AT ENERGIZER
https://www.youtube.com/watch?v=PLbxiBEEWGw
The Concept of Marketing
The marketing concept

puts the customer first:
This basic philosophy—satisfying customer needs as your most important
while meeting organizational goals—is called goal, satisfying the
customer must be the
the marketing concept, and when it’s effectively goal of everyone in the
applied, it guides all of an organization’s marketing organization. But this
activities. doesn’t mean that you
ignore the bottom line; if
you want to survive and
grow, you need to make
some profit.
THE MARKETING STRATEGY
To put the marketing concept into practice,
you need a marketing strategy—a plan for
performing two tasks:
• Selecting a target market;
• Developing your marketing mix—
implementing strategies for creating, pricing,
promoting, and distributing products that
satisfy customers.
THE MARKETING STRATEGY
Selecting a Target Identifying Your Segmenting the Demographic

Market Market Market segmentation divides the
market into groups based on
As we saw earlier, How do marketers The next step in such variables as age,
businesses earn profits identify target markets? identifying a target marital status, gender,
ethnic background,
by selling goods or First, they usually market is to divide the income, occupation, and
providing services. It identify the overall entire market into education.
would be nice if market for their smaller portions,
everybody in the product—the or market segments— Geographic segmentation
—dividing a market
marketplace was individuals or groups of potential according to such variables
interested in your organizations that need customers with as climate, region, and
population density (urban,
product, but if you tried a product and are able common suburban, small-town, or
to sell it to everybody, to buy it. This market characteristics that rural)—is also quite
common.
you’d spread your can include either or influence their buying
resources too thin. You both of two groups: decisions. You can use
Behavioral segmentation.
need to identify a • A consumer market a number of divides consumers by such
specific group of —buyers who want the characteristics to narrow variables as attitude toward
the product, user status, or
consumers who product for personal a market. Let’s look at usage rate.
should be particularly use; some of the most useful
interested in your • An industrial market categories in detail.
product, who would —buyers who want the
have access to it, and product for use in Psychographic
segmentation classifies
who have the means making other products. consumers on the basis of
to buy it. This group is individual lifestyles as
they’re reflected in people’s
your target market, interests, activities, attitudes,
and you’ll aim your and values.
marketing efforts at its
members.
Clustering Segments
THE MARKETING MIX
The marketing mix, often referred to as the
“four Ps” of marketing:
 Developing a product that meets the
needs of the target market;
 Setting a price for the product;
 Distributing the product—getting it to
a place where customers can buy it;
 Promoting the product—informing
potential buyers about it.
THE MARKETING MIX
Find opportunities
Conduct research
Applying the
Marketing Identify a target
Process market
Design a product to
Product
Developing an meet the need based
Designing a
Effective
Product to Meet
on research
Promotional
Strategy Consumer Needs
Do product testing
Determine a brand
Price name, design a
package, and set a
price
Getting the
Setting an
Product to the Select a distribution
Appropriate Price Place
Right Place
system
Promotion Design a promotional

program
Build a relationships
with customers
PROVIDING MARKETERS WITH INFORMATION
Marketing research: analyze markets to determine opportunities and

challenges, and find information to make good decisions.
The Marketing Research Process

1. Defining the question and determining the present situation.
2. Collecting research data.
3. Analyzing the research data.
4. Choosing the best solution and implementing it.
Secondary data: reports, journals, books etc.

Primary data: focus groups, interviews,
surveys, observation etc.
BRANDING AND BRAND LOYALTY
A brand Brand Strategies

is a name, symbol or Companies can adopt one of three
major strategies for branding a
design (or combination product:
thereof) that identifies the 1. With private branding (or
goods or services of one private labeling), a company
seller and distinguished makes a product and sells it to a
retailer who in turn resells it under
them from the goods and its own name.
services of competitors. 2. With generic branding, the
maker attaches no branding
information to a product except a
description of its contents.
3. With manufacturer branding,
a company sells one or more
products under its own brand
names. Adopting a multiproduct-
A trademark branding approach, it sells all its
is a brand that has products under one brand name
(generally the company name).
exclusive legal protection
for both its brand name
and its design.
Generate Brand Loyalty

BRANDING…
CASE:
Playing the Name Game
BRANDING …
PACKAGING CHANGES THE PRODUCT
Packaging can change the product in the

consumers’ mind and even open new markets.
Packaging functions
1. Attract the buyer’s attention
2. Protect the goods
3. Be easy to open and use
4. Describe and give information about the
content
5. Explain the benefits of the goods inside
6. Provide information on warranties, warnings
etc.
7. Give some indication of price, value, and uses.
Labeling—what you say about the product on your

packaging—not only identifies the product but
also provides information on the package
contents.
Customer Relationship Marketing
Without enough good customers, no company can Retaining customers is the purpose of customer-
survive, and to survive, a firm must not only attract relationship management—a marketing strategy that
new customers but, perhaps more importantly, also focuses on using information about current customers
hold on to its current customers. Why? Because to nurture and maintain strong relationships with them.
repeat customers are more profitable. Repeat
customers also tend to spend more, and they’re
much more likely to recommend you to other people. In the last years, the popularity of social media marketing has
exploded.
Social media marketing is the practice of including social
media as part of a company’s marketing program.
Companies that ask for customers’ cooperation engage Social media marketing provides a number of advantages
in permission marketing (Godin, 1999). The big to companies, including enabling them to (Artis, 2011; Ward,
advantage is focusing on an audience of people who have 2011; Lake, 2011):
already shown an interest in what they have to offer. • create brand awareness;
Compare this approach with mass marketing—the practice • connect with customers and potential customers by
engaging them in two-way communication;
of sending out messages to a vast audience of anonymous
• build brand loyalty by providing opportunities for a
people. If you advertise on TV, you’re hoping that people targeted audience to participate in company-sponsored
will listen, even though you’re interrupting them; that’s why activities, such as a contest;
some marketers call such standard • offer and publicize incentives, such as special discounts
approaches interruption marketing (Bianco, 2004). or coupons, which increase sales;
• gather feedback and ideas on how to improve products
and marketing initiatives;
• allow customers to interact with each other and spread
the word about a company’s products or marketing
initiatives; and
• take advantage of low-cost marketing opportunities by
being active on free social sites, such as Facebook.
VIDEO: Influencer Marketing
Why Are Brands Choosing To Work With Influencers? | The Business of
Influence | Forbes
https://www.youtube.com/watch?v=yaDgaRI79YE

