Management Advanced Marketing

What is management? The process of achieving goals through the use of human resources, technology, and material resources Top MGMT (Executive): Responsible for the entire company, Company presidents and CEO’s Do a lot of strategic planning (long-range planning for the company/business) Develop objectives for the company Supervise other managers

Other types of Managers Middle Management – report to top-level managers and usually have supervisors under them. Vice-President, Department Head, Sales Manager Act as a liaison between top-level and supervisory managers Use tactical/short-range planning – 1 year or less Strategic planning – what work needs to be done to reach goals

Management types First-level/supervisory management (more jobs in this area) – supervisors who work directly with employees, crew chiefs, shift managers Responsible for day-to-day activities of business Do scheduling Assign work, Make sure projects meet deadlines

What are some trends in management? Horizontal organization – involves self managing teams that set own goals and make own decisions (fewer upper level managers) Empowerment – encouraging team members to contribute to and take responsibility for the management process

What do managers coordinate? Human resources – the people who work for the company Financial resources – all sources of money available to the business

Managing resources Material resources – equipment and supplies needed to produce and/or sell its goods Information – all forms and information used to run the business Economic info., competition, regulations, trends

Characteristics of management functions See handout

Effective management techniques Give clear directions Train new employees well Be consistent Treat employees fairly Be firm when necessary Set a good example

Ways to motivate employees Give immediate feedback Reward smart work Encourage creativity Reward employees loyalty

Hiring Employees Job description – a written statement listing the job duties and responsibilities of a job. Educational experience Professional experience Salary amount

Ways to recruit employees Classified advertising (want ad) Employment agencies College placement centers Referrals from friends and other employees Posting job on the World Wide Web

Interviewing job applicants Be prepared – make a list of questions to ask Be courteous – try to make applicants feel comfortable Avoid dominating the interview Take notes Look for warnings that employee may not be a good worker

Interviewing the job applicant Don’t make snap judgments about a candidate Thank the candidate for coming Write a summary of your impressions of the candidate

Checking job applicant’s references Get candidate’s permission Ask previous employers what they can tell you about the person Explain position and ask if the candidate would perform well in the position Ask about people skills, tardiness, attendance, etc.

Compensation packages Wages – payments for labor or services that are made on an hourly, daily, or per- unit basis. Salaries – payments for labor or services done on an annual basis Bonus – financial reward in addition to a regular wage or salary Commission – a % of the sale paid to salesperson

Benefits of a job Paid leave: Vacation (usually get more the longer they work for a company) Sick leave (use only when sick or family sick) Insurance: Health benefits – HMO’s (Health Maintenance Organizations) sometimes have a co-pay or deductible Dental, life, accident

Benefits of a job Pension plan: the employer and the employee contribute money The money is invested When employees retire they withdraw their pensions

Desirable leadership qualities * Good judgment Honesty Consistency Enthusiasm Cooperation Communications Dependability Understanding

Ways to train employees On-the-job training Coaching Mentoring Conferences and seminars Follow-up to make sure using training

When leaving a job Give a 2-week written notice

What is Accounts Receivables Payments due for products or services provided to customers Bills that you have sent to your customers On-line bills that your customers owe

Accounts Payables The payments that you owe to other businesses and your suppliers Electric bills Loans to banks Bills for merchandise owed Bills for supplies

Why is a purchase order needed? Record of the fact that an order has been placed with a company Legal contract between the buyer and the seller Gives the purchaser the approval to buy the product

Cash flow statement Describes how much cash comes in and goes out of business (checkbook). Tells you how much money you have to pay your bills. Cash going into your business is your revenue Sources of cash flow are: Money from sale of services Money from sale of products Money from late fees owed to you

Operating Expenses Expenses needed to run your business: Rent/Mortgage Utilities Salaries Advertising Supplies Insurance Payroll Taxes

Income statement Summarizes the business income and expenses (profit or loss) during a specified period of time (month, year) Basic calculations are: Total sales – returns and allowances = net sales Net sales – cost of goods sold = gross profit

Income statement (cont.) Gross profit – operating expenses = net income from operations Net income from operations – income taxes = net profit

Identify the following: Variable expenses (vary from month to month) – utilities, water, product costs Fixed expenses (stay the same every month typically) – rent, insurance, loan payments Allowances – credit given to customer for damaged/exchanged goods

Other key words Discounts – amount taken off of retail price of the product Returns – products brought back Mark-up – The difference between the price of an item and its cost blouse costs $5 and sells for $20 = $15 markup Markdown – mark merchandise down for clearance, sales, defects, etc.

