Business Activities

Business Activities—Discussion Guide

THINK ABOUT IT

Slide #1 What type of career are you planning to pursue in the future?

• • No matter where you wind up working, that business (and every other business) must accomplish certain things:

    • • • 1. Hiring people

          2. Making/Providing products

          3. Keeping track of expenses

  • These primary activities keep businesses in operation

  • Without them, no one would have a job!

KEY CONCEPTS

Slide #2 What is a business?

• An organized effort to produce and/or distribute goods and services
• Businesses can operate for profit, or they can be nonprofit entities.
• All businesses must accomplish certain things.

Discussion #1: Ask students to explain what they think all businesses need to accomplish.

Slide #3 Business activities

• Financial analysis is the process of planning, maintaining, monitoring, controlling, and reporting the use of financial resources.
• Human resources management is the process of planning, staffing, leading, and organizing employees.
• Information management is the process of accessing, processing, maintaining, evaluating, and disseminating business knowledge, facts, or data.
• Marketing is the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
• Operations are the day-to-day activities required for continued business functioning. It includes production, quality control, purchasing, and inventory management.
• Strategic management is the process of planning, controlling, and organizing an organization or department.

Slide #4 The importance of business activities

• All businesses must rely on the integration of the primary business activities to reach specific goals.
• Business changes, outsourcing, and virtual services don’t lessen the need for these business activities—they force the business to adjust the activities accordingly.

Discussion #3: Ask students to give examples of ways that business activities have changed in recent years.

The Concept of Management—Discussion Guide

Slide # 6 THINK ABOUT IT

Think that you don’t have what it takes to be a manager?

• • If so, think again.

  • There are millions of people employed in management positions in the U.S. today.

  • They can be found in every industry and hold positions ranging from shift supervisor to department head to CEO.

  • Here’s the really interesting part—many of these managers began their careers in jobs just like yours.

  • They started in entry-level positions and, thanks to hard work and perseverance, worked their way up in the business.

Think that you don’t have what it takes to be a manager?

• You may not realize it, but you are involved in management every day, whether it’s following your supervisor’s directions or organizing your own workload.

• By understanding what management is, you’ll become more productive and successful on the job.

• And by becoming more productive and successful, you’ll improve your chances of moving into management, if that’s what you want to do.

KEY CONCEPTS

Slide # 7 What is management?

• The process of coordinating resources to accomplish an organization’s goals
• Managers are the people who make things happen.
• To be effective, they must have technical, interpersonal, and conceptual skills.

Slide # 8 Management functions

• Planning involves deciding what work will be done and how it will be accomplished.
• Organizing involves setting up the way the business’s work will be done.
• Staffing is an important management function because staffing helps the business find employees who know how to do the necessary work.
• Directing involves providing guidance to workers and work projects.
• Controlling involves monitoring the work effort.

Slide # 9 Levels of management

• Management is divided into three levels:
  • Top level or executive: Responsible for the operation of the entire organization. They are the owners, chief executive officers, presidents, chief financial officers, vice presidents, and general managers.
  • Mid level or middle: This level of management is responsible for implementing the goals set by top management. Middle managers are the department heads, production managers, sales managers, and district managers.
  • First line or supervisory: First-line managers take the vision one step further and make it happen. They are the ones who are concerned with actually carrying out the actions and plans that the middle managers identified. They are the office manager, floor supervisor, shift supervisor, and team leader.
• Management is responsible for managing a business’s resources, including human resources, financial resources, material resources, and information.

Discussion #3: Ask students to give examples of each level of management from their own lives—at their workplaces, in their families, etc.

Human Resources Management—Discussion Guide

Slide #12 THINK ABOUT IT

What do you think of when you hear the phrase “human resources”?

• • The department of a company you hope you’ll get a call from when you want to land an interview?

  • For many people, human resources or “HR” means a gateway for getting hired.

