Introduction to Management Welcome to AB 140 Introduction to Management Unit 2 Seminar Bill Okrepkie WOkrepkie@kaplan.edu bokrepkie@rap.midco.net AIM - WSOkrepkie (605) 342-1689 (h) (605) 390-0466 ©

Agenda General Questions and Announcements Introduction Macroenvironment of a Business Competitive Environment of a Business History of Management Theory Recap Unit Assignment Q & A Conclusion of Seminar

Did I Answer all your questions from last week.

Review of Last Week’s Seminar Questions on: Syllabus Emails AOL AIM Acct Office Hours Grading Criteria Discussion Questions/Participation Assignments Reviews Seminars Grade Book Drop Box Doc Sharing

Businesses are Open Systems In your view… What is meant by “open systems”?

Open Systems …means that businesses (like people) don’t operate in a ‘vacuum’. They affect and are affected by their environment. Ideas and people, things, products, etc. flow in and out of every organization. For those of you who took BU100 Introduction to Business, this is similar to what we called the “forces in the marketing environment”. For example the business is impacted by such outside forces as the economy, competitors, cultural and social norms, laws and regulations, even natural events (like hurricanes and weather patterns).

Inputs Into The Open System Raw Materials Services Equipment Capital (Human Labor, Money, Intellectual, Managerial, etc.) Information (Knowledge)

Outputs Into The Open System Products (Example: Cars, Computers, Furniture, Groceries, etc.) Services (Example: accountants, medical services providers, etc.).

Macro Environment A part of the External Environment that forms the general environment for the firm. Includes: Governments (Government actions, rules, laws, regulations, etc.) Economic Conditions (Amount of money, interest rates, etc.) Other fundamental conditions that could affect the firm.

External Environment All relevant forces outside the firm’s boundaries. Competitors Customers Government Economy.

Examples of the External Environment Copyrights, patents, trademarks, government licenses Industry-specific requirements for entry Specific taxes Interest rates for both customers and business Technological changes that impact the firm (Example: iPods versus tape players; regular cameras versus digital cameras, etc.)

Competitive Environment What makes up a business’ competitive environment: The firm Its Rivals Suppliers Customers New Entrants Substitute Complementary Products

Barriers to Market Entry New firms enter markets when barriers to entry are low and less enter when these increase. Barriers can originate from: Government Policy Capital Requirements Brand Identification Cost Disadvantages Distribution Channels

Competitive Environment and Macroenvironment We can break this idea of open systems down into two specific types of environments, as discussed in your readings: the Competitive Environment and the Macroenvironment.

Macroenvironment Laws and politics Economy Technology Demographics Social Issues There’s a visual of the external environment in your readings.

Questions?

Evolution of Management Theories There are four primary approaches of management thought: In chronological order: Classical (late 1800s) Behavioral (early 1900s) Systems (early-mid 1900s) Contingency (1960s…)

Scientific Management Theory Concerned with specific work tasks Introduced task definition and specific measurement to the process of work Taylor, Fayol, etc. Around 1900 until about 1940. Our current POLC is derived from Henri Fayol’s Theory circa 1917!

Bureaucratic Management Theory Added to the earlier theories to recognize the need for: structure lines of authority control within the management of businesses. added hierarchy to the business structure (Weber, etc. 1930s to 1950s).

Human Relations Management Theory Responded to the impersonal approach of earlier theories by recognizing: The uniqueness of humans The need for managers to resolve the needs of workers. Comes from the Behavioral Sciences (McClelland, Maslow, Lewin, McGregor, etc. 1930s to today).

Assignment Questions There are 3 graded assignments in Unit 2. They are: Discussion Board: Discussion scenario: Marc has opened a 24-Hour fitness center in a fast-growing city. Before purchasing the franchise and starting his new business, Marc looked at the one other fitness center currently operating in that area. In the same general area are video game rooms, fast food restaurants, a sports bar, a golf driving range, a sporting goods store, and a bowling alley. Marc believes that the one fitness center forms his competition. Based on your reading of “Substitutes and Complements”, do you agree with Marc or disagree? Why or why not?

Dropbox Assignment For this assignment, you must watch the video presentation on the Evolution of Management. You will find the video in the course. After watching the video and viewing the timeline please complete your assignment. By explaining how the theories presented are different from one another, and… By stating which management theory you think is more important and why. Respond in a paper of at least one full double-spaced page in length, using size 12-point Times New Roman font. Submit your paper to the Unit 2: Assignment Dropbox.

Review Don’t forget that you can take the Review as often as you need to during the Unit Week prior to the Tuesday midnight deadline until you get the score that you desire.

It looks like the hour is up It looks like the hour is up. I hope this session was valuable to you and I look forward to seeing you next week. Have a great week and weekend.