How is a Business Structured?

1. How is a Business Structured? Unit 6 Business Essentials

2. Departments of a Business • Human Resources-manager of employees • Marketing-manages purchasing, promotions, sales, and research/development of new products, inventory management • Operations-facilities management, transportation (logistics), production, and safety • Financial- oversees all financial information • Information Technology-new department within last 15-20 years. Coordinates the company’s assets using computer driven technology. All departments are driven by this department. Outside of financial this is probably the most important department especially within the last 10-15 years

3. Hierarchy of Responsibility • Executive Level • CEO/President • General Manager – oversees individual operation (1 plant or store) • Senior Level Managers- Manage major departments • Middle Level Managers-Managers departments within the major structure (example-advertising within marketing) • Lower level managers- manage departments within the middle level structure (example-social media manager within advertising. • CFO Chief Financial Officer-Senior Executive V.P. –Responsible for the overall management of the financial operations (the “money” man) • The number of levels within an organization depend on the size of the organization (sales volume +number of outlets)

4. Characteristics of a Profitable Business • Plan • Long term strategic plans +5 years • Short term strategic plans below 5 years • Can adapt to change quickly • Effective management of employees • Tactical Approach- management takes control with little input from employees • Strategic Management- Cooperative decision making among all stakeholders (management/employees) • Mixed- a blend of the two. Usually the most effective. • The style that is picked depends upon the size of the company, the experience of your workforce, and the personality of your senior management staff.

5. Managers = Directors • The success of your organization is a direct representation of how effective you are as a manager. • Always remember that successful managers, have strong people around them.

6. Effective Goal Setting Techniques • Develop a mission statement, vision statement and a work ethic policy that is representative of your overall goals as a company. • Directing and staying focused on the business plan through effective time management techniques • Adjusting the goal when necessary based on sales trends and unforeseen circumstances • Evaluating your goal performance so changes can be made for the future.

7. Time Management Techniques • What is it? • The management of a company’s assets so the company will have the best return for their investment in order to sustain maximum profitability. • What are assets? • Buildings, land, equipment, people, money, supplies, inventory, and investments.

8. An example of Time Mgt. • Managing your payroll by reducing costs while at the same time increasing production. • You would do this by: • Laying off unproductive workers • Increasing the pay w/ incentives for productive workers while also increasing their goals. • Improves morale • Increases productivity

9. Major Point to Ponder • Your overall goal in business is to increase revenue while decreasing expenses. • Improves profitability. • Revenue-Expenses=Profit