Analyze Career Opportunities in … CORPORATE LEADERSHIPUse the internet to learn more about careers in corporate leadership. Choose one of the job titles listed and answer the following questions.1. How would you describe

the physical work environment for jobs in this field?

2. Is this a career that interests you? How might you use your talents, skills, and abilities in this career?

• Chief Executive Officer -CEO

• Chief Operating Officer-COO

• President

Bell Ringer 1

Business OrganizationChapter 5

Business in the U.S. Economy5-1

Today’s Goal

•Describe the changing status of U.S. employment

The Changing U.S. Job Market

Service Jobs

Manufacturing & Agriculture

Employment Data

•9/11/2001 terrorist attacks▫Recession resulted in job loss through 2003

•2003-2008▫Employment grew by 6 percent

•2009 recession▫Loss of more than 775,000 jobs

Employment Data

•2011 wave of retirements▫First group of baby boomers turned 65

•Baby boomers- people born between 1946-1964

•2020▫Average age of US workers will be over 50

Employment Data• “Baby Boomers”

born 1946 – 1964 are retiring

• 1960s = 35% of women worked

• 2018 = 47% of all jobs in US will be held by women

Future Increases• Mini-boom of younger

workers (20-30 years of age)

• Asian-, Hispanic-, African-American workers

• Women in the workforce will hold 47% of all jobs

• Average age of workers will be over 50 years of age

Pressures on Employees

•Economic stress = company downsizing▫New tasks▫Extra hours▫Full time to part time▫Wage decrease or pay

freeze

Contingent Worker

a person who has no explicit (exact) or implicit (implied) contract for long-term employment

• 5% of U.S. workforce (6 million people)

ActivityThe U.S. Bureau of Labor Statistics provides many resources that are helpful in career planning. Go to www.bls.gov and locate the Economic and Employment Projections. Identify and study tables that describe how employment is projected to change for people of your age and race and for an industry in which you might be interested in working. How can you use that information to help you make education and career decisions in the next several years?

Bell Ringer 2 Would you prefer to work for a large corporation or

small business? Explain your answer.

Today’s Goals

•Discuss the role of businesses in the U.S. economy

Business & the EconomyIn 2009, businesses world-wide produced over $70 trillion in goods and services

U.S. businesses are responsible for almost 20% of that production

Nearly 25 million full- and part-time businesses produce these goods and services

Size of Businesses

72.04%

24.01%

3.27% 0.67%

Percent of Businesses by Employee Size

Owner Only1-19 Employees20-99 Employeesover 100 Employees

Role of Businesses

•Make and distribute products and services needed by consumers, government, and other businesses

Impact on a Community• Pays wages to workers

• Buys goods and services from local businesses

• Money spent may result in need for more employees in the community

• Employees need housing, transportation, food

• Employees pay taxes to community

• Successful businesses contribute to more jobs, income and economy in their community

Larry the Cable GuyOnly In AmericaWilliston, North Dakota

Today’s Goals

•Describe three major types of businesses

6 Basic Business Activities

Generating Ideas

Raising Capital

Employing & Training Personnel

Buying Goods & Services

Marketing Goods & Services

Maintaining Business Records

Types of Businesses

Service Business

es

Intermediaries

Producers

Producers

Create products and services used by individuals and other businesses

Extractor

Farmer

Manufacturer

Extractor

Takes resources from nature for direct consumption or developing other products

Farmer

Cultivate land and use other natural resources to grow crops and raise livestock for consumption

Manufacturer

Get supplies from other producers and convert them into products

Intermediaries

Businesses involved in selling the goods and services of producers to consumers and other businesses

Most common are retailers and wholesalers

Service Businesses

Carries out activities that are consumed by its customers

Over 60% of U.S. employment

Examples: dentists, physicians, lawyers, pet sitters, painters, furniture movers

Service Businesses•Fastest growing part of the economy

Match ‘Em Up!

•Producer

•Intermediary

•Service Business

HomeworkKey Concepts #1-3

Make Academic Connections #4Page 107

Partner Activity

Read “The Six Living Generations in America” and

complete the worksheet.

Forms of Business Ownership5-2

Today’s Goals

•Understand the three major forms of business ownership

•Determine when each form of business ownership is most appropriate

•Recognize other specialized business ownership forms

Business Ownership

Major Forms of Business Ownershi

p

Proprietorship

Partnership

Corporation

Teach For A Day!!!

