What is a Business? What does/should it do? How does it do it?

1
What is a Business? What does/should it do?How
does it do it?

• Simplified

2
Basic

• A business is a group of people working together
  with a set of processes to accomplish a specific
  goal in a specific and, often, dynamic market.
  These groups and processes are constrained and/or
  guided by dynamic organizational and governmental
  structures.
• The end goal in business is to produce the
  correct product such that value as seen by the
  customer is greater than competitions priced such
  that other stakeholders can be satisfied,
  including a profit sufficiently large to satisfy
  owners in the short and long term.
• Profit is obtained by producing and selling the
  correct product ethically and legally.

3
Words Defined

• Process a structured, measured set of activities
  designed to produce a specific output.
• Product good and/or service (tangible and
  intangible characteristics)
• Correct Product Provides more value to your
  targeted customer than your competition at a
  price that provides enough revenue to satisfy the
  wants and needs of the other five stakeholders.
  Have to be stakeholder centric to achieve this
  balance.
• Value what a person gives up for what they
  receive. Time, money, effort
• Six Stakeholders Owners/stockholders, employees,
  suppliers, customers, community, environment.

4
Organized How
Porters Value Chain
5
Alternative View
Information Systems
High Level Management
Finance
Accounting
HRM
RD/Engineering
Correct Product to Customer
SCM
Production, logistics, communication
Operations Management
Marketing
Original by Tom Bundi
6
Success Rests On

• Having the correct adaptable Mission, Vision, and
  Strategy. (high level goals)
• Being able to operationalize MVS (process mgt,
  everything we do in the preceding slide)
• Operationalization occurs through goal congruency
  (lower level goals aligned with high level goals)
  
• Continuous Improvement

7
Questions to Answer to Achieve Continuous
Improvement Relative to a Goal

• Where are we?
• Why are we there?
• Where do we want/need to be?
• How should/do we get to where we want/need to be?
  
• Is it worth going to where we want to go?