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Running, Managing, And Operating A Corporation
- 1. Setting Up, Managing,and Operating a Corporation 1
- 2. Table of ContentsWhya Corporation- Slide 4
- 3.
- 4.
- 5.
- 6.
- 7. Shareholders and Stockholders-Slides 23-25
- 8. How to SetUp a Corporation – Slides 26-27
- 9. Articles of Incorporation– Slides 28-30
- 10.
- 11.
- 12. Groups & Teams-Slides 33-44
- 13. Outsourcing & Backsourcing-Slide 45
- 14.
- 15. Agent of Service-Slides 55-57
- 16. Board of Directors-Slides 58-60
- 17.
- 18.
- 19. Accounting & Financing-Slides 78-131
- 20. Human Resources- Slides132-143
- 21.
- 22.
- 23. Operations & Logistics-Slides 172-180
- 24. Sales & Marketing-Slides 181-208
- 25.
- 26.
- 27.
- 28.
- 29. Why a Corporation?Business owners should incorporate for many reasons demonstrated throughout this presentation.
- 30. The main reasonfor incorporation of the production company is limited liability.
- 31. No business isworth losing everything you own
- 32. Incorporation will leadto a more successful company
- 33. Small business ownerscan incorporate as well as other business owners4
- 34. Sole Proprietorship Asole proprietorship is a business that is owned and usually managed by one person
- 35. Examples would be:a word processing service out of your home- a website- a restaurant- your own car repair center
- 36. Usually fits theneeds of the community
- 37. 72% of businessesin America are sole proprietorships 5
- 38. Advantages of aSole ProprietorshipEase of starting and ending the business
- 39. Being your ownboss
- 40.
- 41.
- 42. Retention of companyprofit
- 43.
- 44. Disadvantages of aSole ProprietorshipUnlimited Liability- the risk of personal losses
- 45. Limited financial resources(in most cases but not all)
- 46.
- 47.
- 48.
- 49.
- 50.
- 51. Partnerships A partnershipis a legal form of business with two or more owners
- 52. Two or morepeople legally agree to become co owners of a business
- 53. Make up 8% of businesses in America8
- 54. Advantages of PartnershipsEasierto own and manage
- 55.
- 56. Share management andpooled/complementary skills and knowledge
- 57.
- 58.
- 59. Disadvantages of aPartnershipUnlimited liability
- 60.
- 61.
- 62.
- 63. Franchises A franchiseis an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product of service to others in a given territory
- 64. A franchise canbe a sole proprietorship, a partnership, or a corporation.
- 65. Examples of afranchise: McDonald’s, 7 Eleven, Holiday Inn, etc… 11
- 66. Advantages of aFranchiseManagement and marketing assistance
- 67.
- 68.
- 69. Financial advice andassistance
- 70.
- 71. Disadvantages of aFranchiseLarge start up cost
- 72.
- 73.
- 74.
- 75.
- 76.
- 77. CorporationsA corporation isa state chartered legal entity with authority to act and have liability separate from its owners
- 78. Corporations can fitinto more than one category
- 79. Two most commontypes of corporations are S corporations and C corporations14
- 80. S Corporation orC CorporationC Corporation – a state chartered legal entity with authority to act and have the liability separate from its owners
- 81. S Corporation- aunique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships. 15
- 82. Types of CorporationsAlien corporation- does business in the United States but is chartered (incorporated) in another country
- 83. Domestic corporation- doesbusiness in the state in which it’s chartered(incorporated)
- 84. Foreign corporation- doesbusiness in one state but is chartered in another. About 1/3 of all corporations are chartered in Delaware because of its relatively attractive rules for incorporation. A foreign corporation must register in states where it operates.16
- 85. Types of CorporationsClosed (private) corporation- the stock is held by a few people and isn’t available to the general public
- 86. An open (public)corporation- sells stock to the general public. General Motors and Exxon/Mobile are examples of public corporations
- 87. Quasi Public corporation-chartered by the government as an approved monopoly to perform services to the general public. Public utilities are examples of quasi public corporations17
- 88. Types of CorporationsProfessional corporation- one whose owners offer professional services (doctors, lawyers, etc.) Shares in professional corporations aren’t publicly traded.
- 89. Nonprofit corporation- onethat does not seek personal profit for its owners
- 90. Multinational corporation- afirm that operates in several countries18
- 91. Advantages of CorporationsLimitedliability- hugest advantage
- 92. More money forinvestment
- 93.
- 94.
- 95. Ease of ownershipchange
- 96. Ease of drawingtalented employees
- 97. Separation of ownershipfrom management19
- 98. Disadvantages of aCorporationExtensive paperwork
- 99.
- 100.
- 101.
- 102.
- 103. Possible conflict withstockholders and board of directors
- 104.
- 105. Stock CorporationsIssues andsells the stock to individuals to raise money for business start up or growth
- 106. Stock can beprivately held or publicly held
- 107. Privately held stockis usually only offered to a few individuals
- 108. Publicly held companiescan publicly trade or sell to many or a few individuals.
- 109. Can be closelyheld or widely traded
- 110. Stock decisions mustbe included on the Articles of Incorporation when applying for corporate status.21
- 111. Non Stock CorporationsA corporation that does not issue shares of stock
- 112. Non profit corporationsare non stock corporations
- 113. A for profitcorporation may be a non stock corporation for several reasons: The corporation may be closely held or owned by a few individuals who have no interest in selling sharesThe corporation may be formed for a single short term purposeThe corporation may be set up as a non profit with members instead of shareholders22
- 114. Shareholders/Stockholders Anyperson, company, or other institution that owns at least one share in a company. Referred to as shareholders or stockholders
- 115. Shareholders are theowners of a company. They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly(they won’t lose anything more than the investment in stocks- they can’t lose any personal belongings).
- 116. Shareholders can notlose anything other than their investment in the company. 23
- 117. Stockholders or ShareholdersPrivledgesStockholders are granted special privileges depending on the class of stock. These rights may include:
- 118. The right tovote on matters such as elections to the board of directors. Usually, stockholders have one vote per share owned, but sometimes this is not the case
- 119. The right topropose shareholder resolutions
- 120. The right toshare in distributions of the company’s income
- 121. The right topurchase new shares issued by the company
- 122. The right toa company’s assets during a liquidation of the company.24
- 123. Shareholders & StockholdersPlayan important role in raising capital for organizations
- 124. Deciding between privatelyheld or public stockholders is up to the owner
- 125. Companies typically provideall the necessary proofs to shareholders to show that they are investing at a right place25
- 126. How to Setup a Corporation Owners can incorporate in any state but Delaware is the easiest place to incorporate.
- 127. Register as aforeign corporation in your actual home state after incorporating in Delaware if that is where you choose to register
- 128. Consult an attorneyspecializing in this area 26
- 129. Six Steps toGetting StartedCreate the corporation’s Articles of IncorporationDetermine which type of corporation you want to create.Consider registering your corporation in DelawareFile those Articles with the Secretary of State of the state in which you choose to be headquarteredSubmit a check with the Articles of Incorporation. Processing fees for this service vary by stateRegister as a foreign corporation if you will be doing business in any states not designated as your home state.27
- 130. Articles of Incorporation Articles of Incorporation are thedocument filed with a U.S. state by a corporation’s founders, describing the purpose, place of business, and other details of a corporation– also called a charter. 28
- 131. Articles of IncorporationUsually IncludeThe corporations name
- 132. The names ofthe people who incorporate it
- 133.
- 134. Its duration (usuallyperpetual)
- 135. The number ofshares that can be issued, their voting rights, and any other rights the shareholders have
- 136. The corporation’s minimumcapital
- 137. The address ofthe corporation29
- 138. Articles of IncorporationUsually Include The name and address of the person responsible for the corporation’s legal service (The Agent of Service)
- 139. The names andaddresses of the first directors
- 140. Any other publicinformation the incorporators wish to include30
- 141. Bylaws How, when,and where shareholders’ and director’s meetings are held, and how long directors are to serve
- 142.
- 143. Duties and responsibilitiesof officers, and the length of their service
- 144. How stock isissued (private of public)
- 145. Other matters, includingemployment contracts31
- 146.
- 147. Policies, Practices, andProcedures for each employee and each department
- 148.
- 149.
- 150. Groups & Teamsin an Organization Groups: Two or more individuals, interacting and interdependent, who have come together to achieve particular goals
- 151. Teams: Individuals generatingpositive synergy through coordinated efforts. Several individuals whose individual efforts result in a level of performance that is greater than the sum of those individual inputs.33
- 152. Groups Groups canbe formal or informal
- 153. Formal group: Groupsdefined by the organization’s structure, with designated work assignments establishing tasks. The behaviors are stipulated by and directed toward organizational goals.
- 154. Informal group: Alliancesthat are neither formally structured nor organizationally determined. 34
- 155. Five Stages inGroups FormingStormingNormingPerformingAdjourning35
- 156. Advantages of GroupsNumerous resources
- 157.
- 158.
- 159.
- 160.
- 161. Teams Work Teams:generate positive synergy through coordinated effort and individual efforts of members result in a level of performance that is greater than the sum of those individual inputs.
- 162. Work Teams provideservices, negotiate deals, coordinate projects, offer advice and make decisions37
- 163. Types of TeamsProblem Solving Teams
- 164. Self Managed WorkTeams
- 165.
- 166.
- 167. Problem Solving TeamsGroups of 5 to 12 employees from the same department who meet for a few hours a week to discuss ways of improving quality, efficiency, and work environment
- 168. Share ideas oroffer suggestions on which work processes and methods can be improved
- 169. Rarely given authorityto unilaterally implement any of their suggested actions39
- 170. Self Managed TeamsGroupsof 10-15 people who take on responsibilities of their former supervisors.
- 171. Tasks include: planning& scheduling of work- assigning tasks to members- collective control over the pace of work- making operating decisions- taking actions on problems- working with suppliers and customers
- 172. Select their ownmembers
- 173. Members evaluate eachother’s performance40
- 174. Cross Functional TeamsEmployeesfrom about the same hierarchical level but different work areas coming together to accomplish a task
- 175. Examples would be:a task force- committees composed of members from across departmental lines- the large task force IBM created made up of employees from across departments in the company to develop its highly successful System 360
- 176. Allow exchanging ofinformation- developing new ideas- solving problems- and coordinating complex projects41
- 177. Cross Functional TeamsNopicnic to manage
- 178. Early stages ofdevelopment are time consuming
- 179. Members must learnto work with diverse and complex individuals
- 180. Building trust isnot easy42
- 181. Virtual Teams Teamsthat use computer technology to tie together physically dispersed members in order to achieve a common goal.