Strategies
Customer relationship • Use emotions. One of the best strategies for
marketing (CRM) is a technique building relationships with customers is
based on client relationships focusing on emotion.
and customer loyalty. Using • Show customers you value them with every
interaction
customer data and feedback,
• Listen to customers and respond
companies utilizing this marketing
• Give customers free information
strategy develop long-term • Expand loyalty rewards
relationships with customers • Communicate frequently – A relationship is
and develop laser-focused brand nothing without communication, so make sure
awareness. you communicate with customers often via
social media, email, messages, etc
The goal of customer relationship marketing

is to build trust with and engage customers
to build brand loyalty
Source:
https://www.ngdata.com/what-is-customer-relationship-marketing/
Customer relationships are more
important than ever
How To Build Lasting Customer Relationships

• Retaining customers should be a central focus of your
marketing plan
• Personalize relationships through tailored communication
• Always strive to exceed expectations
• Use loyalty programs that go beyond earning points
Source:
FORBES - How To Build Lasting Customer Relationships, Anthony Smith,
Aug 1, 2018
https://www.forbes.com/sites/anthonysmith/2018/08/01/how-to-build-lasting-customer-relationships/#1c1e9143447a
READING MATERIAL
Chapter 9: Marketing: Providing Value to

Customers
• Subchapter 9.1., 9.2., 9.6 for exam
From Exploring Business, 2010, Minnesota Libraries
Publishing. Open Access or download
OBS. Subchapter 9.3-9.6, 9.7, 9.8 are a reminder of your Marketing

Class
Thank you!
C7 Operations Management
What Is Operations Management?
To compete with other organizations, a company must convert resources
(materials, labor, money, information) into goods or services as efficiently
as possible.
The upper-level manager who directs this transformation process is called

an operations manager.
The job of operations management (OM), then, consists of all the activities
involved in transforming a product idea into a finished product, as well as
those involved in planning and controlling the systems that produce goods
and services. In other words, operations managers manage the processes
that transforms inputs into outputs.
What Is Operations Management?
Figure 11.1 “The Transformation Process” illustrates the traditional function of operations management.
VIDEO: More on Operation Management
https://www.youtube.com/watch?v=FbbGlVle3oU
https://www.youtube.com/watch?v=nG5-52a5lRo&t=25s
CASE: ZOTTER - Unique Chocolate
https://www.youtube.com/watch?v=xq3rvhcqlc0
You can find more about the company at

https://www.youtube.com/watch?v=KOpJtz8_v3U&list=PLW8lEqd5fpeEHi6cRw4kJlL4DkDi-BoIU
Operations Management in Manufacturing
All manufacturers set out to perform the same basic
function: to transform resources into finished goods.
Production planning. Production

During production
planning, managers Planning Production Production control.
Once the production
determine how goods
will be produced,
Control process is under way,
managers must
where production will
continually schedule
take place, and how
and monitor the
manufacturing
activities that make up
facilities will be laid
out. Quality that process. They must
solicit and respond to
Control feedback and make
adjustments where
Quality control. needed. At this stage, they
Finally, the operations also oversee the
manager is directly purchasing of raw
involved in efforts to materials and the handling
ensure that goods are of inventories.
produced according to
specifications and that
quality standards are
maintained.
Planning the Production Process
Specific types of decisions that have to be made in the

production planning process:
 decisions dealing with production methods;
 site selection;
 facility layout;
 components and materials management.
Make-to-Order
Products are customized to meet the
needs of the buyers who ordered them. E.g.
still used by such businesses as print or sign shops
that produce low-volume, high-variety goods
Production-Method Decisions according to customer specifications.
The first step in production planning is deciding which type of
production process is best for making the goods that your Mass Production (or make-to-stock
company intends to manufacture. strategy) is the practice of producing high
In reaching this decision, you should answer such questions as the following: volumes of identical goods at a cost
• How much input do I receive from a particular customer before low enough to price them for large
producing my goods? numbers of customers.
Goods are made in anticipation of future demand
• Am I making a one-of-a-kind good based solely on customer (based on forecasts) and kept in inventory for later
specifications, or am I producing high-volume standardized sale.
goods to be sold later?
• Do I offer customers the option of “customizing” an otherwise Mass Customization
standardized good to meet their specific needs? combines the advantages of customized
products with those of mass production. A
company interact with the customer to find
out exactly what the customer wants and
then manufacture the good, using efficient
production methods to hold down costs.

 site selection;
In choosing a location, managers must consider several factors:

• To minimize shipping costs, both for raw materials coming into the plant and for
finished goods going out, managers often want to locate plants close to suppliers, customers,
or both.
• They want locations where costs for resources and other expenses—land, labor,
construction, utilities, and taxes—are low.
• They generally want to locate in areas with ample numbers of skilled workers.
• They naturally prefer locations where they and their families will enjoy living (quality of
life).
• They look for locations with a favorable business climate – one in which, for example,
local governments might offer financial incentives (such as tax breaks) to entice them to do
business in their locales?

 site selection;
Process layout
groups together workers or departments that
Plant layout perform similar tasks.
= how equipment, machinery, and people
will be arranged to make the production Product layout
process as efficient as possible. high-volume goods are produced efficiently by
people, equipment, or departments arranged in
an assembly line
Cellular layout
small teams of workers handle all aspects of
building a component, a “family” of
components, or even a finished product.
Fixed position
the material, or major components remain in a
fixed location and tools, machinery, men and
other materials are brought to this location.
Planning the Production Process: Facility
Layout
Figure 11.3 Process Layout at Vermont Teddy Bear Company
Both product and process la

Figure 11.5 Cellular Layout
Figure 11.4 Product Layout at Just Born, Inc.

