WenGuang Li
AMM101.0053
Dr. James Giordano
May 13, 2009
Summary all Journal Exercises (revision)
Nowadays, the world of business is changing very fast. If we are interested in business and hope to enter the business world in the future, we should be able to adapt to change.Therefore, we need to study and gainmore knowledge and techniques. We should have goals andplans. We also need to obtain workexperiences and learn more good habits and abilities fromgood managers.
From chapter 1 to chapter 8, there are 3 parts of introduction to Business. In part 1: the Environment of Business, we explored the world of business and economics, ethical and social responsibility issues, how it influence firms and society, and explored international business. In part 2: Trends in Business Today. We researched into details about the world of e-business and how businesses are owned. We also explored small business. In part 3: Management and Organization, we learned management functions, how to develop and operate a business and analyze the organization’s elements and structures.
Chapter 1: Exploring the World of Business and Economics. America is still falling into an economic crisis and facing severe recession. However, the business cycle consists of four stages: the peak, recession, the trough, and recovery. The economy will certainly recover in the future. America is Capitalistic. Therefore, although the American economic system today is a mixed economy, its primary economic system is capitalism. The capitalism economic system is one in which individuals own and operates the majority of business that provides goods and services. So, it carries out Adam Smith’s pure laissez-faire capitalism. Base on Adam Smith’s pure laissez-faire capitalism, private entities and all individuals can have many rights and freedom, and government is limited to rule maker and umpire.
However, they are not perfect theories in reality. Investment institutions and investment banks, in order to get more profits, they always seem irresponsible and greedy. They don’t care whether people who borrow money are able to return the money. Because investment institutions think if they don’t return money, they can collect their house and sell them to get back money. When housing prices go down, the Subprime lending crisis broke out and became serious. Today, we can see so many companies close down, and so many employees are fired and find it’shard to find new jobs.
The government has an important role now, they must use the right monetary and fiscal policies to speed up recovery and even eliminate depressions for the business cycle.The news article, Administration Seeks Increase in Oversight of Executive Pay is written by Stephen Lbation. Labaton saysthe government now has the power to take over only the banking unit that controls federally insured deposits of large troubled institutions, not the parent company — a limit that could pose problems if large financial conglomerates like Citigroup or Bank of America continued to spiral downward (Lbation). The government hasmore right to limit and influence these big financial conglomerates. In order to recovery and even eliminate depressions, the government have to do that. If these larger financial conglomerates get some big troubles and even nearly close down, the government will have to help and save them. Although AIG bonus makes the government and many people become so anger, the government won’t stop to subsidize to them. If the AIG close down, it will bring huge negative influence and severe attract American economic balance. Relating to current business events, this is chapter 1 bring me main thoughts.
In chapter 2: Being Ethical and Socially Responsible. It main explore ethics and social responsibility in business.
Ethics is the study of right and wrong and of the morality of the choices individuals make. Business ethic is the application of moral standards to business situations. However, even though a business has ethics, it often has ethical issues. Ethical issues often arise out of a business’s relationship with investors, customers, employees, etc. Therefore, Business people should make every effort toward fairness and honesty, to consider the welfare of customers and others within the firm, to avoid conflicts of interest, and to communicate honestly. Actually, ethical behavior isn’t unchangeable. There are individual, social, and opportunity factors affect the level of ethical behavior in organizations.
In addition, although social responsibility costs money, it is a very important and good business. However, there are few individuals agree with this theory. Social responsibility is the recognition that business activities have an impact on society and the consideration of that impact in business. There are two view of social responsibility: the economic mode and the socioeconomic mode. The economic mode of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs. The economic mode of social responsibility emphasizes not only on profits, but also the impact of business decisions on society. Now, more managers and firms have adopted the socioeconomic modelbecause it is good for firms for long term’ development. In the article, “Peanut Case Shows Holes in Safety Net”, the author Michael Moss, says that from salmonella outbreak in the peanut butter, we know some federal and industries are less responsible. Customers have the right to safety and the right to be informed (Moss). We can figure out if one firm lack of social responsibilities, it’s easy to hurt customers’ rights and benefits. It also hurtsthe firm’s benefit.
