商务礼仪与交际 Business Etiquette and Communication

1. 商务礼仪与交际Business Etiquette and Communication Lecture 1: Introduction to Contemporary Business 当代商务简介

2. What to cover today： • The nature of business • Forms of business ownership • Franchising • Business mission and company profile Exercises

3. 1. Forms of business ownership Three basic legal (vs. organizational) forms of business ownership： • sole proprietorship (个人)独资企业: unlimited liability • partnership 合伙企业: unlimited liability • company 公司: limited liability • limited Liability Company (LLC) 有限责任公司 • publicly listed company/corporation 股份有限公司 enterprise > company > corporation

4. 1.1 Categorization of companies

5. publicly owned companies: established by the government, e.g. the U.S. Postal Service, big 4 banks in China, CNPC, Sinopec, CNOOC • quasi-publicly owned companies: established privately, but operated for public service and with high degree of government regulation and protection, e.g. private schools and hospitals • privately owned companies: established privately and operated for private interests; including the bulk of existing companies

6. profit private companies: established to carry out business for profit-making purposes • non-profit private companies: established for charitable or religious purposes

7. privately held profit private companies:LLC; do not publicly offer their stock; owned by one or a few shareholders who normally have family or other close ties and also manage the business • publicly held profit private companies:LLC by share, public company, publicly traded company, public listed company; publicly offer and freely trade their shares on stock exchanges; owned by a number of unrelated shareholders who do not actively manage the company (passive investors, cf. limited partners); go public, IPO 首次公开募股http://tech.ifeng.com/internet/detail_2013_08/07/28352560_0.shtml

8. 1.2 Corporations Proportion of Business Revenue Generated by Each Form of Ownership Proportion of Existing Businesses under Each Form of Ownership

9. 1.2.1 Corporate structure and management incorporators/shareholders board of directors president/GM/CEO/managing director other officials owners managers

10. 1.2.2 Legal documents and legal status • Corporate charter 公司章程: a document used to incorporate a business, and filed with the state government, which describes important aspects of the corporation, e.g. the name of the firm, the stock issued, and the firm’s operations • Bylaws 公司规章are established to provide general guidelines for managing the firm • A corporation is a legal person 法人, meaning that it is treated like a private person in the legal sense. It can receive, own and transfer property, enter into contracts, sue and be sued.

11. 1.2.3 Double taxation • Corporations have to pay taxes on their profits, i.e. corporate income taxes 企业所得税, which are heavier (35% in the US, 25% in China) than those for sole proprietorships and partnerships. • If shareholders receive dividends 分红from their companies, they have to pay personal income taxes 个人所得税. • In the US, the tax rates for sole proprietors are often only half of those for corporations.

12. 2. Franchising 特许经营 budding period: the early 1900s, filling stations, car dealerships growth period: since the mid-1960s, paralleling the enormous expansion of the fast food industry

13. Three basic types of franchising: • product franchising: licensing for the right to sell trademarked goods purchased from the franchiser and resold by the franchisee, e.g. car dealers, gasoline stations • manufacturing franchising: licensing for the right to produce and distribute products, using supplies purchased from the franchiser, e.g. soft-drink bottling plants • business-format franchising: licensing for the right to open a business using the franchiser’s name and format for doing business, e.g. fast food chains

14. Advantages of franchising: triple benefits of franchising according to the president of the International Franchise Association: “The franchiser wins because he builds a strong foundation for his company. Thefranchisee wins because he can take advantage of the franchiser’s proven business system. And the general public benefits from the consistency of the product or service.”

15. 3. Management • Planning: setting goals (i.e. ends) and fixing strategies (i.e. means) • Organizing: defining and group tasking, allocating staff and resources, and structuring chain of command 指令链 • Leading: guiding and motivating; proper leadership style • Controlling: info-gathering, performance assessing, and deviation correcting

16. 3.1 Management levels Top managers: • board of directors: executives from inside (also managers) and outside (not managers) of a company, elected by shareholders to act as their representatives, oversee the company’s overall business dealings, can appoint, oversee, reward and fire the CEO • president/CEO/GM: ultimately responsible for the company’s success or failure, oversees the operations of the company, ensures its capital is used to create the most profit, creates a hierarchy of managers • vice presidents/senior managers: report to the president/CEO/GM, head up the company’s major functions, establish business goals and decide the models to achieve those goals, monitor the actions of middle managers

17. Middle managers: • function or division managers: e.g. plant manager, sales manager, accounting manager; in charge of the company’s various functions or divisions, responsible for implementation of goals and policies, make daily decisions, monitor bottom managers Bottom-line/first-line managers: • supervisors: e.g. head nurse in the emergency room of a hospital, chief mechanic in the service department of a car dealership; responsible for the daily supervision of nonmanagerial employees, fulfill operational and supervisory duties

18. 3.2 Sources of managers • from within the company: promotion or transfer • from educational institutions: through job fairs or campus recruitment; manager/management trainee (MT) 管理培训生 • from other organizations: directly or through headhunters

19. 3.3 Span of control 控制跨度 -- the number of employees managed by each manager, ideally five • Narrow span of control: an organizational structure is designed so that each manager supervises just a few employees -- suitable for firms that have highly diverse tasks (Can you think of any examples? – knowledge intensive industry) • Wide span of control: each manager supervises numerous employees -- suitable for firms that numerous employees perform similar tasks (Can you think of any examples? – labor intensive industry)

20. Examples of narrow and wide span of control

21. 3.4 Organizational height 组织结构高度 -- the number of layers from the bottom of the structure to the top • Tall organizational structure: much distance between the bottom and the top, e.g. GM’s 10 levels –narrower span of control • Short/flat organizational structure: not much distance from the bottom to the top, e.g. Toyota’s 5 levels –wider span of control In the 1990s and early 2000s, many firms, e.g. Continental Airlines, IBM, GM, Sears, have attempted to cut expenses by eliminating job positions. This so-called downsizing 裁员has resulted in flatter organizational structure with fewer layers of management.

23. 3.5 Line vs. staff positions 直线 vs. 参谋职位 • Line positions: job positions established to make decisions that achieve specific business goals; an organizational structure that contains only line positions and no staff positions is referred to as a line organization 直线组织 • Staff positions: job positions established to support the efforts of line positions; can be outsourced; an organizational structure that contains both line and staff positions is referred to as a line-and-staff organization 直线和职能混合组织

24. 3.6 Job specialization and departmentalization Job specialization 工作专业化 -- breaking down a firm’s overall tasks, responsibilities and resources into small and specific parts or positions Departmentalization 部门化 -- grouping (mainly line) job positions into various departments in a logical way • by function • by product • by location • by customer • by manufacturing process All these line departments can work together with staff departments to form line-and-staff organizations. Functional organization Divisional organization

25. 4. Business mission and company profile 4.1 Business mission/vision -- a brief statement that tells stakeholders and the public why the firm is in business, how it intends to satisfy customer needs, and why it will satisfy their needs better than its competitors

26. Starbucks • Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. • Dell • Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of: • Highest quality • Leading technology • Competitive pricing • Individual and company accountability • Best-in-class service and support • Flexible customization capability • Superior corporate citizenship • Financial stability Sample mission statements

27. Sample mission statements Nike Our mission for the Nike brand is: To bring inspiration and innovation to every athlete in the world. Alibaba Alibaba Group (Alibaba for short) is a global e-commerce leader basing in China. Alibaba has 7 subsidiary companies, business involving the B2B, C2C, online payments, software service, search engine, online advertising, local living and consumption community etc. Alibaba is committed to building the world‘s leading e-commerce infrastructure and high quality online living platform.

28. 4.2 Company profile • Company history • Founders and/or current top managers • Major line of business • Location and subsidiaries • Markets • Staff size • Production capacity • Annual turnover/sales • Awards

29. Listening: Listen to a presentation delivered by the PR Department Manager of Oracle China and fill in the blanks in the company profile Word bank: headquarters 总部 headcount 员工总数 annual revenue 年收入

30. Oracle China Profile largest • Status: the world’s ____ enterprise software company, ____ global software giant in ____ • Established in: ____ • Headquarters: Redwood Shores, ______ • Headcount: ______ • Annual revenue: ____ • Launched on China’s market in ____ • Oracle China branches: Beijing, Shanghai, Guangzhou, ____ • Services: 9i E-Business platform, E-Business Suite, consulting services, ______, and support services first China 1977 California 42,000 $11 billion 1989 Chengdu education

31. Sample company profile GM http://www.gm.com/corporate/about/company.jsp Ecolab http://www.ecolab.com/CompanyProfile/ Philips English version:http://www.philips.com/about/company/companyprofile.page Chinese version:http://www.philips.com.cn/about/company/companyprofile.page Alibaba English version: http://news.alibaba.com/specials/aboutalibaba/index.html?tracelog=24581_foot_company_info Chinese version: http://page.china.alibaba.com/shtml/about/ali_china1.shtml

32. After-class assignments 1. Translation 1. 个人独资企业 2. 合伙人 3. 管理培训生 4. 无限责任 5. 裁员 6. 法人 7. 董事会 8. 分红 9. 公司章程 10. 企业所得税 11. 股东年会 12. 特许经营

33. 2. Find out the business focus of the top 10 franchise brands in 2009 listed by Entrepreneur Magazine