Bell Ringer Activities For Business Management and Administration Cluster Instructional Area: Communication Skills Explain the components of an analytical report. The purpose of an analytical report is to scrutinize the different components of the subject being studied. Analytical reports can take different focuses such as: statistical, comparative, explanative or evaluative. In doing so, the researcher may seek to answer questions regarding which product is better or offer an explanation for why something happened or whether something is a good proposal. An analytical report should contain a preview or overview of the contents that will follow in the document. The body of the report should provide a detailed itemization of the topic being discussed, so that a reader that is unfamiliar with the topic will have a full understanding of the topic after reading the text. Source: Analytical Reports. Retrieved September 7, 2010 from http://wps.ablongman.com/long_lannon_techcomm_9/6/1620/414762.cw/index.html What is the purpose of a research report? A research report intends to provide the reader with the results of study while also incorporating the writer’s own interpretation, argument and thoughts. One key point, finding or relationship should be the main focus of the paper and should be summed into one sentence—the thesis. The researcher should research and analyze the knowledge garnered from the scholarly journals, books and peer-reviewed articles and used the information to structure a report in affirmation or negation of the thesis. The different sections of the paper should provide adequate detail about the research topic so that the reader has an understanding of the topic and the point that the researcher is wishing to argue or supplement. Source: How to Write a Scholarly Research Report. (1999) Retrieved September 7, 2010 from http://pareonline.net/getvn.asp?v=6&n=13 Instructional Area: Economics Describe the nature of business customs and practices in the North American market. Federal and state governments regulate the North American business market. An American entrepreneur must be sure to be well educated on the specificities of each state to comply with the standards expected for that jurisdiction. Males predominantly lead the business industry, however, women are more commonly maintaining a reputable presence in major corporations. The North American business culture is focused on the “time is money” mentality therefore;; punctuality, dependability and the recognition of hard work are essential. Source: United States of America. Retrieved September 7, 2010 from http://www.cyborlink.com/besite/us.htm Explain the nature of business customs and practices in Europe. The demeanor, manners and dress are more important to Europeans than Americans. The look and representation of a business or icon is held in high importance to Europeans. Customarily a handshake is initiated before and after each business meeting regardless of the number of times you have met with a company or partner. Further, one is expected to address professors, medical doctors and lawyers by respective formal titles. The establishment of personal relationships in Europe is a mechanism that helps their market thrive. Source: Business Etiquette in Europe. Retrieved September 7, 2010 from http://www.pasadenaisd.org/rayburn/Clubs/BPA/contest/europe.html Explain the nature of business customs and practices in Latin America. Business culture in Latin America is a hybrid of globalization and strong cultural values. Latin American businesses function like a family and subordinates prefer to trust those that are closet to the center of the organization and that can provide them with their needs than others that may lead to quarrels or confusion. Like Europeans, Latin Americans expect to be treated cordially and respectfully at work. Ethnic group loyalty and celebrations of religious events are important within the workplace, which contributes to the hybrid style of business. Source: How culture affects work practices in Latin America . (2005) Retrieved September 7, 2010 from http://www.wharton.universia.net/index.cfm?fa=viewArticle&id=901&language=english Describe the nature of business customs and practices in the Pacific Rim. Business practices in the Pacific Rim have a myriad of different factors that impact industry practices such as trade agreement and trade issues among different countries. Sorting through such issues can be burdensome and highly complicated. Recognizing key factors: culturally, politically, economically and legally dictate how commerce is conducted in this region. Differentiation within the region constantly creates an arena that needs assessment and evaluation to maintain civility among the countries and to ensure economic growth. Source: Cross Cultural Literacy and the Pacific Rim. (1989) Retrieved September 7, 2010 from http://findarticles.com/p/articles/mi_m1038/is_n2_v32/ai_7572189/ Discuss the nature of business customs and practices in South Asia. South Asia covers 8 countries: Sri Lanka, India, Afghanistan, Brutan, Nepal, Bangladesh, Maldives and Pakistan. This region is known for industry practices that protect the investments and the innovation of new companies. However, entrepreneurs often face regulatory obstacles during the operation of their company from which emanates an underground economy - to avoid the bureaucratic nature of South Asian commerce. Source: Doing Business in South Asia (2007) Retrieved September 7, 2010 from http://www.doingbusiness.org/southasia Instructional Area: Emotional Intelligence Why is it important to take responsibility for decisions and actions? Accepting responsibility means more than just being accountable for your actions. Responsibility is tied to initiative. When one takes the initiative to begin a job, he/she must be responsible to see the job through completion. Responsible employees fulfill their promises. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. What does it mean to manage commitments in a timely manner? Accomplishing tasks in a timely manner requires time management. Time management involves: establishing goals, setting deadlines, allocating enough time to the task, beginning with most difficult tasks first and being realistic. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Instructional Area: Information Management What purpose does project management software serve? The purpose of project management software is to provide individuals/companies/businesses with software to more effectively execute, plan and achieve the desired goals of specific programs. Import industry or personal considerations should be made when considering the appropriate software to met your needs. Knowing the types of software available and envisioning, the expected outcomes of specific programs will provide additional guidance when selecting the proper software. Source: Certification (2010) Retrieved September 7, 2010 from http://www.pmi.org/Certification.aspx Instructional Area: Knowledge Management Explain the nature of knowledge management? Knowledge management (KM) is a means that companies use to manage and devise their information regarding definitions, systems, operations benefits and challenges. Proper guidance of knowledge can help entrepreneurs capitalize on their assets, profit margins and reduce risk. Achieving KM within the workplace is executed by sharing the intellectual knowledge of employees, partners and co-workers to expand the accessibility of the industry. KM can also be beneficial through the creation of additional innovations that will expand the recognition, market or profit of the company. Source: Knowledge Management Definition and Solutions Retrieved September 7, 2010 from http://www.cio.com/article/40343/Knowledge_Management_Definition_and_Solutions?page=1#1 Discuss the role of ethics in knowledge management? Ethics is extremely important in knowledge management as with any other professional trade or skill. Implementing and exercising strong ethical standards, helps establish a reputable company. Ensuring the protection, proper documentation and security of the company, affiliates and employees is imperative to prevent languishing of the companies and any legal confrontation as well. Moral principles should guide the conduct of the company and be epitomized by employees. Source: Ethics Retrieved September 7, 2010 from http://dictionary.reference.com/browse/ethic?&qsrc= Explain the use of technology in knowledge management? Technology is a tool that can instantly increase the efficiency and accuracy of a company, if used the correct way. The incorporation of technology in knowledge management may increase communication amongst the employees and management. Technology may also be used to preserve vital information, which could increase the longevity of the company and help establish a permanent position within the industry. In the 21st century, technology has become one of the most beneficial assets to employers— creating more convenient and reliable protocols. Source: Knowledge Management Definition and Solutions Retrieved September 7, 2010 from http://www.cio.com/article/40343/Knowledge_Management_Definition_and_Solutions?page=1#1 Explain legal considerations for knowledge management. Knowledge management should always be assessed for legal compliance. Lawful considerations should be at the forefront of all business ventures and collaborations. For example, when specific changes are enacted among federal, state or local jurisdiction the company should maintain legal consciousness and conformity. Failure to do so could result in monetary penalties, jail time or ultimately, elimination of the business. Therefore, one should always ascribe someone to actively monitor legal statutes to ensure proper protection for the company. Source: Knowledge Management Definition and Solutions Retrieved September 7, 2010 from http://www.cio.com/article/40343/Knowledge_Management_Definition_and_Solutions?page=1#1 Identify techniques that can be used to capture and transfer knowledge in an organization. Push strategies or pull strategies may be used to capture and transfer knowledge in an organization. In a push strategy, individuals would put their knowledge into a shared database. This information can then be easily retrieved by those individuals needing the information. A pull strategy would be when an individual or organization requests an expert to share their knowledge with members of the organization. This is a more personalized approach and would be used on an as needed basis. Source: Knowledge Management. Retrieved November 2, 2010 from http://en.wikipedia.org/wiki/Knowledge_management Instructional Area: Operations Discuss legal considerations in operations. When operating a business, there are many legal considerations to keep in mind. Some of these considerations include: employee lawsuits, immigration audits, insurance issues, and Internet policy and security. Source: Current Legal Issues for Small Business Owners. (2010) Retrieved November 2, 2010 from http://blogs.findlaw.com/free_enterprise/2010/01/current-legal-issues-for-small-business-owners.html Explain techniques used to organize and prioritize work. These guidelines can help employees to organize and prioritize work: 1. Make a list of the tasks you need to complete. 2. Determine which task is most important. 3. Rank the tasks. 4. Create a schedule. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain how to coordinate work with that of team members. Six aspects of teamwork include: Training: Team members should be trained on tasks Team Planning: Members of the team should all agree on a plan Team Goals: Members should determine the goals for the team’s project Assign Roles: Roles should be assigned based on each team member’s strengths and weaknesses Agreement: Team members should make a specific commitment to the group Shared Responsibility and Leadership: All members of the team should take responsibility for completion of the task assigned. the Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe types of purchase orders. There are many different types of purchase orders such as blanket, standing, and regular. Blanket orders are used for repetitive non-capital purchases such as parts for inventory. This allows a company to buy in high volume to cut cost but have the ability to pay for each release rather that the whole entire order. A standing purchase orders is a purchasing method used in purchasing leases such as auto or equipment for a business. The scheduled payments are made usually over one to three year time frame. A regular purchase order is a one-time purchase of goods or service at a predetermined price. Source: Purchase Orders Retrieved September 14, 2010 from https://www.urmc.rochester.edu/purchasing/purchaseorder.cfm Discuss types of inventory. Types of inventory include: raw material, work-in-process, finish goods, transition inventory, buffer inventory, and anticipation inventory. Raw Material inventory includes items that are used in the manufacturer's process to produce components, assemblies, or finished products. Work-in-process (WIP) is made up of all the materials, parts (components), and assemblies that are being processed or are waiting to be processed within the system. Finished goods are products that the customer or end-user is able to use. Transition inventory is inventory that is in transit and not received in. Buffer inventory is inventory that is used during situations such as poor delivery or poor quality. This inventory is also considered as safety stock. Anticipation inventory is inventory saved for the future use of emergency situations such as price increases, volume increases, and other emergency situations. Source: Inventory Types (2010) Retrieved September 14, 2010 from http://www.enotes.com/managementencyclopedia/inventory-types Maintain vendor/supplier relationships. Maintaining a good relationship with your vendor/supplier is very important to the success of any business. There are four key components to maintain vendor/supplier relationships: trust, respect, mutual benefit, and fairness. Build trust by understanding that you must treat your supplier fairly just as you expect them to treat you fairly. Gain respect by respecting your supplier and being reasonable with them. Being fair to your supplier can result in mutual benefits and rewards. Source: How to Build Strong Vendor and Supplier Relationships (2010) Retrieved September 14, 2010 from http://www.thedailymba.com/2010/05/31/how-to-build-strong-vendor-and-supplier-relationships/ Negotiate terms with vendors in business. Negotiating contracts with external vendors has been identified as one of the most beneficial on-the-job experiences. During negotiating various skills are necessary to obtain the most beneficial outcome. Fundamental considerations made in the best interest of the business should be assessed throughout all discussions of terms—determining the actual available costs and sustaining of the relationship—are vital factors to evaluate. After an agreement is formed, it is vital to sustain open communication and a manageable relationship with the vendor. Source: Experience Base: Vendor Negotiation (2010) Retrieved September 14, 2010 from http://www.cio.com/article/527157/Experience_Base_Vendor_Negotiation Discuss the nature of business analysis. Business analysis scrutinizes how the results of a company were achieved and the actual effects it has on the company. Investigating the operations of a company may reveal an explanation for an unprecedented period of growth or abate, either of which would be beneficial for retaining the company. Business analysts try to uncover business solutions and implement alterations to system processes or operations to impede a future occurrence of the same or similar mishap. Source: Business Analysis Retrieved September 14, 2010 from http://www.businessdictionary.com/definition/business-analysis.html Why is it important to follow rules of conduct? Following rules of conduct is critical in professional and personal environments. Conduct infringement may be a violation of administrative laws but also, federal and state statutes. Violating the code of conduct is failure to uphold the ethical standards and values of the company. Severe repercussions or discharge may result from conduct violations. Those who chose to neglect the principle values and standards of the company are not only hindering the company, but also creating an unfavorable perception of their own integrity. Source: Code of Ethics Retrieved September 14, 2010 from http://www.businessdictionary.com/definition/code-of-ethics.html Explain chain of command. The chain of command can be thought of as a division of power or authority from the management to everyone other position within the company. Different echelons within an organization grant certain individuals with a specific level of influence that is descended through the rankings. The chain of command creates avenues that are needed when specific changes, approvals or decisions are made. Following the hierarchy of command is can be time-consuming and bureaucratic, however, it is essential and is not an industry specific mechanism. The chain of command works more efficiently when the communication lines and rankings coherent. Source: Chain of Command Retrieved September 14, 2010 from http://www.businessdictionary.com/definition/chain-of-command.html What is the nature of organizational goals? Organizational goals serve as the blueprint that determines the course of action within an organization. Based on organizational goals, objectives should be set that are clearly measurable. Organizational goals can: provide guidance and direction for employees, facilitate planning, motivate employees and help evaluate performance. Source: Goals and Goal Setting Retrieved October 6, 2010 from http://www.referenceforbusiness.com/management/Ex-Gov/Goals-and-Goal-Setting.html How can you determine an employee’s role in meeting organizational goals? One purpose of organizational goals is to provide guidance and direction for employees. Once the goals are set, objectives should be developed. Objectives should be short term steps to help an organization reach their goals. Once objectives are set, it should be determined which departments, divisions or individual employees can assist in achieving the objectives, and ultimately the organizational goals. Source: Goals and Goal Setting Retrieved October 6, 2010 from http://www.referenceforbusiness.com/management/Ex-Gov/Goals-and-Goal-Setting.html What steps should an employee take to initiate a project? Initiative means doing what needs to be done without being asked. When an employee comes up with a new idea, initiative allows him/her to act on it. Before implementing any new idea, it is best to check with one’s supervisor. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain how to prepare work breakdown structure. A work breakdown structure is the foundation of project planning. It is used by taking a complex project and breaking it into smaller more manageable components. The structure should show a hierarchy of tasks as well as which tasks can be performed independently of other tasks. Source: Work Breakdown Structure. Retrieved November 2, 2010 from http://www.netmba.com/operations/project/wbs/ Discuss methods for executing and controlling projects. Projects should be well organized and structured throughout the entirety of the process. Executing the project requires excellent pre-planning techniques and communication amongst the staff and vendors. Taking steps like confirming event orders, timescales and costs will assist with smooth implementation of the project. Plan control must be pliant with the needs and designations of each unique task. To effectively control a project mastery of flexible management techniques and project adaptation are required. Source: Controlling Projects (2005) Retrieved September 21, 2010 from http://www.getaheaddirect.com/gwpm18-controlling-projects.htm ____________________________________________________________________________________ What does it mean to manage a project team? Managing a team requires guiding and articulating the plan to the team members. Defining the plan is vital to the successful execution of an assignment. The leader should check on the progress of the team members and continue to track incomplete assignments. The team leader should be able to clearly state the unfinished tasks and arrange for the completion of those tasks. It is also important for the team leader to commend other team members for their consistency, hard work and progression. Source: Controlling Projects (2005) Retrieved September 21, 2010 from http://www.getaheaddirect.com/gwpm18-controlling-projects.htm ____________________________________________________________________________________ What does it mean to close a project? Closing a project refers to the completion of the scheduled plan. Ensuring the closure of a project is important for two reasons: 1. To prevent drift – where the project turns into another project 2. To highlight the time, energy and effort put into the project Source: Closing a Project Retrieved September 21, 2010 from http://www.spottydog.unet.com/guides/close/frameset.html ____________________________________________________________________________________ Explain the nature of quality management. The goal of quality management is to improve an organization. There are several quality management frameworks, such as benchmarking, continuous improvement, failure mode and effects analysis, ISO9000, Total Quality Improvement and Six Sigma. Source: Quality Management Retrieved November 2, 2010 from http://managementhelp.org/quality/quality.htm. ____________________________________________________________________________________ Describe the nature of quality management frameworks (e.g. Six Sigma, ITIL, CMMI) Quality management frameworks are used by organizations to improve the organization, the organization’s processes, customer service or some other factor. Some examples, include: Six Sigma: This approach uses data to eliminate defects with the goal being to reach six standard deviations from the desired target of quality. In other words, there should be only 3.4 deviations per million. ITIL: ITIL has been adopted by several large organizations – such as, NASA, HSBC and Disney™. It provides an organized way to manage IT services. CMMI: CMMI is a process improvement approach to quality management. It is used to improve performance of an organization by improving the organization’s processes. Source: Quality Management. Retrieved November 2, 2010 from http://managementhelp.org/quality/quality.htm Overview. Retrieved November 2, 2010 from http://www.sei.cmu.edu/cmmi/index.cfm What is ITIL? TRetrieved November 2, 2010 from http://www.itilofficialsite.com/AboutITIL/WhatisITIL.asp ____________________________________________________________________________________ Discuss the need for continuous improvement of the quality process. In terms of quality management, continuous improvement focuses on improving customer satisfaction through continued improvements in processes. This can include removing unnecessary activities. Source: Quality Management Retrieved September 21, 2010 from http://managementhelp.org/quality/quality.htm ____________________________________________________________________________________ Explain the role of ethics in risk management. In order to effectively manage risk, an organization must apply good ethics. Risk management is the process of implementing decisions designed to minimize business loss. Types of risk that businesses would try to prevent or minimize include: economic risk, natural risk and human risks. Acting in an ethical manner, will help protect a business, it’s employees and even it’s customers. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe the use of technology in risk management. Technology plays a large role in managing risk. One method for managing risk is prevention and control. The Internet makes it easier to screen employees. Additionally, employee training programs as well as safety guidelines are now accessible on the Internet as well. Video cameras and security systems can be used to prevent employee theft. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Discuss legal considerations affecting risk management. One method for managing risk is risk transfer. Some risks can be handled by transferring the risk to another business, such as an insurance company. The business purchases insurance and the insurance company covers the business loss. One type of insurance is liability insurance. Business liability insurance protects a company from damages in which the company may be legally liable. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Discuss the nature of managerial planning. Planning is one of the functions of management. Managerial planning involves setting goals and establishing how to reach those goals. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain managerial considerations in organizing. Organizing is one of the functions of management. Organizing involves establishing time frames to achieve goals. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe managerial considerations in staffing. Staffing falls under the management function of organizing. Staffing involves assigning responsibility, establishing working relationships, hiring staff and directing work. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. ____________________________________________________________________________________ Describe the nature of managerial control. Controlling is a function of management. It involves setting standards and evaluating performance. It is an important duty of any manager to compare what was planned with what actually occurred. Finally, managerial control involves solving any problems that arise during the evaluation phase. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. ____________________________________________________________________________________ Describe the nature of legal procedure. Legal procedure refers to the method by which legal rights are enforced, the method for carrying on a lawsuit, including the process, pleadings, evidence and rules of civil or criminal procedures. Source: Procedure. Retrieved November 2, 2010 from http://legaldictionary.thefreedictionary.com/procedure Discuss the nature of environmental law. The goal of environmental law is to protect the environment. Some examples of federal law include: Endangered Species Act, Clean Air Act and Clean Water Act. The goal of the Endangered Species Act is to protect plants or animals that are in danger of becoming extinct. The Clean Air Act is designed to protect air quality while the Clean Water Act prevents businesses or individuals from discharging pollutants into water. Source: Environmental Law. Retrieved November 2, 2010 from http://topics.law.cornell.edu/wex/Environmental_law ____________________________________________________________________________________ Discuss the role of administrative law. Administrative Law integrates several areas of law, which include administrative rules, regulations and procedures for government agencies and bodies; the scope of agency authority, in particular individual privacy; and enforcement powers of agencies. Source: Administrative Law. Retrieved November 2, 2010 from http://www.hg.org/adm.html ____________________________________________________________________________________ Describe the concept of economics. Economics deals with the production, distribution and consumption of goods and services. Specifically, economic systems deal with the way a country provides for the needs and wants of its citizens. Economic systems help countries to make decisions about how to use its resources. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. ____________________________________________________________________________________ Describe the concept of economic activities. Economic activities include: manufacturing, buying, selling, transporting and investing. The resources of a nation will help determine which economic activities should be pursued. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. ____________________________________________________________________________________ Determine economic utilities created by business activities. Utility refers to the added value of a product. There are five types of utility. Form Utility: This type of utility involves using raw materials to make a finished product. Place Utility: This type of utility involves having the product where the customer wishes to buy the product. Time Utility: This type of utility involves having the product available when the customer wishes to buy the product. Possession Utility: The exchange of a product for money is known as possession utility. Information Utility: Information utility involves communicating with the customer. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. _________________________________________ Discuss actions employees can take to achieve the company’s desired results. To help achieve a company’s desired results, employees should look at long term goals outlined in the company’s strategic plan. The employee should see which activities they perform that can contribute to the achievement of the goals set forth by the organization. Source: Goals and Goal Setting Retrieved October 6, 2010 from http://www.referenceforbusiness.com/management/Ex-Gov/Goals-and-Goal-Setting.html Explain the role of ethics in marketing-information management. Ethics plays a role in marketing information management. First, it is important for market researchers not to mislead study participants. It is also is important for market researchers not to falsify the results of their research. Finally, in some cases sensitive information may be gathered from respondents. It is important to keep that information confidential. Source: Farese, L.S.; Kimbrell, G & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the concept of ethical work habits. Ethics are the basic values and moral principles that guide behavior. Characteristics of ethical work habits include honesty, respect, and equity. Being honest is more than just telling the truth. It means maintaining confidentiality and having respect for company property. Honesty is the basis for a trustworthy business relationship. Another solid base for business/customer relations is showing respect. This means listening to others with an open mind and responding with courtesy and tact. Equity means that everyone has equal rights and opportunities. Because people expect to be treated the way those around them are treated, it is important to be fair and equitable in dealing with others. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the nature of effective communications. Communication is the process of exchanging messages between a sender and a receiver. Effective communicators need to understand channels of communication and media, effective listening skills, barriers to communication, and non-verbal cues. In addition, one must be prepared to read for meaning, speak properly, and write effectively. Channels (or media) are the avenues through which a message can be delivered. The choice of medium depends on the nature and importance of the message. Effective listening allows a person to identify the purpose of the speaker, give feedback, and evaluate the speaker’s message. Communication may be impeded by a number of barriers, including physical such as distance and position from the speaker, and verbal as in using vague or unclear language. Lastly, a person’s non-verbal cues—such as his or her tone of voice, emphasis, and body language—are critical because they often communicate as much as the speaker’s actual words. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the concept of leadership. Leadership is helping members of an organization achieve their goals. Leadership requires a wide range of skills and personal traits, including self-confidence, creativity, problem-solving, and effective communication. Good leaders understand people, show social judgment, and can motivate others. Leaders have a vision, and can communicate that vision with those around them while minimizing conflicts that may arise. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. How can you foster positive working relationships? Working with others is not always easy, which is why it is important to create and maintain a working environment that is positive and effective. Working as a team is a critical component for a group of people to achieve a common goal. Being a valuable team member involves making the team’s goals our top priority, building positive group dynamics, and being an active listener. One way to foster a positive working relationship with others is to show respect for their ideas and feelings. Being prompt with your assignments and showing responsibility are other ways to maintain those relationships. Also, as in most areas of business, being able to communicate effectively with others is a skill that must be learned and utilized. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain ethical considerations in providing information. Ethical business practices ensure that the highest standards of conduct are observed in a company’s relationships with everyone in the company or who is affected by its activities. Ethical behavior is lawful and does not harm some while benefiting others. Business practices are ethical if its actions are not embarrassing if they become public. Many businesses develop a statement of core values that guide the ethical decisions and actions of the company. A company’s commitment to ethics should be clear during the hiring process as well as in dayto-day operations. Interviewees may be questioned about ethics, and new hires should be provided information about the company’s commitment to ethics and values. Ethical behavior should be a part of employee evaluations and promotions, and managers should model ethical behavior when dealing with customers. Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western Cengage Learning. Explain the concept of ethical work habits. Ethics are the basic values and moral principles that guide behavior. Characteristics of ethical work habits include honesty, respect, and equity. Being honest is more than just telling the truth. It means maintaining confidentiality and having respect for company property. Honesty is the basis for a trustworthy business relationship. Another solid base for business/customer relations is showing respect. This means listening to others with an open mind and responding with courtesy and tact. Equity means that everyone has equal rights and opportunities. Because people expect to be treated the way those around them are treated, it is important to be fair and equitable in dealing with others. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe the nature of income statements. An income statement is a summary of a business’ income and expenses during a specific period of time. Often called a profit and loss statement, it is used to calculate revenue, costs and expenses, and profit/loss. Income statements have several major parts: total sales, net sales, cost of goods sold, gross profit, operating expenses, other income/expenses, net profit/loss before taxes, and net profit/loss after taxes. Some of these figures must be estimated or projected, such as total sales and business expenses. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the concept of accounting. Financial information for a business can be recorded, summarized, and reported in a variety of ways. The way in which information is kept and reported is determined by the size, type, and complexity of a business. Businesses should also consider the types of decisions that will be made when designing an accounting system. Types of information to be gathered include purchases, sales, expenses, and payroll. There are two basic types of accounting methods: cash and accrual. In the cash accounting method, income and expenses are recorded at the time the money changes hands. The accrual method of accounting records transactions at the time they occur even if no money changes hands at that time. Accounting records show changes and the current account balance of each asset, liability, and owners’ equity account. The recording of debit and credit parts of a transaction is called double-entry accounting. A record summarizing the information relevant to a single item in the accounting equation is called an account. With every action, at least two accounts will change. A group of accounts is called a ledger. A form for recording transactions is called a journal. Sources: Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th ed.). Mason, OH: South-Western Cengage Learning. Nature of Accounting. (Marketing and Business LAP 9: Career-Sustaining Level). (1996). Columbus, OH: Marketing Education Resource Center. Explain marketing and its importance in a global economy. Marketing is the process of planning, pricing, promoting, and distributing ideas, goods, and services to create exchanges that satisfy customers. The benefits of marketing are numerous. It provides the means for competition in the marketplace, leading to lower prices and higher quality goods and services. Marketing generates new and improved products and adds value (or utility) to existing products. The global marketplace benefits from marketing because of the need to trade with each other. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the need for accounting standards. All accountants follow the same set of rules to prepare financial reports. The Financial Accounting Standards Board issues rules referred to as generally accepted accounting principles (GAAP). These principles provide a way to communicate financial information in a form understood by those interested in the operations and financial condition of a business. Accounting reports are used by individuals outside the business as well as inside. Outside the business, investors, lenders, consumers, competitors, and government may be interested. Workers, union leaders, and management all may have a need to see and clearly understand a business’ financial situation. Source: Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World Applications & Connections. New York, NY: Glencoe/McGraw-Hill. Explain types of investments. There are several main types of investment vehicles. Common stock is a unit of ownership of a company that entities the owner to voting privileges. Preferred stock is a type of stock that gives the owner the advantage of receiving cash dividends before common stockholders receive them. Stocks are attractive as an investment because owners share in the success of the company. A corporate bond is a corporation’s written pledge to repay a specific amount of money, plus interest. Similarly, a government bond is the written pledge of a government or municipality to repay a specific amount of money, plus interest. When you buy a bond, you are lending money to a corporation or government entity for a period of time. Mutual funds are investments in which investors pool their money to buy stock, bonds, and/or other securities. The investments are selected by professional managers who work for an investment company. Their expertise can be beneficial to inexperienced investors. A final form of investment is to own real estate. The goal of this is to own property that increases in value so you can sell it at a profit or receive rental income. Source: Kapoor, J. R., Dlabay, L. R., Hughes, R. J., & Hoyt, W. B. (2007). Business and Personal Finance. New York, NY: Glencoe/McGraw-Hill. Discuss the role of ethics in accounting. The AICPA Code of Professional Conduct outlines a number of rules regarding ethics in accounting. A company must keep an accurate, honest, and complete record of its accounting transactions. Company audits should be carried out by an independent party. Confidentiality must be maintained with regard to clients’ personal information as well as company information. Efforts must be made to avoid conflicts of interest between employees and customers. Ethical accountants exercise due care in the performance of their professional services. They should also be educated about insider trading as an unethical practice. Accountants must refrain from misrepresenting the facts to achieve short-term goals that are contrary to a business’ long-term objectives. Internal auditors work independently within a business to review and improve the company’s operations. They use strict standards to ensure the business sticks to its agreements, to design plans to protect assets, and to make the best use of company resources. Sources: Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th ed.). Mason, OH: South-Western Cengage Learning. Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World Applications & Connections. New York, NY: Glencoe/McGraw-Hill. Explain the use of technology in accounting. Most businesses use some type of accounting software to record and report their business transactions. Even when using an automated system, you still need to collect and keep your source documents and each business transaction must be separated into its debit and credit parts. Computerized posting to accounts is faster and eliminates accounting errors that a person might make doing it manually. Daily, weekly, monthly, and annual reports can be generated quickly and accurately. Software is also available for tax collection and reporting. Source: Kapoor, J. R., Dlabay, L. R., Hughes, R. J., & Hoyt, W. B. (2007). Business and Personal Finance. New York, NY: Glencoe/McGraw-Hill. Describe connections between company actions and results. (e.g., influence buying behavior, etc.) Company actions that affect consumers include: advertising, pricing, product mix, supply of goods, sales and promotions, product development and improvement, product safety, payment options, etc. Company actions that affect the competition include: advertising, pricing, product mix, supply of goods, sales and promotions, distribution methods and locations, etc. Company actions that affect employees include: the use of technology in production and record keeping, managerial ethics, human resources management, production planning and scheduling, risk management, investing, etc. Other actions to be considered include company actions that affect things like the environment, the global economy, etc. Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western Cengage Learning. Explain legal considerations for accounting. The most significant changes to corporate governance and accounting practice came with the SarbanesOxley Act of 2002. The act requires that CEOs, financial officers, accountants, and auditors comply with regulations and procedures designed to ensure accurate representation of companies’ financial positions. It prohibits most loans to directors and executive officers, and forces company insiders to report changes in ownership within two days after a transaction has been executed. Securities regulation ensures that purchasers can learn the true nature of the securities they buy by providing a way to uncover fraud and unfair practices. Sources: Brown, G. W. & Sukys, P. A. (2006). Understanding Business and Personal Law. New York, NY: Glencoe/McGraw-Hill. Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World Applications & Connections. New York, NY: Glencoe/McGraw-Hill. Describe the nature of cash flow statements. A cash flow statement is a monthly plan that tracks when you anticipate that cash will come into a business and when you expect to pay out cash. One purpose of a cash flow statement is to determine whether you will have enough money to pay your bills on time. Another purpose is to secure a business loan, as most lenders will request at least a first-year cash flow statement. A cash flow statement itemizes how much cash you started with, what your projected cash expenditures are, and how and when you plan to receive cash. It also shows when you will need to seek out additional funds or when you will have additional cash remaining. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the nature of balance sheets. A balance sheet is a summary of a business’ assets, liabilities, and owners’ equity. Assets are anything of monetary value that you own and are classified as current or fixed. A current asset is cash or anything that can be converted into cash in a year. A fixed asset is something used over a period of time to operate your business, like property and equipment. Liabilities are the amounts that a business owes and are classified as current or long-term. A current liability is a debt the business must pay back during the upcoming year. A long-term liability is a debt that is due after 12 months’ time, such as a long-term loan. Owners’ equity (or net worth) is the amount of ownership interest in the business. The difference between assets and liabilities equals the owners’ equity. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the role of ethics in information management. Businesses that maintain databases of personal customer information have a responsibility to keep that information private. Many companies that collect information about their customers often sell that information to others. This exchange of customers’ personal information among businesses has led to invasion of privacy complaints. Many businesses now also offer clients the choice of being added to mailing lists. Confidentiality must be maintained with regard to employees’ and clients’ personal information. Accountants must refrain from misrepresenting the facts to achieve short-term goals that are contrary to a business’ long-term objectives. Sources: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th ed.). Mason, OH: South-Western Cengage Learning. Discuss the role of ethics in finance. Ethics are guidelines for good behavior, based on knowing the difference between right and wrong. Behaving ethically means being truthful, fair, open, and mindful of the law. Companies and their executives can now be held accountable for misinformation or improper recording of a company’s financial situation. A company must keep an accurate, honest, and complete record of its accounting transactions. Finance professionals should be educated about insider trading and other unethical practices. They must refrain from misrepresenting the facts to achieve short-term goals. Confidentiality must be maintained with regard to clients’ personal information as well as company information. Efforts must also be made to avoid conflicts of interest between employees and customers. Sources: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th ed.). Mason, OH: South-Western Cengage Learning. Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World Applications & Connections. New York, NY: Glencoe/McGraw-Hill. Explain legal considerations for finance. The federal government regulates interstate commerce through the commerce clause of the U.S. Constitution. Securities regulation, especially the Securities Act of 1933 and the Securities Exchange Act of 1934, have been enacted to protect investors. These laws ensure that purchasers can learn the true nature of the securities they buy and provide a way to discover fraud and unfair practices. Included in the definition of securities are corporate stocks, interests in savings and loans, interests in racehorses or sports teams, and sales of coins. The Securities and Exchange Commission administers the laws regulating securities sales, brokers, dealers, and bankers who sell securities. The Federal Trade Commission was created in 1914 to protect businesses from the wrongful acts of other firms, especially referring to competitive practices. The Sherman Antitrust Act of 1890 was passed to stop the formation of monopolies. The Sarbanes-Oxley Act of 2002 contains important rules affecting the reporting and corporate governance of public companies and their officers. Source: Brown, G. W. & Sukys, P. A. (2006). Understanding Business and Personal Law. New York, NY: Glencoe/McGraw-Hill. Describe the nature of budgets. A budget is a formal, written statement of expected revenue and expenses for a future period of time. To be effective, a budget should be evaluated periodically with actual income and expenses. Revenues may include cash sales, collections on accounts receivable, and other income. Expenses include purchases, insurance, taxes, payroll, and many other things. As part of budgeting, one should follow the following steps. Set goals and prioritize them. Estimate your income. Budget for unexpected events, fixed expenses, and for variable expenses. Record what you spend. Review your spending patterns and revise your goals as needed. Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY: Glencoe/McGraw-Hill. Explain the role of ethics in human resources management. An ethics policy for employees may discuss working hours, wages and benefits. incentives, flexibility, safety and health issues, and termination procedures. Ethical operations will maintain fairness and safety for all employees and customers, be open and up-front about their policies, and handle problems promptly and equitably. Train your employees in safety and emergency procedures, then reinforce the training with signage in the workspace. Ethical behavior must be maintained in employee evaluation, as well as when giving consideration for promotions, transfers, and bonuses. Sources: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY: Glencoe/McGraw-Hill. Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: SouthWestern Cengage Learning. Identify methods for evaluating vendor performance. The criteria for selecting and evaluating vendors include production capabilities, past experience, product quality, the availability of special buying arrangements or services, and pricing. When dealing with a vendor for the first time, buyers might solicit references to determine the vendor’s reputation. Many businesses maintain resource files and journals that document past experience with vendors. Such a journal may include an evaluation of product quality, delivery performance, and customer service. Returns relating to the quality of products may cause a vendor to be dropped. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Evaluate quality and source of information. To evaluate source data, consider the following: Is the subject matter consistent with the defined problem or issue? Do the data apply to the population and/or time period of interest? Do the data appear in the correct units of measurement? Do the data cover the subject in adequate detail? Is the data accurate and timely? Can the accuracy of the data be verified? Is/are the data source(s) reputable? Is the cost of data acquisition worth it? Is there a possibility of bias? Source: Zikmund, W. G. (1991). Exploring Marketing Research. (4th ed.) Orlando, FL: The Dryden Press. Explain legal issues associated with information management. The government has regulations regarding protecting the privacy of consumers. Businesses of all types offer detailed privacy policies to their customers that ensure the protection of their customers’ personal information. Businesses must not share personal information they collect with anyone unless you give them permission to do so, according to law. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe the nature of business records. Technology has made it easier and more efficient to maintain business records through management information systems (MIS). The functions of an MIS are to gather, analyze, store, and report on data. Records are kept regarding financial information, production and inventory, marketing and sales, and human resources. Data sources may be external, such as from financial institutions or government agencies; or they may be internal, including data from accounting, inventory, and sales figures. Business record keeping requires one to: identify the information needs of the organization, obtain the data, process and analyze the data, organize the data in a useful manner, distribute information to those who need it to make decisions, and update the data and records as needed. Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western Cengage Learning. Explain how to maintain customer records. Data about customers and their buying habits is kept in a computer program called a database. Data can be about customers’ contact or other personal information, or it can be about their purchase/account history. This data can be developed from face-to-face sales, direct mail responses, phone or e-mail purchases, service requests, website visits, customer comment cards, or they can be purchased from a third party. Database programs act like filing cabinets that allow you to sort, find, choose, and organize information. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe current business trends. Assessing current business trends is important to both business and professional growth. Business owners and entrepreneurs should keep up-to-date through a variety of means. Classes are offered at vocational/technical schools, two- and four-year colleges, and online. Joining a professional association or club is an excellent way to stay current with trends and knowledge relevant to an industry. Another way to stay up-to-date is by reading journals, professional trade publications, news sources, websites, and blogs. Attend professional conferences, meetings, seminars, and speakers. These activities also provide the opportunity for networking, wherein you can learn from colleagues by sharing insight and experience. Source: Bailey, L. J. (2003). Working: Career Success for the 21st Century (3rd ed.). Mason, OH: SouthWestern. Describe how to monitor internal records for business information. The functions of an information system are to gather, analyze, store, and report on data. Records are kept regarding financial information, production and inventory, marketing and sales, and human resources. Internal data includes accounting records, inventory information, company sales figures, and more. A company’s balance sheet, cash flow statement, and income statement are records that are monitored during a specific period of time. They are used to calculate revenue, evaluate costs and expenses, and measure profit/loss. Sources: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: SouthWestern Cengage Learning. Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain how to conduct an environmental scan to obtain business information. An environmental scan is an analysis of outside influences that may have an impact on an organization. It is a methodical look at the world that includes political, economic, socio-cultural, and technological areas. It is important to understand how each of these areas may be changing in order to determine the potential for opportunity or threat to a business. Political factors include the stability of a government and its laws and regulations that affect business. Economic factors include infrastructure, quality and cost of labor, employee wages and benefits, taxes, the standard of living, and possibly foreign exchange rates. In international business, socio-cultural factors include understanding another country’s language, values, traditions, and social/business etiquette. Keeping up to date with technology and using it properly are other factors of an environmental scan. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe how to interpret statistical findings. Statistics are used to describe and summarize data in order to make the date more meaningful and easier to understand. Commonly used statistics in business include distribution, central tendency, and dispersion. Distribution is a summary of the frequency of values for a variable. The central tendency is an estimate of the center of a distribution of values, including mean, median, and mode. Dispersion is the spread of values around the central tendency, measured with the range. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the role of information systems. An information system is a set of procedures and methods that generate, store, analyze, and distribute information for use in making business decisions. Such systems organize, collect, and store data for current use or future decisions. Most information systems rely on data about current customers, sales reports, and inventory levels. Businesses use this information to make decisions about advertising, product planning, and pricing. Information can be secured through the use of primary data, including company records or government data, or secondary data, such as customer surveys. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World Applications & Connections. New York, NY: Glencoe/McGraw-Hill. Describe health and safety regulations in business. Businesses must adhere to health and safety regulations established by the U.S. Department of Labor. Workplace safety regulations are enforced by the Occupational Safety and Health Administration (OSHA) through inspections and fines. Employers must maintain health and safety records and provide safety training. They must stay up-to-date on OSHA standards and resolve violations promptly. Sources: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY: Glencoe/McGraw-Hill. Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain procedures for handling accidents. Always survey an accident scene before you do anything. Do not make any assumptions. Figure out what has already happened, and determine what may happen next. If someone is injured, administer first aid and get help if needed. Do not move a victim who may have a back or neck injury. Clear the victim’s airway and check to see if he/she is breathing. Check for a pulse or severe bleeding. In the event of a fire, leave the building immediately using the stairs or a window. If you cannot leave, stay close to the floor to avoid smoke. Before opening a door, put your hand on it to feel if it is hot. If your clothes catch fire, stop, drop to the floor, and roll to put the fire out. Do not try to put out the flames yourself. During an earthquake, stay inside and move to a doorway or under a table. If you are outside, stand out in the open away from things that may fall. If a tornado threatens, go indoors and stay away from windows. Cover yourself with a mattress or blanket. If you are outside and cannot get inside, dive into a ditch or other low ground area and stay down. Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY: Glencoe/McGraw Hill. Explain the nature and scope of purchasing. A person who purchases goods for business purposes is called an organizational buyer. The types of purchasing situations include: new task purchase, in which a purchase is made for the first time; modified rebuy, where the buyer has had experience buying the good or service but some aspect of the purchase has changed; and straight rebuy, when a buyer routinely orders the goods or services from the same vendor(s) as in the past. Suppliers should be selected using the following criteria: production capabilities, past experiences, special buying arrangements, and special services. Purchasing also involves the skill of negotiation. Items to be negotiated include prices, dating terms, delivery arrangements, and discounts. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the need for ongoing education as a worker. The average American has at least seven jobs before he/she reaches age thirty. People can expect to change employers several more times before they retire. While some people end up losing their jobs due to downsizing, everyone is affected by it. If managers are cut, individual workers may acquire more responsibilities. The skills you will need to manage new responsibilities may require more education. You may need to update your skills or learn new ones to keep pace with employment trends, as job opportunities shift from one industry to another. The competitive global market puts added demands on workers, as businesses try to stay up-to-date with technology and ways of doing business. Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY: Glencoe/McGraw Hill. Explain the concept of production. Production is the process of creating, expanding, manufacturing, or improving on goods and services. It is a function of business found in all industries and service-related operations. There are three main forms of production: extraction and cultivation, processing, and manufacturing. The three categories of products used by businesses and consumers are natural resources, agricultural products, and processed goods. Four types of businesses that are responsible for production are producers, extractors, farmers, and manufacturers. Company leaders focus on efficient production and consider the many situations that may affect it. Companies that want to be industry leaders strive to produce the most innovative products as efficiently as possible. Sources: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: SouthWestern Cengage Learning. Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Discuss the role of ethics in operations. Ethical considerations include those that deal with employees and those that deal with customers. An ethics policy for employees may discuss working hours, overtime pay, flexibility, safety, and health issues. Regarding customers, operational ethics deals with product and consumer safety, credit concerns, delivery policies, hours of operation, customer service policies, and return policies. Ethical operations will maintain fairness and safety for all employees and customers, be open and up-front about their policies, and handle problems promptly and equitably. Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY: Glencoe/McGraw-Hill. Describe the use of technology in operations. A variety of computer applications assist businesses in their operations. Word processing programs allow you to develop reports, letters, and announcements. Database programs enable you to maintain customer lists and catalog inventory records. Spreadsheet software helps you analyze financial data and track business performance. Uses for desktop publishing programs include creating layouts for forms, advertisements, and product manuals. Presentation software assists you in delivering visual and verbal information for meetings. The Internet has become an integral part of the business world. Companies use websites for promotion and as a way to stay connected with their customers. Web-page editing software enables you to create and maintain a website. Communications software allows you to communicate electronically with others around the globe through computers and videoconferencing. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the nature of project management. Project management is a carefully planned and organized effort to accomplish a specific objective. It includes developing a project plan, which includes defining and confirming the project goals and objectives, identifying tasks and how goals will be achieved, quantifying the resources needed, and determining budgets and timelines for completion. It also includes managing the implementation of the project plan, along with operating regular controls to ensure that there is accurate and objective information on performance relative to the plan, and the mechanisms to implement recovery actions where necessary. Projects usually follow major phases or stages, including feasibility, definition, project planning, implementation, evaluation, and support/maintenance. Source: Lonergan, K. (2009). Project Management. Retrieved August 9, 2009 from http://managementhelp.org/plan_dec/project/project.htm Identify resources that can contribute to professional development (e.g., journals, associations, classes, etc.) Professional development opportunities can come from a wide range of sources. Classes are offered at vocational/technical schools, two- and four-year colleges, and graduate schools. Coursework can also be done online. Some courses can be taken for college credit in a degree program, and others not for credit. Joining a professional association or club in your industry is an excellent way to stay current with trends and knowledge relevant to your career field. Another way to stay up-to-date is by reading journals, professional trade publications, websites, and blogs. Attend professional conferences, meetings, seminars, and speakers. These activities also provide the opportunity for networking, wherein you can learn from colleagues by sharing insight and experience. Source: Bailey, L. J. (2003). Working: Career Success for the 21st Century (3rd ed.). Mason, OH: SouthWestern. Describe how to identify resources needed for projects. Resources necessary to complete a project include people, equipment, and material. The people will include project employees such as group leaders, skilled professionals, vendor staff, and subcontract laborers. You will need to select people who have the right skills and the proper tools. They must be available in the right quantities at the right time. These human resources must know what needs to be done, when, and how. The equipment resources you need will depend on the nature of the project, but the key is similar to that for human resources: you must have the right equipment at the right time. Most projects require the purchase of material. A successful project requires that the proper material be purchased at the right price. Of course, the supplies need to arrive at the right time and in the proper quantity. Source: Reh, F. J. (2009) Project Management 101. Retrieved August 9, 2009 from http://management.about.com/cs/projectmanagement/a/PM101.htm Describe crucial elements of a quality culture. A quality control program is a set of measures built into the production process to ensure products/services meet certain standards and performance requirements. Standards can be set for product appearance, performance, and consistency. Two key elements ensure a quality culture. A quality circle is a small group of employees doing similar jobs who meet regularly to identify the quality of their work. They can serve as a way to motivate employees, and give employees a vested interest in the company’s success. Product inspection is another way to control quality. A quality culture can encourage a team spirit among employees as well as lead to greater profits from the sale of higher quality goods and services. Source: Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New York, NY: Glencoe/McGraw-Hill. Explain the nature of overhead/operating costs. Overhead/operating expenses are the costs of operating the business. They include variable and fixed expenses. Variable expenses are those that change from month to month, including advertising, supplies, and phone and utility bills. They can fluctuate depending on sales volume. Fixed expenses are costs that remain the same for a period of time, including depreciation, insurance, rent, salary, and payroll taxes. These expenses stay fixed for months regardless of sales volume. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain employee’s role in expense control. The profitability of a business is directly related to the number of employees and the wages the business can pay. Managers and employees should find ways to reduce waste and control expenses. Ongoing operations require that supplies and materials be ordered, employees be paid, and buildings be maintained. Equipment must be repaired and technology updated. Human risk can impact expense control. Employee dishonesty and theft can lead to monetary loss. Accidents are potential events that expose a company to financial risk. Sources: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: SouthWestern Cengage Learning. Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the rights of workers. In general, employees can expect their employers to provide regular pay, a safe work environment, appropriate job training, opportunities for raises and advancement, and safe tools. They can also expect to be able to make reasonable complaints. Businesses must adhere to many laws, including the Fair Labor Standards Act (for minimum wage), child labor laws, the Family and Medical Leave Act, the Employment Retirement Income Security Act (for retirement income protection), and whistle blower laws. A number of employee privacy laws must be obeyed, also, such as the Federal Privacy Act, the Drug-Free Workplace Act, and the Employee Polygraph Protection act. Other laws protect worker benefits, including Social Security, unemployment, and workers’ compensation laws. The Equal Employment Opportunity Commission is responsible for fair and equitable treatment of employees regarding hiring, firing, and promotions. Employers have a duty not to discriminate among workers based on a variety of things, including race, pregnancy, or disability. Laws also exist to protect workers against sexual harassment. Businesses must adhere to the government’s health and safety standards, which include guidelines for workplace safety and environmental concerns. Sources: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: SouthWestern Cengage Learning. Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe techniques for obtaining work experience (e.g., volunteer, internships) On-the-job experiences allow you to try out the work activities in your career field and develop good work habits. One form of on-the-job experience is an internship, which offers students direct paid or unpaid work experience at a company or organization. Cooperative education programs offer students the opportunity to receive course credit while working at a paid employment position. Job shadowing involves following a worker for a few days on the job, and learning while watching and listening. An apprenticeship is a formal, one- to six-year program in which a worker learns a trade on-the-job. Volunteering is an unpaid way to explore careers. An informational interview is a structured meeting with a professional who works in a career that interests you. Sources: Bailey, L. J. (2003). Working: Career Success for the 21st Century (3rd ed.). Mason, OH: South-Western. Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY: Glencoe/McGraw Hill. Describe how to use time-management skills. Time management means budgeting your time to accomplish tasks on a certain schedule. The principles of time management are establishing goals, setting deadlines, allocating enough time for each task, tackling the most difficult task first, and being realistic. Stick to the following time management guidelines. 1) Make a list of the tasks you need to complete. 2) Determine which task is most important considering your time frame. 3) Continue to rank the remaining tasks. 4) Create a schedule based on your list. 5) Work on one task at a time, not worrying about the others. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Identify skills needed to enhance career progression. Career progression can be achieved in a number of ways, including simply having seniority. Some skills that may assist you in furthering your career start with your own knowledge and competence. Also, you should display a willingness to learn and develop professionally. Display initiative and perseverance. Be cooperative and adapt to change. Demonstrate decision-making and critical thinking skills in your job duties. Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.). New York, NY: Glencoe/McGraw Hill. Explain the concept of management. Management is defined as getting work done through the effort of others. It is the process of reaching goals through the use of human resources, technology, and material resources. Businesses may have a vertical organization, with top, middle, and supervisory-level management. Or they may have a horizontal organization, in which management shares decision making with teams of workers Management functions include planning, organizing, and controlling the use of resources. Each of the functions requires making decisions. Planning involves setting goals and determining how to reach them. Organizing includes setting a time frame and assigning employees to do the work. Controlling refers to setting standards and evaluating performance. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe the United States’ judicial system. The judicial branch of the federal government interprets, applies, and administers the laws of the US. It consists of a network of courts at all levels of government. Two types of courts are trial and appellate courts. Federal courts include district courts, federal courts of appeals, and the U.S. Supreme Court. The state court system also includes a state Supreme Court, associate circuit courts, city or municipal courts, small claims courts, juvenile courts, and probate courts. Sources: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.). Mason, OH: SouthWestern. Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Discuss the nature of law and sources of law in the United States. Laws are enforceable rules of society that reflect the culture and circumstances that create them. Laws may be grouped into an organized form called a code. A number of forms of law exist, including common law, positive law, English common law, and equity. In the U.S., sources of law include the Constitution, state constitutions, statutes, ordinances, administrative regulations, and criminal or civil cases. Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.). Mason, OH: South-Western. Identify the basic torts relating to business enterprises. A tort is a private or civil wrong against an individual or organization. There are three basic torts. An intentional tort is one for which the defendant intended either the injury or the act. The second and most common type of tort is negligence. Intent is not required for this tort, only carelessness. Strict liability is the third type of tort. This is liability that exists even though the defendant was not negligent. In strict liability, proof of both the activity and the injury substitutes for proof of violation of duty. Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.). Mason, OH: South-Western. Describe the nature of legally binding contracts. A contract is an agreement that courts will enforce. There are six major requirements that must be satisfied before courts will treat transactions as contracts: Offer and Acceptance, Genuine Assent, Legality, Consideration, Capacity, and Writing. An offer is a proposal by an offeror to do something, provided the offeree does something in return. Acceptance occurs when a party to whom an offer has been made agrees to the proposal. Genuine assent means that parties have entered into a contract as evidenced by words or conduct between them. Of course, what the parties agree to must be legal. The purpose of consideration is to ensure that both parties are receiving something of legal value as a result. Capacity is the ability to understand that a contract is being made and its general meaning. Lastly, some agreements must be made in writing in order to be fully enforceable. Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.). Mason, OH: South-Western. Discuss the nature of debtor-creditor relationships. A debtor is a person or business that owes money, goods, or services to another. The one to whom the debt is owed is called the creditor. The debtor receives needed or wanted goods or services that may not otherwise be obtainable. In return, the creditor puts available capital resources to work and is paid for this. Both parties are likely to suffer some loss if either one fails to perform the contract as promised. A legally enforceable debt normally arises out of a contract wherein something of value has been exchanged for the promise to provide money, goods, and/or services. The debtor-creditor relationship is essential to economic growth and is, therefore, encouraged and protected by law. Legal protections make creditors more secure when lending while protecting debtors from unfair credit and collection practices. Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.). Mason, OH: South-Western. Identify techniques to extract relevant information from written materials. Several factors strongly affect comprehension of material. To start with, the reader must have the background vocabulary, language competence, knowledge, and experience necessary to comprehend the message. Of these, vocabulary is the most important factor in the ability to comprehend. Many strategies can be utilized to extract relevant information. One method is to use pre-reading assistance devices such as advance organizers, mapping, questioning, and prepared reading guides. Another is to identify the main idea in a passage or paragraph. It also helps to identify clues such as bold print, headings, indentations, and cue words. Source: Osborn, J. (1997). Developmental Reading in the Content Areas. Oklahoma City, OK: Custom Academic Publishing. Explain how to analyze company resources to ascertain policies and procedures. Company policies can be obtained through training information, company manuals, work mentors, and supervisors. Policies to consider are topics of pay, sick/vacation time, promotions and raises, and the company’s health and safety procedures. Company policies should be read thoroughly for complete understanding. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Describe how to employ communication styles appropriate to target audience. When analyzing your audience, consider several questions. How important will the audience see your message? Does your communication ask the audience to take some action? How much information does your audience need? What obstacles must you overcome? What are the benefits to your audience of what you have to communicate? How will your audience use this information? What method of communication is best suited to this message? In addition, you should consider how formal and how detailed you wish your communication to be. Use language and terminology that are appropriate to the audience. Source: Locker, K. O. (1989). Business and Administrative Communication. Homewood, IL: Richard D. Irwin, Inc. Identify methods for choosing an appropriate channel for workplace communication. Factors to consider are speed, accuracy, cost, number of messages, the number of people, efficiency, and ability to promote goodwill. The channel to choose also depends on the audience, the purpose of the communication, and the situation. For example, oral communication is best suited for group settings and to make things seem more personal. Shorter communication channels are more accurate than longer ones. Source: Locker, K. O. (1989). Business and Administrative Communication. Homewood, IL: Richard D. Irwin, Inc. Explain how to adapt communication to the cultural and social differences among clients. Begin by respecting differences among people. Another key is to avoid and overcome stereotypes. A stereotype is an oversimplified, distorted belief about a person or group. Keep an open mind and treat people with respect and you will maintain smooth relationships. In business, you must maintain an awareness of the language and cultural differences that will affect company employees as well as customers. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Explain how to interpret business policies to customers/clients. You need to be familiar with a variety of company policies in order to respond effectively to customers’ concerns and needs. Learn appropriate procedures for handling customer requests, questions, and complaints. You will also need to know what you can and cannot say to a customer. Understand the management structure of your business, and under what conditions a manager should be contacted to talk with a customer. You will also need to be able to explain business policies to customers, such as return/exchange policies. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Identify methods of handling customer/client complaints. Think of complaints as an opportunity to learn something and to improve service. To address a complaint, first listen completely and openly so that you understand the complaint. Talk to the customer privately, if possible, in a quiet setting. Repeat the complaint to demonstrate your understanding. Do not place blame on any party and explain what may have caused the problem. Try to reach an agreement with the customer about the next course of action, but be sure your suggestions comply with company policy. Get assistance from a supervisor, if needed. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain how to identify a company’s brand promise. Brands are names, terms, designs, or symbols that identify and distinguish products from their competitors. They communicate features, benefits, qualities, and value. Effective use of branding will help build product recognition, build customer loyalty, and ensure consistent quality. Elements of branding include: brand name: a word or group of words that represent a product or service. trade name: the name that identifies a particular company or corporate division. brand mark: a company’s or product’s unique symbol, coloring, or design elements. trade character: a brand mark with human or animal forms and characteristics. trademark: a word, name, symbol, or device that is given legal protection to prevent others from using similar elements that might be confusing. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Discuss the nature of customer relationship management. Customer relationship management involves finding customers and keeping them satisfied through a variety of means. It is useful for developing and maintaining customer relationships. The sharing of customer information among businesses has led to privacy issues. The government has regulations protecting the privacy of consumers, including offering customers the option of being added to mailing lists. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the concept of economic resources. A resource is any item that can be used to produce goods and services. Natural resources include anything that comes from nature. Human resources are people, the work they do, and the skills they possess. Capital resources include materials used in the production of goods and services. All of these economic resources are limited. The basic economic problem is how to meet unlimited wants with limited resources. This gap is a condition called scarcity. Source: Economics. (Economics LAP 6: Career-Sustaining Level). (1987). Columbus, OH: Marketing Education Resource Center. Describe the functions of prices in markets. Price is the value in money placed on a good or service. One function of price is that it can affect the value that a customer places on an item. Price helps establish a company’s or product’s image—many customers use price as a gauge to make judgments about products and companies. Another function of price is that it can give a competitive edge. Thirdly, the price of an item is part of the business’ end goal of making a profit. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the role of business in society. Business’ roles in society are many. They make and distribute the goods and services we use each day. Business’ provide employment for millions of people. Wages paid to business employees are used in the economy to purchase goods and services. Profits earned by businesses are used to compensate owners and investors. Businesses also pay taxes, which support government spending on the needs of society. Source: Dlabay, L. T., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western Cengage Learning. Describe types of business activities. There are six general business activities. Generating ideas is an important activity in that businesses must remain competitive with other firms. Businesses also need to raise capital to finance their operations. Another important business activity is employing and training human resources. Businesses buy and sell goods and services. Marketing is a group of activities that provide and distribute the goods and services wanted and needed by a business’ customers. Another activity is that businesses must maintain records to track performance and make decisions. Source: Dlabay, L. T., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western Cengage Learning. Discuss the global environment in which businesses operate. Many businesses must rely on resources beyond the borders of the U.S. to remain competitive. The overall economy is also reliant on a global marketplace. Foreign trade provides many goods that would otherwise be unavailable or too costly. Likewise, foreign consumers help support businesses in the U.S. by buying goods made here. Several factors affect the environment of the global marketplace including geography, culture, economic development, and political or legal concerns. Trade barriers, such as quotas, tariffs, and embargoes, are formal political actions that can affect international trade. Informal trade barriers can also be found due to cultural differences among nations. Source: Dlabay, L. T., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western Cengage Learning. Explain the concept of private enterprise. In a private enterprise system, the three basic economic questions—what goods/services will be provided, how, and by whom—are answered by individuals and businesses, not by government. Individuals and organizations own and control the economic resources, including natural, human, and capital goods used to produce goods and services. Private enterprise is characterized by a number of qualities, including the following: • Businesses are free to choose what they wish to produce, how to produce them, and what price they will charge • Individuals and businesses are free to own, use, buy, and sell private property • Government control in private enterprise is limited • Competition exists and is encouraged by government • Businesses are motivated by the ability to make and maintain a profit • Prices are important in making the supply and demand system work correctly. • Individuals and enterprises are free to set their own financial goals, including the ability to choose what kind of work they would like to do Source: Private Enterprise. (Economics LAP 15: Career-Sustaining Level). (1998). Columbus, OH: Marketing Education Resource Center. Determine factors affecting business risk. Risk is the possibility of incurring a loss. Economic risks are those that can result in a financial loss. Pure risk is one that presents the chance of loss but no opportunity for gain. Speculative risks offer the chance to either gain or lose. Some risks are controllable, while others are not. Likewise, you can insure some risks while others cannot be insured. To manage risks, they can be avoided, transferred, insured, or assumed. Source: Dlabay, L. T., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western Cengage Learning. Determine the relationship between government and business. The government serves as both a protector and a regulator of business in a free market economy. It serves to protect business property, enforce contracts and settle disagreements through the courts, and collect taxes on the products business sell. As a regulator, government enacts and enforces laws to prohibit certain behaviors, control business activities, and require certain standards. Examples of such laws include laws to control monopolies, set product safety standards, and regulate prices. The government also serves the following purposes to society through intervention in business: Provide public goods, Improve public welfare, Protect public health, Stabilize the economy, Protect specific businesses or industries, Conserve the environment, Protect consumers, Preserve competition, and Regulate workplace conditions. Government agencies have been set up to monitor such business activities, including the Food and Drug Administration (FDA) and the Federal Trade Commission (FTC). Source: Government and Business. (Economics LAP 16: Career-Sustaining Level). (1993). Columbus, OH: Marketing Education Resource Center. Describe the nature of taxes. Taxes are payments you make to the government for services they provide. The U.S. tax system is based on the idea that everyone should contribute their fair share, that tax laws should be clear and simple, and that the tax system should be flexible. Tax dollars are spent on a number of things including public education and libraries, military defense and law enforcement, transportation costs, and fire protection to name a few. Income tax is calculated as a percentage of the taxable income you earn on the job. Social Security, or FICA, tax is used so that workers can receive benefits upon retirement. Sales tax is a percentage of the price of an item that a person pays when they buy something. Estate and inheritance taxes are taxes on wealth, which are collected after a person has died. Property tax is the main source of money for many local governments, and is based on the value of property such as land and buildings. Sources: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Explain the concept of organized labor and business. A labor union is a group of workers who have joined together for the common purpose of improving the terms and conditions under which they work. Unions are formed to obtain higher wages, better benefits, and improved working conditions. When laborers organize, they are able to increase their bargaining power with business management. Two main types of unions exist today—industrial unions, made up of workers employed in the same industry, and craft/trade unions, which are groups of workers with similar skills. The AFL-CIO is the federation for nearly all labor unions, although some very large unions are independent of the federation. Labor union contracts are created through a negotiation process called collective bargaining, involving union officials and company representatives. If an agreement cannot be reached, pressure strategies may be imposed by either side, including strikes, picketing, and boycotts by union members or lockouts, injunctions, and strikebreakers by management. Several advantages and disadvantages exist for both sides in organized labor. Workers gain individual dignity, fair treatment, protection, and fringe benefits. However, they must pay union dues, support union decisions, and face hardships during strikes. Businesses benefit by having security regarding wages, benefits, and working conditions as well as having the union assist in recruiting and training employees. Businesses, though, face increased costs in wages and benefits, have limited control in personnel matters, and loss of production in the event of a strike. Source: Organized Labor. (Economics LAP 5: Marketing Specialist Level). (1998). Columbus, OH: Marketing Education Resource Center. Discuss the measure of consumer spending as an economic indicator. Consumer spending is one of the most important economic indicators. Buying habits of consumers directly affect the profits of companies that sell products and services. Retail sales are measured monthly by the U.S. Department of Commerce. They are an indicator of the general spending patterns by consumers in the economy. Source: Dlabay, L. T., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western Cengage Learning. Explain the economic impact of interest-rate fluctuations. Interest rates are determined by supply and demand. As saving and investing increase the money supply, interest rates tend to decrease. Likewise, more borrowing is likely to raise interest rates. Interest rate fluctuations can have an impact on stock purchases because as the cost of money changes, company profits can increase or decrease. Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson SouthWestern. Explain the nature of global trade. Improvements in technology, communication, production, and distribution methods have enhanced the global business environment. Information exchange can be nearly instantaneous. The movement of raw materials and finished goods can be cone more quickly and easily. Trade agreements among nations and regions of the world reduce restrictions on trade. These factors allow for lower-cost production and more access to consumers than ever before. Corporations are often forced to compete multinationally, and their decision making must adjust to reflect a global marketplace. Companies invest in international business ventures for a number of reasons, including: expanding their markets, increasing their operating efficiency and reducing costs, reducing political and legal hurdles they might otherwise face in other countries, diversifying their operations, and gaining greater return on their investments. Multinational business is not without difficulties to overcome. Businesses must consider language and cultural differences. Also, there are differences in the stability of the government that might result in political risks. Different economic philosophies may lead to more or less government influence on business in a particular country. In addition, businesses have to deal with different monetary systems with fluctuating values among global currencies. Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson SouthWestern. Describe the determinants of exchange rates and their effects on the domestic economy. An exchange rate is the value of one currency in terms of another, and they are established on the foreign exchange market. This is a series of interconnected entities that exchange currencies, including businesses, banks, and governments. The exchange rate for a country’s currency is determined by the supply and demand for that currency. This is impacted by foreign trade. The difference in the value of a country’s imports and exports affects supply and demand, which affects exchange rates. For instance, if the U.S. is importing more goods than it is exporting, it will need to convert more U.S. dollars to other currencies. By doing so, the demand for other currencies increases and the exchange rate for U.S. dollars increases. Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson SouthWestern. Discuss the impact of cultural and social environments on global trade. Multinational business is not without difficulties to overcome. Businesses must consider language and cultural differences. Also, there are differences in the stability of the government that might result in political risks. Different economic philosophies may lead to more or less government influence on business in a particular country. In addition, businesses have to deal with different monetary systems with fluctuating values among global currencies. Doing business in other countries often means taking a different approach to business relationships and management practices, and even different ethical beliefs. Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson SouthWestern. Explain how to demonstrate responsible behavior. Demonstrating responsibility means being willing to accept an obligation and being accountable for an action or situation. One can demonstrate responsibility in a myriad of ways. Be willing to accept change and volunteer for jobs and tasks. Display initiative by doing what needs to be done without being told. Be punctual and have a solid work ethic. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Describe how to demonstrate honesty and integrity. Honesty and integrity are desirable qualities of a good employee and a good person. You can demonstrate these qualities by being loyal and trustworthy at work and in daily activities. Act responsibly and ethically, even though it may be difficult at times. Respect others’ feelings and possessions. Being dishonest can ruin your reputation and can harm personal and professional relationships. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Explain the importance of respecting the privacy of others. Respecting others’ privacy includes treating the conversations, property, and work of friends and coworkers as if they were your own. At work, be respectful of the phone calls, faxes, e-mail, voice mail, and documents of others. Many of these things should not be shared with others, and much of the information at your workplace must be kept confidential. Confidentiality means not sharing sensitive information that you know with someone else. These acts of professional courtesy are also part of displaying workplace etiquette. Failing to respect others’ privacy can harm your personal and professional relationships, including being disciplined or fired on the job. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Identify ways to exhibit cultural sensitivity. In order to exhibit sensitivity to other cultures, begin by respecting differences among people. Another key is to avoid and overcome stereotypes. A stereotype is an oversimplified, distorted belief about a person or group. In business, you must maintain an awareness of the language and cultural differences that will affect company employees as well as customers. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Describe negotiation skills. The process of working with parties in a conflict to find a resolution is called negotiation. Negotiation requires good speaking and listening skills. First, you must define the problem as clearly as possible from each person’s point of view. All feelings and facts must be presented. It helps to use “I statements”, that does not put the other person on the defensive. Active listening is the other main skill. Encourage the person speaking to be open and maintain eye contact with him/her. Some other general techniques are helpful. Show respect to all parties. Collaborate and seek a variety of possible solutions. Do your best to preserve the relationship among the parties. Finally, meet in a convenient, quiet, and neutral location. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain how to use conflict-resolution skills. Begin by allowing each party of a dispute to define the problem from his/her point of view. Then, allow each one to suggest a solution to the problem. Next, those options should be evaluated, so each party can explain what they can and cannot accept. To overcome the differences, parties to a problem may have to think creatively and compromise. Compromising means that each party will agree to give something up in order to settle a dispute. Conflict-resolution is done best when solutions are found that will allow each side of a dispute to save face and create the least amount of ill will. Sometimes, parties in a dispute may have to seek mediation or arbitration from an independent third party. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Identify types of currency. A cash sale is any transaction in which the customer pays for the item with cash or a check. A check is a written document that authorizes the transfer of money to be drawn from a bank account to a person or business. Credit enables a business or individual to purchase goods and services in exchange for a promise to pay later. It is most helpful when consumers want to make major purchases. Customers are typically issued a credit card from a bank to make such purchases. Debit is a variation of credit. Consumers using a debit card authorize a seller to withdraw funds directly from the consumer’s bank account at the time of sale. Sources: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Describe the functions of money. Money functions as a vehicle to pay for purchases, save for the future, and build wealth. Individuals and businesses pay for any number of purchases using cash, credit, checks, and debit forms of payment. Credit enables a business or individual to purchase goods and services in exchange for a promise to pay later. In addition to personal and business purchases, money is used to pay for government services through taxes. As a savings instrument, money may be set aside in a variety of ways in order to have security for the future or to have on hand later for a large purchase. Money can be used as an investment tool, as well. Stocks, bonds, mutual funds, and retirement accounts are ways that money can be invested in order to build wealth. Other types of investment vehicles include buying real estate, precious metals, and collectibles. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe sources of income. Your primary source of income is the wages or salary you earn from your employer. Other sources of income might include tips, gifts of money or property, and interest earned on a bank account or an investment. You may also receive money from the government. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Explain the time value of money. The time value of money is the increase of an amount of money due to interest earned over time or dividends paid. It is the idea that money invested now is worth more later because you would earn interest or dividends on it. Interest is money you earn over time as a percentage of the principal, or the original amount of money on deposit. Finding the future value of your original deposit is called compounding. With compounding, your money increases in value faster and faster over time. Figure the future value of your money by multiplying the principal by the annual interest rate, and then adding the interest to the principal. You can determine this future value for as many years as your money will be in an account. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain legal responsibilities associated with financial exchanges. Legally speaking, a sale is a contract in which ownership of goods transfers immediately from the seller to the buyer for a price. If the transfer of ownership will take place at a future date, it is called a contract to sell, rather than a sale. According to the Uniform Commercial Code (UCC), goods are tangible, movable personal property. Payment occurs when the buyer delivers the agreed price and the seller accepts it. The receipt of goods is when the buyer takes physical possession of the goods. A court may find that a contract is unconscionable, or grossly unfair to one party or another. In such a case, the contract may be voided or limited. Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.). Mason, OH: South-Western. Explain the nature of financial needs. One aspect of developing a financial plan is to know the difference between your needs and your wants. Furthermore, you need to prioritize your needs and wants as you set your financial goals. As you do so, keep in mind your attitude toward money and ask yourself if something is more important to spend money on now or to save for the future. Having choices with money comes with a cost and with risk. Opportunity cost is the trade off of giving something up when choosing one thing over another. Financial risks that you should consider include the risks of inflation, rising or falling interest rates, loss of income, and liquidity. Liquidity is the ability to convert assets into cash without loss of value. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain how to set financial goals. Financial goals are influenced by two main factors: the time frame in which you want to achieve your goals, and the type of need that inspires your goals. Goals can be short-term (usually one year or less to achieve), intermediate (two to five years), or long-term (more than five years). Also, some goals may happen every year, while others occur only occasionally. How you establish your financial goals may also depend on whether a goal you have set involves a consumable good that you would use up quickly, a durable good that lasts longer and usually costs more, or something intangible, such as your health or an education. Keep in mind that while setting financial goals, they should be realistic, specific, have a clear time frame, and should help you decide on what action to take. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe how to develop a personal budget. A personal budget is a plan for saving and spending your money based on your income and expenses. Start your budget by defining your needs and your goals, considering both short- and long-term goals. Write them down in a list, with a target date or time frame to reach them. Next you will need to prioritize your goals, arranging the items in order of importance. Then you must estimate your income and your expenses. In your income estimate, include your wages or salary but count only your net (take home) pay. Other sources of income might include tips, gifts, and interest earned on a bank account. Estimate your expenses in two categories—fixed and variable. Fixed expenses are usually the same amount each time you pay them. Variable expenses are those that vary each month. Once these steps are completed, you create your budget. You can transfer your estimated income and expenses to a paper or computerized budget form. Indicate your savings on the budget, as well—you may want to consider this a type of expense. As you compare your income to expenses, you should see if you have enough money coming in to pay all of your expenses. It is important to be honest and realistic when creating your budget, even if it means revising some things. Also, check your progress monthly and review your spending carefully so you know if you have to cut back your expenses or increase your income. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Explain the nature of tax liabilities. Taxes are payments you make to the government for services they provide. Tax liability is the total amount of taxes owed. Effective planning can reduce your tax liability, thus paying your fair share while taking advantage of tax benefits. The types of taxes include income, Social Security, sales, wealth and property taxes, as well as user fees. One can use several strategies to reduce tax liability. First, it is important to understand the current tax laws and how they affect you and your financial goals. Second, maintain complete and accurate tax records. Finally, learn and understand the types of taxes and how to make sound financial decisions, keeping taxes in mind. Sources: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Explain how to interpret a paystub. Your paystub includes many important things, starting with your name and social security number. It lists the current pay period. Your current and year-to-date earnings, taxes, and deductions are listed. Current earnings may be described with your hourly rate, the number of hours worked, and your gross earnings (calculated by multiplying your hourly rate by the number of hours worked). Taxes that may be withheld from your gross pay include Federal, State, Local, FICA (Social Security), and Medicare. Other deductions might include union dues and money withheld for fringe benefits, such as health insurance. Net pay is your gross earnings less taxes and deductions. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Describe how to prepare bank account documents. A checkbook register is a booklet that you fill out for all deposits and withdrawals from your checking account. Included are sections for the check number, date of transaction, description, payment amount, reconciliation, deposit amount, and new balance on the account. You will use the checkbook register to reconcile your bank statement when it comes. Writing a check involves writing the date, the name of the payee, the amount of the payment in numerals as well as in words, your signature, and a memo if you choose. When you are cashing or depositing a check made out to you, start by endorsing the check by signing the back of it. Fill out a deposit slip to give to the bank teller with your name and account number, along with the amount of the deposit. Also, be sure to record the amount of the deposit into your checkbook register. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain how to maintain financial records. Organizing your financial records helps you plan and measure your financial progress, handle routine money matters, determine the money you have now and will have in the future, and make effective decisions about saving and investing. Documents to manage include bank statements, paystubs, ownership certificates, tax forms, etc. Records may be maintained in a file cabinet, a safe-deposit box, and/or on a computer. File cabinets are useful for maintaining printed documents and records, and should be organized by type with labeled folders. Items that are difficult to replace, such as car titles and birth certificates, should be kept in a safe-deposit box. These can be rented at a bank. Alternatively, you may choose to purchase an in home fire safe for such documents. Computer programs are an excellent way to create and manage a personal budget, pay bills online, or generate financial documents that can be stored electronically. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Discuss how to read and reconcile bank statements. A bank statement is a document showing activity on your account over the previous month, including a beginning and ending balance and all inflows and outflows during that time. Bank account reconciliation is when you account for the differences between the bank statement and your records (usually your checkbook register). The balances may differ because you have written checks that have not yet cleared the bank, or perhaps because you have deposited money into your account after the bank statement was prepared. To reconcile your account, start by comparing the checks you have written with those listed on the bank statement. List any outstanding checks on the reconciliation form. Subtract the total amount of outstanding checks from the ending balance on the statement. Next, add any recent deposits not on the statement to the reconciliation form. Finally, subtract any fees and add any interest as found on your bank statement to your reconciliation form. Now you should find that the adjusted bank balance and the balance in your records is the same. If there is an error, report it to your bank. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Identify ways to demonstrate the wise use of credit. Credit is a way to receive cash or goods now and pay for them later, most commonly through the use of a credit card or a loan. Before deciding to use credit, ask yourself if you can afford the item in the first place. Also, would it be better to use your savings instead of credit? Could your credit be put to better use in some other way? Or, should you put off the purchase for a later date? You must be certain that the benefits of making the purchase now on credit outweigh its costs, including fees and interest charges. There are many ways to use credit wisely. For instance, you may be able to combine several purchases into one, thus making only one monthly payment. You will likely need a credit card for major and expensive purchases. It is often safer, and more convenient, to use a credit card when shopping or travelling. The wise use of credit will allow you the opportunity to build a better credit history, which means you are seen as a reliable person to other lenders. When using credit, avoid the temptation to buy more than you can afford. Failing to repay a loan or credit card balance will damage your credit history, and could lead to you losing your property or source of income. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe how to validate credit history. Your credit history is maintained in a credit report from one of three credit bureaus in the U.S.— Experian, Trans Union, and Equifax. Your credit history also includes a credit rating—a number that reflects your ability and willingness to make credit payments on time. You can validate your credit history by obtaining a copy of your credit report from each of the three reporting agencies. You can obtain a copy free of charge one time per year from each agency. Once you receive a credit report, look it over carefully for errors or out-of-date information, and be sure to contact the agency promptly to make corrections. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Identify methods to protect against identity theft. The first step to protecting your identity is to be cautious with sensitive information and documents, including your social security number, checking and other bank account numbers, and the like. Shred any documents that contain sensitive information before throwing them out. When paying with a credit or debit card, be sure the card is always returned to you after the purchase. You may wish to keep a record of your card numbers in a place separate from your cards. Also, always look over your bank and credit card statements carefully when you receive them for mistakes and unknown charges or withdrawals. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain techniques for preparing personal income tax forms. There are three basic income tax return forms, although hundreds of forms exist. Choose Form 1040EZ if your taxable income is less than $100,000, you have no dependents, and your income consists only of wages, salaries, and tips (among other factors). Choose Form 1040A if you have less than $100,000 in taxable income and you claim deductions, have dependents, and have capital gains distributions (among other factors). Form 1040 is an expanded version of Form 1040A, useful if you have taxable income greater than $100,000 and plan to itemize deductions, or have more complicated financial situations. To complete a tax return form, have your W-2 Form from your employer(s) on hand along with any interest and/or dividend forms. You can choose to file your tax return by using traditional paper forms and mailing them in, or you can file electronically over the Internet. In addition, you may choose to use tax preparation software to guide you through the process on your own with a computer. You may also choose to hire a tax professional to complete your return. Be sure to keep a copy of your completed form and your supporting documents in a safe place for at least six years. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe types of financial-services providers. A commercial bank is an institution that offers a full range of financial services, such as checking, savings, and lending. A savings and loan association is a service provider that may specialize in savings accounts and mortgage loans, but now offers a wide range of services. Mutual savings banks specialize in savings accounts and mortgages. Credit unions are nonprofit institutions that are owned by its members. Traditionally, the members of a credit union have a common bond such as employment with the same company. Credit unions offer a full range of financial services. Non-deposit financial institutions include life insurance, investment, finance, and mortgage companies. Such companies specialize in their respective industry but may offer other financial services as well. Finance companies offer higher interest rates loans to individuals and businesses that cannot borrow elsewhere, often due to credit problems. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Discuss considerations in selecting a financial-services provider. When selecting a financial service provider, consider the following, depending on your needs. Consider one where…you can get the highest rate of return on a savings account. You can obtain a checking account with low or no fees. You will be able to borrow money when you need it and at a favorable interest rate. You can get free financial advice. The institution is insured through the FDIC. It has convenient locations. It offers a broad range of financial services. It has online banking or other special services you may desire. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the nature of risk management. Risk management is a plan for protecting yourself and your property as well as reducing financial losses caused by perils, hazards, or negligence. Personal risks, such as loss of income or life due to illness, disability, or unemployment are among the most common risks. Property risks are also common. Liability risks are losses caused by negligence that leads to injury or property damage. Managing risk starts with risk avoidance or avoiding a risk. You cannot avoid all risks, but you can reduce their likelihood in many cases by taking preventative measures (risk reduction). Sometimes you need to take on responsibility for a risk, such as when you know the possible loss will be small. This is called risk assumption. The most common way to deal with risk, especially large risks, is to shift it, usually to an insurance company. Risk shifting takes the financial burden of a risk and places it elsewhere for a fee. Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe the need for financial information. Financial information includes raw data, records, and reports. Consumers are essentially buying information when dealing with financial services providers; businesses rely on accurate financial information to make sound decisions. Financial services products are bought and sold based on information about costs, returns, and risks. Financial information is used to match company resources to its planned activities and to identify additional resources that may be needed or secured. Businesses use information to identify ways to reduce expenses and invest company assets. Also, information is used to forecast for future budgeting and growth, as well as to control and manage risk. Other pieces of information that are required include sales, inventory, operating systems, personnel costs, insurance expenses, tax liability, and profitability. In addition, information must be collected regarding external factors such as economic conditions, investment alternatives, and competition. Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson SouthWestern. Discuss the nature of human resources management. The main duties involved in human resources management include recruiting, hiring, orientation and training, scheduling, handling employee complaints, assessing performance, discipline, and termination. Recruiting is the process of locating a pool of job applicants and selecting potential employees from this pool. The hiring process involves interviewing, background checks, and pre-employment testing. Orientation and training programs can be formal or informal, depending on the business. Employee complaints and grievances vary widely, but all should be taken seriously and confidentially. Employee evaluation is usually done annually, and it enables management to develop better, more productive workers. Handling discipline takes two forms: preventative and corrective. Termination is based on poor performance or bad behavior. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Discuss the importance of information management. Businesses must be able to create, store, access, analyze, update, and compare information in order to use it to make sound decisions. Information management in a financial services corporation requires a specialized information system. Such a system must support decision making regarding cash and securities management, operations management, capital budgeting, financial forecasting and planning, and risk management. These categories closely match the information included in a company’s financial statements. Financial information is used to match company resources to its planned activities and to identify additional resources that may be needed or secured. Information that is needed includes cash flow, accounts receivable, accounts payable, capital assets, long-term liability, and stockholders’ equity. Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson SouthWestern. Identify ways that technology impacts business. Technology allows the speed of business transactions to occur globally; financial transactions are becoming instantaneous. Customers have come to expect more choices and higher levels of customer service due to advances in technology. Furthermore, they are able to access more information on which to compare prices, research choices and features, and base their buying decisions. Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson SouthWestern. Explain how to handle and report emergency situations. Many companies are required to have an emergency action plan. This discusses how to report hazards, such as fires, spills, and the like. It pinpoints where to find emergency supplies such as flashlights and first aid kits. An emergency response team may be developed, and escape routes should be outlined. It is also important to specify how to evacuate people with disabilities or other special circumstances. In addition to hazards, workplace violence—internal or external—must be considered. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Explain routine security procedures. All companies are responsible for protecting people and property in the scope of business. Security personnel may be hired and policies should be written to serve these purposes. Procedures to handle emergencies, safety hazards, natural disasters, theft, and liability issues need to be addressed. Planning for such instances helps to minimize the amount of loss that may occur. Source: Dlabay, L. T., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: South-Western Cengage Learning. Identify ways to protect company information and intangibles. Intellectual property can be protected through patents, trademarks, and copyrights. A patent is the legal ownership of an item or idea. A word, name, symbol, sound, or color that identifies a good or a service is a trademark. Copyrights are legal protection for anything that is authored by an individual or company, such as writings, music, and artwork. Trade secrets are also protected by law and specific company policy, often by contractual agreement with employees. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain methods for maintaining inventory of supplies. Inventory management is the process of buying and storing materials and products while controlling costs. There are several inventory control methods. Just-in-time inventory systems coordinate the demand and supply for parts and supplies, delivering them just before they are needed. A perpetual inventory system constantly keeps track of the number of items in inventory, and can be done manually or by computer. In a physical inventory system, supplies are counted only occasionally by visual inspection. This can be done manually or through the use of technology, such as bar code scanners. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Describe the bid process in purchasing. In the process of soliciting bids, a company’s buyer invites qualified suppliers to submit proposals for the goods, services, or materials. In complex purchasing situations, the buyer may require a detailed written proposal from a number of qualified suppliers. The buyer will review and evaluate the proposals and possibly invite one or more of them to make a formal presentation of the bid. The choice of a supplier is dependent upon specific desired attributes of both the supplier and the proposal. Attributes include price, supplier reputation, product reliability, service reputation, and supplier flexibility. As part of the selection process, buyers and sellers will need to negotiate the final terms of the agreement. Source: Kotler, P. & Keller, K. L. (2006). Marketing Management, 12th Ed. Upper Saddle River, NJ: Pearson Prentice Hall. Identify problem-solving skills. Problem-solving involves a number of skills and steps. The first step is to identify the problem and make sure you have a clear understanding of it. As you begin to consider solutions, generate a variety of alternatives. Think creatively and brainstorm with others. Make an honest evaluation of the possible results of the solutions presented, considering both the positive and the negative. Make a decision that is the best one under the circumstances and put the solution into action, identifying the exact steps that should be followed and by whom. Afterward, evaluate the results. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Analyze employer expectations in the business environment. Employers expect a lot of things from their employees, including cooperation, initiative, and a strong work ethic. Employees need to display a willingness to follow directions, to learn job tasks and skills, and to take on responsibility on the job. Employers expect you to manage yourself, your time, and your emotions in the workplace. Your employer will expect you to behave ethically and follow all company procedures and laws. Be honest, fair, and open on the job, and avoid prejudice and judgment of others. Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY: Glencoe/McGraw Hill. Explain possible advancement patterns for jobs. In many industries, jobs can be categorized based on skill level. One can advance from one level to the next through experience, education, attrition, and promotion. Entry level jobs usually require no prior experience and involve only limited decision making. Career-sustaining jobs are the next level, requiring more skill and experience. Specialist positions often involve a demonstration of leadership and decision making ability, and are often long-term positions. Supervisory positions require good management skills and hold much responsibility. Top management is usually the highest level. People at this level are capable of running entire companies or divisions. They are skilled in a large number of areas and are responsible for the final success of the business or division. Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the concept of productivity. Productivity is defined as the output per worker hour that is measured over a set period of time, such as a week, month or year. Higher productivity increases profits. Businesses can increase their productivity by investing in new equipment, technology or facilities, providing additional training to staff or increasing the responsibilities of workers. Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA. Glencoe/McGraw Hill. Explain the concept of production. Production is the process of creating, expanding, manufacturing, or improving on goods and services. It is a function of business found in all industries and service-related operations. There are three main forms of production: extraction and cultivation, processing, and manufacturing. The three categories of products used by businesses and consumers are natural resources, agricultural products, and processed goods. Four types of businesses that are responsible for production are producers, extractors, farmers, and manufacturers. Company leaders focus on efficient production and consider the many situations that may affect it. Companies that want to be industry leaders strive to produce the most innovative products as efficiently as possible. Sources: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH: SouthWestern Cengage Learning. Why is it necessary to recognize personal biases and stereotypes? A stereotype is an oversimplified distorted belief about a person or a group. It is important to recognize personal biases or stereotypes so that we may correct them. When you learn about others you become more tolerant and understanding. Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA. Glencoe/McGraw Hill. How can someone exhibit self-confidence? Self-confidence can be demonstrated by how you present yourself and through your actions. It is shown in your personal hygiene and the way you dress. It can also be shown through your relationships with others and your work habits. Source: Schneider Farese, Kimbrell, Woloszyk (2006). Marketing Essentials. Woodland Hills, CA. Glencoe/McGraw Hill. Explain how to demonstrate interest and enthusiasm. Interest and enthusiasm can be demonstrated verbally and non-verbally. When speaking choose words that are descriptive, vary your tone, listen and ask relevant questions. Non-verbal cues can be seen in your facial expressions, body language and eye contact. Source: Human Relations LAP 20: Interest and Enthusiasm. MBA Research, Columbus, OH. Explain the nature of operations. Operations can be defined as the daily activities that provide successful outputs for the business. Some common types of operations are facility management, logistics, scheduling, information management and safety and security. Source: Dlabay, Burrow and Eggland (2006), Intro to Business 6e. Mason, OH. Thomson/SouthWestern. What steps should an employee take to report noncompliance with business health and safety regulations? A compliance program enables employees to feel safe on the job. An employee should feel free to ask questions, report violations to their supervisor and feel like an effective part of the organization. Source: Charles Monaco, Oct 1998. Fast Lane, Noncompliance: your company and consequences? Smart Business, Pittsburgh http://www.sbnonline.com/Local/Article/4157/79/0/Noncompliance_your_company_and_consequences. aspx How can you demonstrate active listening skills? Demonstrating active listening skills includes making eye contact, identifying a purpose, asking clarification questions and providing feedback. Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain the nature of effective verbal communications. Effective verbal communications includes showing respect, knowing the purpose of why you are speaking, using your voice effectively, using enumeration where appropriate, and providing examples. Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. What can you do to demonstrate a customer-service mindset? A customer-service mindset is an attitude that customer satisfaction always comes first. To demonstrate a customer-service mindset, employee should: make customers feel welcome, be willing to answer questions or find answers to questions. Source: Clark, B.; Sobel, J. & Basteri, C. G. (2010) Marketing Dynamics (2nd Edition). Tinley Park, IL: The Goodheart-Willcox Company, Inc. What are some tips for handling difficult customers? A recommended process for handling customer complaints includes: • Listen • Take the customer aside to discuss the complaint • Repeat the facts to show that you understand what the customer has stated • Get assistance from a supervisor, if necessary • Establish a plan that determines the next action step Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. Explain how organizations adapt to today’s markets. Organizations adapt to today’s markets by using tools like SWOT Analysis and environmental scans to identify ways the business can improve. A SWOT Analysis assesses a company’s strengths and weaknesses and the opportunities and threats that surround it. An environmental scan is an analysis of outside information that may have an impact on an organization. A business is constantly engaged in the process of renewal when they choose to use this data. Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill. How can you demonstrate initiative? Demonstrating initiative means taking action and completing tasks without being specifically asked to do so. An example of taking initiative is developing a new idea for a marketing campaign and conducting the research to show that your idea has viability. Source: Farese, L.S.; Kimbrell, G. & Woloszyk, C. (2009) Marketing Essentials. Woodland Hills, CA: Glencoe/McGraw-Hill.