2nd “live” seminar ab209, small business management

2nd “Live” Seminar

AB209, Small Business Management

Unit 3 Seminar Game Plan Course Check-In

Course Website Check-InCourse Activities & Assignments Check-In

Review Unit 1 & 2 ContentContent ReviewAssignment Review

Unit 3 Check-InLook Ahead to the 3rd “Live” Seminar

KU Winter Break Game Plan

The KU Winter Break:Begins: Friday, 24 December 2010 at 11:59pm ET

Wraps-Up: Sunday, 2 January 2011 at 12am ET

During the Break:You are not required to log-on and engage in our course

For Unit 3, you are not penalized if you do not meet the requirement of three (3) separate DB participation days

Course Check-In

Unit-By-Unit WorkflowEach new unit kicks-off on Wednesdays

at 12:01am ET. You will then have until the following Tuesday at 11:59pm ET to complete and/or submit all assignments for that Unit.

This gives you one week to complete your readings, Discussion Board postings and other assignments.

And, AB209, we will have one-hour seminars in Units 1, 3, 5, 7, & 9 – please note the day/time of these seminars

Course Website ReviewDown the left hand margin of the

course website you will find:oCourse Home: Syllabus, Instructor

Info, “Instructor’s Office”oUnit Folders: Each unit contains the

activities and assignments for that unit:o Readingso Discussion Boardso Assignments, Activities, & Reviewso Projects and Business Plano Seminar Information

Course Website Review (cont)

Across the top of the course website you will find:oGradebook: Here, you will find your

grades for each assignment in AB209; I update the Gradebook weekly

oEmail: Here, you can easily email me (the instructor) or classmates

oDoc Sharing: Here, you will find important downloadable documents such as our Syllabus, Instructor Information, etc.

oDropbox: Here, you will submit your Assignments, Projects, and Business Plan

Assignments ReviewDiscussion Boards: We have graded

DBs in Units 1 through 9 (40 points each)

Reviews: We have graded Review exercises in Units 1, 2, 5, 7, & 9 (40 points each)

Case Studies: We have graded Case Studies in Units 3, 4, 6, & 8 (50 points each)

Activity: Financial Planning in Unit 5 (60 points)

Final Project - Business Plan: Our graded final project (Business Plan) is due in Unit 9 (140 points); please note that in Units 2, 4, 6, & 8 you are encouraged to work on specific sections of this plan

WAC Writing Assignment: Written reflection paper due in Unit 10 (40 points each)

Discussion BoardsDiscussion Boards: Graded DBs in Units 1 - 9Be sure to closely review and understand the

Discussion Board Grading Rubric and Online Communication Guidelines in our Syllabus

General Guidelines:o Be sure to note the “word count” expectations for your

original DB postings. The expectation is 100 words (minimum).

o The minimum expectation for DB participation is: 1) Post your original response to each DB question (100 words minimum), 2) Respond to a minimum of two classmate postings, and 3) respond to classmates who answer your original posting. This will create a rich and collaborative DB environment.

o Your 1st posting each unit/week should be made no later than Saturday.

o Be aware of our “best practices” of logging-on three to five times (spread throughout the week) to engage in the DB. Many of you had responses to your original postings that went unanswered.

o Be sure to note the requirement to use complete sentences, correct spelling and punctuation, and to avoid writing in an “IM” (Instant Messenger) style. Our DBs require a more formal communication style.

o No late DB participation accepted

Review ExercisesGraded Reviews in Units 1, 2, 5, 7, and 9Our Reviews are available for the entire

week/unit in which they are assigned and you can retake them as many times as you wish during the week/unit.

Review Topics:o Unit 1 Review: 20 questions, Part 1 contento Unit 2 Review: 20 questions, Part 2 contento Unit 5 Review: 20 questions, Part 3 contento Unit 7 Review: 20 questions, Part 4 contento Unit 9 Review: 20 questions, Part 5 content

Case StudiesGraded Case Studies in Units 3, 4, 6 & 8 – each Case Study is worth 50 points

Case Studies should be completed using the AB209 Case Analysis Template located in Doc Sharing

Case Study Topics:oUnit 3: Firewire Surfboards (pages 628 to 629)

oUnit 4: Le Travel Store (page 641)oUnit 6: eHarmony (pages 636 to 637)oUnit 8: Diamond Wipes International, Inc. (pages 664 to 665)

ActivityIn preparation for your Final Project in Unit 9, you will start your planning for financing your business in Unit 5.

