Departmentalization

In a business you must have some sort of structural organization in order to operate. Business structures are to be thought of as a triangle; the tip being top management, corporate CEOs, Presidents, Vice presidents etc and the bottom being more lower level functions such as a sales person, accountant, production worker etc. In a business the departmentalization methods can vary.

 In a functional structure, you group jobs together base on their performance of like activities. For example, you still have your top management near the tip of the triangle but there is a cut off line near the top where functional jobs break out where you'll find marketing, production and staff functions. Functional structure creates an efficient use of resources such as in the jobs and it eliminate redundancies. Specialization is also a benefit because the jobs are grouped together based on their performance of like activities therefore each department is specialized. 

In a divisional structure, you group jobs together on the basis of product, geography, and customers.We still see top management at the tip of the triangle and a divisional breakout near the top. Below the divisional break out we see the categories of product, geography and consumer instead of staff functions. As we move down the triangle we see another break out, this time it is a functional breakout. So this is where we see the functional jobs such as production, marketing, and staff lines. A divisional structure is very responsive and flexible due to its multiple levels of jobs and functions. We also see better functional coordination due to the breakdown of jobs. When we look at the entire triangle we see a lot of division of jobs and functions which helps each department to develop goals. As we move up the triangle we see general managers develop much before they would had they been in a functional structure.

There is no one right way of structuring a business. Certain structures work better for certain companies depending on size, type of business, and foundations of the business. Each structure has it's pros and cons but qualities of each type can make a business of similar nature run completely different if  one is divisional and one is functional.

Works Cited:

Brown, Paul. "Organizing." Management 320. Barry Hall, Fargo. 28 Oct. 2015. Lecture.

Why businesses fail.

Being a student in the business field looking into potential career opportunities I have considered it all. I have considered owning my own business one day and while looking into some statistics I came across a quite alarming one: 8/10 businesses fail within the first 18 months. That's 80%! I was dumbfounded when I read this statistic. I couldn't stand to just leave it at that, I was dying to read into why this was an accurate fact. After researching I found the following results discussing the reasons why:

• Not building a strong relationship with customers. Customers are your business, without a customer base a business does not exist. Many businesses fail to meet customer needs because they fail to maintain a good understanding of their customer.
• No differentiation. What makes your products/services different than what's already out there? Differentiation is a slow but sure killer of a new business.
• Failure to communicate. So lets say you've mastered the differentiation you now need to communicate it to your customers. Customers won't buy things that they have never heard of simply because they don't know it's out there.
• Management failure. If your management fails to complete duties or quits their job you have to step in and fill that position. As a business owner you are the highest manager and overseer of the business. You have to know how to fill each roll if it needs to be filled.
• Unable to make a profit. If you are unable to make a profitable business model your business will surely come crashing down. Minimize your start up costs by limiting your cash outflow. You need to think and move quickly in order to best act on your investment. 

works cited:

Wagner, Eric T. "Why Businesses Fail." Forbes. Forbes Magazine, 12 Sept. 2013. Web. 27 Oct. 2015.

Stocks vs. Bonds for dummies.

Lets say you have hit the point in your finances when you would like to consider investing your money. You have heard of both stocks and bonds but don't really understand the differences between the two and the benefits of both. I am here to tell you in layman's terms what the difference between stocks and bonds is. 

When you purchase stock, you are buying into the company and are part owner of the company. When you purchase bonds you are not purchasing ownership you are just considered a creditor. Stocks have no maturity date while bonds have a predetermined maturity. Stocks however generate variable periodic income and bonds generate fixed periodic income. When you invest in stocks you do not know how many payments you'll receive over the time of ownership. When you invest in bonds you know how many payments you'll receive over the life of the bond. Bonds also have a set end value (par value) that you'll receive at maturity. Stocks do not have a set end value because they do not have a set maturity. Stock's rate of return remains unknown until you sell the stock (hint: buy low sell high). Bond's rate of return is known if it is held to the maturity, this is known as the Yield to Maturity or Yield to Call depending on the type of Bond. 

