1. 1 CHAPTER 5 Managing the Business Enterprise Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

2. Setting Goals and Formulating ( يصيغ ) Strategy Goal ( هدف ) Objective that a business hopes and plans to achieve. Goals are performance targets ( أهداف الأداء )—the means by which organizations and their managers measure success or failure at every level. Strategy ( إستراتيجية ) Broad (large) program underlying decision making process ( عملية صنع القرار )to assist managers in achieving company goals 2 Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

3. 3 Purposes of setting Goals (1) We have four main purposes in organizational goal setting: 1.Goal setting provides direction and guidance ( إرشاد ) for managers at all levels. (example: increasing sales by 2% will clearly inform everyone to find new customers or improve current customers sales.) 2.Goals setting helps firms allocate resources( ثروة ) ( يخصص ). (example: the company allocates more resources to new projects with large sales potential ( المحتملة ), and less resources for weak sales potential.) Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

4. 4 Purposes of setting Goals (2) 3. Goal setting helps to define corporate culture ( تثقيف ). example: GE goal is to push each of its divisions (electrical goods, financial services, aircraft unit…etc) to become the 1 st or 2 nd in its industry. this results in a competitive and stressful environment (corporate culture) in that organization. 4.Goal setting helps managers assess performance ( يحدد مقدار ضريبة ). (if a unit sets a goal of increasing sales by 10% in a given year, managers in that unit who achieve this goal can be rewarded.) Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

5. Kinds of Goals Goals differ from company to company, depending on the firm’s purpose and mission. Every enterprise has a purpose, or a reason for being. Businesses seek profits, universities seek to discover and transmit new knowledge, and government agencies seek to set and enforce public policy (law) Mission Statement Organization’s statement of how it will achieve its purpose in the environment in which it conducts its business. 5 Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

6. Kinds of Goals Long-term Goals Goals set for an extended time, typically 5 years or more into the future Intermediate Goals Goals set for a period of 1 to 5 years into the future Short-term Goals Goals set for the very near future, typically less than 1 year Regardless of a company’s purpose and mission, every firm has: 6 Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

7. 7 Contingency planning and crisis management (1). Business environments are often difficult to predict ( يتنبأ ). Most managers recognize that even best plans sometimes simply do not work. Therefore managers develop alternative ( البديل ) plans in case things go wrong. Two common methods of dealing with the unknown ( غير معروف ) and unforeseen are: contingency planning and crisis management. Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

8. 8 Contingency planning and crisis management (2). 1.Contingency planning ( التخطيط لحالات الطوارئ ) : Identifying aspects of a business or its environment that might entail (involve) changes in strategy. 2.Crisis Management ( أدارة الكوارث ) : Organization’s methods for dealing with emergencies. ( Example: www.filterfresh.com, September 11 th, one extra hour because of increased security, employed 24 new people. )www.filterfresh.com Crises is an unexpected emergency requiring immediate response. Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

9. Management is the process of planning, organizing, directing, and controlling an organization’s financial, physical, human, and information resources to achieve its goals. Planning ( يرسم خطة ) what an organization needs to do and how to get it done Organizing ( يؤسس ) how best to arrange an organization’s resources and activities into a coherent ( مترابط منطقيا ً ) structure Directing ( يوجه ) guiding and motivating ( يحث )employees to meet an organization’s objectives Controlling ( يضبط ) monitoring an organization’s performance to ensure that it is meeting its goals The Management Process 9 Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

10. Types of Managers Top Managers Managers responsible ( مسؤول ) to the board of directors and stockholders for a firm’s overall performance and effectiveness. (e.g. president, CEO, CFO) they set general policies, formulate strategies, approve the important decisions, and represent the company in dealing with other businesses or government bodies. Middle Managers Managers responsible for implementing the strategies, policies, and decisions made by top managers. (Plant manager, operations manager, division manager). If top manager decide to cut the cost by a 5%, the middle manager must decide how to do meet this goal. First-line Managers Managers responsible for supervising the work of employees. (such as Supervisor, office managers, group leader). 10 Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

11. 11 Levels of Management Top manager Middle Manager First-Line Manager Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

12. 12 Areas of Management (1)  Human resource managers ( مدراء الموارد البشريه ): hire and train employees, evaluate performance, and determine compensation (salaries and wages).  Operations managers ( مديري العمليات ) : responsible for production, inventory, and quality control ( الانتاج ، المخزون ، ومراقبة الجوده ). Manufacturing companies usually needs operation managers such as Ford.  Marketing managers ( مدراء التسويق ) : responsible for getting products from producers to consumers, they are responsible for developing pricing, promotions, and distribution for the products. Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

13. 13 Areas of Management (2)  Information Managers ( مديري المعلومات ): they design and implement systems to gather, organize, and distribute information. this is due to the increase in the volume of information and the ability to manage it.  Financial Managers ( المديرين الماليين ): almost every company has a financial manager to plan and oversee its accounting functions and financial resources.  Other Specialized Managers: some companies need specialized managers, like public relation managers, research and development managers.. Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

14. 14 Basic Management Skills (1)  Technical Skills: ( الحرف التقنيه )skills needed to perform specialized tasks. (example: a programmer’s ability to program. people develop these skills through experience and education, these skills are important for first- line managers since they need to help the employees.)  Human Relations Skills: skills in understanding and getting along التآلف ))with people.( mostly important for middle level managers, these are the communications skills, and the ability to understand employees and make them understand you. managers must care about the welfare of his employee.) Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

15. 15 Basic Management Skills (2)  Conceptual Skills:( الحرف الذهنيه )abilities to think in abstract ( مجردة ), diagnose and analyze ( تشخيص وتحليل ) different situation, and see beyond the present situation. (these skills are needed in almost any job-related activity, and are more required as the level of management increase, it is the managers ability to analyze the probable outcome of their decisions. The ability to foresee the future prospect of a business aspect.) Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

16. 16 Basic Management Skills (3)  Time Management Skills: skills associated with the productive use of time. (manager’s time is valuable, and poor use of it translates into cost and wasted productivity. Some manager get paid high salaries, wasting their time means wasting the stockholders money. The four leading causes of wasted time: 1.Paperwork: mangers must organize their documents. 2.Telephone: managers get interrupted by phone calls, an assistant must screen these calls to priorities. 3.Meetings: meetings must have agenda, start on time, and keep everyone focused on the agenda, and end on time. 4.E-Mail: Managers depend on emails, it need sorting according to its importance too. Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

17. 5.4: Basic Management Skills (4) Decision-Making Skills ( مهارات صنع القرار ): are the skills in defining problems and selecting the best courses of action. Decision-Making Skills steps 1.Define the problem( تحديد المشكلة ), gather the facts, and identify alternative solutions. 2.Evaluate each alternative( تقييم كل بديل ) and select the best one. 3.Implement the chosen alternative( تنفيذ البديل المختار ), periodically following up and evaluating the effectiveness of that choice. 17 Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall

18. Porsche decision making steps 1.Porsche define their problem, they are losing their market share. they developed alternatives: selling their business to larger company of their choice, or growing their business larger to ensure independency 2.They evaluate the alternative, and preferred the option of grow instead. 3.Implementing the chosen decision was to introduce new product (SUV/4WD) into this high- growth market. 18 Reference: Ebert & Griffin (2007). "Business Essentials" Pearson, Prentice Hall