Managing the Production Process
in a Manufacturing Company
In selecting a supplier, One method is called just-
operations managers must in-time (JIT) production: the
consider such questions as the manufacturer arranges for
following: materials to arrive at
• Can the vendor supply the needed Purchasing production facilities just in
quantity of materials at a reasonable Just-in-Time time to enter the
price? and Supplier manufacturing process.
• Is the quality good? Production
• Is the vendor reliable (will materials
be delivered on time)?
Selection
• Does the vendor have a favorable
reputation?
• Is the company easy to work with? Material requirements
Material planning (MRP) relies on a
computerized program both
Through e-purchasing (or
e-procurement), E-Purchasing Requirements to calculate the quantity of
materials needed for
companies use the
Internet to interact with
Planning production and to determine
when they should be ordered
suppliers.
or made.
There is a need to efficiently

manage inventories. This
task requires that they strike a
Inventory Work In production, the control
balance between two threats Control Scheduling process starts when
to productivity: losing operations managers decide
production time because not only which goods and
they’ve run out of materials, how many will be produced,
and wasting money because but when. This detailed
they’re carrying too much information goes into a
inventory. master production schedule
(MPS).
The Technology of Goods Production
The ultimate goal of operations management is to provide high

quality goods and services instantaneously in response to
customer demand.
Several major developments made organizations more competitive:

• Computer-aided design (CAD),
• Computer-Aided Manufacturing (CAM),
• Computer-Integrated Manufacturing (CIM),
• Flexible Manufacturing Systems.
VIDEO: How Robots Can Assist - Not
Replace - Humans In Factories
https://www.youtube.com/watch?v=hhBSaVsMvgE
•Customer satisfaction
•Employee involvement
•Continuous improvement
Producing for Quality
Quality refers to “the characteristics of a product or service that bear on its

ability to satisfy stated or implied needs” (American Society of Quality, 2011).
Quality Management Statistical Process Control

This technique monitors production quality by testing a
1. Customer satisfaction sample of output to see whether goods in process are being
made according to predetermined specifications.
2. Employee involvement
3. Continuous improvement
Benchmarking
Companies routinely use benchmarking to compare their
performance on a number of dimensions with the
performance of other companies that excel in particular areas.
International Quality Standards
Outsourcing
… having outside vendors manufacture the parts the factory
uses for its final product.
VIDEO: 4 keys to business operations
amid the COVID-19 outbreak
https://www.youtube.com/watch?v=X_LEVZGH31I
EXTENDED READING MATERIAL
Chapter 11 - Exploring Business, of Minnesota

Libraries Publishing, 2010, Copyright: 2010 by University of Minnesota.
Open Access or download https://open.lib.umn.edu/exploringbusiness/
Ch11 link
https://open.lib.umn.edu/exploringbusiness/part/chapter-11-operations-
management-in-manufacturing-and-service-industries/
Case: How to Build a BMW
How’d you like to own a Series 3 BMW? How about a convertible priced at $48,000 for those warm summer days? Or
maybe a less expensive coupe for $39,000? Or, if you need more space for hauling camping equipment, dogs, or
kids, maybe you would prefer a wagon at $37,000? We can’t help you finance a BMW, but we can show you how
they’re made.
Go to http://www.bmw-plant-munich.com/ to link to the BMW Web site for a virtual tour of the company’s Munich,
Germany, plant.
First, click on “Location” and then on “The Plant in Figures.” Before going any further, answer the following questions:
•How many associates (employees) work in the plant?
•How many apprentices (trainees) work there? Why does the plant have trainees?
•How many cars are made in the plant each day? How many engines?
Thank you!
PORTER’S MODEL
C6 The Five Competitive Forces

That Shape Strategy
From C5
STRATEGY
Strategy is often defined as a contingent

plan of action designed to achieve a
particular goal.
Porter states : ‘strategy is the creation

of a unique and valuable position,
involving a different set of activities’.
Strategy refers to a firm’s contingent plan

as to which business model it will use.
VIDEO: What strategy is
https://www.youtube.com/watch?v=TD7WSLeQtVw
C6 Porter’s Model:
The Five Forces That Shape Strategy
Based on HBR Article: Michael Porter, The Five Forces That

Shape Strategy, January 2008, Harvard Business School
VIDEO: Michael Porter on Strategy
https://www.youtube.com/watch?v=3Hd88eBgkw0
Porter’s Model
Understanding the competitive
forces, and their underlying
The job of the strategist is to understand and cope with causes, reveals the roots of an
competition. industry’s current profitability
while providing a framework
for anticipating and
influencing competition (and
profitability) over time.
Industry structure
(manifested in 5 forces – Porter’s Model)
drives competition and profitability.
Competition for profits goes beyond established industry rivals
to include other competitive forces:
potential substitute
customers suppliers entrants products
Porter’s Model
By analyzing all five

competitive forces, you gain
a complete picture of
what’s influencing
profitability in your
industry.
VIDEO: Michael Porter on
Five Competitive Forces That Shape Strategy
https://www.youtube.com/watch?v=mYF2_FBCvXw
Porter’s Model
Threat of entry.
New entrants to an industry bring new capacity and a desire to gain market share that
puts pressure on prices, costs, and the rate of investment necessary to compete.
Barriers to entry. Expected retaliation.