As you can probably now gather, stocks are a very unpredictable investment therefore posing a higher risk. Bonds are a very predictable investment therefor posing less risk. It seems like Bonds would be an obvious choice when investing money but that is not the case. The higher the risk of investment the higher the potential yield could be. If you are looking for a safe and secure investment, bonds are a great choice. If you are looking for a riskier and potentially higher yield investment, stocks are a good choice. The benefit of bonds vs stocks is that if the company goes bankrupt, you still get your initial investment and promised money where as if you owned stocks, you would be out the money. The benefit of stocks vs bonds is that you have the potential to earn more money over the course of your ownership.

What makes a monopoly?

A monopoly is defined as the exclusive possession or control of the supply or trade in a commodity or service. Monopolies are also illegal in the United States. Although most businesses ideally work toward a monopoly almost never accomplish it and that is a good 
, legally at least. In layman's terms a monopoly is when one business is the only supplier 
(for the most part) of a certain good and has complete control over price. Governments try to eliminate monopolies by enforcing antitrust laws. Antitrust laws are designed to prevent monopolies and monopolistic practice. 

What classifies a monopoly?

• One producer controls supply of a good.
• entry of new producer is highly restricted and/or prevented.
• Price-fixing: company controls price.
• Market share greater than 50%.

Well-known monopolies in history.

• Standard Oil
• Salt Commission
• De Beers
• AT&T
• Cable TV
• Hudson Bay Company

All of these companies at one point have held a monopoly over the market they do business in and have since been split up or no longer exist.

works cited:

Holmes, Alex. "10 Greatest Monopolies." The Ministry of Fear. N.p., 27 Jan. 2009. Web. 22 Oct. 2015.

"Monopoly Definition | Investopedia." Investopedia. N.p., 24 Nov. 2003. Web. 22 Oct. 2015.

Credit Card Chips

We jokingly talk about microchips being programmed into everything nowadays. Well now our credit cards will have microchips programmed in them, we can only imagine what's next. To many consumers confusion, many banks have mailed out new credit and debit cards for consumers to replace their current one. Microchip credit cards are a completely new thing for the United States. 

What does this mean for consumers?

For the most part consumers can go along their merry way buying and using their cards just as before. However, there is a slight learning curve to the new cards. Instead of just swiping a magnetic strip they will simply insert their card to a machine for a couple of seconds and potentially prompted to sign or enter a pin number.

What does this mean for companies?

Retailers reacted quite negatively to this change. For retailers this could mean potentially millions of dollars spent on new machines that are compatible with the new credit cards. For higher end stores that sell more expensive items there is more liability therefore more urgency to get these new devices. 

Why the switch?

The switch to the microchip cards vs. magnetic strip is due to more security. With retailers like target and others having issues with customer security the need for a more secure transaction is needed. The new cards work in a way such that every transaction is given a unique code making it less more difficult for hackers to commit fraud. 

Works cited:

Jones, Charisse. "Ready or Not, It's Credit Card Chip and Dip Time: What You Need to Know." USA Today. Gannett, 01 Oct. 2015. Web. 22 Oct. 2015.

Internships

As a college student eventually seeking a career, the word "internship" has become a very familiar term. Internships are designed to give people hands on experience in a job environment or position. Some majors at schools around the country are now requiring students apply and get an internship before graduation. Internships provide many great benefits. As mentioned before, internships provide hands-on experience. Many employers look for employees that have relevant work experience that internships provide. Internships also provide the opportunity to see and experience many different types of jobs within an organization to give you an idea of what you might want to pursue. As an intern you develop many skills that employers seek. Whether it is the ability to work with others, complete a certain task, you will have developed a multitude of skills. Another benefit of internships are that they push you outside of your comfort zone, often times introducing you to unfamiliar things.

However, internships also have their negative qualities. In the workplace you are often thought of as a student, regardless of your status. You are also tagged with the name 'the intern' in a condescending manner. Your role as an intern can often be confusing because the work you do is very broad making it hard to focus your aim. Lastly, internships don't always have consistent schedules like your typical 9-5 job might.

Personally speaking, I think internships provide great opportunities for learning. Often times internships can lead to jobs within the same company after they are done. Internships can be a crucial part in developing your education and building a good resume.

works cited:
Flecher, Nicola. "Pros & Cons of an Internship..." The Outreach Interns. N.p., 22 Mar. 2013. Web. 22 Oct. 2015.