- 182. Collaborate online usingcommunication links wide area networks- video conferencing- or emailing whether a room apart or continents apart
- 183. Do everything otherteams do such as: share information- make decisions- complete tasks- include members from within or outside of the organization43
- 184. Virtual Teams Convenefor a few days or months to solve problems
- 185. Three factors differentiatingvirtual teams from face to face teams are:The absence of paraverbal and nonverbal cuesLimited social contextAbility to overcome time and space constraints44
- 186. Outsourcing and BacksourcingOutsourcingand Backsourcing are becoming the norm in today’s companies.
- 187. Outsourcing- the subcontractinga process, such as product design or manufacturing, to a third party company- the transfer of a business function to an external service provider- contracting work to an outside supplier
- 188. Backsourcing- thebringing of services back into the organization after they have been outsourced. 45
- 189. Chief Executive Officer(CEO)Responsible for operations of the firm
- 190. Highest ranking officerin the organization
- 191. Reports to theboard of directors
- 192.
- 193.
- 194. Sets the overall strategy for the company
- 195.
- 196. Chief Executive Officer(CEO)The officer who has ultimate management responsibility for the organization
- 197. Appoints other managersto assist in carrying out the responsibilities of the organization
- 198. Held accountablefor organizational performance47
- 199. Chief Executive Officer(CEO) Sets the tone for the organization
- 200.
- 201. Carries out strategicplans and policies
- 202. Top CEO’s arepaid about 10 ½ million a year
- 203. Should have educationin business-communication and/or law
- 204. Has total authorityto hire & fire with checks and balances or course48
- 205. Chief Executive Officer(CEO)’s Two Major Functions Direct and execute all activities of the association either directly or through delegated authorityProvide leadership in these and other areas: the creation of strategic, tactical, and financial plans; developing goals and measuring performance to the approved goals; organizational development; liaison to the public, government, affiliated organizations, and other stakeholders; develop member services and member development; the development of the association’s staff49
- 206. CEO’s Rolesand Responsibilities Leader
- 207.
- 208. Advocates/promotes organization andstakeholder change related to organization mission
- 209. Supports motivation ofemployees in organization products/programs and operations
- 210.
- 211. Ensures staff andBoard have sufficient and up-to-date information
- 212. Looks to thefuture for change opportunities
- 213. Interfaces between Boardand employees
- 214. Interfaces between organizationand community
- 215.
- 216. Formulates policies andplanning recommendations to the Board
- 217. Decides or guidescourses of action in operations by staff50
- 218. CEO’s Roles andResponsibilities Manager
- 219. Oversees operations oforganization
- 220.
- 221. Manages human resourcesof organizations
- 222. Manages financial andphysical resources
- 223.
- 224. Assists in theselection and evaluation of board members
- 225. Makes recommendations, supportsBoard during orientation and self-evaluation 51
- 226. Duties of theCEO Specific duties of CEO’s vary based on the type of organization but typical functions or job descriptions include:
- 227. Provide leadership inthe development of the association’s statement of vision, mission, and goals, and the corresponding strategies, plans, and budgets to achieve them
- 228. Ensure the developmentof priority plans, performance measurements, management controls, and critical success factors
- 229. Review approved plansand budgets as part of the annual planning and budgeting cycle and present recommendations to the board of directors and/or the appropriate committee
- 230. Develop and provideappropriate policy recommendations for consideration by the board
- 231. Ensure that anannual plan and budget are prepared for and presented to the board of directors52
- 232. Duties of theCEOPropose agendas for the board of directors reflecting issues, opportunities, and priorities
- 233. Present a writtenreport to all board meetings
- 234. Develop and maintainan effective staff organization which provides appropriate policy and program recommendations for consideration by the board and its committees, and which delivers services, programs and information beneficial to the members
- 235. Hire, reward, discipline,terminate, and set the remuneration of, all association employees except for him/herself, in accordance with policy and/or approved budgets
- 236. Identify, document, andarticulate the needs of members to geographic sub-units, committees, and other forums which exist to serve member needs53
- 237. Duties of theCEO Promote collaboration with and among the association’s geographic sub units to address the needs of members and the mission and goals of the association
- 238. Maintain the necessarycontacts to keep abreast of emerging issues of significance to the association management profession
- 239. Act as thespokesperson for the association
- 240. Serve as ambassadorfor the association to relevant organizations in Canada and internationally
- 241. Perform such otherduties as are prescribed in writing from time to time by the board of directors
- 242. Typically a nonvoting director and officer of the association
- 243. May be anon-voting ex officio member of all committees, councils, task forces, and other member forums appointed or established by, and accountable to, the board of directors
- 244. Usually the representativeof the association as the employer of paid staff and solely responsible for establishing compensation and benefits, and the hiring and release , of the association's employees54
- 245. Agent of Serviceand Process Officer appointed by a corporation to receive legal notices or processes on the corporation’s behalf
- 246. Also called theregistered agent
- 247.
- 248. Must be namedin the Articles of Incorporation
- 249. Can be theowner
- 250. Can be anyonein the organization who agrees to take on the responsibility55
- 251. Agent of Serviceand ProcessReceives legal notices or processes on corporations behalf such as:
- 252.
- 253.
- 254.
- 255. Order to showcause writs
- 256. Notice to quitpremises
- 257.
- 258. Agent of Serviceand Process Cannot be a party to the action
- 259. Must deliver thesummons of complaint to the defendant
- 260. Could be anoutside law firm
- 261. Could be someonein the legal department of the corporation57
- 262. Board of DirectorsBodyof elected or appointed members who jointly oversee the activities of a company or organization
- 263. Must (or usually)consists of an odd number of members
- 264. Activities and dutiesare determined by the powers, duties and responsibilities delegated to it or conferred on it by an authority outside itself
- 265. The responsibilities and/orduties are typically detailed in the organizational bylaws58
- 266. Board of DirectorsThebylaws usually specify the number of members on the board- how they are to be chosen- and when they meet
- 267. The board actson behalf of the organization’s full assembly
- 268. The full assemblyusually choose the members of the board
- 269. In a stockcorporation the board is elected by the stockholders59
- 270. Board of DirectorsDuties Typical duties include:
- 271. Governing the organizationby establishing broad policies and objectives
- 272. Selecting, appointing, supporting,and reviewing the performance of the CEO (no termination without just cause- post conditions in handbook)
- 273. Ensuring the availabilityof adequate financial resources
- 274.
- 275. Accounting to stakeholdersfor the organizations performance 60
- 276. SecretaryThis is notthe same as a secretary or administrative assistant
- 277. Reports to theboard of directors
- 278. Organizations are requiredby law to maintain certain records for several purposes including:
- 279. Accurate recollection ofdecisions
- 280. Determination of eligibilityto vote
- 281. Continuity of policiesand practices
- 282. Accountability of directorsand officers61
- 283. Responsibilities of theSecretaryThe Secretary is responsible for:
- 284. Ensuring that accurateand sufficient documentation exists to meet legal requirements
- 285. Enable authorized personsto determine when, how, and by whom the board’s business was conducted
- 286. Records minutes ofmeetings
- 287. Ensures accuracy andavailability
- 288. Proposes policies andpractices62
- 289. Responsibilities of theSecretaryFulfills any other requirements of a Director and Officer
- 290. Performs other dutiesas the need arises as defined in the bylaws
- 291. Accountable to theBoard of Directors63
- 292. Specific duties ofthe SecertaryThe specific duties include:
- 293. Minutes: Accurateminutes of meetings are taken and approved and should include:Date, time, & location of meetingList of those present and absentList of items discussedList of reports presentedText of motions presented and description of their dispositions ‘The secretary signs a copy of the final, approved minutes and ensures that this copy is maintained in corporate records64
- 294. Specific Duties ofthe Secretary Custodian of records: Ensures that the records of the organization are maintained as required by law and made available when required by authorized persons. These records include:Founding documents (letter patents, articles of incorporation)Lists of directorsBoard and committee meeting minutes Financial reportsOther official records65
- 295. Specific duties ofthe SecretaryMembership Records: The Secretary ensures that official records are maintained of members of the organization of the board. Ensures the records are available when required for reports, elections, referenda, other votes, etc…
- 296. Bylaws: The Secretaryensures that an up to date copy of the bylaws is available at all meetings66
- 297. Specific duties ofthe SecretaryCommunication: The secretary ensures proper notification is given of directors’ and members’ meetings as specified in the bylaws. Manages the general correspondence of the Board of Directors except for such correspondence assigned to others
- 298. Meetings: The Secretaryparticipates in Board meetings as a voting member. Provides items for the agenda as appropriate67
- 299. Specific duties ofthe SecretarySigning Officer: The Secretary may be designated by the Board of Directors and/or bylaws as one of the signing officers for certain documents. Authorized to sign on behalf of the organization:ChecksCorrespondenceApplicationsReportsContractsOther documents68
- 300. Specific duties ofthe Secretary Filing of Documents: The Secretary could be the registered agent with respect to the laws of the jurisdiction. Responsible for ensuring that documents necessary to maintain the corporation are filed
- 301. Note 1:The definitionand duties use the word "ensure" to convey the intent that accountability for the specified responsibilities lies with the Secretary but it is not necessarily the Secretary who carries out the activity. Indeed, we expect that many of these responsibilities will be delegated to board committees, staff, or others including experts retained for a specific purpose. The word "ensure" is not intended to imply any additional source of legal duties beyond those that are required by law.69
- 302. Specific duties ofthe SecretaryNote 2: Minutes should have enough information to help absent directors and members understand what issues were discussed and what decisions were made. Some lawyers advise that in certain circumstances, minutes should include summary of discussion, rationale for decision, names of those participating in the discussion, and the roll call, noting any declared conflicts of interest. These circumstances: are if the matter is contentious, if board members dissent, if there is any concern about exposure to liability, or if a board member has a conflict of interest.70
- 303. Secretaries or Administrative AssistantsA person employed to handle correspondence, keep files, and do clerical work for a person or organization
- 304. Considered entry levelpositions but play a major role in the daily operations of an organization
- 305. Besides performing clericaltasks such as typing, photocopying and faxing secretaries conduct research and prepare large scale reports among other things mentioned (next slide)71
- 306. Duties Dutiesof a secretary include:
- 307.
