Downloaded 13 times
Uploaded byPeyton Pickenpaugh
BizWorld Week 2
This document summarizes a presentation about businesses from BizWorld. It defines a business as a sole proprietorship, partnership, or corporation that creates and sells products or services. It explains that profit equals revenue minus expenses. It also provides Tesla Motors as an example company and outlines the four major components of running a company: design, manufacturing, marketing, and sales.
BizWorld Week 2
- 1. BizWorld Ben Franklin Intermediate School Week 2 – Tuesday, March 2nd Spring 2010 Production and Presentation by Mr. Tong and Mr. Limon Ben Franklin Intermediate School 1 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 2. Review What is a Business? Review • A business is a sole proprietor, partnership, or corporation that creates and sells a product or service. New Topics • Examples of a business Product Services Performance Lemonade Stand Haircut Parlor Candy Store Auto Repair Shop Apple Ebay Genentech Morgan Stanley • A business can sell a product, defined as something produced by humans or machines or produced by a natural process Products are tangible process. tangible. • A business can also sell a service, defined as work done for others as an occupation or a business. Services are not tangible. Ben Franklin Intermediate School 2 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 3. Review The Profit Equation Review • PROFIT = Revenue - Expenses • Revenue i th money a company receives f R is the i from selling a product or lli d t New Topics service. − For example, Delrich’s Shoe Factory sells the “Nike Zoom Kobe V” for Performance $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, Sabrina and Patricia to make the dresses and pays each one $10 per S 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. Ben Franklin Intermediate School 3 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 4. Review The Profit Equation (Cont’d) Review • 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 New Topics exceed revenue. • Delrich Shoe Factory (February 2010) Performance − Revenue − Price: $100 for each “Kobe Zoom V” − Quantity: 10 “Kobe Zoom V” shoes − Revenue = Price x Qua t ty = $100 x 10 = $ ,000 e e ue ce Quantity $ 00 0 $1,000 − Expenses − Salary: Joseph demands $10 per hour for 20 hours = $200 − Rent: Mr. Limon s classroom = $1 per day (28 days in Feb) = $28 Mr Limon’s − 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 $1 000 Ben Franklin Intermediate School 4 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 5. Review Company of the Week Review • Tesla Motors, Inc. T l M t I New Topics • Private Company (Founded in 2003) Performance • Headquarters – Palo Alto, CA • CEO – Elon Musk (Age 38) • Design, manufacture and sells high- performance fully electric vehicles and ad a ced e ect c e c e powertrain advanced electric vehicle po e t a components. • First and only company to commercially produce a federally-compliant highway- capable electric vehicle, the Tesla vehicle Roadster. • The Tesla Roadster can accelerate from zero to 60 MPH in 3.9 seconds, but produces zero tailpipe emissions. Ben Franklin Intermediate School 5 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 6. Review Company of the Week (Cont’d) Review • Company Fi C Financials i l New Topics ($ in 000s) Performance 2008 2009 (9 mos) Revenue $14,742 $93,358 Cost of Sales 15,883 85,604 Gross Profit (1,141) 7,754 Gross Margin N.M. 8.3% R&D 53,714 11,139 SG&A 23,649 25,587 Total Operating Expenses 77,363 77 363 36,726 36 726 Net Income (82,782) (31,498) Net Income as % of Revenue N.M. N.M. Ben Franklin Intermediate School 6 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 7. New Topics The Entrepreneurial Cycle Review New Topics Performance Ben Franklin Intermediate School 7 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 8. New Topics The Entrepreneurial Cycle (Cont’d) Review • There are four major components of running a company 1) Design D i New Topics 2) Manufacturing Performance 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 Ben Franklin Intermediate School 8 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 9. Performance Characteristics of a Good Company (10 minutes) Review • Pair up with the person sitting next to you • Discuss how companies give back to their communities Di h i i b k t th i iti New Topics • Companies do not just make money, they also do the following… Performance • Write a list of 10 items 1) Provide jobs Ben Franklin Intermediate School 9 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 10. Performance Characteristics of a Good Company Review • Good companies make quality products or provide quality services • Good G d companies provide a h lth work environment i id healthy k i t New Topics • Good companies treat their employees well Performance • 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 • For F example Delrich makes sure J l D li h k Joseph gets paid a f i wage or h t id fair Kenesha makes sure she protects the privacy of her customers. Ben Franklin Intermediate