Key words Sales tax – a % fee based on the sale of goods and services: 6% in KY Extensions – multiplying the # of units by the cost per unit: 10 units X 6 = $60 (the extension) Exchanges – merchandise brought back to a store and replaced by other merchandise

Balance Sheet Summary of a business’s assets and liabilities and indicates the financial condition of the business Assets are: Anything of monetary value that a business owns Land Cash in bank Inventory Equipment Furniture

Business Plan (continued) Liabilities are: What the business owes Outstanding debt on merchandise owed Loans Money owed for salaries Taxes owed Assets – liabilities = Net Worth (equity)

Depreciation The amount by which a business’s assets have fallen Example: Company car value will depreciate every year because the value goes down Other examples????

Factors that affect how a business prices its products? Costs and expenses Supply and demand (if you have a lot of product to sell you may mark it down if not selling fast enough) Consumer Perceptions of product Competition Government regulations

Assets - Liabilities = A. revenue B. owner’s equity C. net worth D. both b and c

Accounts payable are A. Amounts other businesses owe you B. discounts + returns C. Money you owe to other businesses D. both a and c

Net sales are A. Total revenue – liabilities B. Total sales – returns and allowances C. Total revenue – total expenses D. Total sales – total expenses

The statement that shows whether a business has a profit or loss is the A. cash flow summary B. balance sheet C. account receivable worksheet D. income statement

Expenses that it takes to run your business such as office supplies are called _____ expenses. A. Discounted B. Varied C. Operating D. Depreciation

One-time expenses to start a business are known as what types of costs?_________ A. Accounting costs B. start-up costs C. operating costs D. management costs

Money that is owed to a business by its customers is called A. Accounts payables B. Accounting receipts C. Accounts receivable D. Accounting disbursements

All of the following are assets of a business except A. buildings. B. equipment. C. inventory. D. people

When a business’s equipment has lost value this is referred to as A. a liability. B. depreciation. C. an asset. D. an expense

Expenses that stay constant over time such as rent and salaries are known as __________ expenses. A. variable B. asset C. liability D. fixed

An income can be used by a business to A. evaluate their assets. B. forecast a business’s performance. C. evaluate their liabilities. D. all of these.

The total amount of sales that a business does for the entire month is known as A. revenue. B. cash sales. C. the sales amount. D. credit sales.

How are net sales calculated? A. Total sales – expenses = net sales B. Total sales – taxes = net sales C. Total sales – returns and allowances = net sales D. Total sales – cost of goods sold = net sales

A bank statement that a person gets to balance their checkbook is the same as a(n) A. cash flow statement B. income statement C. balance sheet D. equity statement

The amount of sales needed in order to cover all of a business’s costs is known as the A. stock reorder point. B. inventory reorder point. C. break-even point. D. sales flow point.

A purchase order should be used in all of the following cases except: A. to get approval to buy an item. B. to micro manage employees. C. for recordkeeping. D. to make sure the funds are available.

In what role do managers find and select workers for their businesses? A. Staffing B. Organizing C. Planning D. Directing

Setting goals and determining how that they will be done is a ____________ management function. A. Organizing B. Controlling C. Staffing D. Planning

Providing guidance to your employees is what management role? A. planning B. Organizing C. Directing D. controlling

Bob checks employees performance on a regular basis, this is an example of A. planning B. controlling C. directing D. organizing

Paul establishes jobs needed to get the work done. He is involved in A. planning B. organizing C. directing D. controlling

The process of coordinating resources to get the job done is A. Marketing B. Selling C. Promotion D. Management

Paul works directly with the employees giving them direction and assigning duties at the new Burger King. Paul would be at what management level? A. Advisory-level B. Top-level C. Mid-level or middle D. First-level or supervisory

A job description gives what kind of information? A. Duties of the job B. Where you would work C. Hours of Work D. all of these

Empowerment in management means that A. You let your employees make all of the decisions B. The manager makes all of the decisions C. The manager lets you makes most of the decisions on your own. D. all of these

Jane is planning on opening a new hairdresser store, before she does this, she would need to A. Pick a commercial location B. Get a Family Medical Leave Act permit C. Get a license to operate D. Both a and c

Under the Family Medical Leave Act, all of the following applies except A. Leave is paid for employees B. Applies to businesses with 50 or more employees C. Can take off for up to 3 months D. Has to be leave for family medical care

Which agency regulates discriminatory claims against age, gender, race, etc. A. Occupational Safety and Health Administration (OSHA) B. Better Business Bureau C. Equal Employment Opportunity Commission (EEOC) D. Family Medical Leave Act

If a business is participating in unfair practices, who should you report it to? A. Federal Trade Commission B. Consumer Product Safety Commission C. Equal Employment Agency D. Better Business Bureau

If there are unsafe working conditions at a business, who would regulate this? A. Occupational Safety and Health Administration (OSHA) B. Better Business Bureau C. Equal Employment Opportunity Commission (EEOC) D. Family Medical Leave Act

A company needs to make sure their products are safe or this agency will fine them: A. Occupational Safety and Health Administration (OSHA) B. Consumer Product Safety Commission C. Equal Employment Opportunity Commission (EEOC) D. Family Medical Leave Act