No-tipping Policy

Could restaurants eliminate customers tipping their servers? There have been some motions from some restauranteurs to eliminate the gratuity act of tipping. Most people go to out for dinner expecting to tip their server around 20% on top of the cost of their meal. This is just the way that Americans dine and have dined for many years. So why change now? Well many restaurants are wanting to support wage equality for all employees including the chefs. Often times Chefs take home less pay than the waiters and waitresses because their pay doesn't include any tips. This seems a little backwards considering Chefs go through culinary school and gain an expert knowledge on cooking through rigorous schooling yet get less take home pay than the servers who have had no professional education in their specific job.
The arguments goes both ways. Many people argue that getting rid of tips in some restaurants could cause much confusion for diners all around.  Many people question how will they know if they should tip or not. In order to eliminate this confusion all restaurants around America will need to go with the no-tipping policy. Diners often times like to show their gratitude toward their servers by giving them a tip and now they won't be able to express that gratitude freely.
Another argument on the other side of the spectrum is anti-tipping. Pilots aren't tipped for landing planes safely, doctors aren't tipped for saving lives, and teachers aren't tipped for giving good lesson plans so why should servers be tipped for just doing their job?
Eliminating tips doesn't necessarily mean that the customers will be saving money. How the restaurants will most likely compensate for the lost revenue will be through price increases on menu items. Not just small price increases either, it will be starting at about 20%. This means a meal that was once $20 will now be at least $24. Getting rid of tipping strips away our American expression of gratitude. It might not be the most sensible systematic way of doing things but its part of American culture.

works cited:
Drew, Kate. "New Wage Inequality Battleground: Stiffing Waiters." CNBC. CNBC, 16 Oct. 2015. Web. 16 Oct. 2015.

What makes a good Tutorial Video

With the current assignment in English 320, I though discussing tutorial videos would be quite fitting. While working on the assignment myself, I began to think of what qualities I enjoy in tutorial videos. Guilty of watching many make up tutorials, piano tutorials, and baking tutorials, I've seen the good, the bad, and the ugly.
The first thing that I find important in making a video tutorial is a good intro. If the intro of the video seems boring then I most likely won't bother to watch the rest of it. However, if the intro grabs my attention with some features, music, etc. I am eager to see what's next. The intro of the video really sets the tone of what is to come.
The next thing I think is important is that the tutorial is made very simple. Don't assume a knowledgable audience. Most likely, your audience will be someone who knows little to nothing about the topic being explained. Even if your audience happens to have a basic knowledge of the content, being thorough never hurts.
Another thing I like in a tutorial is when the maker/speaker is slow and descriptive. There is nothing that makes me more upset than when the tutorial speaker goes way too fast. If the tutorial is music related tutorial it will more than likely require you to play back what you just learned. When the tutorial goes through everything quickly, it makes it more difficult to keep up.
Keeping the tutorial under 10 minutes is another feature that I think is important. If I click on a tutorial video on Youtube and I see that its over 10 minutes I try and look for another one. Granted some topics take a little more elaboration than others, keeping it under 10 minutes will ensure your audience stays tuned.
Overall just remember K.I.S.S. Keep it simple stupid. Make it short but sweet. Make sure your video is easy to understand for less knowledgable audiences. Lastly, make it interesting, no one wants to be overloaded with information.

Dressing for a job interview

The Dos and Don'ts of dressing for a job interview:

As students approaching graduation quickly, we are more than likely about to/already have faced the world of job interviews. If you have already made it thus far, congratulations, this means you have already impressed the employer on paper and now have the opportunity to impress s/he in person. Aside from coming prepared and on-time, dressing professionally can make or break a potential job. Here are some tips for preparing your attire for the big interview.

Do

• a little research on how the people in similar positions of the same company dress.
• over-dress.
• wear neutral colors.
• wear dresses, skirts, and nice dress pants. (girls)
• wear nice pants, perhaps a sport coat or blazer, and polished shoes. (boys)
• wear small amounts of jewelry if desired.

