FOUNDATIONS OF BUSINESS

MANAGEMENT
(MBA101)

SUBMITTED BY:

May Dela Cruz

FIRST TRIMESTER REQUIREMENT
Worksheet #1

1. In your own words, discuss the meaning and functions of management.

Management is the act of bringing people together to achieve desired goals and objectives
through the efficient and effective use of available resources. Management is a discipline made
up of five general functions: planning, organizing, staffing, leading, and controlling. These five
functions are part of a larger set of practices and theories about what it takes to be a successful
manager.

2. Explain at least three types of management theories.

Scientific Management Theory - the scientific management theory is one that seeks to use
scientific methods to determine the "best way" to perform a task or job. This theory arose in
part from the need to increase productivity, as skilled labor was in short supply at the time of
its introduction. Its proponents believed that increasing worker efficiency was the only way to
increase productive capacity.

Behavioral Management Theory - proponents of this theory believe that understanding the
worker and the workplace is the best approach to work and productivity. As a result, managers
must be equipped with knowledge of social sciences in order to improve employee perception
and job performance.

Organizational Environment Theory - the theories described previously looked at

organizational problems primarily through the lens of how managers can influence behaviors
within the organization. The organization environment theory is an attempt to understand how
managers interact with their surroundings. The systems and contingency theories are two
important points to consider here.

3. Without referring back to the previous lesson, explain the functions, roles, and skills of a
manager.

Functions of Manager

Planning - Managers should draft strategies and objectives to determine the stages of the plan
and the technology necessary to implement it.

Organizing - Managers must organize and provide the resources necessary to execute said plan,
including raw materials, tools, capital, and human resources.

Staffing - Managers must utilize authority and a thorough understanding of long-term goals to
delegate tasks and make decisions for the betterment of the organization.
Leading - High-level managers must work to integrate all activities to facilitate organizational
success. Communication is key to success in this component.

Controlling - Managers must compare the activities of the personnel to the plan of action; this is
the evaluation component of management.

Roles of Manager

Managers are charged with guiding and directing the organization to achieve its objectives.
Managers effectively and efficiently administer and coordinate resources in order to channel
their energy toward the successful achievement of the organization's goals.

Skills of a Manager

Interpersonal skills

Communication and motivation

Organization and delegation

Forward planning and strategic thinking

Problem solving and decision-making

Commercial awareness

Mentoring

4. In five to ten sentences, draw a generalization on the basic concepts and theories of
management.

Management theories are a group of ideas that recommend general rules for managing an
organization or business. Management theories address how managers implement strategies to
achieve organizational goals and motivate employees to perform to the best of their abilities.
Management theories can help improve service quality and organizational productivity.
Managers employ a variety of concepts that vary according to the workforce, purpose, and
workplace. When a management style or theory is implemented, it automatically streamlines
the organization's top priorities.

5. Go back to the organization(s) that you have been visiting since you started taking the first
course in the ABM. Find out their responsibility to Customers; Government; Shareholders or
owners of the business, the community; and the employees. Cite also some cases/ problems
and provide recommendations to eliminate these problems. (Use extra sheet/s for your
answer)
Responsibility to Customers- is to provide better quality goods at the right time and at a
reasonable price. To provide after-sales service based on the nature of a product. To provide
information about the changes made by the company.

Responsibility to Government- must pay taxes and fees to the government in order to carry out
their operations. These can include revenue taxes, tariffs on imported goods, and a variety of
administrative fees required to register the business.

Responsibility to Shareholders or owners of the business- to ensure that the business is well run
and managed they accomplish this by monitoring the company's performance and raising
objections or giving their approval to the company's management's actions.

Responsibility to the Community- play their proper role in civil affairs within the goals of the
business; promote amenities and aid in the creation of better living conditions; aid in the
formation of law-abiding citizens and the improvement of legislation and administration in
municipal and industrial affairs.

Responsibility to the Employees- they should maintain a clean and safe working environment.
Employee self-worth can be increased by organizations implementing empowerment programs.

