Unit 2
Managing the
Small Business
Small Business Operations
Managing the Small Business
 Managing is getting the
work of an organization
done through its people
and resources.
 Companies with effective
managers usually have
good products, good
employees, and satisfied
customers.
Source: Marketing, 3e, page 619
Frameworks 2.1
The Management Functions
 Planning – analyzing information, setting goals, and
determining how to achieve them.
 Organizing – arranging people, activities, and resources
in the best way to accomplish the goals of the
organization.
 Controlling – measuring performance, comparing it with
goals and making adjustments when necessary.
 Staffing – matching individuals with the work to be done.
 Leading – the ability to communicate the direction of the
business and influence others to successfully carry out
the needed work.
Source: Marketing, 3e, pages 621-623
Frameworks 2.2
Create an Employee Work Schedule
 An example of the management function of
staffing would be the creation of an
employee work schedule.
 Using the time matrix provided, create an
employee work schedule for the SBE.
Frameworks 2.2.2
The Importance of Leadership
 A small business owner
who earns the respect and
cooperation of employees
to effectively accomplish
the work of the business is
known as a leader. Business
Principles & Management, 12e, page
296
 Those entrepreneurs who
lead, rather than direct and
order employees, are more
effective and successful
business owners.
Steve Jobs, co-founder of
Apple Computers, and current
CEO, is considered by many
to be an inspirational leader.
Frameworks 2.3
Characteristics of Leaders
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Honesty
Intelligence
Good Judgment
Objectivity
Initiative
Dependability
Cooperation
Courage
Confidence
Stability
Understanding
Source: Business Principles & Management, 12e, page 298
Frameworks 2.3
Policies and Procedures
 Policies are rules or
guidelines to be used
in a company to make
consistent decisions.
 Procedures are the
steps to be followed
for consistent
performance of
important activities.
Source: Marketing, 3e, pages 634-635
Frameworks 2.2.4
Ten Rules for Great Customer Service

Commit to quality service. Everyone in the company needs to be devoted to creating a positive
experience for the customer. Always try to go above and beyond customer expectations.

Know your products. Convey an articulate and in-depth knowledge of products and services to win
customer trust and confidence. Know your company’s products, services, and return policies inside and
out. Try to anticipate the types of questions that customers will ask. Update and amend your FAQ page
frequently.

Know your customers. Try to learn everything you can about your customers in order to tailor your
service approach to their needs and buying habits. Talk to customers about their experience with your
company, and listen to their complaints. In this way, you can get to the root of customer dissatisfaction.

Treat people with courtesy and respect. Remember that every time that you, your employees, and your
colleagues make contact with a customer — whether it’s by email, phone, written correspondence, or a
face-to-face meeting — the interaction leaves an impression with that customer. Use conciliatory phrases
— "Sorry to keep you waiting," "Thanks for your order," "You’re welcome," and "It’s been a pleasure
helping you" — to demonstrate not only your commitment to customer satisfaction but your dedication to
courtesy.
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Never argue with a customer. You know very well that the customer isn’t always right. However, it is
important that you do not focus on the missteps of a particular situation; instead, concentrate on how to fix
it. Research shows that 7 out of 10 customers will do business with a company again if that business
resolves a complaint in their favor.
Source: www.allbusiness.com
Ten Rules for Great Customer Service
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Don’t leave customers in limbo. Repairs, callbacks, and emails need to be handled with a sense of urgency.
Customers want immediate resolution, and if you can give it to them, you will probably win their repeat business.
Research shows that the instance of repeat business goes up to 95 percent when complaints are resolved on the
spot.
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Always provide what you promise. Fail to do this and you’ll lose both credibility and customers. Only make
promises that you are confident that you and your business can keep.

Assume that your customers tell the truth. Even though it may appear that customers lie to manipulate a
situation to their advantage, it is to your advantage to give them the benefit of the doubt. The majority of customers
don’t like to complain; in fact, they’ll go out of their way — perhaps all the way to a competitor — to avoid it. If you
hear unhappy rumblings from your customers, take their complaints to heart and do your best to appease their
dissatisfaction.

