Business Principles: Ethics, Finance, Marketing, HR, and Operations

Ethical Business Conduct

T6- "Do to others as you would like them do to you". Business ethics involve describing inappropriate behaviors (taking gifts, bribing government officials, misrepresenting data, discriminatory practices, boycotting third parties). Maximization: Produce quality products at low costs. Codes: Control ethical behaviors (have employees adopt standards, write contracts that align interests, write codes of ethics, and provide training).

Financial Management

T7- Goal: Maximize shareholder wealth. Financial management in a typical corporation: Board of directors – Chief Executive Officer (CEO). The CEO oversees the (A) Chief Operating Officer (COO) and (B) Chief Financial Officer (CFO). The CFO is responsible for the (Bi) Controller and (Bii) Treasurer. Assets = Liabilities + Stockholder’s Equity

Marketing Principles

T8- Understand the marketplace and customer needs (market offerings, customer value and satisfaction, markets, exchanges, and relationships). Design a customer-driven marketing management strategy (target market, value creation, relationships). Implement customer relationship management (engagement, generation, loyalty and retention, adapting to the changing landscape/environment). Strategic planning involves adapting to the changing environment and taking advantage of opportunities. Marketing strategy aims to create value and achieve strong customer relationships. Marketing department organization can be structured by function, geography, product, market, or a combination.

Strategic Human Resources

T9- Strategic HR (b) focuses on creating links and relationships, identifying goals between current and future vision, and communicating company goals. Strategic HR choices include compensation, internal management, training, and career development. Marketing strategy organizational structures include functional, geographical, product management, market/customer, or combination. Compensation systems should be tailored to the unique characteristics of the firm, ensure equity, and incorporate nine key features. Consider the differences between Job-based pay (stable, low turnover) and Individual-based pay (dynamic, teamwork, learning opportunities). Also, consider Egalitarian versus Elitist pay structures (egalitarian results in a more stable workforce).

Operations Management

T10- Operations management transforms inputs into outputs. Supply chain management aims to maximize customer value and achieve a sustainable competitive advantage (upstream, downstream, first-tier supplier, second-tier supplier). Key performance dimensions include: Quality (performance, conformance, reliability), Time (delivery speed and reliability), Flexibility (mix, changeover, volume), and Cost (labor, material, engineering, quality-related).