Actually, consumers are very important to business. Therefore, consumers must have rights to learn about the products they purchase. Consumerism consists of all activities undertaken to protect the rights of consumers. Consumers have the right to safety, the right to be informed, the right to choose, the right to be heard, and the rights to consumer education and courteous service.
Social responsibility also includes concern for the environment. Industry need to contribute to the noise pollution and the pollutions of our land and water through the dumping of wastes and to air pollution through vehicle and smokestack emissions. Individual firms are very important role to protect our environment.
In chapter 5: Choosing A Form of Business Ownership. It mainly explores the advantages and disadvantages of sole proprietorships, partnership and corporation.
In our chapter 5 journal exercise, we focused on discussingif would we prefer to work in someone else’s business or one that we start, assume that you are now age 25 and have graduated from college.
Assume that I am 25 years old now and just graduated from college. I won’t directly start my business. I will choose to enter into a company and get experience first. Working in a company also is a studying process. Working in a company, I maybe will face some co-workers or superiors don’t respect others. How to create a relationship with co-workers and managers will be a big challenge. Otherwise, sometimes, Ieasily urgedwhen I face some difficulties or make some decisions. I will focus on learning respect to others and absolutely not to judge others in a company. I also will focus on learning how to be patient. For me, these are some of real important experiences and abilities. Because based on human nature, relationships between people are hard to keep for the long-term. When you know how to form relationships withdifferent types of people, it will benefit you in every situation.
Although to start your own business we will face big risks, and the majority (70%) of small business will fail in the first five years,people still like and hope to start their small business. Because people always think they can be successful. Assume I have decided to start to my business, I also hope I can do my business well and be successful. However, what special skills and experience will I need to be successful? To me, I won’t start a family business. I even won’t let any my family or relatives work in, and influence my small business. Because for the long-term, family businesses are very hard to be successful and even can destroy family’s relationship. I will ask some classmates to join in my small business, especially those who have good abilities, qualities and dreams. Although making good ideas or plans can help us to be successful, the most important factor is good execution and management abilities. If you have a perfect idea, but you don’t have good execution and management, it is still hard to be successful. Otherwise, absolutelyto be honest and not to hurt customers also is very important to small business. If we just think how to earn more money from customers, not to provide good goods and services and not to care about customers’ satisfaction, it will be easy to fail. In college, we have learned knowledge and techniques about business. These knowledge and techniques are the indispensable bases to create a small business. Therefore, before starting my small business, I need experiences and abilities. They will help me to be successful.
Studying in college is very important, and a good way to obtain knowledge and abilities about business. In order to learn more about business, I will study hard at LaGuardia Community College and try to transfer to Baruch College. Otherwise, to read books and news articles about business or the excellent entrepreneurs’ experiences will also give me a lot of good enlightens and experiences.
In chapter 6: small business, entrepreneurship, and franchises. It explores the small business, like the reasons why some small business succeeds and many fail, and the advantages and disadvantages of operating a small business. It also analyzesdifferent types of franchising, and the advantages and disadvantages of franchising.
The journal for chapter 6 asks us to focus on analyzing franchising.Naturally, to purchase a franchise in a community what is wantI to do be more successful. So, the first step I must decide on is what kind of franchise I want to open, such as a restaurant and retail. Then, I need to research and learn more information about franchising. I get the information from some websites, for example, Francorp website: Franchise website: I also can obtain information by consulting with professional counselors. When I decide to open a franchisor, I need further details of the franchise package. The franchise package should contain consumers’ rates, profit information, and how much I need to open it and how much I need to manage it, and the ways to manage the franchisor.
Actually, a franchise is more successful than starting a new and independent business. For example, assume I will open a McDonald’s restaurant. The franchising agreement maintains product and quality standards. It contains advices and guidance. It can guarantee customers and an opportunity to start a proven business with limited capital. It doesn’t need to construct and operate its own outlets. It has more working capital available for expanded production and advertising. It also needs to be aware of some issues. Like, franchisors retain a large amount of control over the franchisee’s activities, disputes with and lawsuits by franchises over the terms of the franchise, and franchisor opening competing franchises within the franchisee’s market.