- 308.
- 309. Organize paperwork andelectronic files
- 310.
- 311. Creating spreadsheets asnecessary
- 312. Composing correspondence withinthe office
- 313. Managing a databaseand developing presentation or reports using publishing software and digital graphics72
- 314. Typical FunctionsTypical functionsof a secretary are:
- 315. Open., scan, readand distribute mail
- 316. Compose official correspondencefor supervisors signature, disposes of routine correspondence
- 317. Screen phone calls;provide information or refer callers to appropriate staff members; answer inquiries
- 318. Receives visitors; answerinquiries personally or refer to appropriate official (s) 73
- 319. Typical FunctionsArranges forspecial conferences and meetings; maintains supervisor’s calendar, advising of commitments; arranges for travel itinerary and accommodations; prepares and submits travel claims and expense account
- 320. Independently researches, assemblesand summarizes material, information and data for administrative board or commission consideration and action; takes and transcribes dictation of confidential, technical and legal material requiring a high degree of accuracy; records and transcribes proceedings of meetings and conferences74
- 321. Typical FunctionsAppears beforelegislative committee hearings alone or in the company of a supervisor to present facts relative to agency programs, mission and/or budget; drafts proposed legislation; proposes budget items; confers with administrators on matters of staffing, budget and purchasing and contracts and/or policy75
- 322. Departments in theCorporationAccounting and Financing
- 323.
- 324.
- 325.
- 326.
- 327.
- 328. Departments in theCorporationOther departments might be necessary but the ones mentioned in this power point will be necessary77
- 329. Accounting and FinancingAccounting is the recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions.
- 330. Accounting is themeasurement and reporting of economic activities of the firmFinancial transactions include:
- 331. Buying and sellinggoodsand services
- 332.
- 333.
- 334.
- 335. Chief Financial OfficerChief Financial Officer:
- 336. Head of AccountingDepartment
- 337. The executive whois responsible for financial planning and record keeping for a company
- 338. Delegates responsibilities ifnecessary
- 339.
- 340. Many CFO’s havea Master of Business Administration but no qualified accountancy qualification such as Certified Public Accountant status
- 341. Hires the employeesin the Accounting Department
- 342. Answers to theCEO79
- 343. Possible EmployeesNecessary in an Accounting DepartmentA/P Clerk
- 344.
- 345. Director of Accounting& Financing/Controller
- 346.
- 347.
- 348.
- 349.
- 350.
- 351. Administrative Assistant (asecretary)
- 352.
- 353.
- 354.
- 355.
- 356.
- 357.
- 358.
- 359.
- 360.
- 361.
- 362.
- 363.
- 364.
- 365.
- 366. Accounting and FinancingAccountingserves a few purposes:
- 367. Help managers evaluatethe financial condition and operating performance enabling well informed decisions to me made
- 368. Report financial informationto people outside the firm such as: OwnersCreditorsSuppliersInvestorsThe government82
- 369. Five working areasof accountingManagerial AccountingFinancial AccountingAuditingTax AccountingGovernment and non profit accounting83
- 370. Managerial AccountingAccounting usedto provide information and analyses to managers within the organization to assist them in decision making
- 371. Concerned with measuringand reporting costs of:
- 372.
- 373.
- 374.
- 375.
- 376. Checking if unitsor departments are staying within budgets
- 377. Designing strategies tominimize taxes84
- 378. Financial AccoutingAccounting informationand analyses prepared for people outside the organization
- 379.
- 380.
- 381.
- 382.
- 383.
- 384.
- 385.
- 386.
- 387. Financial AccountingThese usersare interested in the organizations profits, abilities to pay its bills, and other financial information
- 388. Information usually containedin the company’s annual report
- 389. Information must beaccurate
- 390. Financial Accounting StandardsBoard defines the set of generally accepted accounting principles accountants must follow86
- 391. Auditing The jobof reviewing and evaluating the records used to prepare a company’s financial statements
- 392. Ensures that properaccounting procedures and financial reporting is being carried out within the organization
- 393. Examine the financialhealth of an organization as well as operational efficiencies and effectiveness87
- 394. Tax AccountingThe preparingof tax returns and developing tax strategies
- 395. Tax accountant: anaccountant trained in tax law and responsible for preparing tax returns or developing tax strategies
- 396. Taxes are theprice we pay for roads, parks, schools, police protection, the military, and other functions provided by the government.
- 397. Federal, state, andlocal governments require submission of tax returns that must be filed at specific times & in a precise format88
- 398. Tax AccountingGovernments oftenchange tax policies according to specific needs or objectives
- 399. Tax Accountants mustcontinually monitor tax laws89
- 400. Government and notfor profit accountingAccounting system for organizations whose purpose is not generating a profit but serving ratepayers, taxpayers, and others according to a duly approved budget.
- 401. Governments require anaccounting system that satisfies the needs of their information users.
- 402. The primary usersof government accounting information are citizens, special interest groups, legislative bodies, & creditors.90
- 403. Government and Notfor Profit AccountingUsers want to make sure the government is fulfilling its obligations and making the proper use of taxpayers money
- 404. GASB sets thegovernment accounting standards
- 405. FBI, IRS, MissouriDepartment of Natural Resources, & Cook County Department of Revenue are a few government agencies offering career possibilities in accounting.91
- 406. Government and Notfor Profit Accounting Not for profit organizations require accounting professionals as well
- 407. Contributors want tosee where there money is being spent92
- 408. Accounting versus BookkeepingAccounting: the recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions
- 409. Bookkeeping: the recordingof business transactions
- 410. Bookkeeping is importantin financial reporting but accounting goes far beyond the mere recording of financial information
- 411. Accountants classify andsummarize financial data provided by bookkeepers, and then interpret the data and report the information to management as well as suggest strategies for improving the financial condition and progress of the firm93
- 412. Accountants versus BookkeepingAccountantsclassify and summarize financial data provided by bookkeepers, and then interpret the data and report the information to management as well as suggest strategies for improving the financial condition and progress of the firm
- 413. Accountants are importantin financial analysis and income tax preparation94
- 414.
- 415. Dividing all ofthe firm’s transactions into meaningful categories such as: sales documents, purchasing receipts, & shipping documents
- 416. Keep information organizedand manageable
- 417. Recording financial datafrom the original transaction documents into record books called journals
- 418. Bookkeepers record allthere transactions into two places( the journals and ledgers) 95
- 419. The Six –Step Accounting CycleAccounting cycle: A six-step procedure that results in the preparation and analysis of the major financial statements.
- 420. Requires the workof the bookkeeper and the accountant
- 421. The first threesteps are continualAnalyzing and categorizing documentsPutting the information into journalsPosting that information into ledgersPreparing a trial balancePrepare the financial statements (including balance sheet, income statement, and statement of cash flows)Analyze the financial statements and evaluates the financial condition of the firm Note: Computers and accounting software have simplified this process considerably96
- 422. Various Accounting SoftwareProgramsAccounting software simplifies the mechanical tasks involved in accounting, enabling managers and other interested users to get financial reports exactly when and how they want
- 423. Financial information &transactions can be recorded by hand or by computer
- 424. Accounting software packagesinclude programs that handle tasks involving:
- 425.
- 426.
- 427.
- 428.
- 429.
- 430.
- 431.
- 432. Tax returns (taxaccounting software)
- 433. Tax planning (taxaccounting software)97
- 434. Accounting SoftwareTopTen Low- End Accounting Software programs for companies with up to $5 million in Revenue
- 435. Business Vision 32(Softline)
- 436.
- 437. Small Business Manager(Microsoft/ Great Plains)
- 438.
- 439. Oracle Small BusinessSuite (formerly Netledger)
- 440. Peachtree Complete Accounting2004 (Best Software)
- 441. QuickBooks for theWeb (Intuit)
- 442. QuickBooks Pro 2002(Intuit)
- 443. Simply Accounting (ACCPACInternational)
- 444. Vision Point 2000(ACCPAC)98
- 445. Accounting Software TopTen Middle Market Accounting Software Programs for companies with $2 million to $50 million in Revenue)
- 446. ACCPAC Advantage SeriesCorporate Edition (ACCPAC International)
- 447. ACCPAC ProSeries (ACCPACInternational)
- 448.
- 449.
- 450.
- 451. MAS 90 &MAS 200 (Best Software)
- 452.
- 453.
- 454. SouthWare Excellence Series(SouthWare)
- 455.
- 456. Accounting Software TopTen Accounting Software programs in the Beginning ERP Market for companies with $25 mlillion to $500 million in Revenue
- 457. ACCPAC Advantage SeriesEnterprise Edition (ACCPAC International)
- 458. ACCPAC ProSeries (ACCPACInternational)
- 459.
- 460.
- 461.
- 462.
- 463.
- 464. MAS 500 (BestSoftware)
- 465.
- 466.
- 467. Accounting Software TopTen Accounting Software programs for companies with revenue ranging from $250 million and up
- 468. ACCPAC Executive Series(ACCPAC)
- 469.
- 470.
- 471. MAS 500 (BestSoftware)
- 472.
- 473. Lawson Enterprise 400(Lawson Software)
- 474. One World (J.D.Edwards)
- 475.
- 476.
- 477.
- 478. Accounting Software ProgramProblemsMany accounting software programs suffer from obvious problems such as:
- 479.
- 480.
- 481.
- 482. Lack of adequatesize customer base
- 483. Lack of distributionchannel
- 484. Poor performance ona local area network
- 485.
- 486.
- 487.
- 488.
