Welcome to Seminar 9 Audio to start promptly at 7 pm. In case of technical difficulty…..please stay connected. If you can see this screen, please share with your classmates the following…. The last really good movie I saw was?

Agenda Final Project Review Review of Chapters 19 and 20

Final Project Review Our graded Final Project (Business Plan) is due no later than the end of Unit 9 – No exceptions! Regardless the reason. To complete our Final Project, please refer to Final Project Template in Doc Sharing: – In Units 2, 4, 5, 6, & 8, students are encouraged to work on specific elements of the Final Project – Completed Business Plans should be submitted via the DropBox (name file: Lastname, firstname, finalproject) The Final Project is worth 140 points

PowerPoint Presentation by Charlie Cook The University of West Alabama © 2010 South-Western, Cengage Learning, Inc. All rights reserved. Managing Operations PART 5 Managing Growth in the Small Business

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 21–5 Competing with Operations Operations – The processes used to create and deliver a good or service (value) to customers. Operations Management – The planning and control of a conversion process that includes turning inputs into outputs (products and/or services) that customers desire.

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 21–6 Competing with Operations (cont’d) Important Questions about Operations Factors: – How much flexibility is required to satisfy customers over time? – What is customer demand today? for the future? Are facilities and equipment adequate to keep up with demand? – What options are available for satisfying customers? – What skills or capabilities set the firm apart from its competitors such that the firm can best take advantage of these distinctive features in the market? – Does the competitive environment require certain capabilities that the enterprise lacks?

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 21–7 Exhibit 21.1 The Operations Processes (Input  Processes  Output)

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 21–8 Tools and Techniques of TQM Employee Participation – Employee performance is a critical quality variable. – The implementation of work teams and empowerment of employees to build workplace involvement. – Quality circle A group of employees who meet regularly to discuss quality-related problems.

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 21–9 Exhibit 21.3 Essential Features of Total Quality Management

What types of quality systems do they have at your current or most recent employee, or one close to it?

PowerPoint Presentation by Charlie Cook The University of West Alabama © 2010 South-Western, Cengage Learning, Inc. All rights reserved. Managing the Firm’s Assets PART 5 Managing Growth in the Small Business

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 22–12 The Working-Capital Cycle Working-Capital Management – The management of current assets and current liabilities Net Working Capital – The sum of a firm’s current assets (cash, account receivable, and inventories) less current liabilities (short-term notes, accounts payable, and accruals) Working-Capital Cycle – The daily flow of resources through a firm’s working- capital accounts

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 22–13 1 Collect the accounts receivable (decreases accounts payable and increases cash). Sell inventory for cash; sell inventory for credit (accounts receivable). The Working Capital Cycle Purchase or produce inventory for sale, which increases accounts payable. Pay the accounts payable (decreases cash and accounts payable). 234 Begin cycle again. 5

PowerPoint Presentation by Charlie Cook The University of West Alabama © 2010 South-Western, Cengage Learning, Inc. All rights reserved. Managing Risk in the Small Business PART 5 Managing Growth in the Small Business

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 23–15 Risk Management – Ways of coping with risk that are designed to preserve assets and the earning power of a firm. – Involves finding the best way possible to reduce the cost of dealing with risk. – Insurance is only one of several approaches to minimizing the pure risks a firm is sure to encounter.

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 23–16 1 Implement the decision. Evaluate risks. The Process of Risk Management Identify and understand risks. Select methods to manage risks. 234 Review and evaluate. 5

© 2010 South-Western, Cengage Learning, Inc. All rights reserved. 23–17 Personnel Risks – Risks that directly affect individual employees, but may have an indirect impact on a business as well. Premature death Poor health Insufficient retirement income

The End