Cases or problem and recommendation to eliminate problem

Not having an answer to the customer's queries- to eliminate this problem make a promise that
you will find the answer and come back to the questioner.

Competencies and recruiting the right talent- to solve this problem, look for an employee who
possesses knowledge, skill, or ability that contributes to the successful completion of a job task.
To do their jobs, all employees must use a variety of skills.

Taxation policy affects business costs- to address this issue, tax existing capital and provide
incentives for new investment.

6. List the factors that will enhance the success of a manager. Show why the manager should
take timely decisions?

Factors that will enhance the success of a manager

 Philosophy, purpose, and culture

 Make goal-setting agile, local, and meaningful
 Use check-ins instead of the annual review
 Reduce (or eliminate) impact of ratings
 Coach and develop your employees
 Redesign compensation processes
 Recognize employee contributions
  Simplify your processes
 Use metrics to measure success
 Train management

Managers must make decisions on time in order for them to be successful. The timing of the
decision is critical because it allows the decision maker to visualize the various elements
required for the decision and makes the decision making more coordinated with critical key
points considered while making the decision.

7. Explain the rationale behind the fact that all managers despite the variations in levels
equally require human skills.

Managers must be proficient in technical, human, and conceptual skills in order to be effective.
Human skills are essential for managers because they facilitate communication between
individuals and groups. Managers must be able to listen well and have their listeners
understand well in order to keep employees organized and working efficiently. Managers must
consider their employees' personalities, values, moods, and emotions. Everyone does not have
the same personality. Managers must understand how to effectively communicate with each
different personality type, rather than treating everyone the same.

8. There are three levels of management: top, middle and low levels. Show clearly how
management skills are reflected in each level.

Top Level Manager- determines the objectives, policies and plans of the organization. They
mobilizes (assemble and bring together) available resources. The top level management does
mostly the work of thinking, planning and deciding. Therefore, they are also called as the
Administrators and the Brain of the organization. They spend more time in planning and
organizing.

Middle Level Manager- gives recommendations (advice) to the top level manager. It executes
(implements) the policies and plans which are made by the top level manager. It co-ordinate
the activities of all the departments. They also have to communicate with the top level
Management and the lower level management. They spend more time in coordinating and
communicating. They spend more time in coordinating and communicating.

Low Level Manager- workers or employees are directed by a low-level manager. Workers'
morale is improved as a result of their efforts. It keeps workers in touch with the middle-level
manager. The lower level management informs the workers about the management's
decisions. They also inform management about the workers' performance, difficulties, feelings,
and demands. They devote more time to directing and controlling others.
9. You are required to study your environment. List five profit-making organizations where
management is practiced.

Apple Inc.

Microsoft Corp.

Industrial and Commercial Bank of China

China Construction Bank

Alphabet is a holding company and the parent of Google Inc.

10. There are several decisions that the manager can take in the process of managing the
organization. Try as much as you can to identify these decisions.

Understand the Decision You Must Make- the first step in making a decision is realizing that a
decision is required. To put it another way, you must identify and define the type of decision
that must be made, as well as how it will affect your work process or improve a product or
service for your customers.

Collect All Information- Proper decision-making necessitates an evaluation of all available

information and data.

Identify All Alternatives- After you've analyzed the data, you must come up with several
different options for the decision you must make. Using the same example as before, you could
choose between display ads and cost-per-thousand ads.

Analyze the Pros and Cons- Analyzing each alternative for its advantages and disadvantages can
assist you in determining which possible decision is the wrong one. This step's goal is to identify
the options that have the best chance of success and the least chance of failure. In some cases,
there isn't much difference between two options, so consult with your executive leaders to
determine which option they prefer and then rank them in descending order.

Choose the Best Alternative- After you've ranked your options, choose the one you believe has
the best chance of achieving your goal. In some cases, you may be able to combine several
options, but in most cases, you will have a clear preference.

