unit 5 seminar ab209, small business management. unit 5 seminar game plan course check-in course...
DESCRIPTION
Course Check-InTRANSCRIPT
Unit 5 Seminar
AB209, Small Business Management
Unit 5 Seminar Game Plan Course Check-In
Course Website Check-InCourse Activities & Assignments Check-In
Review Unit 3 & 4 ContentContent ReviewAssignment Review
Unit 5 Check-InLook Ahead to the Unit 7 Seminar
Course Check-In
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 (50 points each)Case Studies: We have graded Case
Studies in Units 3, 4, 6, & 8 (50 points each)Final Project - Business Plan: Our graded
final project (Business Plan) is due in Unit 9 (140 points); please note that in Units 2, 4, 5, 6, & 8 you are encouraged to work on specific sections of this plan
Writing Assignment: Written reflection paper due in Unit 10 (40 points each)
Final ProjectOur graded Final Project (Business Plan)
is due no later than the end of Unit 9To complete our Final Project, please
refer to Final Project Template in Doc Sharing:
In Units 2, 4, 5, 6, & 8, you are encouraged to work on specific elements of the Final Project
Completed Business Plans should be submitted via the DropBox (name file: Final Project Your Name)
The Final Project is worth 140 points
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)
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.6–7
Exhibit 6.3 Abbreviated Business Plan Outline
Section Heading• Cover Page• Table of Contents• Executive Summary• Industry, Target Customer, and Competitor Analysis• Company Description• Product/Service Plan• Marketing Plan• Operations and Development Plan• Management Team• Critical Risks• Offering• Financial Plan• Appendix of Supporting Documents
MT209 Final ProjectMini-Business Plan Outline for the
MT209 Final Project:Executive SummaryManagement Team & AdvisorsDefinition of the Market & Products/Services
Marketing & Sales StrategyFinancial InformationAnd, be sure to add a cover page and references page
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.7–9
What is Small Business Marketing?
Small Business MarketingBusiness activities that direct the creation,
development, and delivery of a bundle of satisfaction from the creator to the targeted user and that satisfy the targeted user.
Small Business Marketing ActivitiesIdentification of the target marketDetermining target market’s potentialPreparing, communicating, and delivering a
bundle of satisfaction to the target market
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.7–10
Exhibit 7.2 The Marketing Plan and Supporting Marketing Activities
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.7–11
Marketing Research ActivitiesMarket Analysis
An evaluation process that encompasses market segmentation, marketing research, and sales forecasting
Developing the Marketing MixThe combination of product, pricing,
promotion, and distribution activities.
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.7–12
The Formal Marketing PlanMarket Analysis
Customer profileA description of potential customers in a target market
Sales forecasts“Most likely,” “pessimistic,” and “optimistic
The CompetitionProfile of key management personnelOverall strengths and weaknesses (SWOT)Related products being marketed or testedLikelihood of competitors’ entry into target
market
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.7–13
The Formal Marketing Plan (cont’d)
Marketing StrategyProduct and/or service section
Decisions affecting the total productDistribution section
Decisions regarding product delivery to customersPricing section
Setting an acceptable value on the productPromotional section
Communicating information to the target market
Case Study #1: Firewire Surfboards
Please answer the following questions in your case study analysis:Identify and describe Firewire Surfboard’s
major competitors. How are these rivals positioned in the marketplace?
Put yourself in the role of Firewire’s entrepreneurial team at the time of the company’s founding. What should they have anticipated in the way of competitor reaction and the response of prospective customers?
What is Firewire’s core competency? Is it sustainable?
Given the company’s recent shift in strategy, what do you think its major challenges will be?
Unit 4 Review
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
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.8–17
Building a Management TeamManagement Team
Managers and other key persons who give a company its general direction
Characteristics of a Strong Management TeamCapable of securing the resources needed to
make business a successReassures investors about the their investment
and the continuity of businessDiversity of talent makes the team stronger
than an individual entrepreneur
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.8–18
Building a Management Team (cont’d)
Team Building and StructureThe required combination of education and
experience depends on the type of business and the nature of its operations
The key: achieving a balance of skills and competencies in functional areas
Designing an internal management structure that defines relationships and responsibilitiesOutside professional support can supplement the
skills of a management teamAn active board of directors can provide counsel and
guidance.
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.8–19
Exhibit 8.2 Percentage of Small Businesses by Legal Form of Organization15
Sources: Table 1A, Internal Revenue Service, http://www.irs.gov/pub/irs-soi/d6187.pdf, accessed December 5, 2008; and Table 1, Internal Revenue Service, http://www.irs.gov/pub/irs-soi/d6292.pdf, accessed January 13, 2009.
