bizworld week 2
TRANSCRIPT
BizWorld
Ben Franklin Intermediate SchoolBen Franklin Intermediate School
Week 2 – Tuesday, March 2nd
Spring 2010
Production and Presentation by Mr. Tong and Mr. Limon
1• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
Ben Franklin Intermediate School
Review
ReviewWhat is a Business?
• A business is a sole proprietor, partnership, or corporation that creates and sells a product or service.
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sells a product or service.
• Examples of a business
Product Services
Lemonade Stand Haircut Parlor
Candy Store Auto Repair Shop
Apple Ebay
• A business can sell a product, defined as something produced by humans or machines or produced by a natural process Products are tangible
Genentech Morgan Stanley
or machines or produced by a natural process. Products are tangible.
• A business can also sell a service, defined as work done for others as an occupation or a business. Services are not tangible.
2• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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Review
ReviewThe Profit Equation
• PROFIT = Revenue - Expenses
R i th i f lli d tNew Topics
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• Revenue is the money a company receives from selling a product or service.
− For example, Delrich’s Shoe Factory sells the “Nike Zoom Kobe V” for $100. Vincent pays Delrich $100 in credit for the shoe so he can wear it to school tomorrow, and Delrich recognizes the $100 as revenue.
• Expense is the cost associated with operating a business.
− For example, Kenesha’s Forever 16 sells dresses. She hires Juan, S $10Sabrina and Patricia to make the dresses and pays each one $10 per hour. She also has to pay Marvin for the fabric in order to make the dress and Mr. Limon for the space where she sells the dresses.
− Salary is the money paid to someone for the work they do.
− Rent is the money paid to use or occupy a space.
3• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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Review
ReviewThe Profit Equation (Cont’d)
• To profit, a business must sell a product or service for more than it costs to produce. If NOT, the result can be a loss. A loss occurs when expenses
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produce. If NOT, the result can be a loss. A loss occurs when expenses exceed revenue.
• Delrich Shoe Factory (February 2010)
− Revenue
− Price: $100 for each “Kobe Zoom V”
− Quantity: 10 “Kobe Zoom V” shoes
− Revenue = Price x Quantity = $100 x 10 = $1,000e e ue ce Qua t ty $ 00 0 $ ,000
− Expenses
− Salary: Joseph demands $10 per hour for 20 hours = $200
− Rent: Mr Limon’s classroom = $1 per day (28 days in Feb) = $28Rent: Mr. Limon s classroom = $1 per day (28 days in Feb) = $28
− Raw Materials: Rubber costs $2 per shoe, produced 20 shoes = $40
− Expenses = Salary + Rent + Raw Materials = $200 + $28 + 40 = $268
Profit = Revenue Expenses = $1 000 $268 = $732
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• Profit = Revenue – Expenses = $1,000 - $268 = $732
Review
ReviewCompany of the Week
T l M t INew Topics
Performance
• Tesla Motors, Inc.
• Private Company (Founded in 2003)
• Headquarters – Palo Alto, CA
• CEO – Elon Musk (Age 38)
• Design, manufacture and sells high-performance fully electric vehicles andadvanced electric vehicle powertrainad a ced e ect c e c e po e t acomponents.
• First and only company to commerciallyproduce a federally-compliant highway-capable electric vehicle the Teslacapable electric vehicle, the TeslaRoadster.
• The Tesla Roadster can accelerate fromzero to 60 MPH in 3.9 seconds, but
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produces zero tailpipe emissions.
Review
ReviewCompany of the Week (Cont’d)
C Fi i lNew Topics
Performance
• Company Financials
($ in 000s)
2008 2009 (9 mos)Revenue $14,742 $93,358
Cost of Sales 15,883 85,604
Gross Profit (1,141) 7,754Gross Margin N.M. 8.3%
R&D 53,714 11,139
SG&A 23,649 25,587
Total Operating Expenses 77 363 36 726Total Operating Expenses 77,363 36,726
Net Income (82,782) (31,498)
Net Income as % of Revenue N.M. N.M.
6• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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New Topics
ReviewThe Entrepreneurial Cycle
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Performance
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ReviewThe Entrepreneurial Cycle (Cont’d)
• There are four major components of running a company
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1) Design
2) Manufacturing
3) Marketing
4) Sales
• In each of the four parts, companies must record their revenue and expenses to make they are on track to make a profit
8• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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Performance
ReviewCharacteristics of a Good Company (10 minutes)
• Pair up with the person sitting next to you
Di h i i b k t th i itiNew Topics
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• Discuss how companies give back to their communities
• Companies do not just make money, they also do the following…
• Write a list of 10 items
1) Provide jobs
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Performance
ReviewCharacteristics of a Good Company
• Good companies make quality products or provide quality services
G d i id h lth k i tNew Topics
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• Good companies provide a healthy work environment
• Good companies treat their employees well
• Good companies benefit their community
• Good companies demonstrate good business ethics
• Ethics are the rules or standards governing the conduct of a person or the members of a profession
F l D l i h k J h t id f i• For example Delrich makes sure Joseph gets paid a fair wage or Kenesha makes sure she protects the privacy of her customers.
10• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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ReviewJobs in the Corporation
• Chief Executive Officer (CEO) – is responsible for leading the team and managing the smooth operation of the company and it’s employees.
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Performance
managing the smooth operation of the company and it s employees.
Motto: “Be reasonable”
Chief Executive Officer
Chief Financial Officer
Chi f O ti OffiChief Operating Officer
SVP of Sales
SVP of Marketing
SVP of ManufacturingSVP of Manufacturing
Andrea Jung, CEO, Avon
11• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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New Topics
ReviewJobs in the Corporation
• Chief Financial Officer (CFO) – is focused on leading the team in making sure all money is accounted for and the company is making a profit
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sure all money is accounted for and the company is making a profit
Motto: “Low cost, high price”
Chief Executive Officer
Chief Financial Officer
Chi f O ti OffiChief Operating Officer
SVP of Sales
SVP of Marketing
SVP of ManufacturingSVP of Manufacturing
Thomas Tippl, CFO, Activision Blizzard
12• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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ReviewJobs in the Corporation
• Chief Operating Officer (COO) – is responsible for managing the company's day-to-day operations; for your friendship bracelet company, the
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company s day to day operations; for your friendship bracelet company, the COO is focused on leading the team in creating a quality product and an attractive design that will appeal to customers
Chief Executive Officer
Chief Financial Officer
Chi f O ti Offi
Motto: “if you build it, they will come”
Chief Operating Officer
SVP of Sales
SVP of Marketing
SVP of ManufacturingSVP of Manufacturing
Ralph Alvarez, COO, McDonald’s
13• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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ReviewJobs in the Corporation
• Senior Vice President of Sales – is focused on leading the team in making customers happy and selling a lot of products.
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Performance
customers happy and selling a lot of products.
Motto: “Sell, sell, sell”
Chief Executive Officer
Chief Financial Officer
Chi f O ti OffiChief Operating Officer
SVP of Sales
SVP of Marketing
SVP of ManufacturingSVP of Manufacturing
Shari Friedman, SVP of Sales, MySpace
14• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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New Topics
ReviewJobs in the Corporation
• Senior Vice President of Marketing – is focused on leading the team in promoting the company, product or service
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Performance
promoting the company, product or service
Motto: “Make it look good”
Chief Executive Officer
Chief Financial Officer
Chi f O ti OffiChief Operating Officer
SVP of Sales
SVP of Marketing
SVP of ManufacturingSVP of Manufacturing
Philip Schiller, SVP of Marketing, Apple
15• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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ReviewJobs in the Corporation
• Senior Vice President of Manufacturing – is focused on leading the team in making the product as easily and inexpensively as possible.
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Performance
in making the product as easily and inexpensively as possible.
Motto: “Just make’em and ship’em out”
Chief Executive Officer
Chief Financial Officer
Chi f O ti OffiChief Operating Officer
SVP of Sales
SVP of Marketing
SVP of ManufacturingSVP of Manufacturing
Rogelio Velasco, SVP of Manufacturing, Cisco Systems
16• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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Performance
ReviewJob Application (10 minutes)
• Turn to Page S7 of your packet - BizWorld Memo 3
C l t th A li ti f E l tNew Topics
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• Complete the Application for Employment
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Performance
ReviewAssigning Jobs
• Discuss the Application for Employment with your team
D id h ill t k h j b i thNew Topics
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• Decide who will take on each job in the company
• Turn to Page C1-C2 of the Company Packet – Job Cards
• Neatly print your name on the top line and cut out the name tag
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Performance
ReviewBusiness Contract
• Turn to page C3 of the Company Packet – Business Contract
Thi t t hi hli ht d f d t d iti f t d tNew Topics
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• This contract highlights a code of conduct and recognition of student responsibilities as employees
• Please read, sign and date the contract
19• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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Performance
ReviewCompany Name (10-15 minutes)
• Brainstorm with your team about the name of your company
Wh t' i ? A l t h it t ll b iNew Topics
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• What's in a company name? A lot, when it comes to small-business success. The right name can make your company the talk of the town; the wrong one can doom it to obscurity and failure.
• What does your Company name mean?
• Best Company Names of All Time – INC.com
1) Amazon 6) Yelp
2) Jet Blue 7) Twine) Jet ue ) e
3) Twitter 8) Oracle
4) Etsy 9) Etsy
5) Starbucks 10) Stub Hub5) Starbucks 10) Stub Hub
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ReviewNext Week
• Incorporate
W iti B i PlNew Topics
Performance
• Writing a Business Plan
• Raising Capital
• Guest Speaker – Mimi Kwan, Channel 7 – KGO TV
21• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
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