CORPORATE LEADERSHIP Analyze Career Opportunities in … CORPORATE LEADERSHIP Use the internet to learn more about careers in corporate leadership. Choose one of the job titles listed and answer the following questions. 1.How would you describe the physical work environment for jobs in this field? 2.Is this a career that interests you? How might you use your talents, skills, and abilities in this career? Chief Executive Officer - CEO Chief Operating Officer- COO President Bell Ringer 1

Business Organization Chapter 5

5-1

Today’s Goal Describe the changing status of U.S. employment

The Changing U.S. Job Market Service Jobs Manufacturing & Agriculture

Employment Data 9/11/2001 terrorist attacks ▫Recession resulted in job loss through ▫Employment grew by 6 percent 2009 recession ▫Loss of more than 775,000 jobs

Employment Data 2011 wave of retirements ▫First group of baby boomers turned 65 Baby boomers- people born between ▫Average age of US workers will be over 50

Employment Data “Baby Boomers” born 1946 – 1964 are retiring 1960s = 35% of women worked 2018 = 47% of all jobs in US will be held by women

Future Increases Mini-boom of younger workers (20-30 years of age) Asian-, Hispanic-, African- American workers Women in the workforce will hold 47% of all jobs Average age of workers will be over 50 years of age

Pressures on Employees Economic stress = company downsizing ▫New tasks ▫Extra hours ▫Full time to part time ▫Wage decrease or pay freeze

Contingent Worker a person who has no explicit (exact) or implicit (implied) contract for long-term employment 5% of U.S. workforce (6 million people)

Coffee Talk Turn to your neighbor, discuss 3 ways in which U.S. employment will change over the next ten years Will any of the changes effect you? Be prepared to discuss as a class

and Employment Projections The U.S. Bureau of Labor Statistics provides many resources that are helpful in career planning. Go to and locate the Economic and Employment Projections. Identify and study tables that describe how employment is projected to change for people of your age and race and for an industry in which you might be interested in working. How can you use that information to help you make education and career decisions in the next several years?

Bell Ringer 2 Would you prefer to work for a large corporation or small business? Explain your answer.

Today’s Goals Discuss the role of businesses in the U.S. economy

Business & the Economy In 2009, businesses world-wide produced over $70 trillion in goods and services U.S. businesses are responsible for almost 20% of that production Nearly 25 million full- and part- time businesses produce these goods and services

Size of Businesses

Role of Businesses Make and distribute products and services needed by consumers, government, and other businesses

Impact on a Community Pays wages to workers Buys goods and services from local businesses Money spent may result in need for more employees in the community Employees need housing, transportation, food Employees pay taxes to community Successful businesses contribute to more jobs, income and economy in their community

Williston, North Dakota

Think Quick! Create a pneumonic that represents the role of businesses in the U.S. economy!!! E________ W_______ P________ T________ mployment ages rofits axes

1. Identify an industry you would like to study. Examples: Agriculture, Automotive, Chemicals, Construction, Consumer Goods & Services, Electrical Power, Food & Beverage, Health Care, Manufacturing, Mining & Drilling, Pharmaceuticals, Transportation & Logistics number of employees Yahoo Finance 2. Use the internet to identify the 5 largest U.S. and international businesses in that industry based on the number of employees. (you may use and Yahoo Finance to help with your research) 3. Develop a chart in Microsoft Excel to present your findings. 4. Staple the chart to the worksheet and hand in when completed.

Today’s Goals Describe three major types of businesses

6 Basic Business Activities Generating Ideas Raising Capital Employing & Training Personnel Buying Goods & Services Marketing Goods & Services Maintaining Business Records

Types of Businesses Service Businesses Intermediaries Producers

Create products and services used by individuals and other businesses

Extractor Takes resources from nature for direct consumption or developing other products

Farmer Cultivate land and use other natural resources to grow crops and raise livestock for consumption

Manufacturer Get supplies from other producers and convert them into products

Intermediaries Businesses involved in selling the goods and services of producers to consumers and other businesses Most common are retailers and wholesalers

Service Businesses Carries out activities that are consumed by its customers Over 60% of U.S. employment Examples: dentists, physicians, lawyers, pet sitters, painters, furniture movers

Service Businesses Fastest growing part of the economy

Match ‘Em Up! Producer Intermediary Service Business

Key Concepts #1-3 Make Academic Connections #4 Page 107

“The Six Living Generations in America” Read “The Six Living Generations in America” and complete the worksheet.

