Introduction to Business

Reflective Essay

       After gone through a 18 weeks of Introduction to Business module, I felt that I have learned something new in my life and it is much better than what I had expected. My favorite topic in this module is "Managing Employees" because it taught me how to hire and train my employees in the future. This topic basically talks about the personalities, attitudes of employees and also the hiring and training process of an employee. After completing the tutorial questions, I felt that I have understand more about this topic.

      The topic that I found as most useful or applicable to my everyday life and future studies is " Developing Marketing Strategies". This topic basically discuss about what is the marketing plan and the consumer buying process. I found it useful because it taught me about the 5 Ps of marketing and the buying process of a consumer, which might be useful to my career in the future. Besides, through all the assignments, I found out I have improved my oral presentation skills especially through Assignment 1. After completed Assignment 2, I realized that operating a business is not as easy as I thought and we have to put a lot of effort and time to make it successful.

       In a nutshell, this module helped me to look through the eyes of a businessman as it gave me brief introduction about what business is and I am very sure it will help me in my career.

                                                ( 241 words )

Pictures

Me talking about bait and switch tactic

Diyana talking about the reasons of false advertising

Meera presenting about the ways of false advertising

Surayyn talking about how businesses make false advertising

Tutorial Questions and Answers

Intro to Business Exercise 4.1

1. Why do firms have organizational charts? Discuss.   

• Firms have organizational charts because it has a visual diagram that shows clearly the organizational structure of a business.

2. Kristoph and Joseph have both started their own architectural firms. However, they both came up with very different organizational charts. How is this possible? Explain.

• It is possible because there are no two businesses that have the same organizational structure and chart.

3. Ruth works for the accounting department of a multinational company. She has 2 superiors (of equal rank) to whom she reports to. Explain what problems she may experience in this reporting structure.

• Clashing of feedback or opinions. The 2 superiors fighting for the power, which leads them to lose control over the department.

4. The company that you have founded 5 years ago is currently suffering from poor performance due to intense rivalry and politicking from the various departments. What can you do to make them work together again as a team? Suggest 3 strategies.

• By connecting a particular project to other parts of the organization and demonstrate how to success benefits everyone. By conducting team building workshop so that they can work together and understand one another. Having 2-way communication to avoid                       understanding.

     5. What is a functional structure? What type of business would adopt this organizational  

         structure? Also, provide one advantage and one disadvantage of this structure.

• Functional Structure is a business been divided into various departments, which are headed by a manager and these managers, in turn, report to the general manager from the head office. Business that produce one or a few different types of products and services and serves the local market us suitable for functional structure. Advantage:all workers in the same department can communicate easily with one another to solve problems. Disadvantage: workers may be territorial and are unable to work well with other department.

6. What is a divisional structure? What type of business would adopt this organizational structure? Why is this organizational structure more costly to operate?

• In divisional structure, business is divided into various division, headed by respective divisional managers. This is suitable for businesses that sell multiple products or services and operate in multiple geographical markets. This organizational structure is more costly to operate because each division have their own department.

7. What are committees? What are some of the reasons for setting up a committee?

• A committee is a group, usually comprised of managers from different divisions and departments, whose purpose is to achieve a common business goal. This can help the subgroups to focus on a single common goal and thus eliminate rivalry and hostility among each other.

8. There are many types of committees (for different purposes). The Introduction to Business class will have a committee (soon) in charge of a factory trip in the coming weeks. What type of committee would it fall under? Discuss.

• Ad Hoc Committee. This is because it deals with specific event and will be dissolved once the event has concluded.

9. What are the main disadvantages of committees, in general?

• Committees operate via meetings. If the meetings are poorly managed, it can be a big drain or business' time and resources.

Intro to Business Exercise 7.0

1. What is accounting? Explain.

• Accouting is a business tool that can do three different things for a business. It can be a communication tool, can help readers to make decision and also used to discharge the accountabilities of workers.
  
  

2. Lejun is the owner of an architectural firm but he has no rudimentary knowledge in accounting (he has an accountant who looks after everything for him). Is this acceptable? Why or why not?

• No. It is not acceptable because he can be cheated off his money.
  
  

3. What information can you obtain from a Profit and Loss Statement? How can you use this report to assist you in making business decisions (use an example)? What is the other name of P&L statement?

• The business report reports the revenue gained by the company as well as resources. This report could help the company owner decide on whether new product should be introduced to boost profits or cutting the businesses expenses to reduce loses. It also called a statement of income.
  
  

4. What is a Balance Sheet? Also explain the 3 main items reported in it (with suitable examples). What is the other name of balance sheet?

• A balance sheet reports what a business owns and owes in a particular day. It consists of business assets, which help to generate revenue, like rent, liabilities which come from bank loans and owner's equity, such as the starting capital. It is also called the statement of financial income.
  
  

5. What is the accounting equation (formula)? Shi Yi started her business on 1^st January 2011 with $1.5m of her own money and $0.8m of bank loan. Write out the equation for her business.

• Assets= Liabilities + Owner's Equity
• $2.3 = $0.8 + $1.5
  
  

6. Continuing from question 5, what if Shi Yi repaid half of the bank loan 2 months later? How will her business’ accounting equation look like? Lastly, at the end of 2011, her business makes 0.4m of profit. Again, how will her accounting equation look like?

• $6.2= $2.7 + $3.5
  
  

7. Yin Jou wants to borrow $150,000 from Public Bank. She currently has $250,000 of assets (car, shares and cash) and liabilities (e.g. personal loans) of $226,500.  Based on this information, would you (as a loan officer) approve the loan? Why or why not?

• No because she does not have enough money to pay all her loans.
  
  

8. Herman runs a roti canai stall in Subang. His monthly rent and utility expenses are $2700. He sells each roti canai for $1.50 and it costs him $0.65 to make each. Calculate his break-even point. Why is this information important to him?

• In order to pay the rent and utility expenses for one month, he has to sell about 3176 roti canai. This information is important because it will influence his decision to continue running the business as is, add more items to the shop or stop the shop immediately.

Oral Presentation Slides