As a franchisee, the possible advantages are: (1), it can guarantee customers and an opportunity to start a proven business with limited capital. (2), it doesn’t need to construct and operate its own outlets. Possible disadvantages are: (1), franchisor retains a large amount of control over the franchisee’s activities. (2), franchisor opens competing franchises within the franchisee’s market. As a franchisee, I have an obligation to make sure products’ qualities and managerial systems are uniform. Like each McDonald’s restaurant, the taste of the food must be the same. I also have rights that if my business problems arise, the franchisor must give me guidance and advice, and I don’t pay for such help.
In chapter 7: Understanding the Management Process. We explored management. For example, management functions, management skill, and how to be a successful manager.
This chapter’s journal exercise is to identify who the most outstanding leader with whom you have worked.
I am working in a McDonald’s Restaurant on 42nd St, in Manhattan. It is a big McDonald’s Restaurant, and it is very busy especially each weekend. Therefore, it needs first-line managers to manage each position. It also needs a good restaurant manager. This restaurant manager name is Mariya. Each employee likes and respects her because she is very kind to each employee and knows how to respect each employee. When I worked there the first day, she already remembered my name, and she told to me no matter what kinds of difficulties and problems I have, I can tell her directly.
During busy times, she always participate in helping and working with us. It makes us feel that we do it together. Therefore, her outstanding leadership qualities are increasing employee participation and customer satisfaction. Increasing employee participation is the most outstanding leadership quality. For example, during busy times, I may easily be tired and won’t do everything well. However, when I see her, she always keeps smiling,worksvigorously and does everything fast and well. Sometimes, she even gets close to you and says, “I know you are tired, but don’t give up, you can do it better.” Then, shegives you a big smile. Naturally, you will become vigorous again and try to do everything the best. Therefore, a manager knows how to encourage and respect employees and often works with employees together, it will increase employee participation. When each employee does everything well, it will give customers better service, and improve customer satisfaction.
Therefore, based on her often encouragingus, helping us and being nice to us, most employees have similar feelings that Maryia is a very good restaurant manager and have an outstanding leader.
In chapter 8: Creating a Flexible Organization. It mainly analyzes the organization’s functions and structure.
The journal exercise for chapter 8 is about my “dream company”.The Alibaba Company in China is my dream company. Alibaba.com is one of leading global B2B websites. No matter Alibaba Company’s corporate culture or management modes, this company really attracted to me. Another reason is the president of the Alibaba Company, Ma, Yun, is my most appreciated entrepreneur.Because he is very good at managing and organizing, and he has particular strategic visions. The Alibaba Company has six nuclear value systems. Customer first: focus on customer concerns, provide advices and information, and help customers to grow; Teamwork: sharing, and to pursue common goal; Embrace change: to surpass ourselves and to face changing; Honesty: honesty, integrity and commitment; Passion: never give up, optimistic upward; Dedication: with professional attitude and normal mentality, do extraordinary things. Because corporate culture is very important to the AlibabaCompany, Assume I have an opportunity to enter this company, it will ask me to receive training in the training department of the Alibaba Company. If I want to be a good employee, I need to learn this company’s corporate culture well. Training is a good way to know and learn the company’s corporate culture. From its six nuclear values systems we can figure out thatAlibaba belongs to the communal culture of corporate cultures because it emphasize teamwork, passion in working and dedication.
I have experiences working in some restaurants before. They are all small businesses. Their goals are simply to make money. Especially many employees, even some managers, don’t care about the restaurants’ business and don’t respect co-workers. They only care more about personal benefits and have a lack of responsibility for their work. Maybe my goal in to improve my abilities; however, I will find restaurants as places where I am not happy, and want to leave before long. Therefore, they belong to the fragmented culture, the worst corporate culture for me.
All in all, we need to learn more about business, and try to use this knowledge in our work. It will be good of us to have personal goals and plans for business, obtain more working experiences, and learn more good habits and abilities from good managers.
Works citied
Labaton, Stephen. “Administration Seeks Increase in Oversight of Executive Pay”. NYtime.com. 21 March, 2009. Web. 13 May, 2009.
Moss, Michael. “Peanut Case Shows Holes in Safety Net”. NYtime.com. 8 February, 2009. Web. 13 May, 2009.
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