  • While HR responsibilities do include staffing, the HR function goes much deeper than just that. Human resources management involves a wide variety of activities—HR employees make sure you get paid, stay safe on the job, and have the tools you need to succeed.

  • Read on to learn more about the important role of human resources in any business, big or small.

KEY CONCEPTS

Slide #13 What are human resources?

• Human resources are the people who work to produce goods and services.
• Human resources management is the process of planning, staffing, leading, and organizing employees.
• Main HR management activities include:
  • Staffing: Finding workers for the business
  • Compensation and benefits: Determining pay and advantages employees receive in addition to their monetary compensation, such as health insurance, retirement accounts, paid vacation and sick time, etc.
  • Training and development: Ensuring that employees are knowledgeable and productive
  • Compliance: Fulfilling the requirements of the law
  • Employee relations: Making sure employee relationships remain positive and productive

Slide #14 The importance of human resources

• Human resources are important to business effectiveness because they control all the other company resources.
• HR management exists to make sure that every employee in the company is available, knowledgeable, productive, and satisfied.

Slide #15 The role of human resources management

• The role of human resources management is constantly changing and evolving as employee and business needs change.
• Human resources managers play vital roles in strategic management.
  • Strategic plans are made for the company’s long-range future.
  • And, no company’s future looks bright without the right human resources in place.
  • Organizations must work now to ensure they’ll have the human resources they’ll need tomorrow.
  • Strategic planning is incomplete without taking HR into account.
• Human resources management can also help a business gain a long-term competitive advantage over the rest of the industry.

Marketing—Discussion Guide

THINK ABOUT IT

Slide #18 Have you ever searched for a special brand of sunglasses or a custom T-shirt company?

• If so, you have been impacted by marketing.

• Marketing is all around you.

• You experience it everywhere you go.

  • Advertisements

  • Items for sale

  • People promoting ideas

KEY CONCEPTS

Slide #19 Marketing refers to all activities that link producers with customers who want to buy their products.

• It includes advertising, selling, and much more.
• Marketers conduct research to identify customers, discover their needs, and develop products that they want.
• Marketers analyze the financial potential of new products before introducing them to the marketplace.
• After marketers identify a viable product, they determine how to price it, promote it, and place it.
  • These responsibilities are referred to as the marketing mix, because the marketing elements of product, price, promotion, and place come together to form a strong marketing strategy.

Slide #20 Successful businesses adopt the marketing concept.

• It is a philosophy of conducting business that is based on the belief that all business activities should aim to satisfy customer wants and needs while achieving company goals.
• Businesses that embrace the marketing concept consider the customer’s point of view first—before making any marketing decisions.
• Three elements make up the marketing concept: customer orientation, company commitment, and company goals.
  • Marketers consider customer orientation by producing and promoting the products that customers want.
  • A company commitment is evident when an organization serves the interests of customers by improving products, offering competitive prices, and providing outstanding service.
  • Marketers also strive to achieve company goals.

Slide #21 Marketing plays a large role in the economy.

• It helps businesses profit and helps us obtain the goods and services that we need
  and want.
• Marketing is one of the most important aspects of business because it directly impacts revenue and profitability.
• It is the primary way companies interact with customers.
• It creates vital relationships that lead to the development of better products and satisfied customers.

Marketing also helps the development and growth of international trade.

• Countries import products they need and export products for sale.
• Countries are able to obtain needed resources and goods.
• Jobs are created.
• Citizens’ quality of life is improved.

Marketing competition is another economic benefit.

• When businesses compete to provide new and improved products at lower prices, it creates jobs and a higher standard of living.
• Competition in the marketplace also produces a large variety of goods and services that allow you to choose the products that will benefit you the most.
• Without market competition, you would have few products to choose from.

Marketing is very important.

• • • Without marketing, there wouldn’t be any products to buy, sell, or trade.

• You would have to make your own clothes and grow your own food.
• You wouldn’t have books, videos, or music to entertain yourself.

