MGT482 Small Business Management_v1

Chapter 19 – Professional Management and the Small Business
This chapter discusses the importance of leading a business to success. Evaluate how to reach business goals through management and leadership. Shaping the culture of the organization and managing employees are main components of growth in the business. As the business grows, more layers of supervision and formality add to the complexity of management. Successful delegation of authority helps the owner to focus on important duties that target business growth.

Chapter 20 – Managing Human Resources
This chapter is important for small business growth since it focuses on Human Resources and hiring employees, which is the topic of this week’s assignment. Recruiting good employees boosts overall performance and enhances growth in the company. Attracting applicants to small companies can be achieved by stressing the unique work environment and opportunities. Understanding the sources available to use in hiring is important and removes wasting time. Developing job descriptions is covered for specific duties and expectations for employees. Discussion of employee training and performance reviews are important for employee satisfaction and loyalty.

Chapter 21 – Managing Small Business Operations
This chapter is important because it covers the operations within the business. Operations include processes that are unique and paramount to the business. For example, creating and delivering a product or service to the customer. Satisfaction of the customer is a main goal in business. Operations also include planning and control of processes. Quality checks and process changes for efficiency are examples. Inventory management is a vital task in business to ensure the company can meet customer demand. Relationships with suppliers and forecasting supply needs are important factors in business growth.

Chapter 18 – Global Opportunities for Small Businesses
This chapter covers going global with a small business. It is important for business owners to determine if their company is ready and willing to take on the task of going global. Decisions must be considered. For example, understand the foreign market, study the social cultures, evaluate the technological needs, examine the economic and political forces. Determine the benefits for the company and the possible risks.

Chapter 22 – Managing the Firm’s Assets
This is an important chapter to understand and apply. The chapter covers the management of working capital through accounts and day-to-day operations. The cycle of this task begins with purchase or production of inventory and ends with the collection of accounts receivable. Managing the company’s cash flow involves sales revenue, borrowing money for the company’s growth, and internal expenditures. Key financial issues are discussed in managing inventory, accounts payable, and making capital budgeting decisions.

Chapter 23 – Managing Risk
This chapter is important since it discusses what risk is and how to mitigate risk. Business risk includes loss of assets and earnings. Two broad categories are covered: market risk and pure risk. Market risk includes the uncertainty of investment decisions and pure risk is an insurable loss. For example, pure risk includes property, liability, and personnel risks. Business owners are encouraged to decide what to insure against.