- 489. Attributes to lookfor in Accounting SoftwareThe product must have good, clean, stable code
- 490. The product musthave underlying technology
- 491. The product musthave a good company & leadership behind the product
- 492. The product musthave strong financial reporting capabilities
- 493. The product musthave a sizable customer base
- 494. The product musthave a well developed & knowledgeable VAR channel103
- 495. Attributes to lookfor in Accounting Software The product must have a wide breadth of modules
- 496. The product musthave a well developed offering of third party add on products
- 497. There should bea minimal number of missing features
- 498. There should beno significant problems (such as missing modules, etc) 104
- 499. Articles to Readon Accounting Software 1. 10 Step Blueprint for Evaluating and Selecting Entry Level Accounting Software2. 25 Step Blueprint for Evaluating and Selecting Mid-Range to High-End Accounting Software3. Listing of 50 Key Features4. Feature Table5. ASA Power Rating Based Upon 350 Key Features6. A Discussion About Evaluating Accounting Software105
- 500. ERP Although examplesof accounting software have been discussed – ERP is suggested and discussed in more detail in this power point. 106
- 501. Sample Balance Sheet& Income StatementA Sample Balance Sheet and Income Statement will be attached with this power point as well as in the paper. 107
- 502. Accounting and BookkeepingAccounting and bookkeeping is a bit more detailed. The next few slides will be accounting terms which the owner of a corporation should be familiar with.
- 503. Although hiring professionalsto do the job- knowledge is power and if you know every aspect of your company your organization will be more successful
- 504. Before owning aplace such as McDonald’s the owners are required to know everything from making an ice cream cone to bookkeeping. The same should apply for owning your own corporation.
- 505. Chapters about accounting– sample balance sheets & income statements will be attached to the paper accompanying this power point. 108
- 506. Important Accounting andBookkeeping Terms managerial accountingAccounting used to provideinformation and analyses tomanagers within theorganization to assist themin decision making.certified managementaccountant (CMA)A professional accountantwho has met certaineducational and experiencerequirements, passed aqualifying exam in the field,and been certified by theInstitute of CertifiedManagement Accountants.financial accountingAccounting information andanalyses prepared forpeople outside theorganization.annual reportA yearly statement of thefinancial condition,progress, and expectationsof an organization.private accountantsAccountants who work for asingle firm, governmentagency, or nonprofitorganization. public accountantAn accountant whoprovides his or heraccounting services toindividuals or businesses ona fee basis.certified public accountant(CPA)An accountant who passes aseries of examinationsestablished by the AmericanInstitute of Certified PublicAccountantsauditingThe job of reviewing andevaluating the records usedto prepare a company’sfinancial statements.independent auditAn evaluation and unbiasedopinion about the accuracyof a company’s financialstatements.certified internal auditor(CIA)An accountant who has abachelor’s degree and twoyears of experience ininternal auditing, and whohas passed an examadministered by theInstitute of InternalAuditors.109
- 507. Important Accounting andBookkeeping Termstax accountantAn accountant trained intax law and responsible forpreparing tax returns ordeveloping tax strategies.government and not-for-profitaccountingAccounting system fororganizations whosepurpose is not generatinga profit but servingratepayers, taxpayers,and others according toa duly approved budget.bookkeepingThe recording of businesstransactions.journalThe record book or computerprogram where accountingdata are first entered.double-entry bookkeepingThe concept of writingevery business transaction intwo places.accounting cycleA six-step procedure thatresults in the preparationand analysis of the majorfinancial statements.ledgerA specialized accountingbook or computer programin which information fromaccounting journals isaccumulated into specificcategories and posted sothat managers can find allthe information about oneaccount in the same place.trial balanceA summary of all the data inthe account ledgers to showwhether the figures arecorrect and balanced.financial statementA summary of all thetransactions that haveoccurred over a particularperiod.fundamental accountingequationAssets _ liabilities _owners’ equity; this is thebasis for the balance sheet.balance sheetThe financial statement thatreports a firm’s financialcondition at a specific time.assetsEconomic resources (thingsof value) owned by a firm.110
- 508. Various Accounting andBookkeeping TermsliquidityHow fast an asset can beconverted into cash.current assetsItems that can or will beconverted into cash withinone year.fixed assetsAssets that are relativelypermanent, such as land,buildings, and equipment.intangible assetsLong-term assets (e.g.,patents, trademarks,copyrights) that have noreal physical form but dohave value.liabilitiesWhat the business owes toothers (debts).owners’ equityThe amount of the businessthat belongs to the ownersminus any liabilities owedby the business.retained earningsThe accumulated earningsfrom a firm’s profitableoperations that were keptin the business and not paidout to stockholders individends.income statementThe financial statement thatshows a firm’s profit aftercosts, expenses, and taxes; itsummarizes all of theresources that have comeinto the firm (revenue), allthe resources that have leftthe firm, and the resultingnet income.net income or net lossRevenue left over after allcosts and expenses,including taxes, are paid.revenueThe value of what isreceived for goods sold,services rendered, and otherfinancial sources.cost of goods sold (or costof goods manufactured)A measure of the cost ofmerchandise sold or cost ofraw materials and suppliesused for producing items forresale.gross profit (gross margin)How much a firm earned bybuying (or making) andselling merchandise.111
- 509. Various Accounting andBookkeeping TermsFinancial forecasting: A forecast of the expected financial position and the results of operations and cash flows based on expected conditions– a prediction about how things will developFinancial reportingThe process of preparing and distributing financial information to users of such information in various forms. The most common format of formal financial reporting are financial statements and financial statements are prepared in accordance with rigorously applied standards defined by professional accounting bodies developed according to the legal and professional framework of a specific locale.Accounts Payable: a file or account that contains money that a person or company owes to suppliers, but has not paid yet (a form of debt). When you receive an invoice you add it to the file, and then you remove it when you pay. Accounts Receivable:: one of a series of accounting transactions dealing with the billing of customers who owe money to a person, company or organization for goods and services that have been provided to the customer. The total amount owed to a company due to debts arising from sales on credit or on account.Order Entry: The first part of data processing to enter an order or pickup in the computer system. A computerized relational database that, at a minimum, generates, schedules and maintains estimates, sales orders, and backlogs. Invoices may also be created automatically if linked to Accounts Receivable. More advanced order entry systems are usually fully integrated with the accounting system. Procurement: The combined functions of purchasing, inventory control, traffic and transportation, receiving, inspection, store keeping, and salvage and disposal operations.The accounting dictionary will need to be read and the one online can be found athttp://www.ventureline.com/Glossary_A.aspI have not covered all terms but ones which will need to be known. I strongly suggest knowing as much as possible about each department. 112
- 510. Various Accounting andBookkeeping Termsoperating expensesCosts involved in operatinga business, such as rent,utilities, and salaries.statement of cash flowsFinancial statement thatreports cash receipts anddisbursements related to afirm’s three major activities:operations, investments,and financing.cash flowThe difference betweencash coming in and cashgoing out of a business.depreciationThe systematic write-off ofthe cost of a tangible assetover its estimated useful life.first in, first out (FIFO)An accounting method forcalculating cost ofinventory; it assumes thatthe first goods to come inare the first to go out.last in, first out (LIFO)An accounting method forcalculating cost ofinventory; it assumes thatthe last goods to come inare the first to go out.ratio analysisThe assessment of a firm’sfinancial condition andperformance throughcalculations andinterpretations of financialratios developed from thefirm’s financial statements. 113
- 511. Sample Fiberrific BalanceSheet and Income StatementSAMPLE FIBERRIFIC BALANCESHEET➀ Current assets: Itemsthat can be convertedto cash within oneyear.➁ Fixed assets: Itemssuch as land,buildings, andequipment that arerelatively permanent.➂ Intangible assets:Items of value such aspatents andcopyrights that don’thave a physical form.➃ Current liabilities:Payments that are duein one year or less.➄ Long-term liabilities:Payments not due forone year or longer.➅ Stockholders’ equity:The value of whatstockholders own in afirm (also calledowners’ equity.SAMPLE FIBERRIFIC INCOMESTATEMENT➀ Revenue: Value ofwhat’s received fromgoods sold, servicesrendered, and otherfinancial sources.➁ Cost of goods sold:Cost of merchandisesold or cost of rawmaterials or partsused for producingitems for resale.➂ Gross profit: Howmuch the firm earnedby buying or sellingmerchandise.➃ Operating expenses:Cost incurred inoperating a business.➄ Net income aftertaxes: Profit or lossover a specific periodafter subtracting allcosts and expenses,including taxes.114
- 512. Fiberrific Statement ofCash FlowFIBERRIFIC STATEMENT OFCASH FLOWS➀ Cash receipts fromsales, commissions,fees, interest, anddividends. Cashpayments for salaries,inventories, operatingexpenses, interest,and taxes.➁ Includes cash flowsthat are generatedthrough a company’spurchase or sale oflong-term operationalassets, investments inother companies, andits lending activities.➂ Cash inflows andoutflows associatedwith the company’sown equitytransactions or itsborrowing activities. 115
- 513. The Income Statement The formula used to prepare an income statement is as follows:Revenue – Cost of goods sold= Gross ProfitsGross Profit – Operating expenses= Net Income before taxesNet Income before taxes – Taxes = Net income (or loss)116
- 514. Key Financial Statementsof a BusinessBalance Sheet - reports the firm’s financial condition on a specific dateIncome Statement - summarizes revenues, cost of goods, and expenses(including taxes), for a specific period of time and highlights the total profit or loss the firm experienced during that periodStatement of Cash Flows - provides a summary of money coming into and going out of the firm that tracks a company’s cash receipts and cash payments117
- 515. Fundamental Accounting EquationBasisfor the balance sheet
- 516. Assets=Liabilities+Owners equity $80,000 = $30,000 + $50,000The assets are equal to or are balanced with the liabilities and owners’ (stockholders’) equity.
- 517. Complicated part isdetermining what is included in the asset account and what is included in the liabilities and owners’ equity accounts
- 518. Sample’s provided simplifyand explain the process 118
- 519. Three Categories ofAssetsCurrent Assets are items that can or will be converted into cash within one year. Current assets include cash, accounts receivable, and inventoryFixed Assets are long term assets that are relatively permanent such as land, buildings, and equipmentIntangible assets are long term assets that have no real physical form but do have value. Patents, trademarks, copyrights, and goodwill are examples of intangible assets 119
- 520. The Statement ofCash FlowsThe statement of cash flows reports cash receipts and disbursements related to the three major activities of a firm:Operations are cash transactions associated with running the businessInvestments are cash used in or provided by the firms investment activitiesFinancing is cash raised from the issuance of new debt or equity capital or cash used to pay business expenses, past debts, or company dividends120
- 521. Liabilities and Owners’EquityThe following are common liability accounts recorded on a balance sheet:Accounts payable are current liabilities involving money owed to others for merchandise or services purchased on credit but not yet paid. If you have a bill you have not paid, you have an account payableNotes payable are short term or long term liabilities ( ex loans from banks) that a business promises to repay by a certain dateBonds payable are long term liabilities that represent money lent to the firm that must be paid back. If a firm sells someone a bond, it agrees to repay that person the money he or she lent the company plus interest. 121
- 522. Analyzing Financial Statements:Ratio AnalysisRatio analysis: the assessment of a firm’s financial condition and performance through calculations and interpretations of financial ratios developed from the firm’s financial statements.122
- 523.
