1. T HE MOT AND V ENTURE B USINESS Prof. Takao Ito, Doctor of Economics, PH.D. of Engineering, Graduate School of Engineering, Hiroshima University Thursday, October 16, 2014

2. T OPIC 2 B ASIC C ONCEPTS OF C ORPORATE M ANAGEMENT 1)Innovation the introduction of new goods and services 2)Quality the excellence of your goods

3. 3)Speed Fast and timely execution, response, and delivery of results 4)Cost competitiveness Keeping costs low in order to achieve profits and be able to offer prices that are attractive to customers

4. THREE USEFUL SKILLS 1)Technical skills The ability to perform a specialized involving a particular method or process 2)Conceptual and decision skills Skills pertaining to the ability and resolve problems for the benefit of the organization and its members

5. 3)Interpersonal and communication skills People skills; the ability to lead motivated, and communicate effectively with others Emotional intelligence The skills of understanding yourself, managing yourself, and dealing effectively with others

6. THREE LAYERS IN CORPORATION Frontline Managers Middle-level Managers Top-level Mangers Changin g roles from operational implementers to aggressive entrepreneurs from administrative controllers to supportive coaches from resource allocators to institutional leaders Key activities creating and pursuing new growth opportunities for the business developing individuals and supporting their activities establishing high performance standards attracting and developing resources linking dispersed knowledge and skills across units institutionalizing a set of norms and values to support cooperation and trust managing continuous performance improvement within the unit managing the tension between short-term performance and long-term ambition creating an overarching corporate purpose an ambition

7. DEVELOP YOUR CAREER 1)Be both a Specialist and Generalist 2)Be self reliant 3)Be connected 4)Be active to manage your relation with your organization 5)Be survive and thrive

8. Raw materials Human resources Energy Financial resources Information equipment Organization Transformation process Goods and Services inputsoutputs INPUT AND OUTPUT

9. EFFICIENT AND EFFECTIVENESS Productivity Legislation

10. LEGISLATION Corporate social Responsibility: Obligation toward society assumed by business

11. A SIMPLE CASE Rental fee for copy machine : 100,000 Japanese Yen The cost of each page : 15 Japanese Yen (including paper, electricity fee etc.) Two departments A and B in your company use this copy machine together. The volume of Department A: 3,000 pcs The volume of Department B: 2,000 pcs Calculate the amount of payment of department A and B

12. COST PER EACH PAGE The average pages: 5,000 pcs Cost of each month for 5,000 pcs  Then, cost of each page

13. piece Total cost 100,000

14. ANSWER Payment of Department A:70,000 Payment of Department B: 105,000 Other way for the payment?

15. BENEFIT OR LOSS? The copy machine has some trouble things in company X. Company X has to copy 1,000 pages. They will pay 30 Japanese yen for each page. You will gain profit or you will lose if Company X use your copy machine and pay 30 Japanese Yen for each page?

16. ANSWER You may refuse because the total cost of each page is 35 Japanese Yen, larger than 30 Japanese Yen? Or you will gain? The variable cost is only 15 Japanese Yen, less than 30 Japanese Yen. Total profit is 15,000 Japanese Yen.

17. TO THINK ABOUT…… What is the new things you learn from the case?

18. K EY C ONCEPTS OF C ORPORATE M ANAGEMENT efficiency: A measure of how well or how productively resources are used to achieve a goal.  effectiveness: A measure of the appropriateness of the goals an organization is pursuing and of the degree to which the organization achieves those goal.

19. Low efficiency/High effectiveness: Manager choose the right goals to pursue, but does a poor job of using resources to achieve these goal. Results: A product that customers want, but that is too expensive for them to buy. High efficiency/High effectiveness Manager chooses the right goals to pursue and makes good use of resources to achieve these goals. Results: A product that customers want at a quality and price that they can afford. Low efficiency/Low effectiveness Manager choose wrong goals to pursue and makes poor use of resources. Results: A low-quality product that customers do not want. High efficiency/Low effectiveness Manager chooses inappropriate goals, but makes good use of resources to pursue these goals. Results: A high-quality product That customers do not want. R ELATIONSHIP BETWEEN EFFICIENCY AND EFFECTIVENESS

20. Low efficiency/High effectiveness: Manager choose the right goals to pursue, but does a poor job of using resources to achieve these goal. Results: A product that customers want, but that is too expensive for them to buy. E FFICIENCY AND EFFECTIVENESS

21. Low efficiency/Low effectiveness: Manager choose wrong goals to pursue and makes poor use of resources. Results: A low-quality product that customers do not want. E FFICIENCY AND EFFECTIVENESS

22. High efficiency/Low effectiveness: Manager chooses inappropriate goals, but makes good use of resources to pursue these goals. Results: A high-quality product that customers do not want. E FFICIENCY AND EFFECTIVENESS

23. High efficiency/High effectiveness: Manager chooses the right goals to pursue and makes good use of resources to achieve these goals. Results: A product that customers want at a quality and price that they can afford. E FFICIENCY AND EFFECTIVENESS

24. SOME IMPORTANT FIGURES Fredric W. Taylor （ 1856 ～ 1915 ） H. Fayol （ 1841-1925 ）

25. DEFINITION OF MANAGEMENT Management is the attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources.

26. M ANAGEMENT F UNCTIONS Resources *Human *Financial *Raw materials *Technological *Information Performance *Attain goals *Products *Services *Efficiency *Effectiveness Controlling Monitor activities and make corrections Planning Select goals and ways to attain them Organizing Assign responsibility for task accomplishment Leading Use influence to motivate employees

27. D ECISION MAKING

28. THE STAGES OF DECISION MAKING Identifying and diagnosing the problem Evaluating alternatives Generating alternative solutions Making the choices Implementing the decision Evaluating the decision

29. BOUNDED RATIONALITY Classical model: a decision- making model based on the assumption that managers should make logical decisions that will be in the organization’s best economic interests.

30. BOUNDED RATIONALITY Administrative model: a decision-making model that describes how managers actually make decisions in situations characterized by non-programmed decisions, uncertainty, and ambiguity.

31. BOUNDED RATIONALITY The concept that people have the time and cognitive ability to process only a limited amount of information on which to base decisions. Satisfaction: to choose the first solution alternative that satisfies minimal decision criteria regardless of whether better solutions are presumed to exist.

32. ILLUSIONS

35. MY WIFE AND MY MOTHER–IN-LAW

36. PROSPECT THEORY A theory that people value gains and losses differently and, as such, will base decisions on perceived gains rather than perceived losses. Thus, if a person were given two equal choices, one expressed in terms of possible gains and the other in possible losses, people would choose the former.

37. EXAMPLE Expectation value is same 90 A case: E(x)=0.9*100=90 B case: E(x)=0.1*900=90

38. THANK YOU FOR YOUR ATTENTION!