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BizWorld Week 2
1. BizWorld
Ben Franklin Intermediate School
Week 2 – Tuesday, March 2nd
Spring 2010
Production and Presentation by Mr. Tong and Mr. Limon
Ben Franklin Intermediate School
1
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
2. Review
What is a Business?
Review
• A business is a sole proprietor, partnership, or corporation that creates and
sells a product or service.
New Topics • Examples of a business
Product Services
Performance
Lemonade Stand Haircut Parlor
Candy Store Auto Repair Shop
Apple Ebay
Genentech Morgan Stanley
• A business can sell a product, defined as something produced by humans
or machines or produced by a natural process Products are tangible
process. tangible.
• A business can also sell a service, defined as work done for others as an
occupation or a business. Services are not tangible.
Ben Franklin Intermediate School
2
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
3. Review
The Profit Equation
Review
• PROFIT = Revenue - Expenses
• Revenue i th money a company receives f
R is the i from selling a product or
lli d t
New Topics service.
− For example, Delrich’s Shoe Factory sells the “Nike Zoom Kobe V” for
Performance $100. Vincent pays Delrich $100 in credit for the shoe so he can wear
it to school tomorrow, and Delrich recognizes the $100 as revenue.
• Expense is the cost associated with operating a business.
− For example, Kenesha’s Forever 16 sells dresses. She hires Juan,
Sabrina and Patricia to make the dresses and pays each one $10 per
S
hour. She also has to pay Marvin for the fabric in order to make the
dress and Mr. Limon for the space where she sells the dresses.
− Salary is the money paid to someone for the work they do.
− Rent is the money paid to use or occupy a space.
Ben Franklin Intermediate School
3
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
4. Review
The Profit Equation (Cont’d)
Review
• To profit, a business must sell a product or service for more than it costs to
produce. If NOT, the result can be a loss. A loss occurs when expenses
New Topics exceed revenue.
• Delrich Shoe Factory (February 2010)
Performance − Revenue
− Price: $100 for each “Kobe Zoom V”
− Quantity: 10 “Kobe Zoom V” shoes
− Revenue = Price x Qua t ty = $100 x 10 = $ ,000
e e ue ce Quantity $ 00 0 $1,000
− Expenses
− Salary: Joseph demands $10 per hour for 20 hours = $200
− Rent: Mr. Limon s classroom = $1 per day (28 days in Feb) = $28
Mr Limon’s
− Raw Materials: Rubber costs $2 per shoe, produced 20 shoes = $40
− Expenses = Salary + Rent + Raw Materials = $200 + $28 + 40 = $268
• Profit = Revenue – Expenses = $1,000 - $268 = $732
$1 000
Ben Franklin Intermediate School
4
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
5. Review
Company of the Week
Review
• Tesla Motors, Inc.
T l M t I
New Topics
• Private Company (Founded in 2003)
Performance • Headquarters – Palo Alto, CA
• CEO – Elon Musk (Age 38)
• Design, manufacture and sells high-
performance fully electric vehicles and
ad a ced e ect c e c e powertrain
advanced electric vehicle po e t a
components.
• First and only company to commercially
produce a federally-compliant highway-
capable electric vehicle, the Tesla
vehicle
Roadster.
• The Tesla Roadster can accelerate from
zero to 60 MPH in 3.9 seconds, but
produces zero tailpipe emissions.
Ben Franklin Intermediate School
5
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
6. Review
Company of the Week (Cont’d)
Review
• Company Fi
C Financials
i l
New Topics
($ in 000s)
Performance 2008 2009 (9 mos)
Revenue $14,742 $93,358
Cost of Sales 15,883 85,604
Gross Profit (1,141) 7,754
Gross Margin N.M. 8.3%
R&D 53,714 11,139
SG&A 23,649 25,587
Total Operating Expenses 77,363
77 363 36,726
36 726
Net Income (82,782) (31,498)
Net Income as % of Revenue N.M. N.M.
Ben Franklin Intermediate School
6
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
7. New Topics
The Entrepreneurial Cycle
Review
New Topics
Performance
Ben Franklin Intermediate School
7
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
8. New Topics
The Entrepreneurial Cycle (Cont’d)
Review
• There are four major components of running a company
1) Design
D i
New Topics
2) Manufacturing
Performance 3) Marketing
4) Sales
• In each of the four parts, companies must record their revenue and
expenses to make they are on track to make a profit
Ben Franklin Intermediate School
8
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
9. Performance
Characteristics of a Good Company (10 minutes)
Review
• Pair up with the person sitting next to you
• Discuss how companies give back to their communities
Di h i i b k t th i iti
New Topics
• Companies do not just make money, they also do the following…
Performance • Write a list of 10 items
1) Provide jobs
Ben Franklin Intermediate School
9
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
10. Performance
Characteristics of a Good Company
Review
• Good companies make quality products or provide quality services
• Good
G d companies provide a h lth work environment
i id healthy k i t
New Topics
• Good companies treat their employees well
Performance • Good companies benefit their community
• Good companies demonstrate good business ethics
• Ethics are the rules or standards governing the conduct of a person or
the members of a profession
• For
F example Delrich makes sure J
l D li h k Joseph gets paid a f i wage or
h t id fair
Kenesha makes sure she protects the privacy of her customers.
