What is Business? Definition of Business: A business is an organisation that exists to provide goods and service on a commercial basis to customers. 企業是一個以商業為基礎向客戶提供商品和服務的組織 Example of goods(physical實物 products): consumer electronics消費類電子產品, industrial components工業部件, cars, etc. Example of service(intangible無形 products): insurance, dental services牙科服務, cleaning, etc. Benefits of business: - Create employment & develop human capital 創造就業機會，發展人力資本 - Drive innovation through R&D and new products 通過研發新產品推動創新 - Pay taxes on profits earned & collect taxes for Govt. 對所賺取的利潤納稅並為政府徵稅。 - Create wealth by providing returns on investment 通過提供投資回報創造財富 Start-up啟動: A start-up is a new business enterprise企業, formed by one or more entrepreneurs企業家. The Role of the Entrepreneur - Spot business opportunities發現商機 - Takes (calculated) risks in order to gain possible future returns 計算風險以獲得未知的回報 - Acts a catalyst for the creation & growth of new business enterprises 為新企業的創建和發展提供催化劑 The transformation process of business: Inputs輸入(Material) → Transformation Process轉型過程 → Outputs輸出(product) *The transformation process describes what happens inside the business.This is where value is added to inputs to create outputs。 主要輸入Key Inputs: Land土地, Labour勞工, Capital資本, Enterprise企業 Outputs(the main business sectors): Sector Description Examples Primary Extraction of natural resources 初級 提取自然資源 Secondary Production of finished goods and components Manufacturing製造業, food processing食品加工, 生產成品及組件 component assembly裝配組件, raw material 第二級 Mining採礦, farming, energy extraction能源開採 processing原始材料加工 Tertiary 第三級 Providing services to consumers and businesses 給顧客及企業提供服務 Quaternary Providing information & ICT 第四級 提供資料及信息及通訊技術 Personal services (e.g. beauticians), retailing零 售, household franchises家庭特許經營 Software development軟件開發, financial services, data processing數據處理 The relationship between missions and objectives: Aims ↗ Mission→Core values核心價值 ↘ Objectives Mission使命: A qualitative statement of the business’s aims 對企業目標的一種定性陳述 Aim: A long term plan from which business objectives are derived 制訂業務目標的長期計劃 Objective: - A target which must be achieved in order to realise the stated aim 為實現既定目標而必須達到的目標 - A time assigned targets derived from the goals and set in advance of strategy 在設定的時間內實現目標戰略 Business objectives? - Is the specific intended outcomes of business strategy 商業目標是業務戰略的具體預期結果 - Is the anticipated end results of a programme of activities 商業目標是活動計劃的預期最終結果 - Is the targets that the business adopts in order to achieve its primary aims 商業目標是企業為實現其主要目標而採用的目標 Main functions of objectives: - A clear statement of what needs to be achieved 明確說明需要實現的目標 - A focus for all activity 所有活動的重點 - Targets for individual and group achievement 個人和團體成就的目標 - A means of measuring performance衡量績效的一種方法 How objectives can be used: - Implement the mission 執行使命 - Provide a clear focus for decision making 為決策提供明確的重點 - Provide a target提供目標 - Motivate employees激勵員工 - Facilitate control of actual performance便於控制實際表現 - Provide a criteria for evaluating performance提供評估績效的標準 - Reduce uncertainty減少不確定性 - Provide a sense of unity提供團結感 Hierarchy: Increasingly strategic: Individual→Team→Functional→Corporate/strategic→Mission 越後越有戰略性 Increasingly detailed: Mission→Corporate/ Strategic→Functional→Team→Individual 越後越仔細 How the hierarchy works: - The objectives cascade down from the mission getting progressively more specific. *mission越具體objectives一直傳下去 - Overall objectives are translated into more specific objectives for different parts of the business.總體目標被轉化為針對不同業務部門的更具體目標。 - The hierarchy ensures that at each level the objectives are consistent with the objectives that are above them in the hierarchy. *Hierarchy確保在每個級別上目標與hierarchy中的目標一致。 *Corporate objectives are often stated in terms of profit(value, margin), return on investment(ROCE), growth(profit, earnings per share), market share, cash flow, sales revenue, shareholder value and corporate image & reputation *Functional objectives(servant) are there to serve the corporate objectives(master) Corporate objectives > Functional objectives F. is a type of C C凌駕在F之上 Examples of Relationship between Corporate and Functional Objectives: Corporate Objective Example Functional Objective Increase sales Successfully launch five new products in the next two years (marketing ) Reduce costs Increase factory productivity by 10% by 2018 (operations) Increase cash flow Reduce the average time taken by customers to pay invoices from 75 to 60 days (finance) Improve customer satisfaction Achieve a 95% level of high customer service (people) *Ideally, Business objectives should be SMART: acronym helps management set effective objectives) S: Specific - The objective should state exactly what is to be achieved M: Measurable - An objective should be capable of measurement - so that it is possible to determine whether (or how far) it has been achieved A: Achievable - The objective should be realistic given the circumstances in which it is set and the resources available to the business R: Relevant - Objectives should be relevant to the people responsible for achieving them T: Time Round - objectives should be set with a flame in mind. These deadlines also needs to be realistic. *Business objectives 需要具體，可衡量，可實現，人員分配要相關，要準時 (截止日期恰當) Factors that can influence business objectives: - Age of the business 公司年齡 - Size and legal status 公司size (細中大)及是否合法 - Ownership 公司所有權（股東多與少） - Views of owners and managers 老闆和經理的意見 - Market conditions 市場情況 - Legislation 法律 - State of the economy 經濟狀況 - Competition 競爭 - Risk and attitude to risk 一切風險 - Corporate culture 企業文化 - Political factors 政治因素 - Social attitudes 社會態度 Strategic objectives戰略目標: Tactical objectives戰術目標: - Focused on long-term長期 - Focused on short-term短期 - Set by the board不變 - Set by line management - Involved higher risk & - Relatively low-risk uncertainty充滿不肯定及高 較少風險 VS 風險 - Likely to involve significant investments/ business resources - Limited resources invested 有投放資源限制 比較多重大投資 - Stretching & challenging - 較有彈性及挑戰性 - Difficult to change in the short-term 很難臨時轉換成短期 Realistic & achievable 較現實及可達成的 - Relatively easy to change at minor financial cost 由於財務成本較少（涉及金錢較少 ）所以相對容易改變 戰術o是戰略o的具體化，為達到戰略o而建立的 The mission statement is the overriding goal of the business, the reason for its existence, a strategic perspective and a vision for the future. 使命宣言是企業的首要目標，其存在的原因，戰略視角和未來願景 How to make a good mission: - Contains a formulation of objectives that enables progress towards them to be measured 足夠的objectives以follow他們的進展 - Differentiates the business from its competitors 區分公司與競爭對手 - Defines the markets or business in which the firm wants to operate 定義公司想要經營的市場或業務 - Is relevant to all major stakeholders - not just shareholders and managers mission需要與所有主要利益相關者相關 - 不僅僅是股東和經理 - - Excites, inspires, motivates & guides 要有動力 Common criticisms of mission statements (problems): - Not always supported by actions of the business 經常不受公司行動支持 - Often too vague and general 經常太模糊和籠統 - Often merely statements of the obvious 表面陳述是不足夠的 (要更仔細) - Often seen as a PR exercises 總被視為公關陳述 - Sometimes regarded cynically by staff 有時職員會不把他當成一回事 - Sometimes not a true reflection of reality 有時不夠現實 - To mean anything they must be supported wholeheartedly by senior management 高層要更重視