12.3 Legal Forms of Organization for the Small Business LEARNING OBJECTIVES Understand the different legal forms that a small business can take. Explain the factors that should be considered when choosing a legal form. Understand the advantages and disadvantages of each legal form. Explain why the limited liability company may be the best legal structure for many small businesses. Every small business must select a legal form of ownership. The most… Read More »Legal Forms of Organization for the Small Business

12.2 Organizational Design LEARNING OBJECTIVES Understand why an organizational structure is necessary. Understand organizational principles. Explain the guidelines for organizing a small business. Describe the different forms of organizational structure and how they apply to small businesses. Organizing consists of grouping people and assigning activities so that job tasks and the mission of a business can be properly carried out. The result of the organizing process should be an overall structure that… Read More »Organizational Design

12.1 Principles of Management and Organization LEARNING OBJECTIVES Understand the functions of management. Explain the three basic leadership styles. Explain the three basic levels of management. Understand the management skills that are important for a successful small business. Understand the steps in ethical decision making. All small businesses need to be concerned about management principles. Management decisions will impact the success of a business, the health of its work environment, its… Read More »Principles of Management and Organization

Chapter 12-People and Organization Unnamed Publisher Source: Used with permission from Unnamed Publisher. The idea for Unnamed Publisher, the publisher of this book, started on a business trip to Chicago in 2006. Co-founders Jeff Shelstad and Eric Frank, who were both working at a large educational publisher at the time, decided they wanted to move away from the limitations and the frustrations of the traditional publishing industry. Veterans of the higher education… Read More »People and Organization

11.3 The Benefits and the Risks of Participating in a Supply Chain LEARNING OBJECTIVES Understand the major benefits to be derived from adopting a supply chain management system. Understand the challenges of creating such a system. Understand the technical and managerial risks associated with supply chain management. Recognize the benefits for a small business in adopting supply chain management. The Benefits of Successful Supply Chain Management For any small business, a… Read More »The Benefits and the Risks of Participating in a Supply Chain

11.2 A Firm’s Role in the Supply Chain LEARNING OBJECTIVES Learn about the importance of developing new types of relationships with suppliers and customers. Businesses need to strive toward win-win scenarios with their supplier partners. Understand the need for accurate metrics to evaluate the performance of the supply chain management system. Developing New Relationships Game theory is a branch of mathematics. Broadly stated, game theory examines competitive situations in which one’s outcomes… Read More »A Firm’s Role in the Supply Chain

11.1 The Supply Chain and a Firm’s Role in It LEARNING OBJECTIVES Understand what is meant by the term supply chain management. Understand the four components of supply chain management. Understand the “bullwhip” phenomenon. Recognize the benefits for a small business in adopting supply chain management. No man is an island, entire of itself.John Donne, “XVII. Meditation,” The Literature Network, accessed February 4, 2012, www.online-literature.com/donne/409. John Donne Given the almost daily exposure and coverage… Read More »The Supply Chain and a Firm’s Role in It

Chapter 11-Supply Chain Management: You Better Get It Right R. W. Hine Source: Used with permission from R. W. Hine. No business—small, midsize, or large—survives for more than a century without successfully identifying changing customer needs and adapting its processes and technologies. The adoption of new technologies is not limited to advanced manufacturing or web-based business. New technologies can be crucial to any business, even a business as seemingly prosaic… Read More »Supply Chain Management: You Better Get It Right

10.3 Financial Decision Making LEARNING OBJECTIVES Learn the importance of a breakeven analysis. Understand how to conduct a breakeven analysis. Understand the potential power and danger of financial leverage. Learn how changing financial leverage can affect measures of profitability, such as ROA and ROE. Learn how to use scenarios to evaluate the impact of various levels of financial leverage. Breakeven Analysis A breakeven analysis is remarkably useful to someone considering starting up a… Read More »Financial Decision Making

10.2 Financial Control LEARNING OBJECTIVES Learn about the importance of cultivating a relationship with a banker. Understand the elements of the CAMPARI approach to evaluating a loan. Relationships with Bank and Bankers One often hears the following standard complaint of small businesses: bankers lend money only to those businesses that do not need the money. The inverse of this complaint from the bank’s standpoint might be that small businesses request money… Read More »Financial Control