- 524.
- 525.
- 526.
- 527. Liquidity RatiosLiquidity Ratiosmeasure a company’s ability to turn assets into cash to pays its short – term debts (liabilities that must be repaid within one year).
- 528. Types of liquidityratios:Current ratio: a ratio of a firm’s current assets to its current liabilities. Can be found on balance sheetAcid – test ratio: measures the cash, marketable securities (such as stocks and bonds), and receivables of a firm, compared to its current liabilities124
- 529. Liquidity Ratios CurrentRatio Current ratio = Current Assets divided by current liabilities 600,000 divided by 228000 = 2.08 Acid Test Ratio Acid-test ratio= Cash + Accounts receivable + Marketable securities divided by Current Liabilities 125
- 530. Leverage Debt RatiosLeverage (Debt) Ratios measure the degree to which a firm relies on borrowed funds in its operations
- 531. Types of LeverageDebt Ratio:Debt to owners’ equity ratio measures the degree to which the company is financed by borrowed funds that must be repaid126
- 532. Leverage (Debt) RatiosDebtto Owners’ Equity ratioDebt to owners equity = Total liabilities divided by owners’ equity127
- 533. Profitability (Performance )RatiosProfitability (Performance ) Ratios measure how effectively a firm is using its various resources to achieve profits. Management’s performance is often measured by the firm’s profitability ratios. The three most important ratios used are: earnings per share return on sales return on equity128
- 534. Profitability (Performance) Ratios Basic earnings per share (basic EPS): helps determine the amount of profit earned by a company for each share of outstanding common stock. Basic earnings per share = Net income after taxes divided by number of common stock shares outstanding. Another reliable indicator of performance is obtained by using a ratio that measures the return on sales. Firms use this ratio to see if they are doing as well as the companies they compete against in generating income from the sales they achieve. Diluted earnings per share (diluted EPS) ratio: measures the amount of profit earned by a company for each share of common stock, but also takes into consideration stock options, warrants, preferred stock, and convertible debt securities, which can be converted into common stock. For simplicity’s sake this power point will only discuss the basic earnings per share (EPS).129
- 535. Profitability (Performance) RatiosReturnon sales: calculated by comparing a company’s net income to its total sales. Risk is a market variable that concerns investors. The higher the risk involved in an industry, the higher the return investors expect on their investment.Return on sales = Net income divided by net salesReturn on equity: measures how much was earned for each dollar invested by owners. Return on equity= Net income after tax divided by total owners’ equity Note: These and other profitability ratios are considered vital measurements of company growth and management performance. 130
- 536. Activity Ratios Activity Ratios measure the effectiveness of a firm’s management in using the assets that are available. One of the activity ratios is the inventory turnover ratio.The Inventory turnover ratio measures the speed of inventory moving through the firm and its conversion into sales. Inventory sitting idly in a business cost money.Inventory turnover = cost of goods sold divided by average inventory131
- 537. Human Resources HumanResources: an increasingly broadening term that refers to managing “human capital” the people of an organization. The field has moved from a traditionally administrative function to a strategic one that recognizes the link between talented and engaged people and organizational success.
- 538. Human resources management:the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.132
- 539. Human ResourcesHuman Resources(HR) normally administers:
- 540.
- 541.
- 542.
- 543. Compliance (Personnel regulatoryrequirements)
- 544.
- 545.
- 546.
- 547.
- 548. Human Resources Much of the data in a HR system revolves around job titles.Job Title:Description
- 549.
- 550. Pay Grade (payrange)
- 551.
- 552. EEO categoryHR manualsrefer to:Policy and procedures
- 553.
- 554.
- 555.
- 556. Human ResourcesEqual EmploymentOpportunity Commission (EEOC) involves:
- 557.
- 558.
- 559.
- 560.
- 561.
- 562.
- 563.
- 564.
- 565.
- 566.
- 567.
- 568.
- 569.
- 570.
- 571.
- 572. Family Medical LeaveAct (FMLA)
- 573.
- 574.
- 575.
- 576.
- 577. Federal Insurance ContributionsAct (FICA)
- 578.
- 579. Human ResourcesChief Human Resource Officer:
- 580. Will establish andenhance a world class human resources team
- 581. Should have atleast a Bachelors Degree in Human Resources or business administration or related field
- 582. Experience desired butnot required (depending on the CEO’s and owners wishes)
- 583. Must be ableto define and implement a labor relations strategy that will ensure a positive and productive work environment
- 584. Challenges HR leadersCHRO faces:
- 585. Workforce demographics andglobal talent trends
- 586. Corporate scandals andintensifying regulatory challenges
- 587. Rising costs ofhealth care and pensions
- 588. Technology innovations enablingnew ways of working
- 589.
- 590. Endless pressures toboost workforce137
- 591. Categories of theCHRO’s roles and responsibilitiesWorkforce Strategist: Integrating business strategy and overall performance are increasingly important tasks. As well as supporting and implementing overall workforce strategy, CHROs also have a significant role in developing and informing HR strategy- helping the CEO and other senior managers design strategies that are consistent with global labor trends, available talent and next-generation leadership and employeesOrganizational and Performance Conductor: How do businesses get the best performance from their employees? Organizations are increasingly complex and performance improvements can be required from departments involving: operations across geographic boundaries
- 592.
- 593.
- 594.
- 595.
- 596.
- 597.
- 598. Categories of theCHRO’s roles and responsibilitiesWorkforce Strategist: Integrating business strategy and overall performance are increasingly important tasks. As well as supporting and implementing overall workforce strategy, CHROs also have a significant role in developing and informing HR strategy- helping the CEO and other senior managers design strategies that are consistent with global labor trends, available talent and next-generation leadership and employees
- 599. Organizational and PerformanceConductor: How do businesses get the best performance from their employees? Organizations are increasingly complex and performance improvements can be required from departments involving:
- 600. operations across geographicboundaries
- 601.
- 602.
- 603.
- 604.
- 605.
- 606. workforce diversity Note:ModernCHROs need to be able to navigate all such options, acting as change masters and architects of organizational structures and rewards programs. HR Service Delivery Owner: Despite the increasing focus on wider business issues, CHROs must still provide cost-effective, day-to-day HR administration and operations. But they need to devote less time to overseeing their own HR systems and processes and spend more time managing a complex mix of in-house, self-service and external resources. Internal and external services must be blended into a cohesive and seamless working operation..
- 607. Compliance and GovernanceRegulator: CHROs must work directly with their boards on employee issues directly related to the critical areas of:
- 608.
- 609.
- 610.
- 611. integrity Additionally, they are expected also to assist with a wide range of board-related issues, such as board member selection and orientation, executive compensation and succession planning. 139
- 612. Human Resource ChallengesChallengesin Human Resources
- 613. Shortages in peopletrained to work in the growth areas of the future.
- 614. A complex setof laws and regulations involving hiring, safety, unionization, and equal pay requiring organizations to go beyond a profit orientation and be more fair and socially conscious
- 615. Retraining of certainemployees
- 616. Increasing number ofsingle parent and two income families resulting in demands for job sharing, maternity leave, and special programs
- 617. Challenges in HumanResources
- 618. Shift in employeeattitudes towards work
- 619.
- 620. Increased demand forbenefits being tailored to the individual
- 621. A decreasedsense of employee loyalty
- 622. Recruiting employees froma diverse population
- 623.
- 624.
- 625. Training and DevelopingEmployees
- 626.
- 627. Diversity in ManagementDevelopment140
- 628. Human Resource ChallengesChallengesin Human Resources
- 629.
- 630. Attracting and Keepingthe best employees
- 631.
- 632.
- 633.
- 634. Scheduling Employees toMeet Organizational and Employee Needs
- 635.
- 636. Promoting and ReassigningEmployees
- 637.
- 638.
- 639. Laws affecting HumanResources
- 640.
- 641. Employees Neededin Human ResourcesCHRO
- 642.
- 643.
- 644. Compensation and BenefitsManager
- 645.
- 646. Administrative Assistant (asecretary)
- 647.
- 648.
- 649. Human ResourceAdministrator
- 650. Director of HumanResources
- 651.
- 652.
- 653.
- 654. Coordinator of HumanResources
- 655.
- 656.
- 657.
- 658.
- 659.
- 660.
- 661. Human Resource BenefitsAdministration
- 662.
- 663. More or notas many as mentioned on here – depending on CHRO’s and CEO’s decisions142
- 664. Software Programming Eachcomputer will have Microsoft Office Ultimate but the programming for Human Resources will be included in the ERP which is mentioned later in this power point. 143
- 665. Information Technology DepartmentInformationTechnology::
- 666. The development, installation,and implementation of computer systems and applications.
- 667. A major facilitatorof business activities in the world today144
- 668. Chief Information OfficerChief Information Office (CIO):
- 669. Head of theInformation Technology Department
- 670. Expertise in computerscience, software engineering, and/or information systems
- 671. Many CIO’s holda Master of Business Administration or Master of Science in Management as well as a technical background
- 672. Must also haveleadership capabilities, business acumen and strategic perspectives as well as technical skills
- 673. Delegates responsibilities andanswers to the CEO145
- 674. Chief Information Officer(CIO)Chief Information Officer (CIO) will have significant Information Technology leadership experience and specialty expertise in one or more of the following areas:
- 675. ERP implementation andmigration
- 676.
- 677.
- 678. Administrative systems designand development
- 679.
- 680.