Contents of the Unit 5 Activity:Profit & Loss Projections (Year 1, 2, and 3)Sources of CapitalStart-up ExpensesSecurity & Collateral for Loans

Submit your responses to this activity in a Word document to the Dropbox by the end of Unit 5.

The Unit 5 Activity is worth 60 points

Final ProjectOur graded Final Project (Business Plan) is

due no later than the end of Unit 9To complete our Final Project, please refer to

three (3) resources in Doc Sharing:AB209 Final Project OverviewAB209 Final Project TemplateFinal Project MS PowerPoint Template

In Units 2, 4, 6, & 8, students are encouraged to work on specific elements of the Final Project and, in Unit 5, you will complete Financial Planning Activity

Completed Business Plans & MS PowerPoint presentations should be submitted via the DropBox

The Final Project is worth 140 points

WAC Writing AssignmentAfter reflecting on what you have learned and how you

have benefited by taking AB209, write a minimum one page response to the questions below. Make sure to address the critical elements so you will be successful in completing this assignment. This assignment is worth 40 points.

Please answer the following questions in your paper:Reflect and describe which key concepts and topics in this

course have made you a stronger candidate to enter the business world.

Discuss how this course has affected you in your professional development as a student and as a person as well as encouraging you on your academic path.

See the Writing Assignment Checklist in Unit 10This assignment should be a minimum of one page

response and should be submitted via the DropBox. Name file: WAC Your Name

This assignment is due no later than the end of Unit 10

Introduction to Small Business

Our exploration of Small Business Management will focus on the five (5) parts:o Entrepreneurship: A World of Opportunity

o Unit 1 (Chapters 1 & 2)o Starting From Scratch or Joining an Existing Business

o Unit 2 (Chapters 3, 4, & 5)o Developing the New Venture Business Plan

o Unit 3 (Chapters 6 & 7)o Unit 4 (Chapters 8 & 9)o Unit 5 (Chapters 10, 11, & 12)

o Focusing on the Customer: Marketing Growth Strategieso Unit 6 (Chapters 14 & 15)o Unit 7 (Chapters 16, 17, & 18)

o Managing Growth in the Small Businesso Unit 8 (Chapters 19 & 20)o Unit 9 (Chapters 21, 22, & 23)

Unit 1 Review

Unit 1 InformationThemes: Course Kick-Off, The

Entrepreneurial Life, & Integrity/EthicsReadings: Longenecker – Chapters 1

& 2 (pages xiii to 58)Discussion Board #1: Introductions

(not graded)Discussion Board #2:

Entrepreneurs (40 points)Review: Chapters 1 & 2 (Part 1 of

textbook) (40 points)Seminar: Conducted on Scheduled Day/Time

© 2010 South-Western, Cengage Learning, Inc. All

rights reserved.1–17

The Contributions of Small Business Small Businesses:

Comprise 99.7% of all firms with employees.

Employ over 50% of employees in the private sector.

Account for 45% of private payrolls.

Generated 60 to 80% of net new jobs in past decade.

Create more than half of the country’s GDP.

Hire 40% of high-tech employees

Represent 97.3% of all exporters.



Who Are Entrepreneurs?Entrepreneurs are:

A person who starts and/or operates a business.

Individuals who discover market needs and launch new firms to meet those needs.

Risk takers who provide an impetus for change, innovation, and progress.

All active owner-managers (founders and/or managers of small businesses).



Exhibit 1.2 Entrepreneurial Incentives



Integrity and Entrepreneurship

What Is Integrity?An uncompromising adherence to doing what is

right and properHonesty, reliability, and fairness in business practicesAn essential element of successful business

relationshipsIs as much about what to do as it is who to be.