• • • Marketing has a significant impact on the world, the economy, and you.

Customer Relations—Discussion Guide

Slide #24 THINK ABOUT IT

Ever had a bad experience with a business?

• You probably told your family and friends about it.

• One unhappy customer can have a big impact on a business.

• It’s important for businesses to take all customer relations seriously.

KEY CONCEPTS

Slide #25 Businesses are impacted by the quality of their customer relationships.

• When companies fail to provide quality service, customers are quick to do business elsewhere and share negative information with others.
• Positive customer relations encourage customer loyalty which leads to repeat business.
• Satisfied customers recommend a business to others through word-of-mouth promotion which creates additional business and a positive company image.
• When companies focus on providing quality service, fewer errors are made which increases productivity.

Slide #26 Companies seek to build positive customer relations.

• They are proactive, taking steps to prevent problems from occurring and working to exceed customers’ expectations.
• They work to create positive experiences in every interaction with customers whether it occurs in person, online, or through the mail.
• They make customer relations a top priority throughout the entire organization.
• Employees are trained to use effective customer relations principles and practices in
  every situation.

Slide #27 Every element of a company has the potential to improve its customer relations.

• All processes, activities, and technologies affect the quality of a business’s customer relations.
  • By regularly streamlining processes and updating technology, companies are able to provide convenient experiences for their customers.

• Good communication is essential for building positive customer relations.

• • Developing communication processes and tools in ways that allow customers to easily communicate creates positive interactions.
  • By actively listening to customers, companies gain a valuable understanding of what customers expect, value, and need.
  • The valuable information that customers share help companies improve their products and services.

• A positive work environment impacts customer relations.

• • A positive work environment includes an attractive, up-to-date setting that makes customers comfortable.
  • It includes a corporate culture that promotes teamwork, respect, and professionalism.
  • When employees treat customers respectfully and work together in positive ways, it makes customers feel welcome, appreciated, and important.

• Employees are an important factor of customer relations.

• Hiring friendly employees with good problem-solving and decision-making skills helps a company provide good customer interactions.
• The importance of good customer relations skills should be stressed during an employee’s hiring process, training, and job evaluations.
• How a company treats its employees also impacts its customer relations.
• When employees are treated well, they feel important and appreciated which motivates them to treat customers well also.

Discussion #2: Explain how a company’s superior use of technology provides you with convenience.

Slide #28 Adopting a customer-centric approach always puts customers first.

• All interactions with customers are conducted with professionalism.

• Employees exhibit helpful attitudes that demonstrate courtesy, friendliness, and respect.
• They promptly resolve customer concerns to each customer’s satisfaction.
• They are apologetic and show gratitude toward customers for their business.
• Employees act with integrity by keeping any promises made to customers.

Financial Information—Discussion Guide

Slide # 31 THINK ABOUT IT

Financial information is important.

• Have you ever tried to budget or save for a large purchase?

• It’s important to know how much you can spend.

• Businesses also rely on financial information.

KEY CONCEPTS

Slide #32 Financial information is generated by business activities.

• Data is contained in receipts, invoices, loan documents, etc.
• To be useful, the data must be organized.
• Accounting is used to create financial statements.

• Financial statements are used by many internal and external users.

Slide #33 Financial information needs to be useful.

• Easy to understand
• Relevant to the business task being performed

Financial information needs to be reliable.

• Accurate and complete
• Free of bias

Slide #34 Financial information should be created with common accounting standards.

• Creates consistency in how data are reported
• Makes data easier to interpret
• Ensures data are comparable with other data
  • Comparisons of current and prior data reveal financial changes in a business.
  • Comparisons with competitors’ data helps measure company performance.

Slide #35 Financial information helps a business run smoothly.