Don't

• wear skirts or dresses above the knee. (girls)
• wear tops that are low cut and show cleavage. (girls)
• wear casual khaki pants.
• casual shoes.
• wrinkled shirts.
• too much makeup. (girls)
• wear bright flashy colors.
• too tight or too small of clothing.

Works cited:

Don't Be This Guy. Digital image. Giorgentinewyork.com. N.p., n.d. Web. 13 Oct. 2015.

Made in The USA

American Apparel,  on of the few clothing manufacturers stationed here in the United States filed for bankruptcy on Monday. Although the bankruptcy will clear most of the companies debt, they also reconsidered if they should continue manufacturing in the U.S. As American's, most of us like to say that we are more likely to buy American made things than overseas but most of the time that is not the case. Price and quantity is usually what appeals to us; if a garment is cheap we like it. 

If American Apparel were to re-station overseas, they would lose their reputation of "Made in the USA". However, American Apparel would cut costs dramatically by doing this. Sadly, the cost to employ people in the United States is at least double of what it costs to employ people over in China, Bangladesh, India, etc. American Apparel can only hope that they would not lost their loyal "USA made clothing customers" by expanding overseas.


Most apparel companies actually are stationed overseas making American Apparel a minority. Economically, it is way more efficient for companies to operate in countries where the cost of materials and labor is cheap. If an American company produces a shirt for $10 including labor, a manufacturer in China can product that same shirt for 4$ and thats including labor as well. If the American company wanted to have competitive prices they might charge $20 for that shirt while doubling their money. China could charge the same price of $20 while quadrupling their money. Because this happens to be the reality of the situation, less companies are able to generate a revenue being stationed in the United States.


Works Cited:
Li, Shan. "American Apparel Hangs on to Its Made-in-America Model — by a Thread." Los Angeles Times. Los Angeles Times, 07 Oct. 2015. Web. 07 Oct. 2015.

Twitter may need change to survive.

Sorry Tweeters, you're not quite enough.

Jack Dorsey, the co-founder of the infamous social media hotspot Twitter has made it apparent that there is still a lot left to do in order for Twitter to ensure Twitter's survival. With 300 million users, Twitter still needs more. In order for Twitter to continue to generate revenue it must add to it's 300 million users. Although it may seem that Facebook is outdated and Twitter is the new "hip" social media place to post, that is not the case. Facebook sees over 1 billion active users everyday. What will this company do in order to see continued success? Twitter is about to make changes.

People's thoughts on making twitter better:

• Kim Kardashian-West tweeted  saying:

"I just emailed Twitter to see if they can add an edit feature so that when u misspell something u don't have to delete & repost Let's see..."

Jack Dorsey Actually replied thanking her for the feedback saying it was much appreciated.

• Extending the amount of characters available to type per tweet.
• User @canadagood tweeted to @jack saying :

"Dear @Jack Dorsey,

The one thing I want from $TWTR is an easy jump to any time/date in my Twitter feed without scrolling. Thanks."

• User @askaaronlee tweeted :

"Dear @jack, can you change your 'favorite' button to a 'like' button? thanks."

Could all of these suggestions please the current Twitter users while still generating new ones? That is the million dollar question being asked right now. Dorsey is currently in the process of rethinking certain Twitter features such as the one's mentioned above in hopes to strengthen his company''s growth.

works cited:

Fiegerman, Seth. "So, Jack Dorsey, What Comes next for Twitter? The Public Has Some Ideas." Mashable. N.p., n.d. Web. 05 Oct. 2015.

Tis the Season.

Shopping season is among us.

While fall and winter approach us we are reminded of the holidays that come with these changing seasons such as Thanksgiving and Christmas. For those of us that work in a retail store the holidays are not the first thing that come to mind. The chaos of holiday shoppers are what come to mind. Since when is Thanksgiving no longer about giving thanks but rather about the Friday that follows with mass amounts of shopping? In recent years we have seen the amount of Black Friday shoppers increase with store discounts everywhere around us. However, this year that will not be the case. Retailers are prepared for a rather difficult holiday season this year. Difficult because consumers are now trained to expect store discounts all the time, competitors are using competitive prices, and a economy that still isn't at it's greatest.

Less discounts.