Focus on making customers — not on sales. Salespeople, especially those who get paid on commission,
sometimes focus on the volume instead of on the quality of the sale. Remember that to keep a customer’s
business is more important than to close a sale. Research shows that it costs six times more to attract a new
customer than it does to keep an existing one. Moreover, happy customers are the best and most effective way to
find new customers.
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Make it easy to buy. The buying experience in your store, on your Web site, or through your catalog should be as
easy as possible. Eliminate unnecessary paperwork and forms, help people to find what they need, explain how
products work, and do whatever else you can to facilitate transactions.
Source: www.allbusiness.com
Policies for DECA’s House of Grounds
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Greet the customer! Please greet the customers with a smile and by name, if you know their name, when they enter the
coffee shop.
Always acknowledge a waiting customer!
Please talk to your coworkers with a tone of respect and courtesy.
You should wear your name tag and apron while working.
Please do not sit on the stool when operating the cash register. It looks unprofessional.
Never eat, drink, or chew gum in front of customers. It is unprofessional and unappealing.
Never use your cell phone in the presence of customers – unless it is for a reason related to the coffee shop
Please avoid putting your books, coats, bags, or other items on the coffee shop tables or chairs. We want to save these
for our customers.
Please do not take the smoothies or chai tea as your free beverage.
Do NOT use milk to make fruit smoothies. You must follow the directions on the fruit smoothie label.
Fruit Smoothie containers and Chai Tea containers MUST be refrigerated after being opened.
You are allowed to have one small beverage on a day when you work a shift. You must use your GIFT CARD to get
that drink. If you don’t have the card, you can look up your card number in the computer database.
Of course, you not make free drinks for your friends.
Please do NOT have a boyfriend, girlfriend, brother, or sister to visit you at work for long periods of time. This is a
distraction for you and it is viewed negatively by customers.
Do not gossip about or talk about other students (or teachers) particularly in the presence of customers. This is
unprofessional and inappropriate.
You should wash your hands frequently. You MUST wash your hands before making a drink if you have just previously
operated the cash register. Remember to wash you’re hands for at least 15 seconds and use your paper towel to turn
off the water.
Frameworks 2.2.4
Mission Statement
 The mission statement is
a short, specific statement
of the business’s purpose
and direction. Business Principles &
Management, 12e, page 326
 The mission or purpose of
the company indentifies the
nature of the business or
the reasons why the
organization exists. - Marketing,
Harrison High School
Mission Statement
Inspiring life-long
learners is our highest
priority. With our
students, their
families, and our
community, we share
an uncompromising
commitment to
excellence for all.
3e, page 265
Frameworks 2.4
Write A Mission Statement
• On your own paper, write a mission statement
for the SBE.
Frameworks 2.4.2
Teamwork
 Teamwork is the ability
to work effectively as
part of a group.
 A self-directed work
team is a group of
employees who work
together toward a
common purpose or
goal without the usual
managerial or other
supervision.
Source: Marketing, 3e, page 632
Frameworks 2.5.1
Job Rotation
 Job rotation occurs when employees learn a
variety of jobs within one company and
regularly switch jobs within the same
organization.
 Job rotation increases worker’s interest in their
jobs and enables employees to fill in for
coworkers who might be absent.
 All students working in the SBE will participate
in a job rotation program.
Source: Business Principles & Management, 12e, page 37
Frameworks 2.5.2
End of Unit 2
 Visit the website www.quizlet.com to review the
terms associated with this unit of instruction.
 If you have not already done so, create an account with
Quizlet.com.
 Use your first and last name (without a space) as your
login.
 Use your first name (or anything you can remember!) as
your password.
 Using the Quizlet.com search feature, search for
cdorman and find Mr. Dorman’s dashboard.
 Open the Subjects folder “Small Business Operations.”
 Study the flashcards.
 Use the test feature and use the scatter feature.