5-2

Today’s Goals Understand the three major forms of business ownership Determine when each form of business ownership is most appropriate Recognize other specialized business ownership forms

Business Ownership Major Forms of Business Ownership Proprietorship Partnership Corporation

1 – Proprietorship 2 – Partnership 3- Corporation 4 – Limited Liability Partnership 5 - Joint Venture 6 - S-Corporation 7 - Limited Liability Company 8 - Nonprofit Corporation 9 – Cooperative 10 - Franchise

Proprietorship Business owned and run by just one person Most common form of business Easiest form to start and end ▫Few legal requirements ▫Sole control over all business decisions Owner is responsible for all debts of the business

Partnership Business owned and controlled by two or more people who have entered into an agreement Two or more people pool money, skills, and resources, and share profit or loss Similar to proprietorship ▫Easy to start ▫Owners make decisions ▫Partners share investments and profits ▫Each partner is liable for the debt should the business fail

Corporation Separate legal entity formed by documents filed with a state Owned by one or more shareholders and managed by a board of directors More difficult to form: ▫Must meet legal requirements ▫Owners may or may not make decisions ▫No access to profits unless approved by board

U.S. BUSINESS COMPARISON BY FORM OF OWNERSHIP

Advantages & Disadvantages of Business Ownership ▫Being in control ▫Making your own decisions ▫Investing money to make a profit ▫Sole responsibility for the success of the business ▫Having to satisfy creditors ▫Making a profit

Key Concepts 5-1 & 5-2 Page 107 #1-3 Page 113 #1-4

5-3

Today’s Goals Understand the important principles in designing an effective organization

Designing an Effective Business Organization To be successful… ▫Skilled managers ▫We-prepared and motivated employees ▫Adequate resources ▫Effective procedures ▫Key principles ▫Organization

Mission Statement Short, specific written statement of the reason a business exists and what it wants to achieve District 308 Mission Statement The Mission of Oswego Community Unit Schools, a unique partnership of students, staff, families and community, is to ensure each student develops the capacity to thrive as a successful contributing citizen by providing exemplary educational experiences in a safe, caring and responsive learning environment.

Go to and view different companies’ mission statementswww.missionstatements.com 2. Complete the Mission Statement worksheet with a partner 3. Be prepared to share with the class

Goals Precise statement of results the business expects to achieve Set after mission statement Example: ▫Automobile manufacturer: “to produce the top- rated brand for quality and customer satisfaction”

What is the difference between a mission statement and a goal? Mission Statement = states the purpose of existence for a business and what it hopes to achieve Goal = specific statement of what a business expects to achieve and may be used to measure a business’ success

Policies & Procedures Policies – guidelines used in making consistent decisions Procedures – descriptions of the way work is to be done provide guidance and direction to people working in the organization

Policy

Procedure

Think of a specific task you complete regularly, such as brushing your teeth or tying your shoes. Carefully think about how you complete the task and list at least five procedures you use in the correct order they need to be completed.

Today’s Goals Compare alternative organizational structures for businesses

Principles of Effective Organization Help employees get along and get work done!

Principles of Effective Organization Responsibility – the obligation (requirement) to complete specific work Authority – the right to make decisions about how responsibilities should be accomplished Accountability – taking responsibility for the results achieved

Unity of Command Clear reporting relationship for all staff of a business Tells employees who is the leader, how decisions will be made and where to go for help

Span of Control Number of employees who are assigned to a particular work task and manager Balances supervision and freedom for workers Depends on experience, motivation and training

Span of Control

Why is it important for employees to understand the structure of the company where they work? So that they know who has authority in different areas and who is responsible for different organizational functions.

Organizational Chart Diagram that shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications

President VP of Finance Senior Accountant VP of Operations Chief Auditor VP of Marketing National Sales Manager Key Account Manager

Functional Organizational Structure Work is arranged within main business functions such as production, operations, marketing, and human resources Used by most businesses

ProductionOperationsMarketing Human Resources

Functional Organization Structure People work with others who have the same skills People become more focused on their specific function than on the success of the whole business

Matrix Organizational Structure Work is structured around specific projects, products, or customer groups People of varied backgrounds are assigned together based on their expertise for the specific project or customer May be temporary or long-term

Matrix Organizational Structure Can be interesting and motivating to employees Get to work with different people Can be confusing without effective leadership and communication

List the things you believe will contribute the most to an effective organization.

Page 118 # 4 Technology Go to and view different companies’ mission statementswww.missionstatements.com Use Microsoft Word

Chapter 5 Test Monday!!!