This year, many retailers have vowed to cut back store promotions and discounts. In an article in the Fargo Forum written by Reuters Media they talked to a few major retailers and received some feedback. Nordstrom said that they had planned to cut back store discounts by 20% and will continue to decrease them for years to come saying they are going to focus on service and differentiated products instead. Abercrombie & Fitch and Aeropostale both said that they are going to have far less discounts as well. Their huge clearanced items happened to be logo centered apparel which needed to be rid of due to reduced customer demand. People are more opt to buy full priced items when they are not logo centered.

Price over everything.

Unfortunately consumers are still responding to price more than retailers want them to. In a study conducted it showed that 87% of Americans are still letting price determine what they will be purchasing this holiday season. American's have been so accustomed to discounted prices in recent years that they are trained to shop based on price rather than quality or service.

Works cited:
Reusters Media. "Retailers Gear up for What Could Be Difficult Holiday Shopping..." INFORUM. N.p., 05 Oct. 2015. Web. 05 Oct. 2015.
"File:Owl Shopping by Mimooh.svg." - Wikimedia Commons. N.p., n.d. Web. 05 Oct. 2015.

Business to Business Marketing.

Business to Business (B2B) Marketing involves the activities of the sale of goods and services from one business to another. Most people don't consider how a company obtains their supplies and equipment to operate a business but believe it or not, the B2B market is much larger than the Business to Consumer market.

Who are the Customers?

In B2B marketing the customers consists of:

• Government Agencies.
• Companies that resell products.
• Institutions.
• Companies that use their products.

Government agencies are the largest purchaser of B2B marketing goods.

What makes B2B different?

• More complex decision making
• The purchases from one business to another tend to be much larger than a business to consumer. This is because the B2B market is usually involving the sale of expensive equipment, mass quantities of supplies, or other high priced items that help a company run.
• B2B purchases are more rational
• This plays off of the idea listed above. Being that the price of the items purchased are typically more expensive buyers need to be much more rational with their purchase and not buy goods and services because of emotions. Buyers need to ask themselves "Will this good/service make the company a profit?", "Will this good/service help the business grow?".
• B2B products are more complex
• When we as consumers make purchases we generally don't need a prior expert knowledge about the product. When it comes to B2B products the complexity level is higher than B2C. As an example, when a buyer in the B2B market wants to buy a new computer programming system for designing the companies products, the buyer needs to know much more detail about the system than your typical B2C customer buying a new personal computer.
• Relationships are VERY important
• In B2B markets, relationships between the buyer and seller are vital. Having a good relationship is a key step in the process because the sellers want to make sure they have built a good foundation with their clients to ensure continued business. It is very common to see the buyers and sellers on a first name basis. The sellers usually follow up with their clients on a regular basis and make sure their clients are pleased with their purchased goods/services.

Works Cited:

"B2B Marketing | What Is Business to Business Marketing?" B2B Marketing | What Is Business to Business Marketing? N.p., n.d. Web. 02 Oct. 2015.

French Author causes economists to think.

Thomas Piketty, a french author, wrote a book in 2014 titled Capital in the twenty-first century. The book focuses on the growth of the returns to capital in the economy are exceeding the rate of growth of the economy. For those of you who are not in an economics class, Piketty is basically saying that the rich are getting richer and everybody else is struggling. I'm not going to get into politics while writing this but I am however going to look at Piketty's conclusions in his research.

Piketty's General Conclusions:

1. Wealth is growing faster than the economy. 
2. Piketty wants to adopt a global tax on wealth. He suggests 80%.
3. Faster economic growth = diminishing importance of wealth ; slower economic growth = increase importance of wealth.
4. High levels of wealth inequality are a problem.

Why should we care?

Most of us are not in the top 1% of upper class. Therefore the economy that we operate in today, the businesses that we own, the jobs that we hold, the money that we invest, and the income we earn are not growing anywhere near the rate that the wealth obtained by the elite upper class is growing. Regardless of our personal thoughts on this fact, we have to be aware of the effects on society that this large gap has. How/if we think that gap should be eliminated is a matter of opinion. 

Works cited:

Gates, Bill. "Why Inequality Matters." Why Inequality Matters. N.p., 13 Oct. 2014. Web. 30 Sept. 2015.