School 10 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 11. New Topics Jobs in the Corporation Review • Chief Executive Officer (CEO) – is responsible for leading the team and managing the smooth operation of the company and it’s employees. it s New Topics Motto: “Be reasonable” Performance Chief Executive Officer Chief Financial Officer Chief Operating Offi Chi f O ti Officer SVP of Sales SVP of Marketing SVP of Manufacturing Andrea Jung, CEO, Avon Ben Franklin Intermediate School 11 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 12. New Topics Jobs in the Corporation Review • 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 New Topics Motto: “Low cost, high price” Performance Chief Executive Officer Chief Financial Officer Chief Operating Offi Chi f O ti Officer SVP of Sales SVP of Marketing SVP of Manufacturing Thomas Tippl, CFO, Activision Blizzard Ben Franklin Intermediate School 12 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 13. New Topics Jobs in the Corporation Review • Chief Operating Officer (COO) – is responsible for managing the company s day-to-day company's day to day operations; for your friendship bracelet company, the New Topics COO is focused on leading the team in creating a quality product and an attractive design that will appeal to customers Performance Motto: “if you build it, they will come” Chief Executive Officer Chief Financial Officer Chief Operating Offi Chi f O ti Officer SVP of Sales SVP of Marketing SVP of Manufacturing Ralph Alvarez, COO, McDonald’s Ben Franklin Intermediate School 13 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 14. New Topics Jobs in the Corporation Review • Senior Vice President of Sales – is focused on leading the team in making customers happy and selling a lot of products. New Topics Motto: “Sell, sell, sell” Performance Chief Executive Officer Chief Financial Officer Chief Operating Offi Chi f O ti Officer SVP of Sales SVP of Marketing SVP of Manufacturing Shari Friedman, SVP of Sales, MySpace Ben Franklin Intermediate School 14 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 15. New Topics Jobs in the Corporation Review • Senior Vice President of Marketing – is focused on leading the team in promoting the company, product or service New Topics Motto: “Make it look good” Performance Chief Executive Officer Chief Financial Officer Chief Operating Offi Chi f O ti Officer SVP of Sales SVP of Marketing SVP of Manufacturing Philip Schiller, SVP of Marketing, Apple Ben Franklin Intermediate School 15 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 16. New Topics Jobs in the Corporation Review • Senior Vice President of Manufacturing – is focused on leading the team in making the product as easily and inexpensively as possible. New Topics Motto: “Just make’em and ship’em out” Performance Chief Executive Officer Chief Financial Officer Chief Operating Offi Chi f O ti Officer SVP of Sales SVP of Marketing SVP of Manufacturing Rogelio Velasco, SVP of Manufacturing, Cisco Systems Ben Franklin Intermediate School 16 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 17. Performance Job Application (10 minutes) Review • Turn to Page S7 of your packet - BizWorld Memo 3 • Complete th A li ti f E l C l t the Application for Employment t New Topics Performance Ben Franklin Intermediate School 17 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 18. Performance Assigning Jobs Review • Discuss the Application for Employment with your team • Decide h D id who will t k on each j b i th company ill take h job in the New Topics • Turn to Page C1-C2 of the Company Packet – Job Cards Performance • Neatly print your name on the top line and cut out the name tag Ben Franklin Intermediate School 18 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 19. Performance Business Contract Review • Turn to page C3 of the Company Packet – Business Contract • This Thi contract highlights a code of conduct and recognition of student t t hi hli ht d f d t d iti f t d t New Topics responsibilities as employees • Please read, sign and date the contract Performance Ben Franklin Intermediate School 19 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 20. Performance Company Name (10-15 minutes) Review • Brainstorm with your team about the name of your company • What's i Wh t' in a company name? A lot, when it comes t small-business success. ? l t h to ll b i New Topics The right name can make your company the talk of the town; the wrong one can doom it to obscurity and failure. Performance • What does your Company name mean? • Best Company Names of All Time – INC.com 1) Amazon 6) Yelp 2) ) Jet Blue ue 7) Twine ) e 3) Twitter 8) Oracle 4) Etsy 9) Etsy 5) Starbucks 10) Stub Hub Ben Franklin Intermediate School 20 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
- 21. New Topics Next Week Review • Incorporate • Writing B i W iti a Business Plan Pl New Topics • Raising Capital Performance • Guest Speaker – Mimi Kwan, Channel 7 – KGO TV Ben Franklin Intermediate School 21 • Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics