Business Copyright 2005 Prentice- Hall, Inc. 6-1

1-2 Session #6 Managing The Business EnterpriseManaging The Business Enterprise  Business Introduction - Teaching Team  Business and Management Department  Faculty of Economics UNPAD

Business Copyright 2005 Prentice- Hall, Inc. 6-3 Who Are Managers? All Organizations Require Effective ManagersAll Organizations Require Effective Managers All Managers Perform The Same Basic FunctionsAll Managers Perform The Same Basic Functions –Plan –Organize –Direct –Control

Business Copyright 2005 Prentice- Hall, Inc. 6-4 Management Process Planning Organizing Directing Controlling

Business Copyright 2005 Prentice- Hall, Inc. 6-5 Planning- Types of Strategy CorporateCorporate Business/CompetitiveBusiness/Competitive FunctionalFunctional

Business Copyright 2005 Prentice- Hall, Inc. 6-6 Reasons For Goals Direction/GuidanceDirection/Guidance Resource AllocationResource Allocation Define Corporate CultureDefine Corporate Culture Assess PerformanceAssess Performance

Business Copyright 2005 Prentice- Hall, Inc. 6-7 Kinds Of Goals Mission Statement – Why Organization Exists & How It Will OperateMission Statement – Why Organization Exists & How It Will Operate Long-Term = 5 Years +Long-Term = 5 Years + Intermediate = YearsIntermediate = Years Short-Term = Less Than 1 YearShort-Term = Less Than 1 Year

Business Copyright 2005 Prentice- Hall, Inc. 6-8 Strategy Formulation

Business Copyright 2005 Prentice- Hall, Inc. 6-9 Formulating Strategy Define & Meet Organization’s GoalsDefine & Meet Organization’s Goals Strategic GoalsStrategic Goals StrengthsStrengths Weaknesses Weaknesses Opportunities Opportunities Threats Threats Environmental AnalysisEnvironmental Analysis Organizational AnalysisOrganizational Analysis

Business Copyright 2005 Prentice- Hall, Inc Analysis Environmental Analysis Organizational Analysis

Business Copyright 2005 Prentice- Hall, Inc Planning Levels Operational Tactical Strategic

Business Copyright 2005 Prentice- Hall, Inc Control Process

Business Copyright 2005 Prentice- Hall, Inc Management Pyramid Top Middle First-Line

Business Copyright 2005 Prentice- Hall, Inc Areas Of Management  Human Resources- Hire/Train  Operations- Systems  Marketing- Get Products & Services From Producer To Consumer  Information- Gather, Organize, & Distribute Information  Financial- Accounting & Finance  Other

Business ORGANIZING THE BUSINESS ENTERPRISE Copyright 2005 Prentice- Hall, Inc. 6-15

Business Copyright 2005 Prentice- Hall, Inc Determinants Of Organization PurposePurpose MissionMission StrategyStrategy

Business Copyright 2005 Prentice- Hall, Inc Organization Chart

Business Copyright 2005 Prentice- Hall, Inc Chain Of Command CEO Division V.P. StoreManager DepartmentSupervisor FrontlineEmployee

Business Copyright 2005 Prentice- Hall, Inc Building Blocks Of Structure Specialization- Specific Jobs To Specific PeopleSpecialization- Specific Jobs To Specific People DepartmentalizationDepartmentalization –Group Jobs In Logical Units –Profit Center

Business Copyright 2005 Prentice- Hall, Inc Types Of Departmentalization CustomerCustomer ProductProduct ProcessProcess GeographicGeographic FunctionalFunctional

Business Copyright 2005 Prentice- Hall, Inc Customer Departmentalization Big Box Retail Men’sDepartmentWomen’sDepartmentLuggageDepartment

Business Copyright 2005 Prentice- Hall, Inc Product Departmentalization LucentTechnology WirelessCommunicationOpticalNetworking

Business Copyright 2005 Prentice- Hall, Inc Process Departmentalization VlasicPickles Fresh-PackedBrine-CuredRelishes

Business Copyright 2005 Prentice- Hall, Inc Geographic Departmentalization LeviStrauss U.S.EuropeAsiaPacific

Business Copyright 2005 Prentice- Hall, Inc Functional Departmentalization SmallBusiness ProductionMarketing&SalesHumanResourcesAccounting&Finance

Business Copyright 2005 Prentice- Hall, Inc Multiple Forms Of Departmentalization

Business Copyright 2005 Prentice- Hall, Inc Hierarchy For Decisions Assign TasksAssign Tasks –Responsibility –Authority Perform TasksPerform Tasks –Delegation –Accountability Distribute AuthorityDistribute Authority

Business Copyright 2005 Prentice- Hall, Inc Small Business Delegation Fear oEmployee Can’t Do As Well oSomething Will Go Wrong oNo Long-Range Plan oNot Up-To-Date On Industry Trends & Competitive Products

Business Copyright 2005 Prentice- Hall, Inc Big Business Delegation Fear oSubordinate Doesn’t Know Job oSubordinate “Show Manager Up” oDesire To Retain Control oInability To Effectively Delegate