Intro to Business 101

1
Intro to Business 101

• Welcome

2
Intro to Business

• Im Paul Brennan
• Responsible Learner
• Class Goals
• Terms
• Functions of a business
• Create your own business
• Get a taste for business

3
Syllabus

• INTRODUCTION TO BUSINESS
• BA 101
• Spring 2006
• __________________________________________________
  _______________________________
• Instructor Paul Brennan, MBA
  Office M/W 8 - 10
• 
  
• Office N/a
  Telephone N/A
• Class Location SBA 490
  E-mail PaulB_at_sba.pdx.edu
• ACCESSIBILITY STATEMENT I can most easily be
  contacted before or after class. I purposefully
  give breaks so you can speak with me one on one
  during class time if needed. I also respond to
  email on a regular basis.
• CATALOG DESCRIPTION
• Introduction to the business firm operating in
  the local, national, and global marketplace.
  Emphasizes the integration of the various
  functional areas of business as the firm evolves
  from its entrepreneurial origins to a mature
  corporation.

4
Syllabus

• LEARNING OBJECTIVES
• The creation and organization of a business
• Basic vocabulary and understanding of each
  functional area within a business
• (marketing, finance, accounting, production,
  distribution, and human resources)
• The relationship among these functional areas
• Team building and small group development and
• The global dimensions of business.
• REQUIRED READING Introduction to Business by
  Jeff Madura 3rd Edition
• 
  (South Western College Publishing, 2003)

5
Syllabus

• Class will start and end promptly at the
  scheduled times. Class participants are
  responsible for all material covered in the book
  and discussed or presented in class either
  through lecture, video, activities or guest
  speakers. Lectures will cover concepts presented
  in the book and applications discussed in class.
• Class participants are expected to maintain a
  high level of academic honesty and interaction.
  Cheating or plagiarism will be dealt with
  severely. ACADEMIC HONESTY IS A REQUIREMENT FOR
  PASSING THIS COURSE.

6
Syllabus

• COURSE REQUIREMENTS
• QUIZZES A five point daily quiz will be given.
  The quiz will cover each assigned chapter for
  class on that day. There will be NO MAKE UP
  QUIZZES
• EXTRA CREDIT Extra credit is intended to
  smooth the bumps in the road of life. You may
  have group problems, attendance issues, or test
  anxiety. I would highly recommend taking
  advantage of the EC opportunity. You can earn an
  additional five points extra credit for attending
  a SBA student organization meeting
  (www.sba..pdx.edu/resources/organizations/). You
  can also earn an extra five points for having
  PERFECT CLASS ATTENDANCE.. Perfect (not late, no
  absences regardless of excused edness)
  attendance. I will also offer papers which can
  be written for 5 points extra credit, ask me.

7
Syllabus

• EXAMS Three exams will each cover 1/3 of the
  course material (required reading, lecture
  material, activities, videos, speakers and
  handouts). Each test will be multiple choice and
  worth up to 50 points (NON COMPREHENSIVE).
• TEAM BUSINESS PLAN Each student will be
  assigned to teams of approximately six people.
  Each group will be responsible for preparation of
  a business plan (outlined on Business Plan
  Project handout). The plan will be graded in
  total (100 points) and in rough draft sections
  (10 points) approximately every two weeks. The
  business plan will integrate the chapters covered
  in our text and is designed to give students a
  hands on experience with business development.

8
Syllabus

• TEAM PRESENTATION Group will present a brief
  overview of their plan (5-7 minute) investor
  PITCH to the class (10 points). The class will
  determine whether or not to fund the business
  (10 points). Presentations will be our final
  exam.
• TEAM PARTICIPATION During each class session
  teams will meet to discuss their business plan,
  cases, and discussion activities. Team members
  will submit evaluations with each draft and with
  the completed business plan. These evaluations
  will be averaged for a total of up to 40 points.
  

9
Syllabus

• GRADING
• Quizzes 65 PTS.
• Rough Drafts (10 Pts Each) 30 PTS
• Business Plan (Final Draft) 100 PTS
• Group Evals 40
  PTS
• Exams (50 Pts Each) 150 PTS
• Presentation 20
  PTS
• TOTAL POSSIBLE POINTS 405 PTS

10
Syllabus

• Grading will be based on straight percentage of
  points (90 A, 80 B, 70 C, 60 D and F for
  below), s and -s also will be reflective of
  point percentage (87 B, 83B, 80B-
  etc.). If you choose to discontinue attending
  class, you must formally drop or (as per
  University policy) you will receive the grade
  reflected by your point total.
• Thanks for taking the class, please ask me for
  further information as needed.
• I am looking forward to spending the term
  learning with you!

11
Today - Learning Goals

• Define a business
• Identify key business stakeholders.
• Describe key business functions.
• Explain how to develop a business plan.

12
Business Defined

• A business is an enterprise that provides
  products or services desired by customers.

13
Key Business Decisions

• Product
• What type of product should be produced?
• Production
• How should the product be produced?
• Promotion
• How should the product be promoted?
• Financing
• How should the company obtain funds to finance
  the cost of producing the product?

14
Business Decisions
15
Key Stakeholders

• Owners
• Entrepreneurs
• Co-owners
• Stockholders
• Creditors
• Employees
• Managers
• Suppliers
• Customers

16
Creating a Business Idea

• Identify a competitive advantage.
• Differentiate the product or service from
  competitors.
• Determine necessary resources.
• Assess feasibility of the idea.

17
business online
18
Success Stories

• Dominos Pizza
• Managhans bought bankrupt pizza parlor
• Started with little funding
• Now generates sales of 1 billion per year
• Jeremys Micro Batch Ice Cream
• Applied microbrewery concept to ice cream
• Makes ice cream in small batches, sold in limited
  editions
• Glow Dog, Inc.
• Sells light-reflective clothing for pets
• After two years, average annual sales of 1
  million

19
Lessons to Remember

• Successful businesses do not require a great
  invention.
• Many focus on making life more convenient for
  customers.
• Some business ideas will failbut entrepreneurs
  can learn from failures and make revisions.

20
Key Functions of Business

• Management
• Means by which employees and other resources are
  used by the firm
• Marketing
• Means by which products and services are
  developed, priced, distributed, and promoted to
  customers
• Finance
• Means by which firms obtain and use funds for
  their business operations

21
Key Functions of Business

• Accounting
• Summary and analysis of the firms financial
  condition
• Used to make various business decisions
• Information systems
• Information technology, people, and procedures
  that provide appropriate information to make
  effective decisions

22
How Business Decisions Affect a Firms Earnings
Exhibit 1.4
23
Developing a Business Plan

• Assess the Business Environment
• Economic environment
• Industry environment
• Global environment
• Develop Management Plan
• Organizational Structure
• Production
• Human Resources

24
Developing a Business Plan

• Marketing Plan
• Target Market
• Product Characteristics
• Pricing
• Distribution
• Promotion
• Financial Plan
• Financing
• Feasibility

25
Online Resources

• Advice and basic information
• Yahoos Small Business site
• American Express
• Small Business Administration
• Financing Options
• Quicken Small Business
• Garage.com
• The Elevator
• Business Planning Software

26
Assessing a Business Plan

• Potential revenue
• Potential demand for product or service
• Potential expenses
• Profit potential

27
Assignment

• Read Chapters 1 and 2
• Complete the In-Text Study Guide for both chapters