- 681. Education in businessmanagement and Information Technology 146
- 682. Information Technology TopSeven OccupationsComputer software application engineersComputer support specialistsComputer software systems engineersNetwork and computer systems administratorsNetwork systems and data communications analystsDesktop publishersDatabase administratorsNote: the corporation will rely on the Chief Information Officer and CEO to decide which will be necessary within the IT department. Each department will need a secretary147
- 683. Information TechnologyInformation Technologyis a catalyst of fundamental changes in the strategic structure, operations, and management of organizations due to the following capabilities:
- 684. Performing high speed,high volume, numerical computations
- 685. Providing fast, accurate,reliable, and inexpensive communication within and between organizations, any time, any place
- 686. Storing huge amountsof information in an easy-to-access, yet small space
- 687. Allowing quick andinexpensive access to vast amounts of information worldwide at any time
- 688. Enabling collaboration anywhere,any time
- 689. Increasing the effectivenessand efficiency of people working in groups in one place or in several locations148
- 690. Information TechnologyVividly presentinginformation that challenges the human mind
- 691. Facilitating work inhazardous environments
- 692. Automating both semiautomaticbusiness processes and manually doing tasks
- 693. Facilitating interpretation ofvast amounts of data
- 694. Facilitating globaltrade
- 695. Enabling automation ofroutine decision making and facilitating complex decision making
- 696. Can be wireless,thus supporting unique applications anywhere
- 697. Accomplishing all ofthe above much less expensively than when done manually149
- 698. Information Systems andInformation TechnologyInformation Systems:
- 699. Collects, processes, stores,analyzes, and disseminates information for a specific purpose
- 700. Includes inputs (data,instructions) and outputs(reports, calculations)
- 701. Processes the inputsby using technology such as PCs and produces outputs that are sent to users or to other systems via electronic networks.
- 702. Information Systems alsoinclude people, procedures, and physical facilities and it operates within an environment
- 703. Not necessarily computerizedalthough most of them are
- 704.
- 705. The collection ofcomputing systems used by an organization
- 706. The technological sideof an information system including: hardware, software, databases, networks, and other electronic devices
- 707. A subsystem ofan information system150
- 708. Information Systems andInformation TechnologyInformation Technology
- 709. The organization’s collectionof information systems, their users, and the management that oversees them.
- 710. Difference in Computersand Information Systems
- 711. A computer provideseffective and efficient ways of processing data and a necessary part of an information system
- 712. An information systeminvolves much more than computers. The successful application of an IS requires an understanding of the of the business and its environment that is supported by the IS. For example, to build an IS that supports transactions executed on the New York Stock Exchange, it is necessary to understand the procedures related to buying & selling stocks, bonds, options, and so on, including irregular demands made on the system, as well as all related government regulations151
- 713. Information Systems &Information Technology In learning about Information Systems, it is therefore not sufficient to just learn about computers as computers are only one part of a complex system that must be designed, operated, and maintained.152
- 714.
- 715.
- 716.
- 717.
- 718.
- 719. Information TechnologyThe InformationTechnology Department is responsible for management, support and implementation of the technology architecture, hardware, software and the respective resources throughout the organization. 158
- 720. Managerial Issues inITRecognizing opportunities for using IT and Web-based systems for strategic advantage
- 721. Who will build,operate, and maintain the information systems
- 722.
- 723.
- 724.
- 725. Ethics and socialissues
- 726. Transforming the organizationto the digital economy159
- 727. Enterprise Resource Planning(ERP)The ERP system will be discussed in the next few slides. The IT department should be or will be the creator and maintainer of the ERP160
- 728. Enterprise Resource Planning(ERP) Enterprise Resource Planning (ERP):
- 729. ERP is away to integrate the data and processes of an organization into one system
- 730. A process orapproach which attempts to consolidate all of a company’s departments and functions into a single computer system that services each department’s specific needs.
- 731. It is aconvergence of people, hardware & software into an efficient production, service and delivery system that creates a profit for the company.
- 732. A company –widecomputer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores
- 733. Typically has modularhardware and software units and “services” that communicate on a local area network
- 734. The modular designallows a business to add or reconfigure modules while preserving data integrity in one shared database that may be centralized or distributed
- 735. Has an integratedAccounting System
- 736. Usually ERP systemswill have many components including hardware and software, in order to achieve integration
- 737. Most ERP systemsuse a unified database to store data for various functions found throughout the organization161
- 738. Enterprise Resource Planning ImplementationThe steps of a data migration strategy help with the success of an ERP implementation:Identifying the data to be migratedDetermining the timing of data migrationGenerating the data templatesFreezing the tools for data migrationDeciding on migration related setupsDeciding on data archiving162
- 739. Enterprise Resource PlanningInorder for a software system to be considered ERP, it must provide an organization with functionality for two or more systems
- 740. Most cover severalfunctions although a few cover only two functions (ex QuickBooks: Payroll & Accounting)
- 741. Today’s ERP systemscan cover a wide range of functions
- 742. Examples of modulesin an ERP which formerly would have been stand- alone applications include: Product lifecycle management, Supply chain management (ex purchasing, manufacturing and distribution), Warehouse Management, Customer Relationship Management (CRM), Sales Order Processing, Online Sales, Financials, Human Resources, and Decision Support System.163
- 743. Enterprise Resource PlanningIdeally, ERP delivers a single database that contains all data for the software modules which would include:
- 744. Manufacturing: engineering, billof materials, scheduling, capacity, workflow management , quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow
- 745. Supply chain management: order to cash, inventory, order entry, purchasing, product configurator, supply chain planning,, supplier scheduling, inspection of goods, claim processing, commission calculation
- 746. Financials: general ledger,cash management, accounts payable, accounts receivable, fixed assets
- 747. Project management: costing,billing, time and expense, performance units, activity management
- 748. Human Resources: humanresources, payroll, training, time and attendance, rostering, benefits164
- 749. Enterprise Resource PlanningCustomerrelationship management: sales and marketing, commissions, service, customer contact and call center support
- 750. Data Warehouse andvarious self service interfaces for customers, suppliers, and employees
- 751. Access control- userprivledge as per authority levels for process execution
- 752. Customization- to meetthe extension, addition, change in process flow
- 753. Note: This variesfrom each organization and more or less can be expected165
- 754. Enterprise Resource PlanningProcess PreparationERP vendors have designed their systems around standard business processes based upon best business practices
- 755. Different vendors havedifferent types of processes
- 756. Crucial organizations performa thorough business process analysis before selecting an ERP vendor and setting off on the implementation track
- 757. The analysis shouldmap out all present operational processes, enabling selection of an ERP vendor whose standard modules are most closely aligned with the established organization
- 758. Redesign can thenbe implemented to achieve further process congruence.166
- 759. Enterprise Resource PlanningProcess PreparationResearch indicates that the risk of business process mismatch is decreased by:
- 760. Linking each currentorganizational process to the organization’s strategy;
- 761. Analyzing the effectivenessof each process in light of its current related business capability
- 762. Understanding the automatedsolutions currently implemented
- 763. ERP implementation isconsiderably more difficult in organizations structured into nearly independent business units, each responsible for their own profit and loss, because they will have different processes, business rules, data semantics, authorization hierarchies and decision centers.
- 764. For more onERP it is advised to consult with an ERP specialist167
- 765. Links on ERPhttp://www.tech-faq.com/enterprise-resource-planning-erp.shtml
- 766.
- 767.
- 768. Vendors of ERP& other integrated business information systems Examples of integrated business information systems are:
- 769.
- 770.
- 771.
- 772. Human Resource ManagementSystem (HRMS)
- 773.
- 774. Some major systemvendors are:
- 775.
- 776.
- 777.
- 778. Recommended SoftwareERP setupas mentioned
- 779. Consult with aprofessional
- 780.
- 781. Already discussed theaccounting software programs
- 782. Each executive andothers will need a Blackberry phone from AT&T
- 783.
- 784. Dolphin 9900 MobileComputers from Honeywell
- 785. Other products fromBarcode Planet
- 786.
- 787.
- 788. Operations Management &LogisticsOperations form the base of every organization. Operations Management & Logistics comprises disciplines such as: product development (television show development- DVD’s- shirts- website content- etc), quality management, logistics, information systems and human resources management.
- 789. Operations extend fromthe performance management of a group of design engineers or building in quality feedback loops to the precise prediction of production and delivery performance (production of a show or movie). Supply chain management and the design of information architectures for e-business are also a part of operations management.
- 790. Logistics is themanagement of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers.
- 791. Logistics involves theintegration of information, transportation, inventory, warehousing, material handling, and packaging, and occasionally security.
- 792. Logistics is achannel of the supply chain which adds the value of time and place utility172
- 793. Operations Management &Production ManagementProduction Management has been the term to describe all the activities managers do to help their firms create goods. To reflect the change in importance from manufacturing to services, the term production has been replaced by operations to reflect both goods and services production
- 794.
- 795. The termused to describe all the activities managers do to help their firms create goods.
- 796. Production Management &Operations Management includes the creation and managing of goods and services using the factors of production-land, labor, capital, entrepreneurship, human resources, and knowledge 173
- 797. Operations Management andProduction ManagementOperations Management:
- 798. A specializedarea in management that converts or transforms resources (including human resources) into goods and services.
- 799.
- 800.
- 801.
- 802.
- 803.
- 804.
- 805.
- 806.
- 807.
- 808.
- 809.
- 810.
- 811. Operations Management(for aproduction company):
- 812. Takes Inputs (information,actors, actresses, CEO’s, etc…), buildings, offices, & computer systems, etc.. and creates services that transform the shows, actors/actresses/camera ppl/etc… into a successful business 174
- 813. Operations ManagementSome organizationsproduce mostly goods and others produce goods and services. Production companies produce goods and services
- 814. Operations Management inAction Includes:
- 815. Hiring Specialists whostudy the latest in production techniques & can set up world class systems
- 816.
- 817.
- 818.
- 819.
- 820.
- 821.
- 822.
- 823.
- 824.
- 825.
- 826.
- 827.
- 828. Other services andactions as well175
- 829. Operations ManagementOperations Managementin Action Includes:
- 830. Knowing Modern ProductionTechniques
- 831. Just in timeInventory Control
- 832.
- 833. Flexible Manufacturing(production ofshows- not flexible to break the rules or act unethical)
- 834.
- 835.
- 836.
- 837. Computer Aided Designand Manufacturing
- 838. Control Procedures: PERTand GANTT Charts
- 839. Preparing for thefuture176
- 840. Operations and LogisticsOperationsand Logistics emphasize the following to capture the competitive edge:
- 841.
- 842. Maintaining close relationshipswith suppliers and other companies to satisfy customer needs
- 843.