Ben Franklin Intermediate School
10
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
11. New Topics
Jobs in the Corporation
Review
• Chief Executive Officer (CEO) – is responsible for leading the team and
managing the smooth operation of the company and it’s employees.
it s
New Topics
Motto: “Be reasonable”
Performance
Chief Executive Officer
Chief Financial Officer
Chief Operating Offi
Chi f O ti Officer
SVP of Sales
SVP of Marketing
SVP of Manufacturing
Andrea Jung, CEO, Avon
Ben Franklin Intermediate School
11
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
12. New Topics
Jobs in the Corporation
Review
• Chief Financial Officer (CFO) – is focused on leading the team in making
sure all money is accounted for and the company is making a profit
New Topics
Motto: “Low cost, high price”
Performance
Chief Executive Officer
Chief Financial Officer
Chief Operating Offi
Chi f O ti Officer
SVP of Sales
SVP of Marketing
SVP of Manufacturing
Thomas Tippl, CFO, Activision Blizzard
Ben Franklin Intermediate School
12
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
13. New Topics
Jobs in the Corporation
Review
• Chief Operating Officer (COO) – is responsible for managing the
company s day-to-day
company's day to day operations; for your friendship bracelet company, the
New Topics COO is focused on leading the team in creating a quality product and an
attractive design that will appeal to customers
Performance
Motto: “if you build it, they will come”
Chief Executive Officer
Chief Financial Officer
Chief Operating Offi
Chi f O ti Officer
SVP of Sales
SVP of Marketing
SVP of Manufacturing
Ralph Alvarez, COO, McDonald’s
Ben Franklin Intermediate School
13
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
14. New Topics
Jobs in the Corporation
Review
• Senior Vice President of Sales – is focused on leading the team in making
customers happy and selling a lot of products.
New Topics
Motto: “Sell, sell, sell”
Performance
Chief Executive Officer
Chief Financial Officer
Chief Operating Offi
Chi f O ti Officer
SVP of Sales
SVP of Marketing
SVP of Manufacturing
Shari Friedman, SVP of Sales, MySpace
Ben Franklin Intermediate School
14
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
15. New Topics
Jobs in the Corporation
Review
• Senior Vice President of Marketing – is focused on leading the team in
promoting the company, product or service
New Topics
Motto: “Make it look good”
Performance
Chief Executive Officer
Chief Financial Officer
Chief Operating Offi
Chi f O ti Officer
SVP of Sales
SVP of Marketing
SVP of Manufacturing
Philip Schiller, SVP of Marketing, Apple
Ben Franklin Intermediate School
15
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
16. New Topics
Jobs in the Corporation
Review
• Senior Vice President of Manufacturing – is focused on leading the team
in making the product as easily and inexpensively as possible.
New Topics
Motto: “Just make’em and ship’em out”
Performance
Chief Executive Officer
Chief Financial Officer
Chief Operating Offi
Chi f O ti Officer
SVP of Sales
SVP of Marketing
SVP of Manufacturing
Rogelio Velasco, SVP of Manufacturing, Cisco Systems
Ben Franklin Intermediate School
16
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
17. Performance
Job Application (10 minutes)
Review
• Turn to Page S7 of your packet - BizWorld Memo 3
• Complete th A li ti f E l
C l t the Application for Employment
t
New Topics
Performance
Ben Franklin Intermediate School
17
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
18. Performance
Assigning Jobs
Review
• Discuss the Application for Employment with your team
• Decide h
D id who will t k on each j b i th company
ill take h job in the
New Topics
• Turn to Page C1-C2 of the Company Packet – Job Cards
Performance • Neatly print your name on the top line and cut out the name tag
Ben Franklin Intermediate School
18
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
19. Performance
Business Contract
Review
• Turn to page C3 of the Company Packet – Business Contract
• This
Thi contract highlights a code of conduct and recognition of student
t t hi hli ht d f d t d iti f t d t
New Topics responsibilities as employees
• Please read, sign and date the contract
Performance
Ben Franklin Intermediate School
19
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
20. Performance
Company Name (10-15 minutes)
Review
• Brainstorm with your team about the name of your company
• What's i
Wh t' in a company name? A lot, when it comes t small-business success.
? l t h to ll b i
New Topics The right name can make your company the talk of the town; the wrong one
can doom it to obscurity and failure.
Performance • What does your Company name mean?
• Best Company Names of All Time – INC.com
1) Amazon 6) Yelp
2)
) Jet Blue
ue 7) Twine
) e
3) Twitter 8) Oracle
4) Etsy 9) Etsy
5) Starbucks 10) Stub Hub
Ben Franklin Intermediate School
20
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics
21. New Topics
Next Week
Review
• Incorporate
• Writing B i
W iti a Business Plan
Pl
New Topics
• Raising Capital
Performance • Guest Speaker – Mimi Kwan, Channel 7 – KGO TV
Ben Franklin Intermediate School
21
• Critical Thinking • Communication • Teamwork • Leadership • Innovation • Professionalism • Ethics