Doing the Right ThingEthical issues—questions of right and wrong

Legal and ethical considerationsConflicts of self-interest



Exhibit 2.1 Difficult Ethical Issues Facing Small Firms• Relationships with customers, clients, and competitors

(relationships with outside parties in the marketplace)

• Human resource decisions(decisions relating to employment and promotion)

• Employee obligations to employer(employee responsibilities and actions that in some way conflict with the best interests of the employer)

• Management processes and relationships(superior–subordinate relationships)

• Governmental obligations and relationships(compliance with governmental requirements and reporting to government agencies)

• Relationships with suppliers(practices and deceptions that tend to defraud suppliers)

• Environmental and social responsibilities(business obligations to the environment and society)

Source: Leslie E. Palich, Justin G. Longenecker, Carlos W. Moore, and J. William Petty, “Integrity and Small Business: A Framework and Empirical Analysis,” proceedings of the forty-ninth World Conference of the International Council for Small Business, Johannesburg, South Africa, June 2004.



Kinds of Ethical IssuesEthical Issues in Business Operations

Income and expense reporting (tax fraud)“Truth in advertising”—persuasion and deceptionBribing customers and rigging bidsDirect selling—pyramid schemes, bait-and-switch

sellingEffects of owners’ ethics on their employeesAccurately reporting financial information

Unit 2 Review

Unit 2 InformationTheme: Getting Started, Franchises &

Buyouts, & The Family BusinessReadings: Longenecker – Chapters 3, 4,

& 5 (pages 59 to 146)Discussion Board: Graeter’s Ice Cream

(page 120) (40 points)Review: Chapters 3, 4, & 5 (Part 2 of our

textbook) (40 points)Final Project Activity: Executive

Summary (ungraded)Seminar: No Seminar in Unit 2



Identifying Startup IdeasOpportunity Recognition

Identification of potential new products or services that may lead to promising businesses

Entrepreneurial AlertnessReadiness to act on existing, but unnoticed,

business opportunitiesGood Investment Qualities

Products that serve clear and important needsProducts that customers know aboutProducts that customers can affordA good idea is not the same as a good

opportunity.



Exhibit 3.2 Common Sources of Startup Ideas

Source: Data developed and provided by the National Federation of Independent Business and sponsored by the American Express Travel Related Services Company, Inc.



FranchisingFranchising

A marketing system involving a legal agreement, whereby the franchisee conducts business according to the terms specified by the franchisor.

FranchisorParty in franchise contract that specifies

methods to be followed and terms to be met by the other party.

FranchiseeAn entrepreneur whose power is limited by a

contractual agreement with a franchisor.



Exhibit 4.1 Economic Impact of Franchising

Economic Activity in Franchised Businesses

There were 909,253 businesses in franchise systems in the United States in 2005, accounting for 3.3 percent of all U.S. business establishments. These businesses directly provided

• 11.0 million jobs, • an annual payroll of $278.6 billion, and • output worth $880.9 billion.

Their economic activity accounted for

• 8.1 percent of all private-sector jobs, • 5.3 percent of all private-sector payrolls, and • 4.4 percent of all private-sector output.

Economic Activity Because of Franchised Businesses

The economic significance of franchising is greater than indicated by the activity in franchised businesses alone, for it stimulates still more activity and supports the growth of many nonfranchised businesses. If we include economic results from both inside and outside of franchising, franchised businesses in the United States were the source of

• 21.0 million jobs, or 15.3 percent of private-sector jobs, • $660.9 billion of payroll, or 12.5 percent of private-sector payrolls, and • $2.31 trillion of output, or 11.4 percent of private-sector output.

Source: PriceWaterhouseCoopers, The Economic Impact of Franchised Businesses, Volume II (Washington, DC: International Franchise Association, 2008).



The Pros and Cons of Franchising

AdvantagesProbability of

successProven line of businessPre-qualification of

franchisee

TrainingFranchisor-provided

Financial assistanceFranchisor assistance

Operating benefitsFranchisor-aided

LimitationsFranchise costs Initial franchise fee Investment costs Royalty payments Advertising costs

Restrictions on business operations

Loss of independenceLack of franchisor

support



What Is a Family Business?Family

A group of people bound by a shared history and a commitment to share a future together, while supporting the development and well-being of individual members.