- 844.
- 845. Saving on coststhrough site selection
- 846. Relying on theInternet
- 847. Adopting new techniquessuch as enterprise resource planning, computer integrated manufacturing, flexible manufacturing, and lean manufacturing177
- 848. Operations and LogisticsOperations and Logistics often focus on:
- 849.
- 850.
- 851.
- 852.
- 853.
- 854. Chief Operating OfficerChief Operating Officer:
- 855. The corporate officerresponsible for managing the day to day activities of the corporation and for operations management
- 856. Highest ranking employeein the Operations Department and is in charge of the Operations Department
- 857. Monitors the dailyoperations of the company and reporting to the board of directors and the top executive
- 858. Responsible or design,development, operation, and improvement of the systems that create and deliver the firms products and services.
- 859. Responsible for ensuringthat business operations are efficient and effective and that proper management of resources, distribution of goods & services to customers, and analysis of queue systems is done
- 860. Needs to havedomain knowledge of the business and industry, understand modern management theories, employ process/quality improvement techniques (business process reengineering, Six Sigma) and quality process standards179
- 861. Function of aChief Operating Officer Marshal limited resources as set out by the chief executive officer and board of directors to the most productive uses with the aim of creating maximum value for the company’s stakeholdersLead by developing and cascading the organization’s strategy/mission statement to the lower ranking staff, and implementing appropriate rewards/recognition and coaching/corrective practices to align personnel with company goalsPlan by prioritizing customer, employee and organizational requirementsMaintaining and monitoring staffing, levels, Knowledge-Skill-Attitude (KSA), expectations and motivation to fulfill organizational requirementsDrive performance measures for the measurement of an operation’s performance and consideration of efficiency versus effectiveness, often in the form of dashboards convenient for review of high level indicators180
- 862. Sales and MarketingMarketingvs. Sales: What is the difference?
- 863. Marketing iseverything you do to reach and persuade prospective customers
- 864. Sales is everythingyou do to close the sale and get a signed agreement or contract
- 865. Marketing: the processof planning and executing the conception, pricing, promotion, and distribution of goods or services to facilitate exchanges that satisfy individual and organizational objectives. Selling and advertising are a part of marketing but marketing involves much more. 181
- 866. Sales and MarketingTheactivities of a company associated with buying and selling a product or service. It includes among other things, advertising, selling and delivering of products or services to people.
- 867. Marketing involves slogans,design, endorsements, media exposure, the four p’s, etc…
- 868. Marketing is morethan sales. It is everything a company does to acquire customers and maintain a relationship with them.
- 869. Marketing’s goal isto match products and services to the people and ensure profitability.
- 870. Marketing & salesinvolves creation of a demand for the product or services offered, its distribution, and services for customers who purchase (or view) the product. 182
- 871. Sales and MarketingDepartmentSales and Marketing Department:
- 872. Focuses on theneeds of the buyer and the need to satisfy the customer through products produced
- 873. Marketing guides andcontrols the entire operation, with manufacturing playing the role of a service activity and supplying the products needed by the customer as relayed to it by marketing
- 874. Monitors the competitionand focuses on the customer
- 875.
- 876. Sets the strategy,plans the attack, and executes
- 877.
- 878. Chief Marketing OfficerChiefMarketing OfficerThe executive responsible for various marketing in an organization
- 879. Primary or sharedresponsibility for areas such as: sales management, product development, distribution channel management, public relations, marketing communications (including advertising and promotions), pricing, market research, and customer service.
- 880. Must be knowledgeablein a range of disciplines
- 881. Must be amongmany other things- highly analytical (ex- pricing and market research) to highly creative (advertising and promotions)
- 882. Must have excellentleadership style
- 883. Must possess areasoutside of marketing such as production, information technology, legal, and financing
- 884. Educational requirements varybut a Master of Business Administration is one degree which will make a good Chief Marketing Officer
- 885. Experience would bepreferred but a educated and talented individual with no experience would do184
- 886. The Marketing ConceptCustomerOrientation: Find out what consumers want and provide it for them (note emphasis on consumers rather than promotion or sales)Service Orientation: Make sure everyone in the organization has the same objective- customer satisfaction. This should be a total & integrated organizational effortProfit Orientation: Focus on those goods and services that will earn the most profit and enable the organization to survive and expand to serve more consumer wants and needs.185
- 887.
- 888. The Marketing Processwith the Four P’s187Find opportunities Conduct Research Identify a target market Design a product to meet the need based on research Do product testing Determine a brand name, design a package, and set a price Select a distribution system Design a promotional program Build a relationship with customers
- 889.
- 890.
- 891.
- 892.
- 893.
- 894.
- 895.
- 896.
- 897.
- 898.
- 899.
- 900.
- 901.
- 902.
- 903.
- 904.
- 905.
- 906.
- 907. The Consumer DecisionMaking Process & Outside InfluencesMarketing mix influencesProduct
- 908.
- 909.
- 910.
- 911.
- 912.
- 913.
- 914.
- 915.
- 916.
- 917.
- 918.
- 919.
- 920.
- 921. Sales Sales ProjectionDemandforecasting
- 922.
- 923.
- 924.
- 925.
- 926.
- 927.
- 928.
- 929.
- 930.
- 931.
- 932. By sourceSales ComparisonsYearover year
- 933.
- 934.
- 935. Marketing & SalesDepartment The Marketing & Sales Department usually has the information listed below on hand:
- 936.
- 937. Files of pastmarketing research, marketing plans, and design awards
- 938.
- 939.
- 940. Profit and LossStatements by Item and Group
- 941.
- 942. Marketing Budget AnticipatedResults
- 943. Other information aswell191
- 944. Sales and Marketinginvolves among other things:Advertising
- 945.
- 946. Business to BusinessMarketing
- 947.
- 948.
- 949.
- 950.
- 951.
- 952.
- 953.
- 954.
- 955.
- 956.
- 957.
- 958.
- 959.
- 960.
- 961.
- 962.
- 963.
- 964.
- 965.
- 966. Forecasting and theFuture
- 967.
- 968.
- 969.
- 970. Image and EmotionalMarketing
- 971.
- 972.
- 973. Sales and Marketinginvolves among other things:Innovation
- 974.
- 975.
- 976. Internet and EBusiness
- 977.
- 978.
- 979.
- 980. Marketing Resources andAssets
- 981.
- 982.
- 983.
- 984.
- 985.
- 986. Marketing Roles andSkills
- 987.
- 988.
- 989.
- 990.
- 991.
- 992.
- 993.
- 994.
- 995.
- 996.
- 997.
- 998.
- 999.
- 1000.
- 1001.
- 1002. Sales and Marketinginvolves among other things:Retailers and Vendors
- 1003.
- 1004.
- 1005.
- 1006.
- 1007.
- 1008.
- 1009.
- 1010.
- 1011.
- 1012.
- 1013. Trends in MarketingThinking and Practice
- 1014.
- 1015.
- 1016.
- 1017. Marketing & SalesTarget& understand customers, pinpoint their needs, and target with compelling value is important in marketing.
- 1018. Consistency of methodologyused, messaging pushed out, and reliability
- 1019. Differentiate from competitorsand finding the key point of difference
- 1020.
- 1021. Thinking outside thebox195
- 1022. Marketing & SalesMarketingand Sales will also require:
- 1023. Putting together theright message
- 1024.
- 1025. Picking the righttargets
- 1026. Putting your bestfoot forward
- 1027.
- 1028. Malibuism – becoming‘hot’
- 1029. Attempt various marketingstrategies
- 1030. Fuel word ofmouth advertising
- 1031. Make the Internetwork for your organization
- 1032.
- 1033. Hire and firewhen necessary196
- 1034. Employees in salesand marketingSales managers and sales people
- 1035. Marketing managers andmarketing specialists
- 1036.
- 1037. Advertising and promotionsmanagers and consultants
- 1038. Other employees aswell197
- 1039. Skills, Knowledge &Education Experience
- 1040.
- 1041.
- 1042.
- 1043. Mature and highmotivation
- 1044. Communication skills orallyand in writing
- 1045.
- 1046.
- 1047. Ability to establishand maintain effective personal relationships
- 1048.
- 1049.
- 1050.
- 1051.
- 1052.
- 1053.
- 1054.
- 1055. Communications methods andtechnology
- 1056.
- 1057.
- 1058.
- 1059.
- 1060.
- 1061.
- 1062.
- 1063. Creative and technicalwriting198
- 1064. Marketing ManagerMarketing managers.Marketing managers develop the firm’s marketing strategy in detail. With the help of subordinates, including product development managers and market research managers, they estimate the demand for products and services offered by the firm and its competitors. In addition, they identify potential markets—for example, business firms, wholesalers, retailers, government, or the general public. Marketing managers develop pricing strategy to help firms maximize profits and market share while ensuring that the firm’s customers are satisfied. In collaboration with sales, product development, and other managers, they monitor trends that indicate the need for new products and services, and they oversee product development. Marketing managers work with advertising and promotion managers to promote the firm’s products and services and to attract potential users.199
- 1065. Promotions ManagersPromotions managers.Promotions managers supervise staffs of promotions specialists. These managers direct promotions programs that combine advertising with purchase incentives to increase sales. In an effort to establish closer contact with purchasers—dealers, distributors, or consumers—promotions programs may use direct mail, telemarketing, television or radio advertising, catalogs, exhibits, inserts in newspapers, Internet advertisements or Web sites, in-store displays or product endorsements, and special events. Purchasing incentives may include discounts, samples, gifts, rebates, coupons, sweepstakes, and contests.200
- 1066. Public Relations ManagersPublicrelations managers. Public relations managers supervise public relations specialists.( public relations specialists.) These managers direct publicity programs to a targeted audience. They often specialize in a specific area, such as crisis management, or in a specific industry, such as health care. They use every available communication medium to maintain the support of the specific group upon whom their organization’s success depends, such as consumers, stockholders, or the general public. For example, public relations managers may clarify or justify the firm’s point of view on health or environmental issues to community or special-interest groups.
- 1067. Public relations managersalso evaluate advertising and promotions programs for compatibility with public relations efforts and serve as the eyes and ears of top management. They observe social, economic, and political trends that might ultimately affect the firm, and they make recommendations to enhance the firm’s image on the basis of those trends.