Make the Decision- A decision is nothing more than a choice until it is put into action. This
implies that you must be aware of the resources available to aid in the success of your decision.
You may need to meet with your managers and team leaders several times to explain your
decision and how it will affect their daily tasks or your clients and customers.

Evaluate the Impact of Your Decision- It is critical that you evaluate your decision after a
sufficient amount of time has passed so that you can analyze the effectiveness of your choice.
The most important question you must ask is, "Did your decision resolve the problem, need, or
issue it was intended to address?" If you can answer "Yes" to this question, your work is
finished. If the answer is "No," you may need to figure out what went wrong and go through
the decision-making process again.
Worksheet #2

1. Explain the various forces of the firm’s environment.

The forces that affect a business as a separate entity are referred to as its internal environment.
It is also known as the internal working system or organizational climate, and it is made up of
people functions and structures that are generally regarded as controllable environmental
factors.

The task environment consists of individuals or groups who are customers, financial institution
suppliers, labor organizations, government agencies, and local communities.

Indirect Environment Factors: These are the forces that have an impact on a business as well as
other business organizations. They are as follows:

1. Socio-Cultural Variables- the people's way of life. These are made up of people's attitudes,
desires, expectations, beliefs, levels of education, and customs. The social structure of the
society influences all other environmental factors. The society's attitude toward a business is
also influenced by whether the firms have been responsive to the society's needs and
aspirations.

2. Technological Environment- This includes advancements and innovations in methods,

machines, and materials. Technology can be obtained through indigenous technology or
through technology transfer. The former refers to the transmission of technology from one
generation to the next, whereas the latter refers to the importation of technology through
multinational, international, and public organizations, as well as multilateral and
intergovernmental agreements.

3. Economic Environment- the overall pattern of the economy can be viewed through three
lenses: the economic system, the general business cycle, and economic policies. Today, the
most significant economic effects on business organizations are typically classified as fiscal and
monetary policies. Fiscal policies are concerned with the use of government spending and
taxation to improve the economy's position.

4. Political Legal Environment- This environment is primarily concerned with complex laws,
regulations, and government agencies, as well as their actions, which have varying degrees of
impact on all types of businesses. In order to raise the standard of living in society, the
government employs the resources with which the company is endowed to play three major
roles: participants, facilitators, and regulators of business activities.

5. Physical Environment- this includes land availability, climate, weather conditions, mineral
resources, water, and infrastructure facilities.
6. International Environment- the environment of other countries. It is made up of the socio-
cultural, political, economic, and technological environments of the countries in which a
company operates. The expansion of multinational corporations, the need for comparative
advantage, foreign markets, investment, information technology, manpower, and other factors
have resulted in an increased demand for knowledge of the international environment.

2. Describe the local and international business environment.

A domestic or local business obtains virtually all of its resources and sells all of its products or
services within the borders of a single country. Most small businesses, as well as many banks,
retailers, agricultural enterprises, and service firms, are primarily domestic in nature. While
international business is defined as any business conducted in more than one country.
Maintains that when a company goes global, the fundamental tasks of business management,
such as financing, production, and distribution of products and services, do not change
significantly. Whether a company operates domestically or internationally, the basic
management functions of planning, organizing, leading, and controlling are the same.

3. Explain the role of business in the economy.

The engine of an economy is business. Business provides people with jobs that allow them to
earn money, as well as goods and services that they can purchase with the money they earn. A
large corporation can employ thousands of people. This is critical to a country's economy. Its
role in the economy can be divided into two categories: it tries to promote economic stability
and growth, and it tries to regulate and control the economy.

4. Discuss the various phases of economic growth.

Phases of Economic Development

Rostow’s Stages of Economic Growth: Modernization Theory

Stage 1 Traditional Society. Subsistence activity dominates the economy. Producers consume
output; it is not traded. Trade is a form of barter in which goods are directly exchanged for
other goods. Agriculture is the most important industry in the world. Production is labor-
intensive and uses a limited amount of capital. Technology is limited, and resource allocation is
heavily influenced by traditional manufacturing methods.

