Introduction to Business Management

©2004 Actimax Learning Inc.2 Key Concepts Learning from mistakes is vital to long- term success All businesses have basic, integral functions Business functions are supported by core activities that generate profit

©2004 Actimax Learning Inc.3 Think about… Owning your own business someday What will the business be? What products and/or services will be sold and marketed? Why do you think your business will be successful? What will be your responsibilities? How will you manage risk?

©2004 Actimax Learning Inc.4 Business Functions Planning Deciding Accounting Analyzing

©2004 Actimax Learning Inc.5 Planning Anticipating and preparing for decisions Based on vision, purpose, and values

©2004 Actimax Learning Inc.6 Deciding Making decisions using strategies Driven by solving problems

©2004 Actimax Learning Inc.7 Accounting Tracking financial activities Summaries used for business analysis

©2004 Actimax Learning Inc.8 Analyzing Making judgments using reports and financial statements Outputs and comparisons

©2004 Actimax Learning Inc.9 Cornerstone Activities Investing Operating Producing Servicing Marketing Financing

©2004 Actimax Learning Inc.10 Investing Purchasing assets to make money Sell products Provide services

©2004 Actimax Learning Inc.11 Operating Producing Raising crops or livestock Manufacturing products Servicing Performing tasks Veterinarian or mechanic Marketing Advertising and packaging Selling and distributing

©2004 Actimax Learning Inc.12 Financing Borrowing money Loans or notes payable To pay for assets or operating expenses Notes payable Down payment Principal - Loan payments Interest

©2004 Actimax Learning Inc.13 Business Management Cycle PlanningAccountingDeciding Analyzing Investing Operating Producing Servicing Marketing Financing

©2004 Actimax Learning Inc.14 What would be… The best way to learn how to run a business? Real-life experiences, but may be Difficult Costly Unrealistic So, a game that simulates a business may be the next best alternative

©2004 Actimax Learning Inc.15 Reap with The Farming Game ® Is the answer! Simulation that uses a hands-on approach to learning Personal management Business management Financial management Teaches the symbolic nature of money Assets, liabilities, and owner’s equity Income, expenses, and profit Debits and credit

©2004 Actimax Learning Inc.16 Ahhtomoney Learning Series The secret…ownership, concreteness, and motivation Integrated unit Teaches how money flows through business transactions Financial transactions tracked using double-entry accounting that generate financial statements Players are their own banker – “cashless” way of playing the game to develop autonomy

©2004 Actimax Learning Inc.17 Ahhtomoney Learning Series Engages learners Think critically Solve ill-structured problems Make decisions Personal stakes at risk Reap simulates how business managers plan, decide, account, and analyze financial activities in an agricultural context

©2004 Actimax Learning Inc.18 Review Questions What are the 4 functions that make up the Business Management Cycle? What are the 3 to 4 cornerstone activities that businesses do to make money? What is the primary function of planning a business? How should business managers make their decisions?

©2004 Actimax Learning Inc.19 Review Questions 1. What typically drives most decisions? 2. What is accounting? 3. Why should business managers analyze their businesses?

©2004 Actimax Learning Inc.20 Review Questions What is investing? What is producing? What is servicing? What is financing? What is marketing?

©2004 Actimax Learning Inc.21 Are you ready to manage your own business?