• Assists in managerial decision-making
  • Reducing expenses
  • Increasing sales
  • Boosting profitability
  • Managing debt
  • Making purchases

• Helps companies strategize and plan
  • Budgeting
  • Expanding the company
  • Evaluating operations, strategies
  • Monitoring competition

• Predicts future financial trends
  • Sales
  • Income
  • Expenses

Accounting—Discussion Guide

Slide# 38 THINK ABOUT IT

Ever had a goal to save for a big purchase or to budget your money?

• You probably found it helpful to keep track of all the money you saved or spent.

• When you keep careful records, you know exactly how much money you can spend or save at any given time.

• You are keeping track of (accounting for) your money.

• Just as you need to account for your money to accomplish your goals, so do businesses.

KEY CONCEPTS

Slide #39 What’s accounting?

• Accounting is the process of gathering, recording, organizing, and reporting financial data.

• Accounting records show a business’s financial health—whether it is financially stable, improving, or declining.
• Internal users of a company’s financial information include its owners and managers who use managerial accounting information to help them make sound business decisions.
• External users include investors and creditors who use a business’s financial statements to evaluate its profitability.
• The government uses a business’s financial information to determine if it is properly
  calculating and paying taxes.

Slide #40 Accounting tools

• In order for a business’s accounting records to be useful, a business must make sure that everyone handling its financial records follows the same methods or procedures.
• A business sets up an accounting system—a consistently applied process for handling its financial information.
  • To be effective, the system should be easy to use, expandable, process data quickly, and be affordable to operate.
  • It should also protect the business by preventing financial loss and identifying risks.
• Businesses typically use a process called the accounting cycle to maintain their financial records effectively.

• The first four steps of the accounting cycle are all aspects of bookkeeping which must be performed on a daily basis to maintain a company’s journals and ledgers.
• Accountants perform the remaining steps which involve summarizing the data into financial statements and closing the books.

Slide #41 Analyzing financial transactions

• Bookkeepers begin the accounting process by collecting source documents—checks, receipts, invoices, purchase orders, etc. for the business’s financial transactions.
• Each financial transaction is analyzed to determine the amount and the accounts affected.

Slide #42 Journalizing transactions

• Transactions are recorded in the order that they occur within the appropriate journal.
• Businesses typically use either the cash accounting method or the accrual method to record income and expenditures.

• The cash accounting method records transactions at the time the money is exchanged.

• • When customers make payments, the transactions are recorded as income, and when the business pays for items purchased, those transactions are recorded as expenses.
  • The cash accounting method tracks the actual amount of cash that the business has on hand.

• The accrual method journalizes income and expenditures at the time they occur such as a customer’s credit purchase, even if no money changes hands at that time.

• • This method is often used by large businesses and ones that offer credit.
  • The accrual method allows a business to track sales and expenses instead of the amount of cash received or paid out.

Slide #43 Posting to ledgers

• The information that has been recorded in the journal must be sorted and posted to the correct ledger, which contains records for a specific department or area of the business.

Slide #44 Balancing the books

• After posting journal entries to the business’s ledger(s), a trial balance is prepared.
• A trial balance is a worksheet listing all of a business’s different ledger accounts and their respective debit/credit balances.
• It is used to check the accuracy of a business’s journal and ledger entries.

Slide #45 Preparing financial statements

• Accountants summarize a business’s financial information and format it in reports that can easily be understood.
• They use accounting standards to ensure the financial information they create is consistent.
• Consistency makes it easier for internal and external users to accurately interpret a business’s financial statements.

• Balance sheet

• • The balance sheet captures the business’s financial condition at a particular point in time.
  • It presents the components of the basic accounting equation: Assets – Liabilities = Owner’s Equity.
  • The balance sheet gets its name from the fact that both sides of the equation must balance each other.

• Income statement

• • The income statement, sometimes called the profit-and-loss statement, shows how much money the business has made or lost during a specific period of time, usually one year.