Group Topics1 – Proprietorship

2 – Partnership3- Corporation

4 – Limited Liability Partnership5 - Joint Venture6 - S-Corporation

7 - Limited Liability Company8 - Nonprofit Corporation

9 – Cooperative10 - Franchise

Proprietorship

Business owned and run by just one person

•Most common form of business

•Easiest form to start and end▫Few legal requirements▫Sole control over all business decisions

Owner is responsible for all debts of the business

PartnershipBusiness owned and controlled by two or more people who have entered into an agreement

• Two or more people pool money, skills, and resources, and share profit or loss

• Similar to proprietorship▫Easy to start▫Owners make decisions▫Partners share investments and profits▫Each partner is liable for the debt should the

business fail

Corporation

Separate legal entity formed by documents filed with a state

Owned by one or more shareholders and managed by a board of directors

•More difficult to form:▫Must meet legal requirements▫Owners may or may not make decisions▫No access to profits unless approved by board

U.S. BUSINESS COMPARISON BY FORM OF OWNERSHIP

FORM OF OWNERSHIP

NUMBER OF BUSINESSES

TOTAL REVENUE

(THOUSANDS)

PERCENT OF ALL

BUSINESSES

PERCENT OF TOTAL

REVENUE

Proprietorship 22,075,000 1,278,000,000 71.53% 4.06%

Corporation 5,841,000 26,070,000,000 18.93% 82.82%

Partnership 2,947,000 4,131,000,000 9.55% 13.12%

Total 30,863,000 31,479,000,000 100.00% 100.00%

Advantages & Disadvantages of Business Ownership

▫Being in control▫Making your own

decisions▫Investing money to

make a profit

▫Sole responsibility for the success of the business

▫Having to satisfy creditors

▫Making a profit

HomeworkKey Concepts 5-1 & 5-2

Page 107 #1-3Page 113 #1-4

Organizational Structure for Businesses5-3

Today’s Goals

•Understand the important principles in designing an effective organization

Designing an Effective Business Organization•To be successful…

▫Skilled managers▫We-prepared and motivated employees▫Adequate resources▫Effective procedures▫Key principles▫Organization

Mission Statement

Short, specific written statement of the reason a business exists and what it wants to achieve

•District 308 Mission StatementThe Mission of Oswego Community Unit Schools, a unique partnership of students, staff, families and community, is to ensure each student develops the capacity to thrive as a successful contributing citizen by providing exemplary educational experiences in a safe, caring and responsive learning environment.

Goals

Precise statement of results the business expects to achieve

•Set after mission statement

•Example: ▫Automobile manufacturer: “to produce the

top-rated brand for quality and customer satisfaction”

What is the difference between a mission statement and a goal?

•Mission Statement = states the purpose of existence for a business and what it hopes to achieve

•Goal = specific statement of what a business expects to achieve and may be used to measure a business’ success

Policies & Procedures

Policies – guidelines used in making consistent decisions

Procedures – descriptions of the way work is to be done

•provide guidance and direction to people working in the organization

Policy

Procedure

Principles of Effective Organization

Help employees get along and get work done!

Principles of Effective Organization

Responsibility – the obligation (requirement) to complete specific work

Authority – the right to make decisions about how responsibilities should be accomplished

Accountability – taking responsibility for the results achieved

Unity of Command

Clear reporting relationship for all staff of a business

•Tells employees who is the leader, how decisions will be made and where to go for help

Span of Control

Number of employees who are assigned to a particular work task and manager

•Balances supervision and freedom for workers

•Depends on experience, motivation and training

Span of Control

Span of Control

Why is it important for employees to understand the structure of the company where they work?

So that they know who has authority in different areas and who is responsible for different organizational functions.

Organizational Chart

Diagram that shows the structure of an organization, classifications of work and jobs, and the relationships among those classifications

President

VP of Finance

Senior Accountant

VP of Operations

Chief Auditor

VP of Marketing

National Sales

Manager

Key Account Manager

Functional Organizational Structure

Work is arranged within main business functions such as production, operations, marketing, and human resources

•Used by most businesses

Production Operations MarketingHuman

Resources

Functional Organization Structure

• People work with others who have the same skills

• People become more focused on their specific function than on the success of the whole business

Matrix Organizational Structure

Work is structured around specific projects, products, or customer groups

•People of varied backgrounds are assigned together based on their expertise for the specific project or customer

•May be temporary or long-term

Matrix Organizational Structure

• Can be interesting and motivating to employees

• Get to work with different people

• Can be confusing without effective leadership and communication

HomeworkPage 118 # 4 Technology

Go to www.missionstatements.com and view different companies’

mission statementsUse Microsoft Word

Next…Chapter 5

Test Monday!!!