Family BusinessAn organization in which either the individuals

who established or acquired the firm, or their descendants, significantly influence the strategic decisions and life course of the firm.



Family and Business OverlapFamily Concerns

Care and nurturing of family members

Employment and advancement in the firm

Loyalty to the family

Business Concerns Production and

distribution of goods and/or services

Need for professional management

Effective and efficient operation of the firm



Advantages of a Family Business

Strength of family relationships during challenging periods of business change

Financial sacrifices that family members make for the good of the firm

Operation as a family business distinguishes the firm from its competitors

Higher levels of concern for its community and non-family employees

Capability to plan and prepare for the long haul

Emphasis on quality and value



Disadvantages of a Family Business

Conflict among family members about:Risk (consequences of failure) to the family in

launching a businessNepotism and the differences in competencies

and merit of family members involved in the business

Family traditions versus the business need to innovate and seize opportunities

Unity and cooperation of family versus business need to foster diversity and competition

Family loyalty versus the necessity to provide opportunities for non-family employees

Unit 2 DB: Graeter’s Ice Cream

On page 120 of our textbook, read the “in the spotlight” mini-case study on Graeter’s Ice Cream, and feel free to visit their website for more information on the company: www.graeters.com Then, answer the following questions:What are the advantages and disadvantages of a family business?

What actions did the current Graeter family members take to develop an effective and trusting management team to carry-on the Graeter family business?

http://www.graeters.com/

Final Project Activity: Executive Summary

Executive SummaryThis portion of your mini-business plan should

contain a brief overview of your business objectives. This brief overview should contain an explanation of your product/service line, the market you will serve, and a brief summary of your financial goals.

Please remember: As a guide to help you develop your mini-business plan, please refer to the content of the Atayne, LLC business plan on pages 675 to 695 of our textbook.

Unit 3 Check-In

Unit 3 InformationTheme: The Business & Marketing

PlanReadings: Longenecker – Chapters 6

& 7 (pages 147 to 199)Discussion Board: Stella & Dot

Company (page 148) (40 points)Case Study #1: Firewire Surfboards

(pages 628 to 629) (50 points)Seminar: Conducted on Scheduled

Day/Time

Look Ahead to Our 3rd “Live” Seminar (Unit 5)

Unit 3 InformationTheme: The Business & Marketing

PlanReadings: Longenecker – Chapters 6

& 7 (pages 147 to 199)Discussion Board: Stella & Dot

Company (page 148) (40 points)Case Study #1: Firewire Surfboards

(pages 628 to 629) (50 points)Seminar: Conducted on Scheduled

Day/Time

Unit 4 InformationTheme: The Human Resources &

Location PlansReadings: Longenecker – Chapters 8

& 9 (pages 200 to 257)Discussion Board: Biosite, Inc.

(page 200) (40 points)Case Study #2: Le Travel Store

(page 641) (50 points)Final Project Activity: Management

Team & Advisors (ungraded)Seminar: No Seminar in Unit 4

Unit 5 InformationTheme: The Financial Plan & a Firms

Sources of FinancingReadings: Longenecker – Chapters 10,

11, & 12 (pages 258 to 337)Discussion Board: BuiltNY (page 286)

(40 points)Review: Chapters 6 through 12 (Part 3

of textbook) (40 points)Activity: Financial Planning (60 points)Seminar: Conducted on Scheduled

Day/Time

KU Winter Break Game Plan

The KU Winter Break:Begins: Friday, 24 December 2010 at 11:59pm ET

Wraps-Up: Sunday, 2 January 2011 at 12am ET

During the Break:You are not required to log-on and engage in our course

For Unit 3, you are not penalized if you do not meet the requirement of three (3) separate DB participation days

2nd “Live” Seminar Wrap-Up

If you need assistance:o Contact instructor at their KU email addresso Post message to “Instructor’s Office”o Meet with instructor during Virtual Office Hourso KU Tech Support: 1-866-522-7747o Academic Advisor: If you have any challenges

that prevent you from succeeding this term or at KU in general

o Other KU Resources: Writing Center, etc.Our next “live” seminar: Unit 5Questions?

o Course Website or Content?o Assignments?o Other issues?

2nd “live” seminar ab209, small business management

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