How potential entrants believe
Entry barriers are advantages that incumbents have
incumbents may react will also
relative to new entrants. influence their decision to enter or
Seven major sources: stay out of an industry.
• Supply-side economies of scale If reaction is vigorous and
• Demand-side benefits of scale protracted enough, the profit
• Customer switching costs potential of participating in the
• Capital requirements industry can fall below the cost of
• Incumbency advantages independent of size capital.
• Unequal access to distribution channels
• Restrictive government policy
Porter’s Model
The power of suppliers.

Powerful suppliers capture more of the value for themselves by charging higher
prices, limiting quality or services, or shifting costs to industry participants.
Powerful suppliers, including suppliers of labor, can squeeze profitability out of an

industry that is unable to pass on cost increases in its own prices.
A supplier group is powerful if:
The supplier group does not Industry participants face

It is more concentrated than switching costs in changing
depend heavily on the
the industry it sells to. suppliers.
industry for its revenues.
The supplier group can

There is no substitute for credibly threaten to
Suppliers offer products
what the supplier group integrate forward into the
that are differentiated.
provides. industry.
Porter’s Model
The power of buyers.

Powerful customers — the flip side of powerful suppliers—can capture more value by
forcing down prices, demanding better quality or more service (thereby driving up
costs), and generally playing industry participants off against one another, all at the
expense of industry profitability.
Buyers are powerful if:
they are price sensitive, using

they have negotiating leverage
their clout primarily to pressure
relative to industry participants;
price reductions.
Porter’s Model
The threat of substitutes.

A substitute performs the same or a similar function as an industry’s product by a
different means. E.g. Videoconferencing is a substitute for travel. Plastic is a substitute for aluminum. E-mail
is a substitute for express mail.
When the threat of substitutes is high, industry profitability suffers.
The threat of a substitute is high if:

It offers an attractive price- The buyer’s cost of
performance trade-off to switching to the
the industry’s product. substitute is low.
Porter’s Model
Rivalry among existing competitors.
Rivalry among existing competitors takes many familiar forms, including price
discounting, new product introductions, advertising campaigns, and service
improvements.
High rivalry limits the profitability of an industry.

Rivalry is especially
destructive to profitability if
The intensity of rivalry is greatest if: it gravitates solely to price
Competitors are numerous or

are roughly equal in size and Industry growth is slow Exit barriers are high
power
Rivals are highly committed Firms cannot read each

to the business and have other’s signals well because
aspirations for leadership, of lack of familiarity with one
especially if they have goals that go another, diverse approaches to
beyond economic performance in the
particular industry competing, or differing goals
VIDEO: How do we account for the COVID-19 pandemic in
Porter's Five Forces Model
https://www.youtube.com/watch?v=NKEwzZJ3wb0
Porter’s Model
The strongest competitive force or forces
determine the profitability of an industry and
become the most important to strategy
formulation.
THE IDEA IN PRACTICE. PORTER RECOMMENDS:
POSITION YOUR COMPANY WHERE THE

FORCES ARE WEAKEST
EXPLOIT CHANGES IN THE FORCES
RESHAPE THE FORCES IN YOUR FAVOR

Porter’s Model: Example
EXTENDED READING MATERIAL
Michael E. Porter, The Five Competitive

Forces That Shape Strategy, Harvard
Business Review, January 2008, pp. 25-40
Article link:
https://www.ibbusinessandmanagement.com/uploads/1/1/7/5/11758934/porters
_five_forces_analysis_and_strategy.pdf
Thank you!
Additional resource
C5 Strategy - Business Models -
Tactics
Business Models vs. Strategy and Tactics
Strategy refers to the choice of business model

through which the firm will compete in the
marketplace.
Business Model refers to the logic of the firm, the

way it operates and how it creates value for its
stakeholders.
Tactics refers to the residual choices open to a

firm by virtue of the business model it chooses
to employ.
Business Models
In the first stage, firms choose a ‘logic of

value creation and value capture’ (i.e.,
choose their business model), and in the
second, make tactical choices guided
by their goals (which, in most cases, entail some
form of stakeholder value maximization).
What Are Business Models?
Business models - refer to the ‘logic of the firm’, how it
operates and creates value for its stakeholders.
A REFLECTION OF THE FIRM’S
REALIZED STRATEGY
Video: What is a business model

https://www.youtube.com/watch?v=W4eCV9gbzAk
Business Models
Magretta defines business models as ‘stories that explain how enterprises

work’, and follows Drucker in defining ‘a good business model’ as the one
that provides answers to the following questions:
 ‘Who is the customer and what does the costumer value?’ and
 ‘What is the underlying economic logic that explains how we can
deliver value to customers at an appropriate cost?’
A business model is about how an organization earns

money by addressing these two fundamental issues:
- how it identifies and creates value for its customers, and
- how it captures some of this value as its profit in the
process.
Business Models
What ‘parts’ are business models made of?