• Cash flow statement

• • A cash flow statement is a financial summary estimating how much cash is expected to flow into the business in the given time period.
  • This information is used to plan ahead by generating more income and/or reducing expenses.

Slide #46 Closing the books

• The final step of the accounting cycle involves closing any temporary accounts and transferring the temporary account balances to permanent accounts such as owner’s equity.
• After closing the books, the accounting-cycle process starts over again.

The Role of Finance in Business—Discussion Guide

Slide# 49 THINK ABOUT IT

Ever dreamed of running your own business?

• You probably have a product in mind.

• You may have thought about a business location.

• Do you know how you will fund it or handle your finances?

KEY CONCEPTS

Slide #50 What is finance?

• Finance refers to the way a company funds itself and manages its money.
• Without funds to operate and wise money management, a business cannot operate successfully.
• In business, finance is the function that involves all money and money management matters.

Slide #51 Finance is closely related to the accounting function, but has a different primary focus and purpose.

• The accounting function is focused on recordkeeping activities to provide accurate financial information.
• The finance function is focused on money management decisions for the purpose of boosting a company’s growth and reducing its risks.
• The functions of accounting and finance are interrelated since finance managers depend on the accuracy of accounting information in order to make good financial decisions.
• Likewise, accountants depend on the decisions made by finance managers so they can handle accounting activities in ways that achieve company goals.

Slide #52 The importance of finance

• Every part of a company is tied to finance in some way.
• Money is needed to buy raw materials to convert them into products, to pay for advertising, and to maintain and update computer systems just to name a few.
• Finance serves many important purposes within a business.
  • Setting and accomplishing future business goals
  • Planning and controlling the company’s spending by monitoring company spending within different departments
  • Ensures that sufficient financing is available for projects and to pay other liabilities such as debts and taxes
  • Making sure that customers pay their bills
  • Investing company money wisely

Slide #53 Finance activities

• Financial managers are responsible for the administration of assets—determining what types of assets the company should own, as well as the proper mix of those assets.
• Another primary finance activity is financing.
  • Financing is the process of funding a business venture through the acquisition of funds.
  • Finance managers must choose funding that is most beneficial to a company by considering the disadvantages and advantages offered by each type.

Slide #54 Working capital management

• Working capital management refers to decisions made for the short term to balance a company’s assets and liabilities.
• These decisions are primarily focused on the management of accounts payable and receivable, inventory, and cash.
• A key component of managing working capital is the cash conversion cycle, which refers to the number of days that pass after a company has purchased raw materials, created products, sold them, and received payment.

• Keeping the cash conversion cycle as short as possible helps a company create a positive cash flow that makes it easier to conduct business.

• Another key component of managing working capital is referred to as return on capital.

• Return on capital measures how well a business generates cash flow in relation to the capital (both debt and equity) it has already invested in itself, and it is usually expressed as a percentage.
• By making sure that return on capital is positive, finance managers are able to help a company grow in value.

Slide #55 Capital investment decisions

• Capital investment decisions are made for the long term and determine a company’s major projects, how to finance them, and whether or not to pay dividends to the company’s shareholders. These decisions are referred to as the capital budgeting process.

Capital budgeting process

• The first step is evaluating a project’s potential ability to produce profit.
• Then, finance managers determine how to fund the project by identifying the best use of existing equity (cash and assets) and whether or not to incur debt by obtaining business loans.

• • When finance managers fund a project, they are trying to create an “optimal mix” of financing (debt and equity) to create a capital structure for the company to operate within.

• The final step of the capital budgeting process is determining how a company will handle its profits.

• A company has to decide whether or not to pay dividends to its shareholders and, if so, when and how much.
• It also must decide whether to pay them in the form of cash or in the form of stock.
• When a company does not pay dividends, it must decide whether to finance new projects or to reinvest in existing ones.

Operations—Discussion Guide

Slide # 57 THINK ABOUT IT

What things do you do every day to keep yourself on track?

• Homework, exercise, shopping, laundry?

