how to manage a business part i

OBJECTIVES

Entrepreneurship: Owning Your Future, 11th ed.Steve Mariotti

© 2010 Pearson Higher Education,Upper Saddle River, NJ 07458. • All Rights Reserved.

Learn about management functions Study the management function of planning Examine the management function of organizing Investigate the management function of

directing Explore the management function of controlling

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Management Functions include: Planning Organizing Directing Controlling

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Three types of plans are used in business management: Strategic Plan. A strategic plan lays out a broad

course of action to achieve a long-term goal. Tactical Plan. A tactical plan outlines specific major

steps for carrying out the strategic plan. Operational Plan. An operational plan details the

everyday activities that will achieve the goals of the tactical plan.

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Organizing creates structure. It puts the people and resources in the right places and in the right combinations to maximize production and minimize costs.

One of the most important organizing tasks is choosing and hiring the best employees, training them properly, and assigning them authority and responsibilities.

Managers create organization charts that outline the chains of command within the business and the working relationships between different groups of people.

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Leaders must have good interpersonal skills. These are skills used by people as they interact with others.

The ultimate goal of directing is team building, which is motivating individuals in a group to work together to achieve a shared goal.

The three basic leadership styles are: Authoritarian Democratic Delegating

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Businesses set performance standards on many components—production, costs, customer service, employee actions, equipment, finances, inventory levels, product quality, profits, and sales.

Many businesses use the controlling management function to monitor the quality of the goods or services they sell.

A quality control program is a program used by a business to ensure that its products or services meet specific quality standards.

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