1. Principles of Business, Marketing, and Finance
Production, Distribution, and Other Business Operations
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2. Production Activities
Product Research
Applied Research
-studies existing products to develop design improvements or new product uses
Pure Research
-research done without a specific product in mind with the goal of discovering new solutions to problems
Product Design
-new product idea is developed into a product to sell profitably
Ask students to give examples of “new” and “improved” products. Then explain how applied research helped determine the product changes.
Ask students to briefly write about a new product that they expect to be a big hit. Then conduct class discussion about the ideas.
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3. Production Planning Process
Production Resources
-machines, tools, other equipment
Personnel
-employees with necessary skills
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Inventory Management
Detailed account of a company’s materials, supplies, and finished products
Maintains the supply of all resources needed for production and the products produced
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5. Manufacturing Procedures
Organizing the work area by type of process or assembly required
Improving Manufacturing
Need for faster production
Need for increased quality
Need for reduced costs
The U.S. has steadily changed from a production to a service society. Ask students which parts of the country have been hit hard by this transition. Then ask students how manufacturing could be revived in the U.S.
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6. Continuous Process Improvement (CPI)
Increases the quality of work by reducing errors, inefficiencies, and waste
Achieves goals by improving the quality of work
Benchmarks-best practices among all competitors
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7. Importance of Business Operation
Determines the Success or Failure of a Business
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Types of Business Operations
Facilities Management
Just-in-Time
Scheduling
Safety & Security
Logistics
Information Management
Facilities Mgmt.-buildings, energy and environmental management. Logistics-supply chain management. Just-in-time: goods arrive only when needed. Scheduling-determining activities to complete and necessary people and resources. Safety and security-protecting people and property from injuries and damages. Information management-collecting and managing necessary information.
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Types of Businesses
Producers
Extractors
Manufacturers
Intermediaries-sell goods and services of producers to consumers and other businesses
Service Business-carries out activities that are consumed by its customers
Contingent Worker-no contract for long-term employment
Ask students to list examples of actual businesses for the following categories: extractors, manufacturers, intermediaries, and service business.
Explain how contingent workers have become increasing popular in a dynamic world. Then explain how businesses save money by hiring contingent workers who do not require fringe benefits.
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10. Tools for Business Operations
Operational Plan
How work will be done
Who will do the work
What resources will be needed
Schedule-time plan for completing activities
Standard-specific measurement against which an activity or result is judged
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Product Planning
Product-everything a business offers to satisfy a customer’s needs
Basic product
Product features-additions and improvements to the basic product
Options-customers are offered choices of features
Brand name-unique identification
Packaging-provides protection and security for the product
Guarantee or warranty-builds customer confidence
Fast food restaurants frequently test market new products in different geographic regions before making decisions to implement new products nationwide. Brand names carry customer expectations
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12. Product Planning Procedures
Idea Development
Idea Screening
Strategy Development
Production and Financial Planning
Limited Production and Test Marketing
Full-scale Production
Ask students to give examples of limited production items and test marketing
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13. Survey Says Assignment:
Select a product that is popular with your age group that you would like to start a business with.
Then prepare a five-question (non-leading questions) survey to determine feelings about the strengths and weaknesses of the product and possible ways the product could be improved.
Ex: What cell phone brand do you prefer and why?
Ex: If you could change one thing about your current cell phone it would be?
The survey should be typed and printed in class on Monday and given to at least 10 students.
Survey results will be turned in on Tuesday.
Ask students to give examples of limited production items and test marketing
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