Stage 2 Transitional Stage (Preconditions for Takeoff). Increased specialization generates

trading surpluses. A transportation infrastructure to support trade is emerging. As income,
savings, and investment grow, so do entrepreneurs. External trade occurs as well, with a focus
on primary products. Private enterprise is encouraged by a strong central government.
Stage 3 Take Off. As workers transition from the agricultural to the manufacturing sectors,
industrialization accelerates. The country's growth is concentrated in a few regions and within
one or two manufacturing industries. People make financial savings. Economic transitions are
accompanied by the emergence of new political and social institutions that facilitate
industrialization. Growth is self-sustaining because investment leads to higher incomes, which
generates more savings to fund future investments.

Stage 4 Drive to Maturity. The economy is expanding into new sectors. Technological
advancements are opening up a wide range of investment opportunities. The economy is
producing a diverse range of goods and services, and it is relying less on imports.

Stage 5 High Mass Consumption. The economy is geared toward mass consumption, and
economic activity is extremely high. Technology is widely used, but its development is slowing.
The service sector is growing in importance. Now, multinational corporations are emerging. For
many people, income extends beyond the basics of food, shelter, and clothing. Interest in social
welfare has grown.

5. Differentiate the various forms of business organization.

Sole Trader (Sole Proprietorship) - a person who starts his or her own business. He/she invests
capital to start the business, works on his/her own or with employees, and receives the profit
as a reward.

Partnership- is a group of two to twenty people who work together to run a business and make
a profit. The partners contribute both funds and efforts to establish and manage the business,
and profit (or loss) is shared on an agreed-upon basis.

Stock Company (Corporation) - a corporation is an association of individuals who agreed to and

pooled their capital together to establish and own a distinct business venture. They are
regarded as the company's owners. A joint-stock company can be either a private or public
limited company.

6. What is environmental scanning? Discuss the usefulness of SWOT analysis in

environmental scanning. Cite examples.

Environmental scanning is the process of identifying changes or trends that have the potential
to generate opportunities and threats to the organization's current or future intended
strategies. To respond effectively to environmental changes, it is necessary to understand both
the external and internal contexts in order to develop a vision and a strategy that link the two.
The SWOT analysis's purpose is to provide information on an organization's strengths and
weaknesses in relation to opportunities and threats.
PepsiCo- as the world’s second largest food and beverage company, PepsiCo realized that the
increased focus on health and wellness (both societal and political) meant that the company
needed to invest more heavily in this area. CEO Indra Nooyi’s “long-term strategy is to make
PepsiCo’s ‘nutrition business’ a much larger part of the company’s portfolio than it is today. She
wants to increase what she calls its ‘good for you’ products – snacks and drinks made of grains,
fruit, nuts, vegetables, and dairy – from the ten billion dollar business it is now into a thirty
billion dollar business by 2020.” The company has moved to acquire brands in the functional
food and beverage space (Naked) and increased investment in R&D to formulate healthier
ingredients (salt and sugar alternatives) that can be applied to products within its lucrative soft
drink and chips business.

While PepsiCo has adapted to the changing environment, other companies have not fared as
well.

7. Specific examples explain the micro and macro levels of the environment.

Micro environment are: Company, Suppliers, Marketing Intermediaries, Competitors, General

Public and the Customers.

Macro environment: trends in the gross domestic product (GDP), inflation, employment,
spending, and monetary and fiscal policy.

8. Multinational corporations are jointly owned by the parent company. Are they socially
responsible to their owners? Why. Suggest ways of ensuring that these enterprises operate in
a socially responsible manner.

Corporations do have a societal responsibility beyond maximizing profit, which is best met by
implementing the four strategies outlined below: Innovation: Create new and improved
products and services that maximize societal value while minimizing environmental impacts.

9. What do you understand by the word international business and what are the alternative
operational strategies available to a company wishing to go international?