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.8–20
The Sole Proprietorship OptionSole Proprietorship
A business owned by one person, who bears unlimited liability for the enterprise.
AdvantagesReceives all of the firm’s profits.Holds title to all of the firm’s assets.Can easily sell or transfer ownership of the
company name and assets.Requires no registration or filing fee.Has absolute freedom from interference by
other stakeholders.
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.8–21
The Sole Proprietorship Option (cont’d)
DisadvantagesBears all business risk.Is subject to all claims of creditors.Has unlimited personal liability for business.Receives no tax free benefits as an
employee.Death/incapacity of owner terminates
business.Is limited to the proprietor’s personal capital.Is taxed on business income as personal
income.
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.8–22
Exhibit 8.3 The Advantages and Disadvantages of Partnerships
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.8–23
The C Corporation OptionCorporation
A business organization that exists as a legal entity and provides limited liability for its owners.
Legal EntityA business organization recognized by the law as
having a separate legal existence (“artificial being”); can be sued, hold property, and incur debt.
The C CorporationAn ordinary, or regular, corporation chartered by
the state and taxed by the federal government as a separate legal entity.
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.9–24
Exhibit 9.1 Location Options for the Startup
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.9–25
Exhibit 9.2 Five Key Factors in Determining a Good Business Location
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.9–26
Other Factors in Selecting a Location
Neighbor MixWho’s next door?
Security and SafetyHow safe is the
neighborhood?Services
Is there municipal trash pickup?
Past Tenants’ FateWhat happened to
them?The Life-cycle Stage
of the AreaIs the site in the
embryonic, mature, or declining stage?
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.9–27
Locating the Startup in the Entrepreneur’s Home
Home-Based BusinessA business that maintains its primary facility in
the residence of its ownerAttraction of a Home-Based Business
Low start-up and overhead costsConvenience for family and lifestyleTechnology
Advances in office equipment and connectivity allow home-based business to compete with commercial sites.
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.9–28
Exhibit 9.4 Some Common Reasons for Starting a Home-Based Business
Source: Adapted from “Potential Reasons for Starting a Home Based Business,” http://www.perfectsystem.co.uk, accessed January 13, 2009.
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.9–29
The Challenges of Home-Based Businesses
Business ImageA professional business image is difficult to maintain in a home environment.
Legal ConsiderationsLocal laws and zoning ordinances prohibit many types of home-based businesses.
Family and Business ConflictsThe need to observe regular business hours and establish spatial boundaries (specific work areas) to avoid distractions.
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.9–30
Locating the Startup on the Internet
E-CommerceThe paperless exchange of business
information via the Internet.Benefits of E-Commerce to Startups
Allows for competition with larger firms in larger markets.
Helps with cash flow problems by compressing the sales cycle.
Builds better customer relationships through better service.Electronic Customer Relationship Marketing (eCRM)
© 2010 South-Western, Cengage Learning, Inc. All
rights reserved.9–31
Factors Affecting the E-Commerce Choice
Technical LimitationsWebsite development
and maintenance costsInsufficient bandwidthUpgrading softwareIntegration of e-
commerce with brick-and-mortar operations
Customer access to the Internet and connectivity limitations
Non-Technical LimitationsPrivacy of customer
transactionsCustomer information
securityInability of customers
to touch or try on products
Unit 5 Check-In
Unit 5 InformationTheme: The Financial Plan & a Firms Sources
of FinancingReadings: Longenecker – Chapters 10, 11, &
12 (pages 258 to 337)Discussion Board: Built NY (page 286) (40
points)Activity- Financial activity – for submission
gradeReview: Chapters 6 through 12 (Part 3 of
textbook) (40 points)Seminar: Conducted on Scheduled Day/Time
Look Ahead to Unit 7 Seminar
Unit 6 InformationTheme: Building Customer Relationships &
Pricing and Supply Chain ManagementReadings: Longenecker – Chapters 14 & 15 (361
to 417)Discussion Board: Horse (page 389) (40 points)Case Study #3: eHarmony (pages 636 to 637)
(50 points)Final Project Activity: Definition of the Market,
Product/Services, & Marketing & Sales Strategy (ungraded)
Seminar: No Seminar in Unit 6
Unit 7 InformationTheme: Pricing & Credit Decisions,
Promotional Planning, & Global MarketingReadings: Longenecker – Chapters 16,
17, & 18 (pages 418 to 492)Discussion Board: Foley’s NY Pub &
Restaurant (page 440) (40 points)Review: Chapters 14 through 18 (Part 4
of textbook) (40 points)Seminar: Conducted on Scheduled
Day/Time
Unit 5 Seminar Wrap-UpIf 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 7Questions?
o Course Website or Content?o Assignments?o Other issues?