• These tasks may seem simple, but they are important.

• If you don’t complete them, you will be less productive.

KEY CONCEPTS

Slide #58 Operations

• The day-to-day activities for continued business functioning are known as operations.
• Operations allow a business to take inputs such as employees, raw materials, and equipment to produce the outputs of goods and services.
• The operations activities of manufacturers are often more tangible than service providers since they produce a tangible or physical product.
• However, even businesses providing intangible products like hairstyling, music concerts, or Internet service still have a production process and many operational activities.
• The two main concerns of operations managers are efficiency (keeping costs low) and effectiveness (keeping customers satisfied).

Slide #59 Production Planning

Production planning creates the foundation for how a business will operate.

• A business’s operating systems must be planned before production can begin.
• An operating system is made up of people, places, materials, equipment, and information.
• Operating systems must be regularly evaluated to ensure they’re working effectively.

Slide #60 Site selection and layout is determined by a company’s operation manager.

• A physical site may or may not be needed depending on the type of business.
• When a site is desired, managers consider the costs, what type of labor is available near the location, and how receptive the community will be toward the business.
• Once a site is chosen, the layout of the facility is designed in a way that benefits the business and its goals.
• A manufacturer, for example, will require a large space for producing goods, while a service-oriented business typically requires more room for customers.

Slide #61 Purchasing is the process of buying goods and services for a business.

• Purchasers seek to obtain materials, products, and supplies when they are needed, in the right amounts, and at the best price.
• A business’s purchasing needs vary depending on the type and size of the business.
• A small boutique, for example, has different needs than a large online retailer.

Discussion #2: Explain a quality-control measure used by a business you are familiar with.

Quality control ensures the degree of excellence of a good or service.

• General standards of quality include performance, durability, serviceability, and conformance.
• When a business produces quality products, it is able to keep and gain customers and can also outperform competitors.
• Lower costs and higher productivity also result from quality control since there is less wasted material, less time spent fixing problems, fewer returns, and fewer lost sales from unhappy customers.

Inventory control is used to manage raw materials, partially finished, and finished goods inventory.

• Businesses must make sure they don’t run out of materials or buy too much, because both of these situations can cost a lot of money.
• The inventory control needs of businesses vary widely.
• Producers and retailers have much more physical inventory to manage than service providers.

Slide #62 Logistics refers to managing the flow of goods and services from production to consumption.

• This includes all the people, information, and processes involved in storing and transporting goods.
• Operations managers decide where and how to store goods as well as how and when to transport them to customers.

Routing is the process of selecting the path and sequence of operations to be performed.

• Routing determines the flow of work and sequences production steps to achieve maximum effectiveness and efficiency.

Scheduling establishes the timetable to be followed in production.

• It determines when materials will arrive at a certain destination and how long they will stay there.
• To make timing decisions, operations managers must have a thorough knowledge of each step in the production process and how long it takes.
• When routing and scheduling work together, the entire production process flows smoothly.

Slide #63 Safety and security of employees, customers, and visitors is a responsibility of operations.

• Businesses establish internal rules/procedures and comply with government standards for employee, public, and environmental safety.
• Operations managers may also be responsible for the company’s security needs (alarm systems, security guards, etc.).
• Some businesses like hospitals and airlines are much more concerned with safety and security issues.

Maintenance and repairs are regularly performed by operations to maintain a business’s facility and equipment.

• Additionally, routine custodial work is handled by the operations function.
• Both production and service-oriented businesses using machinery, tools, and vehicles devote more time to maintenance and repairs than other types of businesses.

Expense control is another function of operations.

• Since operations managers control so many business activities, they have many opportunities to control a company’s expenses.
• When operational managers improve efficiency, reduce waste, control inventory, and make wise purchases they are able to make a positive impact on a company’s net income.

