BSA 310 Week One

8/7/2019 BSA 310 Week One

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Needed information in a

nutshell

Week 1 Readings combined in

a PPT


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entities, real or abstract, forming an integrated

whole. (Wikipedia, 2007)

Business system comprises of inter-related processes, tools, andresources that are organized to

meet specific purposes or businessgoals.


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Example of a System?

ManufacturingProcessnput ofaw Materials utput ofinishedProducts

Environment

ther Systems

ontrol byManagementontrolSignals ControlSignals

FeedbackSignalsFeedbackSignals

ystem Boundary


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What Information SystemInformation System?

nput ofDataResourcesnput ofDataResources

rocessingDatarocessingData

utput ofInformationProducts

utput ofInformationProducts

Control of System Performance

Control of System Performance

Storage of Data Resources

Storage of Data Resources


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The Inter-networked -Business

ManufacturingandProductionEngineerin&Research

,ccounting,inanceandManagement

uppliers and Other Business Partners

, ,rocurement Distribution and Logistics

dvertising Sales CustomerService

onsumer and Business Customers

CompanyBoundary

Intranets

he Internet

Extranets


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usiness Systemusiness System

:usiness systemsv Human Resources

v &Accounting FinancevPayrollvProductionvOperationsv Information Systemv &Sales Marketingv &Research Development


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usiness Structuresusiness Structures :Sole proprietorship A sole proprietorship is a business owned

.by one person The owner may operate on his or her own or.may employ others The owner of the business has total and

unlimited personal liability of the debts incurred by the.business

:Partnership A partnership is a form of business in which twoor more people operate for the common goal of making.profit Each partner has total and unlimited personal

.liability of the debts incurred by the partnership There:are three typical classifications of partnerships general

partnerships, limited partnerships, and limited liabilitypartnerships.

:Corporation - ,A business corporation is a for profit limitedliability entity that has a separate legal personality

.from its members A corporation is owned by multiple,shareholders and is overseen by a board of directors which

.hires the business's managerial staff


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ole Proprietorshipole Proprietorship,Sole Proprietorship is a form of business created

, .owned and operated by an individual

.No state filing is required ,Unlimited liability personal assets could be required to

.pay business debts .No separate tax filing is required

Business capitals are generated through loans or.personal assets , .Easy to form minimal legal requirements .Dissolves upon owner s death

Characteristics


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eneral Partnershipeneral PartnershipGeneral Partnership is a form of business owned by

.two or more individuals

Created through oral or verbal agreements among the/ .owners partners ,Unless specified partners have equal rights .No state filing is required , Unlimited liability owners personal assets could be

.required to pay business debts

.No separate tax filing is required Business capitals are generated through loans or.personal assets

/ .Dissolves upon partner s death withdrawal

Characteristics


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imited Partnershipimited PartnershipLimited Partnership is a form of partnership owned by two

: .types of partners general partners and limited partners

,General partners have unlimited liability but limitedpartners are liable to what they invested in the.business

,General partners have control over of the business.limited partners do not

State filing is required -Tax is filed as a separate entity as a pass through

.included in the individual tax return .Limited number of partners allowed

Characteristics


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imited Liability Partnershipimited Liability PartnershipLimited Partnership is a form of partnership owned by

.licensed professionals such as accountants or attorneys

.State filing is required .All partners share limited liability The limit varies

.with the states where the license is obtained .Business insurance are usually mandatory -Tax is filed as a separate entity as a pass through.included in the individual tax return .Some formal requirements may apply

Characteristics


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CorporationCorporationC Corporation or Corporation is a separate legal entity owned

.by shareholders and has similar rights as an individual sShareholders cannot be held responsible for the debts of the.corporation

Certificate of incorporation is required from the state.agency

Shareholders liability is limited to their investment in the

.business (Capitals are raised through sale of shares internal or).external

( )Double taxation of profits entity and individual levels Management is performed by directors elected by

.shareholders

.Formal meetings and documents are required .Unlimited duration of existence

Characteristics


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anagement Structureanagement Structure

v ( )Strategic Top Management

v ( )Tactical Middle Managementv ( )Operational Lower Management

anagement Levels


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Analysisnalysis

vPESTvSWOTT

v Supply Chain Management

ypes of Analysis


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imited Partnershipimited PartnershipLimited Partnership is a form of partnership owned by two

: .types of partners general partners and limited partners

,General partners have unlimited liability but limitedpartners are liable to what they invested in the.business

,General partners have control over of the business.limited partners do not

State filing is required -Tax is filed as a separate entity as a pass through

.included in the individual tax return .Limited number of partners allowed

Characteristics


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EST AnalysisEST Analysis

-PEST Analysis focuses on macro environment factors such asP ,olitical E ,conomic S ,ocial and T .echnological considerations

.Often times PEST abbreviation can be rearranged as STEP Both.can be used interchangeably

-PEST complements SWOTT Analysis which focuses on the micro( ).environment organization level


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oliticaloliticalFactorsactors:xample of Political Factors

Political stability

Government structure Trade agreements - /Anti trust Competitions Labor laws


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conomic Factorsconomic Factors

:xample of Economic Factors Monetary policies

Exchange ratesTaxation Interest rate Inflation rate Unemployment rate


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ocial Factorsocial Factors

:xample of Social FactorsReligionEthics Knowledge and skill sets Resource availability Culture and traditionsLanguagePrivacy


