COMM 103 Mid-term BusinessFoundation Commercial Endeavors Organizational Efficiency and Structure Employee Interaction BusinessModelComposition= Assets + Labour

our + Capital + Managerial Acumen FundamentalObjectivesof BusinessManagers Short-term profit Long-term growth and profitability Social and environmental responsibility BusinessGrowthandProfitability = Well-directed and positioned strategy + Efficient and Effective Tactics Execution ValueProposition Service Benefits Product Benefits Brand Benefits Cost Benefits Emotional Benefits BusinessDecisionMakingModel Visualize and assess the business opportunity Confirm market size and profitability potential Determine market position, approach, and continuity Assess company resources and capabilities Determine the tactics required to achieve objectives ContributionFactorsto EconomicDevelopment Political Stability Manageable levels of national debt, established factors of production, national monetary policy and banking system Sufficient levels of investment, low inflation, absence of corruption, effective legal system, comparative advantage CanadianMixedEconomicSystem Private Ownership, Entrepreneurship, and Wealth Creation Law of Supply and Demand Government Involvement EconomicActivity Expenditures

 Savings Investment Credit TrendsImpactingthe CanadianMarket Inflation Geographic clustering Currency exchange rate impact Branch market impact Sustainability and green initiatives Again workforce, immigration and multi-culturalism Long-term competitiveness Small business emphasis Globalization

CompetitiveModels Pure Competition Monopolistic Competition Oligopoly Monopoly Attractivenessof GlobalMarkets(Why companies want to go global) New market opportunities Cost reduction opportunity Resource base control Closeness to markets Economies of scale GlobalGrowth(Fundamentals needed for a country to grow globally) Ongoing commitment to international trade systems Absence of protectionism Balanced economic development Adherence to the fundamentals of fair trade Market openness Responsible sovereign debt management CurrencyRateExchangeRateInfluencers GDP Movement Governmental budget deficits/surpluses Trade Balance Consumer Price Movements (PPP) Capital mobility and supply Movement in domestic income level 5 GreatSustainabilityChallenges Climate change

Pollution and health The energy crunch Resource Depletion The Capital Squeeze

LongtermBenefitsof EnvironmentalSustainabilityStrategicIntegration Pricing power Enhanced efficiencies Customer retention Stronger employee base Strong environmental management New business options CSRPyramid Personal Projects Operational Initiatives Philanthropy Strategic Partnership CoreElementsof a BusinessStrategy Purpose Markets Products and services Resources Business system configuration Responsibility and accountability StrategyPlanningProcess Revisit our purpose Undertake an I/E analysis to understand our environment Assess our view of our world Choose a direction Implement our strategy Porter's5 Forces(External) Rivalry among existing competitors Threat of new entry Threat of substitute product of services Bargaining power of suppliers Bargaining power of buyers PESTEL(External) Political Economic Social

 Technological Environmental Legal 3C Analysis(Internal) Competencies Capabilities Capacity SWOTAnalysis(CompetitorSWOT= External, CompanySWOT= Internal) Strengths Weaknesses Opportunities Threats CompetitiveAdvantageOpportunity Innovation Customer Responsiveness Quality Efficiency StrategyDevelopment Corporate-level strategy Business-level strategy Operating plan StrategyConsiderationsfor NFP Mission balance Vitality Collective Entrepreneurship Rootedness Operational Effectiveness BusinessSystemDesigns Organizational Structure, Culture, Management Approach Mechanisms for Effective Talent Management Control Systems to Manage Strategic Intent Operational Processes and Market Support and Alignment OrganizationalFramework Structure Culture or environment Management approach Typesof Structures Simple Structure

 Functional Structure Customer Structure Divisional Structure Geographic Structure StructuralBuildingBlocks Customer Intimacy Work Efficiencies Departmentalization

CulturalFramework Employee Interaction Risk Allowance Control Protocols Competitive Emphasis ManagementApproach Hierarchy Requirements Span of Control Decision-making Control Coordination of the Work Effort Nature of Work PositiveWorkEnvironment Perceived Quality of the Company Fit with the Employees Lifestyle and Reward Requirements Key Attributes of the Position MotivationalToolkit: TALENT Trust and Respect Approval, Praise, Recognition Lead By Example Enrichment Negotiation Skills Treasure ManagerialSkill Set Conceptual Skills Leadership Skills Technical & analytical skills Human relations skills Position Power vs Personal Power (Know this) 5 KeyFactorsInfluencingLegal StructureDecision

 Ease of setup Degree of Control Magnitude of Risk Financial Capacity Required Skills MortgageCharacteristics Mortgage Value Amortization Period Interest Rate Interest Rate Term

2 FundamentalTypesof BusinessTransactions Operational Transactions Capital Asset Transactions KeyFocusof FinancialStatementAnalysis Liquidity Capacity Solvency Efficiency Type of Business Characteristics Advantages Disadvantages

Sole Proprietorship

PartnershipGeneral/Limited -

Owned and operated by one person Most common form of business They have a special skill #oined by $ or more people %artnership %rofits are divided

Easy to start All decisions are made by self Less taxes

Money re uired if want to expand !ave to make all decision by self May lose personal property if you "o into debt (isa"reements with partners All partners are responsible for debt

Easy to establish &ombines skills of owners Easier to expand Taxed less than corp'

Corporation

Lar"e More complicated structure Lots of employees !ave stockholders

Each owner has limited ability Easier to raise money %eople can easily leave by buyin")sellin" stocks Each area can have professional experts

&omplex to start *ncreased "ov+t re"ulation !i"her taxes *ntricate accountin" and record keepin"

Statement of Cash Flows: Net Results from Income Statement + Net Results from Cash from Operational Activities + Net Results from Investing Activities + Net Results from Cash Financing Activities = Changes to Cash Position

ReturnOn Sales(ROS): Net Income/Net Sales ReturnOn Sales(ROA): Net Income/Total Assets ReturnOn Sales(ROE): Net Income/Total Equity Earningsper Share: Net Income/ # of Shares Outstanding

Current Ratio: Current Assets/Current Lia ility Quick Ratio: !Cash"#ar$eta le Securities " Accounts %eceiva le&/Current Lia ilities Solvency Ratio: !'et (ncome " Depreciation&/Total Lia ilities Average Age of Inventory: Average inventory/Cost of goods sold )*+, Average Days Sales: 'et Annual Sales/*+, Days Receivable (Average Collection Period): Accounts %eceiva le/Average Days- Sale otal Asset urnover ( i!es): %evenue/Assets Inventory urnover: Cost of Goods Sold/Average (nventory Debt Ratio: Total Lia ilities/Total Assets Debt to "#uity Ratio: Total Lia ilities/Total ./uity

i!es Interest "arned Ratio0 1perating .arnings !.B(T&/(nterest .2pense $ross %argin: Gross #argin/Sales %evenue Profit %argin: Profit #argin/Sales %evenue