Small Business Operations Name:______

Small Business Operations Name:______

Unit 2: Managing the Small Business

Directions: Complete this unit outline during the class discussion.

I Managing the Small Business - Marketing, 3e, page 619

A. ______is getting the work of an organization done through its people and resources.

B. Companies with effective managers usually have good products, good employees, and satisfied customers.

II. The Management Functions - Marketing, 3e, pages 621-623

______– analyzing information, setting goals, and determining how to achieve them.
______– arranging people, activities, and resources in the best way to accomplish the goals of the organization.
______– measuring performance, comparing it with goals and making adjustments when necessary.
______– matching individuals with the work to be done.
______– the ability to communicate the direction of the business and influence others to successfully carry out the needed work.

III. The Importance of Leadership - Business Principles & Management, 12e, page 296

A. A small business owner who earns the respect and cooperation of employees to effectively accomplish the work of the business is known as a______.

B. Those entrepreneurs who lead, rather than direct and order employees, are more effective and successful business owners.

C. Steve Jobs, co-founder of Apple Computers, and current CEO, is considered by many to be an inspirational leader.

IV. Characteristics of Leaders - Business Principles & Management, 12e, page 298

 Honesty

 Intelligence

 Good Judgment

 Objectivity

 Initiative

 Dependability

 Cooperation

 Courage

 Confidence

 Stability

 Understanding

V. Policies and Procedures - Marketing, 3e, pages 634-635

______are rules or guidelines to be used in a company to make consistent decisions.

______are the steps to be followed for consistent performance of important activities.

VI. Ten Rules for Great Customer Service -

 Commit to quality service. Everyone in the company needs to be devoted to creating a positive experience for the customer. Always try to go above and beyond customer expectations.

 Know your products. Convey an articulate and in-depth knowledge of products and services to win customer trust and confidence. Know your company’s products, services, and return policies inside and out. Try to anticipate the types of questions that customers will ask. Update and amend your FAQ page frequently.

 Know your customers. Try to learn everything you can about your customers in order to tailor your service approach to their needs and buying habits. Talk to customers about their experience with your company, and listen to their complaints. In this way, you can get to the root of customer dissatisfaction.

 Treat people with courtesy and respect. Remember that every time that you, your employees, and your colleagues make contact with a customer — whether it’s by email, phone, written correspondence, or a face-to-face meeting — the interaction leaves an impression with that customer. Use conciliatory phrases — "Sorry to keep you waiting," "Thanks for your order," "You’re welcome," and "It’s been a pleasure helping you" — to demonstrate not only your commitment to customer satisfaction but your dedication to courtesy.

 Never argue with a customer. You know very well that the customer isn’t always right. However, it is important that you do not focus on the missteps of a particular situation; instead, concentrate on how to fix it. Research shows that 7 out of 10 customers will do business with a company again if that business resolves a complaint in their favor.

 Don’t leave customers in limbo. Repairs, callbacks, and emails need to be handled with a sense of urgency. Customers want immediate resolution, and if you can give it to them, you will probably win their repeat business. Research shows that the instance of repeat business goes up to 95 percent when complaints are resolved on the spot.

 Always provide what you promise. Fail to do this and you’ll lose both credibility and customers. Only make promises that you are confident that you and your business can keep.

 Assume that your customers tell the truth. Even though it may appear that customers lie to manipulate a situation to their advantage, it is to your advantage to give them the benefit of the doubt. The majority of customers don’t like to complain; in fact, they’ll go out of their way — perhaps all the way to a competitor — to avoid it. If you hear unhappy rumblings from your customers, take their complaints to heart and do your best to appease their dissatisfaction.

 Focus on making customers — not on sales. Salespeople, especially those who get paid on commission, sometimes focus on the volume instead of on the quality of the sale. Remember that to keep a customer’s business is more important than to close a sale. Research shows that it costs six times more to attract a new customer than it does to keep an existing one. Moreover, happy customers are the best and most effective way to find new customers.

 Make it easy to buy. The buying experience in your store, on your Web site, or through your catalog should be as easy as possible. Eliminate unnecessary paperwork and forms, help people to find what they need, explain how products work, and do whatever else you can to facilitate transactions.

VII. Mission Statement

The ______is a short, specific statement of the business’s purpose and direction. Business Principles & Management, 12e, page 326

The______or purpose of the company indentifies the nature of the business or the reasons why the organization exists. - Marketing, 3e, page 265

High School Mission Statement: Inspiring life-long learners is our highest priority. With our students, their families, and our community, we share an uncompromising commitment to excellence for all.

VIII. Teamwork

______is the ability to work effectively as part of a group.

A ______is a group of employees who work together toward a common purpose or goal without the usual managerial or other supervision.

IX. Job Rotation - Business Principles & Management, 12e, page 37

______occurs when employees learn a variety of jobs within one company and regularly switch jobs within the same organization.

Job rotation increases worker’s interest in their jobs and enables employees to fill in for coworkers who might be absent.

All students working in the SBE will participate in a job rotation program.