They are composed of two different sets of elements:
(a) the concrete choices made by management about how the
organization must operate, and
(b) the consequences of these choices.
We distinguish three types of choices: policies,

assets and governance structures.
Policy choices refer to Asset choices refer to Governance choices

courses of action that the decisions about tangible refer to the structure of
firm adopts for all aspects resources. contractual
of its operation. arrangements that confer
decision rights over
policies or assets.
Business Models: Ryanair
Business Models: Innovation
VIDEO: Airbnb Business Model Innovation

https://www.youtube.com/watch?v=WzGhFmiB9G0
VIDEOS: Changing business models
during the COVID-19 pandemic
• Innovation business models

https://www.youtube.com/watch?v=1ew0hjEIcF8
• Economic impact of COVID-19

https://www.youtube.com/watch?v=RK2IfGPSqO0
• Examples innovative start ups

https://www.youtube.com/watch?v=buKjiSjqjSI
Business Models
A good business model design involves determining:

• which market segments should be targeted;
• what benefits the product/service will deliver to the
customer;
• which features/technologies will be embedded within it
and how they can be best assembled and offered to the
customer;
• how the business’s revenue and cost structures
should be designed (and, if necessary, redesigned); and
• how value will be captured and competitive advantage
sustained.
STRATEGY
Strategy is often defined as a contingent

plan of action designed to achieve a
particular goal.
Porter states : ‘strategy is the creation of a unique

and valuable position, involving a different set of
activities’.
Strategy refers to a firm’s contingent plan

as to which business model it will use.
VIDEO: What strategy is
https://www.youtube.com/watch?v=TD7WSLeQtVw
STRATEGY
1.Where do we compete?
2. What unique value do we bring?
3. What resources and capabilities do you use to offer that
value?
4. How do we sustain that value?
TACTICS
Tactics - the residual choices open to a

firm after choosing its business model - are
crucial in determining firms’ value creation
and capture.
Tactics are important, as they play a

crucial role in determining how much
value is created and captured by firms.
VIDEO: Reset Your Strategy post COVID-19
25 min
https://www.youtube.com/watch?v=_FqGokQ32ps
Additional resources
VIDEO: The future of business and COVID-19
https://www.youtube.com/watch?v=TY6Pu6smAHU
Thank you!
C4 Understanding Decision
Making
What Is Decision Making?
Decision making = making choices among alternative
courses of action.
PROGRAMMED DECISIONS
Strategic
NON-PROGRAMMED Tactical
DECISIONS
Operational
Decision Making
VIDEO: Daniel Kahneman
Thinking, Fast and Slow
https://www.youtube.com/watch?v=CjVQJdIrDJ0&list=PLe6Hj
r6Hs6K_AKdJRn4HjaLFpUnW0A2uE
Decision Making Models
Four main models for decision making:
rational decision-making model
bounded rationality decision-making model
intuitive decision making model
creative decision-making model

The rational decision-making model
This model describes a

series of steps that
decision makers
should consider if their
goal is to maximize the
quality of their
outcomes.
The bounded rationality decision-making
model
Making “Good Enough” Decisions
According to this model,

individuals knowingly limit their An important part of the bounded rationality
options to a manageable set and approach is the tendency to satisfice, which
choose the best alternative refers to accepting the first alternative that
without conducting an exhaustive meets your minimum criteria.
search for alternatives.
The decision maker saves time and effort by

accepting the first alternative that meets the
minimum threshold.
The intuitive decision-making model
This model refers to arriving at decisions without conscious reasoning.
The intuitive decision-making model argues that, in a given Once a pattern is recognized, they can play a
situation, experts making decisions scan the environment potential course of action through to its outcome
for cues to recognize patterns. based on their prior experience.
Only one choice is considered at a time.

Situation
Due to training, experience, and knowledge,

these decision makers have an idea of how well a
given solution may work.
Action
Intuitive Cues
Decisions
Patterns
The creative decision-making model
Fluency refers to the number
of ideas a person is able to
generate.
. Originality refers to
an idea’s uniqueness. (1) people’s personality traits
(openness to experience, risk
taking)
(2) their attributes (expertise,
Flexibility refers to how
imagination, motivation), and
different the ideas are (3) the context (encouragement from
from one another. others, time pressure, and physical
structures)
Decision Making Models
Decision Making in Groups
Faulty Decision Making: BIASES
VIDEO: Cognitive Biases – Decision
Making
FAULTY DECISION
MAKING
Overconfidence Bias
Hindsight Bias
Anchoring
Framing Bias
Escalation of
commitment
https://www.youtube.com/watch?v=YJsVYE_uHq0
Perceptual Biases – Framing
Optimism Biases – Overconfidence
Relevance Biases
Volition Biases – Deferring Responsibility
VIDEO: Decision Making in Groups
https://www.youtube.com/watch?v=ptOhoizsHaw
Thank you!
C3 Management and Leadership:
Basic Principles (continued)
MANAGING FOR BUSINESS SUCCESS
Source: https://open.lib.umn.edu/exploringbusiness/
What Do Managers Do?
Management is the process of planning, organizing, directing,

and controlling resources to achieve specific goals.
or
LEADING
Source: https://open.lib.umn.edu/exploringbusiness/
Managers plan, organize, direct, and control resources to achieve specific
goals.
In planning, they set goals and determine the best way to achieve them.
Organizing means allocating resources (people, equipment, and
money) to carry out the company’s plans.
Directing is the process of providing focus for employees and motivating
them to achieve organizational goals.
Controlling involves comparing actual to expected performance and
taking corrective action when necessary.
PLANNING
Planning is setting the organization’s vision, goals, and objectives.
A vision is more than a Top management usually sets the vision and then works
goal; is a broad with others to establish a mission statement.
explanation of why A mission statement is an outline of the fundamental
purposes of an organization. It should address: the
the organization organization’s self-concept; its philosophy; long-term survival
exists and where it’s needs; customer needs; social responsibility; nature of the
trying to go. product or service.
Goals are the broad, Objectives are

long-term specific, short-term
accomplishments an statements detailing
organization wishes to how to achieve the
attain. organization’s goals.
PLANNING
Forms of planning
Most planning follows a STRATEGIC PLANNING TACTICAL PLANNING

pattern. It answers The setting of broad, long- The identification of specific,
several fundamental range goals by top managers short-range objectives by
questions: lower-level managers
1. What is the situation
now?
2. How can we get to our
goals from here?
CONTINGENCY PLANNING OPERATIONAL PLANNING
Answering this question is
the most important part of
Backup plans in case primary The setting of work
planning. It takes four forms:
plans fail standards and schedules
strategic, tactical,
operational, and
contingency.
PLANNING
Strategic planning - steps:

• Identify the purpose of your organization;
• Write a mission statement that tells customers, employees, and others why your organization
exists;
• Identify core values or beliefs that will guide the behavior of members of the organization;
• Assess the company’s strengths, weaknesses, opportunities, and threats (SWOT);
• Establish goals and objectives, or performance targets, to direct all the activities that you’ll
perform to achieve your mission.
Develop and implement tactical and operational plans to achieve goals and
objectives.
It tells the reader what the organization is committed to doing.

It can be very concise, like the one from Mary Kay Inc. (the cosmetics company):
“To enrich the lives of women around the world.” (Mary Kay Inc., 2011)
Or it can be as detailed as the one from Harley-Davidson: “We fulfill dreams inspired
by the many roads of the world by providing extraordinary motorcycles and
customer experiences. We fuel the passion for freedom in our customers to
express their own individuality.” (Harley-Davidson, 2011)
ORGANIZING: CREATING AN UNIFIED SYSTEM
After managers have planned a course of action,

they must organize the firm to accomplish their
goals:
allocating resources (such as funds for various
departments), assigning tasks, and establishing
procedures.
In building an organizational Departmentalization—grouping

structure, a manager engages in specialized jobs into meaningful units.
two activities: job specialization
(dividing tasks into jobs) and Organizing also involves the design of
departmentalization (grouping individual jobs within the organization.
jobs into units). Decisions must be made about the duties
and responsibilities of individual jobs, as
Specialization
1. Identifying the activities that need to
well as the manner in which the duties
be performed in order to achieve should be carried out.
organizational goals.
2. Breaking down these activities into
tasks that can be performed by
individuals or groups of employees.
Staffing: Getting and Keeping the Right Employees

To get the right people to staff an organization, the firm
has to offer the right kind of incentives. Staffing is
hiring, motivating, and retaining the best people
available to accomplish the company's objectives.
DIRECTING OR LEADING
Leadership is creating a vision for others to follow,

establishing corporate values and ethics, and
transforming the way the organization does business in
order to improve its effectiveness and efficiency. Good
leaders motivate workers and create the environment
for them to motivate themselves.
LEADING
Leaders must:
• Communicate a vision and rally others around that vision;
• Establish corporate values;
• Promote corporate ethics;
• Embrace change;
• Stress accountability and responsibility.
Leadership Styles
LEADING
Leadership Styles
Go to:
https://www.mindtools.com/pages/article/leadership-style-quiz.htm
Fill in the questionnaire and find out your leadership style. Write it in the forum
section of this course.
VIDEO: Make your employees act like
leaders
https://www.forbes.com/sites/johnkotter/2012/06/06/leadership-tip-its-about-how-you-act-not-
your-position/#528477a6132c
CONTROLLING
The control function (1) measures performance relative to the planned
objectives and standards, (2) rewards people for work well done, and (3)
takes corrective action when necessary.
1 2 3 4 5
If needed,
Establish clear Monitor and Compare Communicate identify reason
standards record results against results for deviation and
performance standards take corrective
action
Are standards
realistic?
Controlling consists of five steps:
1.Establishing clear performance standards;
2. Monitoring and recording actual
performance and results;
3.Comparing results against plans and
standards;
4.Communicating results and deviations to the
appropriate employees;
5. Taking corrective action when needed and
providing positive feedback for work well done.
ASSESSMENT TIME:
work on online.ase.ro
VIDEO: Simon Sinek - How Great Leaders
Inspire Action
https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action
Readings
• CHAPTER 6, Exploring Business, of
Minnesota Libraries Publishing, 2010, Copyright: 2010 by University of
Minnesota.Open Access or download
Thank you!
C2 Management and Leadership:
Basic Principles
Management: Who are managers?
Management = getting things done through others.
TOP MANAGERS
FUNCTIONAL MANAGERS Line manager
Staff manager
Project manager
SUPERVISORY OR TEAM MANAGERS

Changing Roles of Management and
Managers
The Nature of Managerial Work
Mintzberg’s
Managerial Roles
Leadership: Something different?
Leadership = the social and informal sources of influence that you
use to inspire action taken by others.
It means mobilizing others to want to struggle toward a common goal.
EXERCISE:
GO TO MENTI.COM, USE CODE 84 13 49
What Do You Want from Your Leaders Nowadays?

Choose 5 traits that you want from your leaders in
the current environment.
Leadership = the social and informal sources of influence that you
use to inspire action taken by others.
It means mobilizing others to want to struggle toward a common goal.
VIDEO: What Do People Want from Their Leaders?
https://www.youtube.com/watch?v=yfZiHfkB-aA
Learn from others
Google has
topped Fortune’s
EXCEPTIONAL AT DEVELOPING PEOPLE 100 Best
Companies to
Work for the past
two years.
Google - exceptional at developing people
At Google: people can use 15-20% of their time to do anything they want in terms of innovation.
The founders built a company

around the idea that work
should be challenging and the
challenge should be fun
(Google, 2008).
It puts employees first when it

comes to daily life in all of its
offices. There is an emphasis on
team achievements and pride
in individual accomplishments
that contribute to the company’s
overall success.
Leadership at Google amounts to a deep belief that if you

give the proper tools to a group of people who like to
make a difference, they will.
VIDEO: How Google builds the perfect
team
Key Takeaway
https://www.youtube.com/watch?v=v2PaZ8Nl2T4
VIDEO: KOTTER - Differences Between
Management and Leadership
https://www.youtube.com/watch?v=SEfgCqnMl5E
BOOKS: KOTTER
RO Ce fac liderii cu adevarat / John P. Kotter 2008
Forta schimbarii : cum difera leadershipul de

management / John P. Kotter
EN
Leading change / John P. Kotter 2012
LEADER vs. MANAGER
Basis LEADER MANAGER
Meaning A leader is a person who influences A manager is a person who manages the
his subordinates to achieve a organization and is responsible for planning,
specified goal. direction, coordination and control.
Approach Sets Direction Plans details
Subordinate Followers Employees
Style Transformational Transactional
Decision Facilitates decision Makes decision
Aim Growth and development. Attainment of the required result.
Focus People Process and Procedure
Conflict Uses conflict as an asset Avoid conflict
People approach Aligns people Organizes people
Strives For effectiveness For efficiency

LEADER vs. MANAGER
Qualities of a Leader
• Ability to inspire
• Vision
• Confidence
• Positive Attitude
• Good communication
skills Qualities of a Manager
• Open-minded • Discipline
• Enthusiastic • Committed to work
• Confidence
• Effective Decision-
Making
EXERCISE: Choose a character from a movie, • Competence
series or a book, describe him or her telling • Patience
why you think he/she has leadership qualities. • Etiquette
VIDEO: Richard Branson: Advice for
Entrepreneurs | Big Think
https://www.youtube.com/watch?v=VH35Iz9veM0
LEADER vs. MANAGER
My definition of a leader…is a man who can persuade people to do what they don’t want
to do, or do what they’re too lazy to do, and like it.
Harry S. Truman (1884–1972), 33rd president of the United States
You cannot manage men into battle. You manage things; you lead people.
Grace Hopper (1906–1992), Admiral, U.S. Navy
Managers have subordinates—leaders have followers.

Chester Bernard (1886–1961), former executive and author of Functions of the Executive
The first job of a leader is to define a vision for the organization…Leadership is the
capacity to translate vision into reality.
Warren Bennis (1925–), author and leadership scholar
A manager takes people where they want to go. A great leader takes people where they
don’t necessarily want to go but ought to.
Rosalynn Carter (1927–), First Lady of the United States, 1977–1981
PERFORMANCE: Important objective of
the enterprise
Economic Social and

Performance Environmental
Performance
Individual
Performance
Group
Performance
Case: The Body Shop
Founded in 1976 by Anita Roddick, a social
entrepreneur. She opened the first store in
Brighton, England, with the vision “To be a
beauty retailer with strong ethical values at its
heart, build on a foundation of a strong and
sustainable business model”.
CORE VALUES
The Body Shop became successful Fight against animal testing
because of their wide product range Activate self-esteem
and ethically responsible way of Support community fair trade
running their business. Defend human right
Protect THE PLANET
https://www.youtube.com/watch?v=RY6d-_QuFtM&list=PLbPJbTUMKnunURaBbMg4y_Lf1CFGPNoJB
Additional videos for those interested…
VIDEO Richard Branson: how to start a
business
https://www.youtube.com/watch?v=SlPd1i5cGHE
VIDEO Henry Mintzberg on Managing:
Pure and Simple
https://www.youtube.com/watch?v=TVBPhCJh-dw
Readings
• Principles of Management -
Subchapters1.3, 1.4, 1.6, 1.7, pp. 8-35,
http://open.lib.umn.edu/principlesmanage
ment/
To be continued…
C1 Perspectives on Business
Administration
Prof.univ.dr. Andreea Schiopu
Bucharest, 2021 andreea.schiopu@com.ase.ro, andreeaschiopu@hotmail.com
Management is defined as an act of managing people and their work, for achieving a common goal by using the organization’s resources.
BUSINESS ADMINISTRATION
Definition
“Administration means overall determination of policies, setting of major
objectives, the identification of general purposes and laying down of broad
programs and projects” (T. Haimann).
It refers to the It lays down basic

activities of principles of the
higher level. enterprise.
According to Newman, “Administration means guidance,

leadership and control of the efforts of the groups towards
some common goals”.
Management is defined as an act of managing people and their
work, for achieving a common goal by using the organization’s
resources.
https://www.managementstudyguide.com/management_administration.htm
ADMINISTRATION vs. MANAGEMENT
3 perspectives:
different inclusive no distinction
Administration Management
alludes to a process can be understood
of effectively as the skill of getting
administering the the work done
entire organization. through others.
Basis Administration Management
Meaning It is concerned with formulation of Management is an art of getting things

broad objectives, plans & policies. done through others by directing their
efforts towards achievement of pre-
determined goals.
Nature Administration is a decision-making Management is an executing function.

function.
Process Administration decides what is to be Management decides who should do it &

done & when it is to be done. how should he do it.
Function Administration is a thinking function Management is a doing function because

because plans & policies are managers get work done under their
determined under it. supervision.
Skills Conceptual and Human skills Technical and Human skills
Level Top level function Middle & lower level function

Administration lays down the fundamental framework of an organization, within which the management of the organization functions.

alludes to a process can be understood
of effectively as the skill of getting
administering the the work done
entire organization. through others.
Administration lays down the fundamental framework of

an organization, within which the management of the
organization functions.
Main perspective
Practically, there is a small difference between administration and
management.
Usually, every manager is concerned with both - administrative management function

and operative management function as shown in the figure.
However, the managers who are higher up in the hierarchy devote more time to
administrative function and the lower level devote more time to directing and controlling
worker’s performance i.e. management.
Determines the objectives and Executes the objectives determined

policies of a business enterprise. by administration.
A process of thinking more at A process of actual operation.

