MGTA02 Lecture 1 - Intro and Overview
MGTA01: Review
● Business and Profit
○ In this course, we will add more to the “business” definition
○ Anything that makes profit is considered a business
● Difference between goals and objectives:
○ Goal – Long-term, qualitative
○ Objective – Short-term, quantitative
● Example: If your goal is to make money, your objectives are the smaller steps towards
achieving that goal
● Key Point: Without customers, you will not make any money
What do Business Managers Do?
● A business transforms factors of production (inputs) into products that people demand
(outputs)
● Think of a specific business that you like and connect it to the course concepts
○ Example: Grocery stores are generic businesses that anyone can do
○ 80% of employees in generic businesses usually come from 1-3 km away
What MGTA02 is About
● This course looks at what goes on within the “Rainbow box” (the system) and its
processes
○ Identify the factors of production in the products you use daily (e.g. items in your
room)
○ Value of brand recognition:
■ The logo itself contributes to about 33% of a product’s value
■ Reputation and customer recognition are crucial
■ For service businesses, there is a permanent fixture of value
■ For goods, reputation takes time to build but can be lost quickly
○ Key Point: Customers add the most value to your business.
Parts of a Business’s System
● Identify and research target market
● Develop product and set price
● Operations (create products)
● Promote and distribute products
● Measure and control
, MGTA02: Managing the Business
Key Functions for Business Success
● To succeed, every business must perform a number of functions:
○ Determine customer needs – marketing
○ Create things people demand – operations
○ Collect information – accounting
○ Find and allocate capital – finance
○ Hire and keep good people – HRM
● Each function can be a department (e.g. marketing, accounting)
○ In your own business, these functions are handled individually
● The Value Chain model
○ Suggests that businesses are systems converting inputs into goods and services
demanded by people
Distinguishing Good vs. Bad Management
● Good managers efficiently handle the Value Chain to generate profits
● Example: Steve Jobs as a successful manager vs. Nokia’s failure despite creating the first
smartphones
○ Successful managers know what needs to be done and how to do it better and
faster
● Key Point: Organization, risk-taking and process efficiency are key to success.
Managing for Success
● Business functions need to be:
○ Planned
○ Organized
○ Led
○ Controlled
MGTA01: Review
● Business and Profit
○ In this course, we will add more to the “business” definition
○ Anything that makes profit is considered a business
● Difference between goals and objectives:
○ Goal – Long-term, qualitative
○ Objective – Short-term, quantitative
● Example: If your goal is to make money, your objectives are the smaller steps towards
achieving that goal
● Key Point: Without customers, you will not make any money
What do Business Managers Do?
● A business transforms factors of production (inputs) into products that people demand
(outputs)
● Think of a specific business that you like and connect it to the course concepts
○ Example: Grocery stores are generic businesses that anyone can do
○ 80% of employees in generic businesses usually come from 1-3 km away
What MGTA02 is About
● This course looks at what goes on within the “Rainbow box” (the system) and its
processes
○ Identify the factors of production in the products you use daily (e.g. items in your
room)
○ Value of brand recognition:
■ The logo itself contributes to about 33% of a product’s value
■ Reputation and customer recognition are crucial
■ For service businesses, there is a permanent fixture of value
■ For goods, reputation takes time to build but can be lost quickly
○ Key Point: Customers add the most value to your business.
Parts of a Business’s System
● Identify and research target market
● Develop product and set price
● Operations (create products)
● Promote and distribute products
● Measure and control
, MGTA02: Managing the Business
Key Functions for Business Success
● To succeed, every business must perform a number of functions:
○ Determine customer needs – marketing
○ Create things people demand – operations
○ Collect information – accounting
○ Find and allocate capital – finance
○ Hire and keep good people – HRM
● Each function can be a department (e.g. marketing, accounting)
○ In your own business, these functions are handled individually
● The Value Chain model
○ Suggests that businesses are systems converting inputs into goods and services
demanded by people
Distinguishing Good vs. Bad Management
● Good managers efficiently handle the Value Chain to generate profits
● Example: Steve Jobs as a successful manager vs. Nokia’s failure despite creating the first
smartphones
○ Successful managers know what needs to be done and how to do it better and
faster
● Key Point: Organization, risk-taking and process efficiency are key to success.
Managing for Success
● Business functions need to be:
○ Planned
○ Organized
○ Led
○ Controlled
