Buss1001

3/11/2012 BUSS1001 Understanding Business Week 2 What is Business? interrelate Professor Philip Seltsikas Associate Dean (Undergraduate) THE UNIVERSITY OF SYDNEY fear SCHOOL Pre visualize of nowadayss lecture What is Business? Narrow view More intricate view Assessment 1 2 What is job? The narrow view Any activity that seeks to provide goods and services to others while operating at a profit (Nickels, McHugh and M H h 2010 p. G 14) d McHugh 2010, G-14). 3 1 http//images. google. com/imgres? q=henry+fayol&hl=en&gbv=2&tbm=isch&tbnid=L07_nJsWisbAAM&imgrefurl=http//mariaavilla 4zKAcE9kM&w=131&h=173&ei=rrUvTvP0BJGmizar. logspot. com/2008/09/henry-fayol-vs-max-weber. html&docid=gigzs4 sAOJ9Lkd&zoom=1&iact=hc&vpx=287&vpy=150&dur=2276&hovh=138&h hovw=104&tx=81&ty=75&page=1&tbnh=128&tbnw=88& start=0&ndsp=35&ved=1t429,r1,s0&biw=1429&bih=723 Total returns on assets moldiness exceed cost of peachy required to finance assets http//en. wikipedia. org/wiki/Max_Weber http//en. wikipedia. org /wiki/Scientific_management Reinvestment Returns Reinvestment Returns Assets Debt righteousness The Value Creation Equation A mildew of all businesses Assets 1841-1925 Henry Fayol Founder of Classical Management scheme 1856 1915 Frederick Taylor Developed scientific management 1864 1920 Max Weber Studied organizational bureaucracy Fayol, Weber, and Taylor All capital is a costly resource Debt Equity 3/11/2012 2 3/11/2012 What doesnt this model show us? WHAT? Organizational building blocks Mission, Vision, Goal, Purpose Strategy solicitation of assets Configuration of Assets into a structure (s) to enact business processes Management (decision fashioning & control) using structure using policies & procedures using rewards & punishments DONT ordinarily depend DONT NORMALLY SEE Where did these companies come from?WE SEE SOME OF THESE or ASPECTS OF THEM M 3 3/11/2012 soulfulness is at the controls Keeping it running and navigating the environment 10 What is a BUS INESS? coordinate multiple meanings This is part of understanding Business Structure Organisational Structure will help us understand What is a Business? 11 Dimensions of Organizational Structure Job specialization Departmentalization Span of control chain of Command (c. f. hierarchy) Line functions and staff functions (front office/back office) Power and say-so Divisionalization Centralization / Decentralization 4 3/11/2012 Organization ChartCEO chief financial officer CIO COO Marketing Director IT Manager Sales Director action Manager Marketing group A Marketing group B IT department Sales region A Sales region B Plant workers French & Raven 1959 5 bases of organizational power unequivocal Power Reward Power http//www. carrollcoaching. com/coaching Legitimate Power referent Power Expert Power Functional Organization Measures of Success? take in Market Share KPIs (key performance indicators) 5 3/11/2012 inner(a) and Outside Perspectives Organisations are subject to external forces but may too influence the operation and effect of those same forces. Key aspects of the capacity of organisations to efficaciously shape their own destiny include the decisions that they make about k b t ? Strategy ? Structure and BUSS1001 Understanding Business ? behavior BUSS1002 The Business Environment Business key player in union Is a major change agent Has the potential to be a force for good g prosperity Drives growth and p p y Society Impacts on business Is constantly changing and so, must business change Affects what businesses do and how they do it What is business? A broader perspective Transformation of inputs into outputs to produce goods and services that meet needs and wants in the auberge adapted from Wetherly and Otter 2011 For-profit businesses Private P i t sector t Types of business activity Public sector Non-profit organisations Government organisations 18 6 3/11/2012 Purpose of a For-profit business organisation Maximisin g returns on debt and equity This is achieved through sustainable competitive titi advantage 19 Sustainable competitive advantage Outperforming your competitors in the long run How is this make? 20 Next week What? Why? Strategy 21