BUS661 SMALL BUSINESS CONCEPTUAL ISSUES

Learning Outcome: Analyse purpose of planning in small business Chapter 1: Introduction to Small Business

WHAT IS ECONOMICS?

ECONOMY Production, distribution or trade, and consumption of limited goods and services by different agents in a given country. Agents: individuals, businesses, orgs, or governments Transactions: currency

NZ Economy Market-based Economy Little to no governmental interference Prices decided by demand and supply High standard of living Large service sector Relatively small

TYPES OF INDUSTRIES/ Industry Sectors Primary Supplies raw materials Secondary From raw materials to goods/services Tertiary Distributes goods to customers

Public and Private Sectors of the Economy Private sector Owned by individuals and groups: exist to make profits by carrying out legal activities managers are responsible to their shareholders E.g. grocery/retail businesses, apparel companies, private hospitals etc. Public sector Owned by the nation: carry out tasks assigned by Parliament responsible to the relevant government minister. E.g. government owned institutions for education, health care, defence, social services and law and order

WHAT IS A SMALL BUSINESS?

What is a Small Business? Organisation that exchanges goods, money, or services, or all with consumers for mutual benefit Bolton Report (Bolton, 1971) owner-managed in a personalised way independent: free of outside control having a relatively small market share: serving a local or regional rather than a national market. The Wiltshire Committee 1 or 2 people specific knowledge in 1 or 2 areas no internal departments E.g. Marketing, Production, Finance

Small Businesses… (MBIE, 2014) “Any enterprise with fewer than 20 employees” TERMINOLOGYNumber of Employees Zero0 (only owner) Micro1 to 5 Small6 to 19 Small to Medium20 to 49 Medium50 to 59 Large100+

SMALL BUSINESS: NZ statistics (ACTIVITY) SUMMARIZE the trends/data on the 3 documents Ministry of Business, Innovation & Employment. (2013). SMALL BUSINESSES IN NEW ZEALAND: How do they compare with larger firms?. New Zealand: Author. Ministry of Business, Innovation & Employment. (2015). SMALL BUSINESSES IN NEW ZEALAND: How do they compare with larger firms?. New Zealand: Author. Ministry of Business, Innovation & Employment. (2017). SMALL BUSINESSES IN NEW ZEALAND: How do they compare with larger firms?. New Zealand: Author. Show similarities/differences Graphs, charts, etc.

BUSINESS PLANNING

Why do Small Firms Plan? Involves careful consideration of the strategic direction and options for a firm to gain competitive advantage. Ex: obtaining finance from banks, venture capitalists/other sources of finance (Richardson & Richardson, 1992) Planning is to design a desired future and an effective way of bringing it about. (Hannon & Atherton, 1996; Robinson & Pearce, 1984; Verreynne & Meyer, 2010) Guide the day-to-day actions of all the employees of the firm, thus improving firm performance

STRATEGIC PLANNING Purpose Analyse firm’s Strengths, Weaknesses, Opportunities, and Threats Goal Maximize S and O; Overcome T and W Create competitive advantage

STRATEGIC PLANNING From the Greek word stratēgia, meaning “WAR” Winning a WAR involves complex planning Involves: Organizations People Assets Environments

OPERATIONAL PLANNING Plant and machinery: space, facilities and other features Staff: Skills, availability of staff, employment status, cost Competitive priorities: Achieving excellence Processes and procedures: Routine and cycles in production

VISION, MISSION, GOALS

VISION STATEMENT ABOUT focus and direction for a business FUTURE-Oriented MISSION STATEMENT What’s being done now to achieve Vision PRESENT-Oriented

VISION (The What)MISSION (The How) To become the world’s most respected provider of smart phones To invest more than any other competitor into research and development and to win the loyalty of our customers by providing only excellent product. To become the most respected provider of social services To ensure that our staff are the best people, trained in the most effective way with the highest regard for our customers. To have the greatest market share in the XYZ industry To consistently deliver excellent value in both our product offerings and the service that we provide to our customers

Amazon’s Vision Statement “…to be earth's most customer centric company; to build a place where people can come to find and discover anything they might want to buy online”

Apple’s Mission Statement “ Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.”

SMART GOALS Simple way of setting objectives Clear and eady to understand

SPECIFIC: to the point and precise MEASURABLE: quantifiable measure ACHIEVABLE: within resources and budget RELEVANT: connected and appropriate to organisation TIME-BOUND: completion date

“The evil that is in the world almost always comes of ignorance, and good intentions may do as much harm as malevolence if they lack understanding.” Albert Camus RESEARCH

1.Primary Source: direct, original, or first-hand source of information ex: statistics, interviews, eyewitness accounts, experiment result, documents, surveys, blogs, etc. 2.Secondary Source: study, discussion, interpretation, evaluation, or summary of the primary source. ex: reviews, peer reviews, textbooks, encyclopaedias, etc. (Mclean, 2016)

PLAGIARISM Representing another’s work as your own Not giving credit where credit is due Patch writing (cut-and paste) without referencing is plagiarism Strict policies against plagiarism in schools Negative impact of plagiarism to your reputation and credibility in business setting (Mclean, 2016)

APA CITATION (6 th edition) Manual: Refer to the APA citation manual provided to you by your lecturer Automated: Refer to the instructional video on the next slide Microsoft Word APA citation generator

ACTIVITY: Academic vs Non-Academic Sources Identify if the following sources are academic or non-academic: Wikipedia Time magazine Ntec.ac.nz Tumblr (blog) Twitter Merriam-Webster dictionary (online) Cliffnotes Slideshare

The End Questions?