For my part, International business is primarily based in a single country, but it obtains a
significant portion of its resources, revenue, or both from other countries. Direct exporting,
indirect exporting, establishing a joint venture or strategic alliance in a foreign market,
acquiring a firm through direct investment, and licensing technology abroad are some of the
alternative operational strategies available to a company looking to expand internationally.

10. If you are to start your own business as a sole trader where will you source funds?
If I were to start a sole proprietorship, I would draw on the owner's personal resources, either
through an infusion of personal savings, loans from friends and relatives, or bank loans based
on personal creditworthiness.
Worksheet #3

1. In your own words, discuss the nature of planning.

Planning is the process of thinking before doing, and it entails establishing organizational goals,
developing strategies for achieving those goals, and developing plans of action that managers
intend to use to achieve said organizational goals.

2. Compare and contrast the different types of plans.

Strategic plans generally apply to the entire enterprise, establish the enterprise’s overall
objectives and seek to place the organization in terms of its environment.

Operational plans specify the details required to achieve the overall objectives. Operational
plans also deal with specifics as opposed to broader strategic plans.

Short time plans (plans within less than one year),

Intermediate plans (the period between 1-5 years)

Long-term plans (plan exceeding five years).

Specific plans usually are explicit and with clearly defined. It follows clear procedures, budget
allocations, schedules of activities that must be designed to achieve this target. This represents
a specific plan.

Directional plans on the other hand are plans that merely give general guidelines, for example,
providing focus or direction with no specific objectives. This kind of plan is flexible and provides
for misinterpretations.

Standing plans by their nature are to guide events that are repetitive in an enterprise

Single-use plans on the other hand are those that are planned specifically to meet unique
needs.

3. Describe planning at different levels in the firm.

Plans must be developed for all levels of management, though other priorities will differ at
different levels of management, as shown below by the planning activities of top managers and
lower-level managers, which reveal four key differences.

Top Managers

1. Develop organizational objectives and the overall plants to achieve.

2. Spend a large proportion of their time on the planning function

3. The time frame for planning activities is large about one year.

4. Focus on both internal and external factors when planning.

Low-Level Managers

Develop plans that will fit the overall objectives set by top management.

Spend a much smaller preparation their time on the planning function.

The time frame for planning activities is short often week to week.

Focus largely on internal organization factors.

4. Cite a specific situation where you can apply appropriate planning techniques and tools.
Prepare a simple plan for that specific situation.

Seminar/training needs of employees

When employees undergo training, it improves their skills and knowledge of the job and builds
their confidence in their abilities. This will improve their performance and make them work
more efficiently and effectively. The Company’s goal is to lessen the cost of seminars/trainings
of employees by 30%, but not sacrificing the effectiveness trainings/seminars, in the course of a
year.

In the past, the Company is sending its employees to different seminars and trainings, within
the country and abroad. Even though trainings resulted a very good effect to the over-all
performance of employees, the Company is contemplating to have 1) an in-houses
seminars/trainings or 2) Webinar (website seminars) to cut the seminars/trainings’ cost.

The plan is to evaluate if the company will adopt the 1) in-house seminars/trainings or 2)
Webinars. The Company will have a research regarding the up-to-date knowledgeable
speakers/trainers. If they can conduct in-house seminars/trainings and their availability and the
professional fees for the seminar/training. Moreover, other cost should also be considered such
as the transportation, accommodation and other incidental expenses. Consequently, these
additional costs are not necessary if the seminars/trainings are through Webinars.

5. Illustrate and formulate a decision from several alternatives. Give a concrete example
where you can apply such a decision.

Based on the above alternatives, the Company will choose on what to adopt on their
employees seminars/trainings’ needs and the goal is to lessen the Company’s
seminars/trainings cost by 30%, but not sacrificing the effectiveness of trainings/seminars, in
the course of a year. In terms of cutting of costs, seminars/trainings through Webinar is the
least costly. However, in making this decision, the effectiveness to the trainees/employees
should also be considered. Personal seminars and trainings such as the usual conferences and
in-house seminars/trainings, are more effective because of the personal communications of the
trainer and the trainees. However, in-house seminar/training is less costly than the Company’s
status quo training practice.