- 1068. Public relations managersmay confer with labor relations managers to produce internal company communications—such as newsletters about employee-management relations—and with financial managers to produce company reports. They assist company executives in drafting speeches, arranging interviews, and maintaining other forms of public contact; oversee company archives; and respond to requests for information. In addition, some of these managers handle special events, such as the sponsorship of races, parties introducing new products, or other activities that the firm supports in order to gain public attention through the press without advertising directly.201
- 1069. Advertising ManagersAdvertising managers.Advertising managers oversee advertising and promotion staffs, which usually are small, except in the largest firms. In a small firm, managers may serve as liaisons between the firm and the advertising or promotion agency to which many advertising or promotional functions are contracted out. In larger firms, advertising managers oversee in-house account, creative, and media services departments. The account executive manages the account services department, assesses the need for advertising and, in advertising agencies, maintains the accounts of clients. The creative services department develops the subject matter and presentation of advertising. The creative director oversees the copy chief, art director, and associated staff. The media director oversees planning groups that select the communication media—for example, radio, television, newspapers, magazines, the Internet, or outdoor signs—to disseminate the advertising.202
- 1070. Sales ManagersSales managers.Sales managers direct the firm’s sales program. They assign sales territories, set goals, and establish training programs for the sales representatives. (sales representatives, wholesale and manufacturing). Sales managers advise the sales representatives on ways to improve their sales performance. In large, multi-product firms, they oversee regional and local sales managers and their staffs. Sales managers maintain contact with dealers and distributors. They analyze sales statistics gathered by their staffs to determine sales potential and inventory requirements and to monitor customers’ preferences. Such information is vital in the development of products and the maximization of profits.203
- 1071. Work EnvironmentWork environment.Advertising, marketing, promotions, public relations, and sales managers work in offices close to those of top managers. Working under pressure is unavoidable when schedules change and problems arise, but deadlines and goals must still be met. Substantial travel may be involved. For example, attendance at meetings sponsored by associations or industries often is mandatory. Sales managers travel to national, regional, and local offices and to the offices of various dealers and distributors. Advertising and promotions managers may travel to meet with clients or representatives of communications media. At times, public relations managers travel to meet with special-interest groups or government officials. Job transfers between headquarters and regional offices are common, particularly among sales managers.204
- 1072. Education and TrainingEducation and training. For marketing, sales, and promotions management positions, some employers prefer a bachelor’s or master’s degree in business administration with an emphasis on marketing. Courses in business law, management, economics, accounting, finance, mathematics, and statistics are advantageous. Additionally, the completion of an internship while the candidate is in school is highly recommended. In highly technical industries, such as computer and electronics manufacturing, a bachelor’s degree in engineering or science, combined with a master’s degree in business administration, is preferred. For advertising management positions, some employers prefer a bachelor’s degree in advertising or journalism. A course of study should include, for example, marketing, consumer behavior, market research, sales, communication methods and technology, and visual arts, and art history and photography. For public relations management positions, some employers prefer a bachelor’s or master’s degree in public relations or journalism. The applicant’s curriculum should include courses in advertising, business administration, public affairs, public speaking, political science, and creative and technical writing. Most advertising, marketing, promotions, public relations, and sales management positions are filled by promoting experienced staff or related professional personnel. For example, many managers are former sales representatives, purchasing agents, buyers, or product, advertising, promotions, or public relations specialists. In small firms, where the number of positions is limited, advancement to a management position usually comes slowly. In large firms, promotion may occur more quickly.205
- 1073. Other qualifications Otherqualifications. Familiarity with word-processing and database applications is important for most positions. Computer skills are vital because marketing, product promotion, and advertising on the Internet are increasingly common. Also, the ability to communicate in a foreign language may open up employment opportunities in many rapidly growing areas around the country, especially cities with large Spanish-speaking populations.Persons interested in becoming advertising, marketing, promotions, public relations, and sales managers should be mature, creative, highly motivated, resistant to stress, flexible, and decisive. The ability to communicate persuasively, both orally and in writing, with other managers, staff, and the public is vital. These managers also need tact, good judgment, and exceptional ability to establish and maintain effective personal relationships with supervisory and professional staff members and client firms.206
- 1074. Certification and AdvancementCertificationand advancement. Some associations offer certification programs for these managers. Certification—an indication of competence and achievement—is particularly important in a competitive job market. While relatively few advertising, marketing, promotions, public relations, and sales managers currently are certified, the number of managers who seek certification is expected to grow. Today, there are numerous management certification programs based on education and job performance. In addition, The Public Relations Society of America offers a certification program for public relations practitioners based on years of experience and performance on an examination Although experience, ability, and leadership are emphasized for promotion, advancement can be accelerated by participation in management training programs conducted by larger firms. Many firms also provide their employees with continuing education opportunities—either in-house or at local colleges and universities—and encourage employee participation in seminars and conferences, often held by professional societies. In collaboration with colleges and universities, numerous marketing and related associations sponsor national or local management training programs. Course subjects include brand and product management, international marketing, sales management evaluation, telemarketing and direct sales, interactive marketing, promotion, marketing communication, market research, organizational communication, and data-processing systems procedures and management. Many firms pay all or part of the cost for employees who successfully complete courses. Because of the importance and high visibility of their jobs, advertising, marketing, promotions, public relations, and sales managers often are prime candidates for advancement to the highest ranks. Well-trained, experienced, and successful managers may be promoted to higher positions in their own or another firm; some become top executives. Managers with extensive experience and sufficient capital may open their own businesses.207
- 1075. Marketing & SalesDepartmentThe Marketing & Sales Department involves much more than discussed in this power point. The department will need a Chief Creative Officer and other talented and driven employees. The power point with this department and others introduces the department and discusses a few things about each department. Further research by the owner must be conducted. 208
- 1076. Legal Department The legal department will require the best of the best. The attorneys must be sharks so to say. The attorneys must be aware of all laws ranging from tax laws to copyright laws and everything in between. Below are a few laws which influence business in America:Minimum wage laws
- 1077.
- 1078.
- 1079. Worker safety laws(OSHA)
- 1080.
- 1081.
- 1082. Local laws andlicenses (as well as foreign )
- 1083.
- 1084.
- 1085.
- 1086.
- 1087. Other laws aswell209
- 1088. ClosingThis presentation doesnot go in depth and further research must be done before opening a corporation but this presentation briefly familiarizes the reader with the setting up and running of a corporation.
- 1089. Knowledge is powerand knowing as much as you can about the corporation you open enables you to run a successful business.
- 1090. More departments mightbe required such as mailing, administration, and engineering.
- 1091. Other chief officerswill be required as well- ex: Chief Technical Officer- Chief Technology Officer- Chief Compliance Officer- etc…. 210
- 1092.
- 1093.
- 1094.
- 1095.
Editor's Notes
- #3 This presentation is not as detailed as the owner of a corporation will need it to be but briefly describes the departments and the responsibilities of each department.
- #12 Although the production company will more than likely be a corporation rather than any other types of businesses I suggest investing in a franchise on the side (purchase a McDonald’s or Sonic or something like that)
- #13 The hugest advantage in my opinion would be if the franchise is incorporated.
- #22 I suggest either non stock or privately held stock (issue it to the owners)
- #23 I strongly suggest either a non stock or private stock corporation and more research on the topic. I will be researching the topic myself.
- #24 Shareholders and Stockholders are the same thing– when I say shareholder I mean stockholder or shareholder.
- #28 Registering in Delaware is wise according to research I have conducted then you must also register in the state your doing business as a foreign corporation. I suggest more research on this topic.
- #30 Articles of Incorporation (when determining the number of shares you must also include if it will be public or private – stock or non stock).
- #31 The Agent of Service is mandatory in the Articles of Incorporation
- #33 Company handbooks should be carefully constructed to detail the ethical guidelines, the mission statement, the policies and procedures to be followed- (ex: days missed- holidays- acceptable and unacceptable behavior- any laws which would apply to the organization and employees- insurance plans- etc…)
- #34 Groups and Teams in an organization should be mentioned in this power point as they are important in the success of an organization.
- #72 This is a secretary that does not answer to the board and his or her duties will be specified in the job description and upon being hired.
- #81 It is possible for more employees in the department or maybe not all that are listed above. The CFO and CEO will ultimately decide on which employee will be in that department.
- #82 Inputs- Processing- Outputs
- #96 Might I suggest that the transactions be electronic and written. Although a bit more work is involved – it will be a wise move. Risk assessment and risk management include deterring risk but also having backup plans.
- #99 Although this presentation discusses the accounting software – the recommendations of myself would be the ERP which is discussed later in this presentation. ERP (enterprise resources planning is a company wide computer software system used to manage and coordinate all the resources, information, and functions of a business from shared data stores.
- #115 These are not what balance and income sheets look like but they have the items which will need to be on them. Attached to the paper and power point are copies of a balance sheet and income statement
- #143 More or less employees might be necessary in the Human Resources Department. The CHRO will know who is needed and who is not.
- #148 The owner needs to be aware of each necessary employees for a couple of reasons: 1. know how to make the organization successful 2. the owner will know if some employees are a waste of time and money and which are not.
- #150 Continued from previous slide
- #154 Riordan Manufacturing Sample photo
- #155 Sample photo from Riordan Manufacturing
- #168 As with everything else– I did not completely cover the topic and more research should be conducted on ERP but it seems like the way to go.
- #173 Operations Management and Logistics is much more complex than described in the power point but it gives an overview of the operations management and logistics department. Operations and logistics is crucial in any organization.
- #174 Word production changing to operations
- #176 Often times the producing of goods such as DVD’s and clothing is outsourced but operations management is responsible for the creating of the ideas and researching and deciding if the product should be outsourced or done through the corporation itself (creating factories to do it).
- #177 Chapter 9 Business Management Producing World Class Goods and Services in Understanding Business Seventh Edition goes into more detail
- #184 The marketing and sales department is responsible for creating- redefining- marketing- and selling the product or service. A lot goes into marketing and sales and this power point does not begin to describe the duties of the department. Advertising is a small part of sales and marketing but important as well.
- #186 Although customer, service and profit are important one must not compromise their values to make a profit or gain customers.
- #193 Teams and groups in marketing is crucial in a successful business. Teams and groups were discussed earlier in this power point.
- #199 These are just a few skills and areas which will be necessary