higher levels.
More at higher levels Less at higher levels

Less at lower levels More at lower levels
Theoretically, it can be said that both are different terms, but practically, you will find
that many people use the terms more or less the same.
Management focuses on managing people and

their work. On the other hand, administration
focuses on making the best possible utilization
of the organization’s resources.
MANAGERS: what to expect?
CUSTOMERS EMPLOYEES
PARTNERS & OTHER

STAKEHOLDERS
•The Profit, Season 4, Episode 11, titled Susana Monaco
https://susanamonaco.com/
Video CASE: THE PROFIT

Susana Monaco
Video CASE: THE PROFIT
Susana Monaco
Identified Problems
• The Product
• The Process
• The Management/Leadership
• The Factory (production – also process)
• The Financials
(http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html )
WHAT CUSTOMERS WANT?
WHAT CUSTOMERS WANT?
• Experiences, We live in the so called
rather than things. “experience economy”.
• Authenticity!
Millennials (born
• Technology. People spend less
money on buying 1980-1996) are fueling
the experience economy.
• Collaborative things, and more
on doing things USA: 72% of Millennials say they
consumption. (and telling the would like to increase their
spending on experiences rather
world about it than physical things in the next
“sharing economy” or online afterwards). year, pointing to a move away
NEW from materialism
"access economy"
Gen Z’ers (born Businesses won’t survive by doing what

mid 1990-early 2000) are they’ve always done.
changing the scene. To simply provide a product or
service is not enough.
Millennials in the Workplace
exceptional resource but also a challenge

(human resource) for leaders
Leaders have to find a balance and foster a

special type of environment.
one of the most important topics in the next decade in business
Generation Z: New Challenges

people born from the
mid-1990s to the early 2000s.
one of the most

important topics
in the next
decade in
business
https://www.visualcapitalist.com/meet-generation-z-the-
newest-member-to-the-workforce/
Millennials vs. Generation Z
https://www.visualcapitalist.com/meet-generation-z-the-newest-member-to-the-workforce/
Millennials vs. Generation Z
Customer Service Expectations: How to Engage Generations Y and Z

https://www.youtube.com/watch?v=4pS1JUg4cT8
Additional Resources
(if you want to find out more)
MILLENIALS AS EMPLOYEES
Video: Simon Sinek on Millennials in the Workplace
https://www.youtube.com/watch?v=hER0Qp6QJNU
Videos
Watch out millennials! Gen Z'ers are entering the workplace

https://www.youtube.com/watch?v=RwjSUo8gtBw
Videos
Gen Z in the workplace

https://www.youtube.com/watch?v=uMYssa2iQXg
Articles:
Meet Generation Z: The Newest Member to the Workforce
JEFF DESJARDINS, February 14, 2019
https://www.visualcapitalist.com/meet-generation-z-the-newest-member-to-the-workforce/
How Generation Z Will Impact Your Workplace

Janice Gassam, Forbes, Dec 26, 2018
https://www.forbes.com/sites/janicegassam/2018/12/26/how-the-newest-generation-generation-z-will-
impact-your-workplace/#3bede11c2af6
The Parts of a Business
Numerous activities must take place for a company to
successfully create, sell, and profit from its products or
services, and each activity is handled by a specific
department. Each department has to be well managed for the
company to succeed.
• Finance Controls the Money

• Accounting Counts the Money
• Operations Makes What the Company Sells
• Marketing Sells to Groups
• Sales Brings in the Money
To be continued…

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C13 Ethics and Socially

Integrity, respect for

Some managers think ethics is a personal matter,

Setting Corporate Ethical Standards

More and more companies have adopted written codes of ethics.

Integrity-based ethics codes

2. Employees must understand that expectations for ethical

3. Managers and others must be trained to consider the ethical

4. An ethics office must be set up with which employees can

5. Outsiders such as suppliers, subcontractors, distributors, and

Corporate social responsibility (CSR) CSR goes well beyond being

Critics of CSR CSR defenders

The social performance of a company has several dimensions

Corporate philanthropy Corporate social initiatives

Corporate responsibility Corporate policy

Responsibility to Employees Responsibility to Society and the Environment

To watch the full debate, visit:

New technologies that support the exchange of

The way people do business

Many large and mid-size

Many large and mid-size

Today, businesspeople are faced with infoglut, an

Too much information can confuse issues rather than

The usefulness of management information depends on four

Organizing information is crucial

Companies can gain a competitive advantage

Transaction Processing Systems Process Control Systems

Design and Production Systems

Management Support Systems

Decision Support System

Broadband technology Internet2

Semantic Web The semantic web refers to

Mobile Web The mobile web allows users to

Internet of Things IoT refers to technology that enables

Businesses use the Internet for four

The Virtual Company

• Human Resource Issues

Viruses, Worms, and

Human resource function is no longer the job’s of one

NEW HUMAN Employee -

The five steps in human resource planning are: Job description

Recruiting and Selecting

Recruiting is the process of identifying suitable candidates and encouraging them to

External sources Human Internal sources

A typical selection process has several steps:

Hiring contingent workers

The term training and development includes all attempts to improve

Three Steps to training and development

Motivation refers to an internally But what motivates employees to do

The equity theory of motivation focuses on

Work/Life Quality Alternative Work Arrangements

Telecommuting (work from home)

Family-Friendly Programs (dependent care,

Wages and Salaries

Piecework and Commissions

VIDEO Annual performance review and on-going appraisal

Chapter 7: Recruiting, Motivating, and

An attitude refers to our opinions, beliefs, and

Job performance refers to the level to which

quality and quantity of work performed by the employee, the

Organizational citizenship behaviors (OCB)

Absenteeism refers to unscheduled absences

Turnover refers to an employee’s leaving an

Article: Francesca Gino, Let your workers rebel,