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echnologicalechnologicalFactorsactors:xample of Technological Factors

Technology policy Rate of technology transfer Patents and trademarks &Research Development Government grants and subsidies


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WOTT AnalysisWOTT Analysis

SWOTT Analysis is a value based assessment focusing on, , , ,Strengths Weaknesses Opportunities Threats and Trends of

.an organization

,Although SWOTT can be used in any stages of planning it is.usually performed at the strategic level


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WOTT AnalysisWOTT AnalysisStrengths

High quality and reliableproducts

/Strategic location siteStrong cash flow

Profitable businessReputable company

WeaknessesEroding product sales

High labor cost-Lack of long term plan

-High labor turn over

ThreatsCheaper products

/New technology productsCost of raw material

increases

Interest rate increases

OpportunitiesNew market opportunity

&Research DevelopmentOutsourcing

&Mergers acquisitions

-Business Process Re engineering

Trends

Future demands

Change in tasteChange in

/laws regulationsTechnology trendsDemographic changes


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upply Chain Managementupply Chain Management

( )Supply chain management SCM is the business process of, ,managing the complex interaction of products materials

, ,equipment labor and cash as they flow through the supply.chain and fulfill customer demand

,Forrester Research 2007

:// . . / =http www youtube com watch?v 6rmV__Yrk7Q
http://www.youtube.com/watch?v=6rmV__Yrk7Qhttp://www.youtube.com/watch?v=6rmV__Yrk7Qhttp://www.youtube.com/watch?v=6rmV__Yrk7Q


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hy SCM?hy SCM?

Inefficiencies in paired relationship between customers andsuppliers

- - .Integration between front end and back end systems , ,Open system that allows interactions among vendors suppliers

.and customers & , -Higher demand expectations quicker turn around time for.products and services


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SCMCM

, -upply Chain Visibility Using RFID Radio FrequencyIDentifiier

:// . . / =http www youtube com watch?v oAvQcYcvyaw

:// . . / = & = & =http www youtube com watch?v eob532iEpqk feature PlayList p A3C1C46D
http://www.youtube.com/watch?v=oAvQcYcvyawhttp://www.youtube.com/watch?v=oAvQcYcvyawhttp://www.youtube.com/watch?v=eob532iEpqk&feature=PlayList&p=A3C1C46D3224DA55&playnext=1&playnext_from=PL&index=41http://www.youtube.com/watch?v=eob532iEpqk&feature=PlayList&p=A3C1C46D3224DA55&playnext=1&playnext_from=PL&index=41http://www.youtube.com/watch?v=eob532iEpqk&feature=PlayList&p=A3C1C46D3224DA55&playnext=1&playnext_from=PL&index=41http://www.youtube.com/watch?v=oAvQcYcvyaw


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Five Forces Analysis

B i i P f


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Bargaining Power ofCustomers

Buyer concentration to firmconcentration ratio

Bargaining leverage

Buyer volume

Buyer switching costs relativeto firm switching costs

Buyer information availability

Ability to backward integrate

Availability of existing

substitute products Buyer price sensitivity

Price of total purchase

Bargaining Po er of


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Bargaining Power ofSuppliers

Supplier switching costsrelative to firmswitching costs

Degree of differentiationof inputs

Presence of substituteinputs

Supplier concentration tofirm concentration ratio

Threat of forwardintegration by suppliersrelative to the threat ofbackward integration

by firms Cost of inputs relative to

selling price of theproduct

Importance of volume tosupplier


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Threat of New Entrants

The existence ofbarriers to entry

Economies of

productdifferences

Brand equity

Switching costs

Capital

requirements

Access todistribution

Absolute cost

advantages Learning curve

advantages

Expectedretaliation

Governmentpolicies

Threat of Substitute


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Threat of SubstituteProducts

Buyer propensity tosubstitute

Relative price

performance ofsubstitutes

Buyer switchingcosts

Perceived level ofproductdifferentiation


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Competitive Rivalry

Number ofcompetitors

Rate of industry

growth Intermittent

industryovercapacity

Exit barriers

Diversity ofcompetitors

Informationalcomplexity andasymmetry

Brand equity Fixed cost

allocation pervalue added

Level ofadvertisingexpense


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Edward Deming Believed that

organizations werebeing managedwrong

Considered the

Father of TotalQualityManagement(TQM)

Taught the Japanesehow to producehigher qualityproducts at lowercosts


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Total Quality Management

Create consistency ofimprovement

Adopt the qualityphilosophy

Cease mass inspections

Long-term relationshipswith single suppliers

Constant improvement

Institutionalize training

Managers lead, notsupervise


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Workshop #2 Preview

Administration and feedback to students

Current Article

WS #1 Review Economic Influences

Government Influences

Legal Influences

Summary

WS #3 Preview

Just to remind you


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Just to remind you:Workshop #2 Homework

Reading Chapter 11 Business text Chapter 15 Intro to IT text Chapter 7 Ecommerce text

Individual Homework

Memorandum on business types for each of thefour businesses from the Virtual OrganizationPortal (See BSA310 Course Notes) that were inthe table from week 1.

Learning Team Begin work on Service Request SR-rm-012.

Review the Internet site, Mission, Description,Finance and Accounting in RiordanManufacturing.

Based upon the review, identify and describeexisting and needed business systems and sub-systems.

Draft the first 2-3 pages of paper.

Documents

BSA 310 Week One