6. How does planning benefit an organization? What potential problems exist in planning?

Planning allows for flexibility through the goal-setting process, managers identify key resources
within the organization as well as critical external factors that must be monitored. Managers
are more likely to detect changes and know how to deploy resources to respond to them when
they occur. Aimless wandering, failure to achieve objectives, needed teaching materials or
equipment not available, and poor connection with preceding or subsequent lessons are all
potential problems in planning.

7. Explain some of the reasons for planning. Are there “good plans” and “bad plans”?

Good plans because a marketing plan details a company's strategy for marketing its products to
customers. The plan identifies the target market, the brand's or product's value proposition, the
campaigns to be launched, and the metrics to be used to assess the effectiveness of marketing
initiatives.

Describe some of the characteristics of good planning.

It should define objectives

It should be simple

It should be clear

It should be comprehensive

It should be flexible

It should be economical

It should establish standards

It should be balanced

8. Assuming you want to buy a car to ease your transportation problem of going to work and
other places. Show how you will use the model to make a decision and solve the problem.

Being an employee, transportation is part of our everyday life. Thus, acquiring a personal car is
one of the options to ease one’s transportation problem. Having a personal car gives us
advantages such as the convenience as you can do your errands easily and the complete
freedom to whenever and whatever you want to go. However, owning a car has disadvantages,
to wit: other than the initial price you would pay, you have to worry about gas money,
insurance, maintenance, parking fees, car parts and possible upgrades. But because of the
current health crisis, the safest way to ensure our health is by owning a private car as one of the
best way to observe social distancing is by getting a car.

Taking public transportation can put you more at risk of infection. You may meet potential
carriers when you take buses and other forms of public transport. If you own a car, you can
take control of who gets in and out of your car. You can avoid exposure and lower any medical
expenses. One of the other benefits of a car is easy to access during emergencies.

Therefore, if you could compare the benefits of buying a personal car as deliberated above, in
long run, acquiring a personal car is more economical compared to taking public transportation.

9. List the steps in Planning. Describe any five.

1. Willingness to participate in planning. The organization must be prepared to engage in

planning; otherwise, the effort will be futile. This step will assist in clarifying the organization's
beliefs.

2. Developing a vision. This is a purpose and function statement. This entails defining the
preferred future of the organization.

3. Inventory. This necessitates a clear understanding of the organization's current situation, as

well as a thorough examination of both the internal and external context in which the
enterprise operates.

4. Establishing goals and objectives Goals are simply a more specific statement of the visions
that specify what must be accomplished in order for the vision to become a reality. Objectives
are simply more specific statements of the specific activities required to achieve set goals.

5. Create a communication strategy. A successful plan necessitates an extensive communication

campaign from the start to raise awareness and acceptance.

10. Explain the advantages and disadvantages of planning.

Advantages of Planning

1. Planning focuses on goals. This is critical in order to avoid committing the organization's
limited resources to unprofitable actions.

2. It mitigates uncertainty by instilling confidence in the manager, allowing him to make

decisions with some degree of certainty.
3. It reduces waste before a careful analysis of the critical activities that must be performed in
order to achieve the goal or provide a solution to the problem. All unwanted activities are
isolated and discarded.

4. Control is also ensured through measurement and feedback, as a result of planning. This is
critical in order to avoid wasting resources.

Disadvantages of Planning

1. The effectiveness of planning is determined by the quality of the data gathered and the
assumptions made based on it. If the quality is low and the assumptions are incorrect. They
have the potential to have a negative impact on the results' future.

2. Planning is costly because it requires a significant amount of time and money.

3. Planning stalls action because the desired action cannot occur until the plan is completed.