1. Business Copyright 2005 Prentice- Hall, Inc. 6-1

2. 1-2 Session #6 Managing The Business EnterpriseManaging The Business Enterprise  Business Introduction - Teaching Team  Business and Management Department  Faculty of Economics UNPAD

3. Business Copyright 2005 Prentice- Hall, Inc. 6-3 Who Are Managers? All Organizations Require Effective ManagersAll Organizations Require Effective Managers All Managers Perform The Same Basic FunctionsAll Managers Perform The Same Basic Functions –Plan –Organize –Direct –Control

4. Business Copyright 2005 Prentice- Hall, Inc. 6-4 Management Process Planning Organizing Directing Controlling

5. Business Copyright 2005 Prentice- Hall, Inc. 6-5 Planning- Types of Strategy CorporateCorporate Business/CompetitiveBusiness/Competitive FunctionalFunctional

6. Business Copyright 2005 Prentice- Hall, Inc. 6-6 Reasons For Goals Direction/GuidanceDirection/Guidance Resource AllocationResource Allocation Define Corporate CultureDefine Corporate Culture Assess PerformanceAssess Performance

7. Business Copyright 2005 Prentice- Hall, Inc. 6-7 Kinds Of Goals Mission Statement – Why Organization Exists & How It Will OperateMission Statement – Why Organization Exists & How It Will Operate Long-Term = 5 Years +Long-Term = 5 Years + Intermediate = 1 - 5 YearsIntermediate = 1 - 5 Years Short-Term = Less Than 1 YearShort-Term = Less Than 1 Year

8. Business Copyright 2005 Prentice- Hall, Inc. 6-8 Strategy Formulation

9. Business Copyright 2005 Prentice- Hall, Inc. 6-9 Formulating Strategy Define & Meet Organization’s GoalsDefine & Meet Organization’s Goals Strategic GoalsStrategic Goals StrengthsStrengths Weaknesses Weaknesses Opportunities Opportunities Threats Threats Environmental AnalysisEnvironmental Analysis Organizational AnalysisOrganizational Analysis

10. Business Copyright 2005 Prentice- Hall, Inc. 6-10 Analysis Environmental Analysis Organizational Analysis

11. Business Copyright 2005 Prentice- Hall, Inc. 6-11 Planning Levels Operational Tactical Strategic

12. Business Copyright 2005 Prentice- Hall, Inc. 6-12 Control Process

13. Business Copyright 2005 Prentice- Hall, Inc. 6-13 Management Pyramid Top Middle First-Line

14. Business Copyright 2005 Prentice- Hall, Inc. 6-14 Areas Of Management  Human Resources- Hire/Train  Operations- Systems  Marketing- Get Products & Services From Producer To Consumer  Information- Gather, Organize, & Distribute Information  Financial- Accounting & Finance  Other

15. Business ORGANIZING THE BUSINESS ENTERPRISE Copyright 2005 Prentice- Hall, Inc. 6-15

16. Business Copyright 2005 Prentice- Hall, Inc. 7-16 Determinants Of Organization PurposePurpose MissionMission StrategyStrategy

17. Business Copyright 2005 Prentice- Hall, Inc. 7-17 Organization Chart

18. Business Copyright 2005 Prentice- Hall, Inc. 7-18 Chain Of Command CEO Division V.P. StoreManager DepartmentSupervisor FrontlineEmployee

19. Business Copyright 2005 Prentice- Hall, Inc. 7-19 Building Blocks Of Structure Specialization- Specific Jobs To Specific PeopleSpecialization- Specific Jobs To Specific People DepartmentalizationDepartmentalization –Group Jobs In Logical Units –Profit Center

20. Business Copyright 2005 Prentice- Hall, Inc. 7-20 Types Of Departmentalization CustomerCustomer ProductProduct ProcessProcess GeographicGeographic FunctionalFunctional

21. Business Copyright 2005 Prentice- Hall, Inc. 7-21 Customer Departmentalization Big Box Retail Men’sDepartmentWomen’sDepartmentLuggageDepartment

22. Business Copyright 2005 Prentice- Hall, Inc. 7-22 Product Departmentalization LucentTechnology WirelessCommunicationOpticalNetworking

23. Business Copyright 2005 Prentice- Hall, Inc. 7-23 Process Departmentalization VlasicPickles Fresh-PackedBrine-CuredRelishes

24. Business Copyright 2005 Prentice- Hall, Inc. 7-24 Geographic Departmentalization LeviStrauss U.S.EuropeAsiaPacific

25. Business Copyright 2005 Prentice- Hall, Inc. 7-25 Functional Departmentalization SmallBusiness ProductionMarketing&SalesHumanResourcesAccounting&Finance

26. Business Copyright 2005 Prentice- Hall, Inc. 7-26 Multiple Forms Of Departmentalization

27. Business Copyright 2005 Prentice- Hall, Inc. 7-27 Hierarchy For Decisions Assign TasksAssign Tasks –Responsibility –Authority Perform TasksPerform Tasks –Delegation –Accountability Distribute AuthorityDistribute Authority

28. Business Copyright 2005 Prentice- Hall, Inc. 7-28 Small Business Delegation Fear oEmployee Can’t Do As Well oSomething Will Go Wrong oNo Long-Range Plan oNot Up-To-Date On Industry Trends & Competitive Products

29. Business Copyright 2005 Prentice- Hall, Inc. 7-29 Big Business Delegation Fear oSubordinate Doesn’t Know Job oSubordinate “Show Manager Up” oDesire To Retain Control oInability To Effectively Delegate