Introduction to Business Management. ©2004 Actimax Learning Inc.2 Key Concepts Learning from mistakes is vital to long- term success All businesses have

Introduction to Business Management

©2004 Actimax Learning Inc. 2

Key Concepts Learning from mistakes is vital to

long-term success All businesses have basic, integral

functions Business functions are supported

by core activities that generate profit


Think about… Owning your own business someday

What will the business be? What products and/or services will be

sold and marketed? Why do you think your business will be

successful? What will be your responsibilities? How will you manage risk?


Business Functions Planning Deciding Accounting Analyzing


Planning Anticipating and

preparing for decisions

Based on vision, purpose, and values


Deciding Making decisions

using strategies Driven by solving

problems


Accounting Tracking financial

activities Summaries used

for business analysis


Analyzing Making judgments

using reports and financial statements

Outputs and comparisons


Cornerstone Activities Investing Operating

Producing Servicing Marketing

Financing


Investing Purchasing assets to make money

Sell products Provide services


Operating Producing

Raising crops or livestock Manufacturing products

Servicing Performing tasks Veterinarian or mechanic

Marketing Advertising and packaging Selling and distributing


Financing Borrowing money

Loans or notes payable To pay for assets or operating

expenses Notes payable

Down payment Principal - Loan payments Interest


Business Management Cycle

Planning

Accounting

Deciding

Analyzing

Investing

OperatingProducing

Servicing

Marketing

Financing


What would be… The best way to learn how to run a

business? Real-life experiences, but may be

Difficult Costly Unrealistic

So, a game that simulates a business may be the next best alternative


Reap with The Farming Game®

Is the answer! Simulation that uses a hands-on

approach to learning Personal management Business management Financial management

Teaches the symbolic nature of money Assets, liabilities, and owner’s equity Income, expenses, and profit Debits and credit


Ahhtomoney Learning Series The secret…ownership, concreteness, and

motivation Integrated unit

Teaches how money flows through business transactions

Financial transactions tracked using double-entry accounting that generate financial statements

Players are their own banker – “cashless” way of playing the game to develop autonomy


Ahhtomoney Learning Series Engages learners

Think critically Solve ill-structured problems Make decisions Personal stakes at risk

Reap simulates how business managers plan, decide, account, and analyze financial activities in an agricultural context


Review Questions What are the 4 functions that make up the

Business Management Cycle? What are the 3 to 4 cornerstone activities

that businesses do to make money? What is the primary function of planning a

business? How should business managers make their

decisions?


Review Questions

1. What typically drives most decisions?

2. What is accounting?

3. Why should business managers analyze their businesses?


Review Questions What is investing? What is producing? What is servicing? What is financing? What is marketing?


Are you ready to manage your own business?

Documents

Introduction to Business Management. ©2004 Actimax Learning Inc.2 Key Concepts Learning from mistakes is vital to long- term success All businesses have