Slide #64 Impact of Technology

• Technology affects nearly every aspect of operations.
• Materials and supplies are ordered online, inventory is managed with software, and logistics are monitored with radio-frequency identification (RFID).
• Computer-aided design, 3D printing, and robotics have provided ways to quickly build prototypes and products.
• Quality and efficiency are improved by computer-aided manufacturing (CAM) that evaluates computer-generated information about the production process and automated equipment being used.

Discussion #3: Explain a way technology has impacted the operations of a business that you are familiar with.

Slide #65 Importance of Operations

• Because operations impact every other business function, operations managers must work closely with managers and employees in every other part of the company.
• Marketers can’t promote a quality product if operations managers haven’t maintained quality, production, and inventory levels.
• And, since operations managers control many of a firm’s assets, they help companies achieve their business and financial goals.
• Operations managers play an important and integral role within any organization.

Technology’s Impact on Business—Discussion Guide

Slide # 67 THINK ABOUT IT

• You depend on technology for many things.

• So do businesses.

• List your top 3 must haves!!!

KEY CONCEPTS

Slide #68 Business application of technology

• Technology is “the practical application of science to society and industry.”
• Most people recognize new devices and inventions, such as mobile phones and robots, as technology.
• Technology also includes improvements to materials and new processes that save time or improve quality.
• When businesses use technology, they are able to improve and gain competitive advantages.
• Some companies not only use technology to improve, but work hard to develop innovative technologies which can lead to the creation of entirely new industries.

Slide #69 Important technologies

• The Internet provides a way to quickly conduct local and international business, and also improves internal communications and research abilities.
• Voice over Internet Protocol (VoIP) services provide video conferencing capabilities that make it easy to run virtual meetings with people around the world.
• Mobile phones and devices allow a business’s employees to easily contact coworkers and clients, respond to email messages, and manage their schedules.
• Global positioning systems (GPS) help a company manage its travel and shipping activities.

• Computer technology which includes computer hardware and software help a business’s operations run more smoothly and efficiently.

• In addition, expert systems that mimic the knowledge of a human expert help businesses complete highly skilled work.

• Databases provide a business an easy way to store, manage, and protect its data.

• Data, such as intellectual property, customer information, and business records, are valuable resources that help a company operate, and conduct research and marketing activities.

• Computer networks provide an easy way to keep employees and information connected both at the office and when working remotely.
• Electronic transfer of funds allows a business to manage and automate its payments and banking activities, which saves time and reduces errors.
• Computer automation such as computer-aided design (CAD) and computer-aided manufacturing (CAM) help companies design, create, test, and produce products more efficiently.
• Improved materials and processes help businesses create quality products in the most time-saving and cost-effective ways.
• Virtual training can be used to train employees.

• Virtual training is especially helpful for highly skilled and technical jobs such as flying an airplane or conducting medical surgery.

Slide #70 Technology’s impact on business

• Technology affects industry.

• Sometimes technology creates an entirely new industry (aviation, computers, robotics).
• Technology can also stimulate industries related to the innovation (glass, rubber, steel used to produce cars).
• Technology also significantly alters or eliminates existing industries and jobs
  (manufacturing impacted by automation and robotics).
• Sometimes technology simply aids or alters the way employees conduct their work.

• The nature of marketing has changed.

• New and improved methods of communicating and information gathering have led to online marketing, shopping, and customer service interactions.
• All these online interactions provide businesses a great deal of information they can use to refine and target their marketing campaigns.
• Technology also makes it easier for a business to sell products or set up operations in new or overseas markets.

• Jobs have changed.

• Employees must regularly update their skills to compete for positions requiring technical knowledge which continually changes.
• The nature of work has also changed due to increased opportunities for telecommuting and collaborating.

• Competition has increased.

• New materials, tools, and operating systems allow businesses to achieve higher productivity and reduce costs.
• It’s important for businesses to keep pace with technology if they want to remain competitive.
• Some industries such as computer and auto manufacturers must lead the way by developing innovative technologies to remain competitive.

• Information age impacts business.

• Technology makes it easy to gather information which helps a company identify trends, determine appropriate business strategies, and make decisions.
• Information gathering technology also makes it easier for a business to learn about its customers and quickly interact with them.
• These information-related activities help a company greatly improve its marketing and customer service efforts.

Discussion #3: Ask students to predict how technology will impact jobs in the future.

The Nature of Information Management—Discussion Guide

Slide # 73 THINK ABOUT IT

Information helps make decisions

• Ever had to make a large decision?

• You need accurate information to make a good decision.

• Businesses also rely on information to make decisions.

KEY CONCEPTS

Slide #74 What is information management?

• Information management is the process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business decision-making.
• A business’s overall information management program collects internal and external data, stores them, processes them into information, and presents them in a useful format.
• Some general types of information that any business must manage include customer information, personnel files, accounting records, tax returns, correspondence, and contracts.
• Any type of knowledge that holds value for an organization is considered information and must be managed.
• Information can come in many different forms, including physical forms (anything on paper) and electronic forms (emails, videos, spreadsheets, social media posts, etc.).

Discussion #1: Ask students to choose a type of business and identify important information that is specific to its particular industry.

Slide #75 The importance of information management

• When a company is able to make informed decisions, business risk is reduced.
• Effectively organized information reduces information overload and increases productivity, saving time and money.
• Accurate and relevant information helps a business serve its customers more effectively and stay ahead of its competitors.
• The ability to create organizational consistency regarding business matters increases credibility and builds a good reputation.
• Documenting business activities helps a company comply with laws and avoid legal problems.
• A business’s identity and brand is preserved by protecting valuable intellectual property, such as copyrights, patents, and trademarks.
• Maintaining backup systems and storing vital information off-site allows a business to access information and continue operating during an emergency.

Slide #76 Information management guidelines

• Make sure information is effective.

• Information must be accurate, up to date, complete, and retrievable—easy to locate when needed.
• It should be accessible to the employees who need it and have security measures to prevent access by others.

• Establish and consistently follow policies.

• Managers must put policies and practices in place and make sure that employees are following them correctly.
• When employees keep accurate information, it helps employees keep track of all business activities.

• Prioritize important information management needs.

• A business should decide what its most important information needs are, so it can focus on the most important ones first.
• For example, a business may need to decide whether it’s more important to control inventory or manage customer records.

• Have a coordinated plan in place to manage information.

• Departments should be able to communicate with each other easily and share information as needed.

• Assign responsibility for information management.

• Certain employees may have information management as part of their job descriptions.
• However, everyone in the organization should be given responsibility for doing her/his part.

Slide #77 Challenges of information management

• Employees’ roles of information management are often not understood, which prevents them from maintaining important information.
• Information overload makes it hard to distinguish between what information is important and what is not.
• Companies have unique needs that require many decisions about what information is important, where and how long it should be stored, and who should have access to it.
• Frequent changes in business needs and technologies impact a business’s information management system.
• The storage of electronic documents presents many risks—loss of data, viruses, hacks, and system failures.
• If information is managed improperly, it can lead to audits and lawsuits.
• Companies must protect proprietary knowledge, such as trade secrets and contracts.
• Companies are legally responsible for protecting customers’ personal information and preventing unwanted spam and junk mail.
• In the event of a disaster, information must be made accessible to employees so the business can continue to operate.

Slide #78 Trends of information management

• Compliance laws and regulations have increased.

• Information management programs with built-in reporting procedures help companies document compliance with government regulations and laws.

• Competition has increased.

• Increased competition requires businesses to provide accurate and relevant information quickly to improve customer satisfaction and loyalty.

• More companies are outsourcing and hiring remote employees.

• When companies outsource tasks and depend on remote employees, there’s an increased need for wireless networks, cloud storage, and cyber security to keep information accessible and secure.