You'll need to start getting familiar with important terms used in chapter 5. You can start learning them by using Quizlet. I have created a set to assist you here:
http://quizlet.com/_zxbiy
Sunday, November 30, 2014
Friday, November 28, 2014
Entrepreneurial DNA
Today's lesson deals with entrepreneurship. Essentially, what does it take to start your own business? Does it take a certain type of person or can anyone be an entrepreneur in their own style?
So what's it like to actually be an entrepreneur? Are there characteristics common to all of them? Red the section Characteristics of Entrepreneurs on page 112 in your text book. Watch this video and make a list of common characteristics.
Next, check out this video from Joe Abraham. Joe has a different take on what it takes to be an entrepreneur. Be prepared to discuss the BOSI method of categorizing "entrepreneurial DNA." Write down the definition of each of the BOSI categories.
So do all entrepreneurs share common characteristics or are they different as Joe Abraham proposes with his BOSI classification?
Assignment 1: Team up with a classmate. Write a short business plan on the following business opportunity.
You just learned that a local garage has a place available that would be perfect to start a weekend car washing business. Write down your answers to the following questions to create a basic business plan. Be ready to present your plan to the class. Your time is limited so work quickly.
1. Nature of the Business
How many employees should the business have?
What expertise will you need that you don't already have?
2. Goals and Objectives
What are your short and long term sales goals?
What is your anticipated revenue?
How many cars will you wash per month?
3. Marketing Plan
Who is your ideal customer?
What will you charge for various services?
How will you promote your business?
Who are your competitors and how will they respond to your entry into the market?
4. Financial Plan
How much money will you need to start the business?
What are your projected income, expenses and profit?
5. Organizational Plan
Who will work in your business and how will the jobs be organized?
What is your organizational plan?
What physical building or vehicles will you need?
Present your answers to the class.
Think... In the process of developing a business plan, did you discover differences between you and your partner or were you in total agreement?
How were you and your partner alike?
How were you different?
Assignment 2:
This time, write out your own business plan using the scenario above. You may use ideas generated with your partner but this will be your business plan. You may type it out or write it down by hand.
When you are finished. Compare notes with your partner. Answer the following questions at the end of your business plan:
Write your answers on your business plan and turn it in at the end of class.
Rubric:
Completeness 0-7 points
Grammar, usage and punctuation 0-3 points
So what's it like to actually be an entrepreneur? Are there characteristics common to all of them? Red the section Characteristics of Entrepreneurs on page 112 in your text book. Watch this video and make a list of common characteristics.
Next, check out this video from Joe Abraham. Joe has a different take on what it takes to be an entrepreneur. Be prepared to discuss the BOSI method of categorizing "entrepreneurial DNA." Write down the definition of each of the BOSI categories.
So do all entrepreneurs share common characteristics or are they different as Joe Abraham proposes with his BOSI classification?
Assignment 1: Team up with a classmate. Write a short business plan on the following business opportunity.
You just learned that a local garage has a place available that would be perfect to start a weekend car washing business. Write down your answers to the following questions to create a basic business plan. Be ready to present your plan to the class. Your time is limited so work quickly.
1. Nature of the Business
How many employees should the business have?
What expertise will you need that you don't already have?
2. Goals and Objectives
What are your short and long term sales goals?
What is your anticipated revenue?
How many cars will you wash per month?
3. Marketing Plan
Who is your ideal customer?
What will you charge for various services?
How will you promote your business?
Who are your competitors and how will they respond to your entry into the market?
4. Financial Plan
How much money will you need to start the business?
What are your projected income, expenses and profit?
5. Organizational Plan
Who will work in your business and how will the jobs be organized?
What is your organizational plan?
What physical building or vehicles will you need?
Present your answers to the class.
Think... In the process of developing a business plan, did you discover differences between you and your partner or were you in total agreement?
How were you and your partner alike?
How were you different?
Assignment 2:
This time, write out your own business plan using the scenario above. You may use ideas generated with your partner but this will be your business plan. You may type it out or write it down by hand.
When you are finished. Compare notes with your partner. Answer the following questions at the end of your business plan:
- How are your business plans alike and how are they different?
- If you were to put yourself in one of the BOSI categories, which would it be?
- If you were to put your partner in one of the categories, which would it be?
- Do you think you would be better off having a business partner in this venture or work independently? Explain your answer.
Write your answers on your business plan and turn it in at the end of class.
- Your assignment can be typed or hand written. If you type it, use Times New Roman, 12 point, double-spaced text.
- Make sure you use complete sentences.
Rubric:
Completeness 0-7 points
Grammar, usage and punctuation 0-3 points
Saturday, November 22, 2014
Portfolio Review
It's Thanksgiving week. So now is a good time to look back on the choices we made earlier this year and give thanks for our good (or soon to be good) fortune. Earlier this year we selected 5 stocks for our portfolio. I've created spreadsheets for each class showing the stock selections for each student. For these who did not turn in portfolios, I have listed some stocks for you. Here are the spreadsheets for you to reference.
Management Class A1
Management Class A2
Assignment:
Your assignment for this class is to review the performance of each stock in your portfolio. Follow these steps carefully.
1. Create a new folder on your Google Drive called Portfolio Review. Share it with me.
2. Create a new Google Sheets file in your Portfolio Review folder. Name the file Portfolio.
3. On your Google Sheets file, list each stock ticker in your portfolio in column A. If you can't find it in your CNNMoney portfolio, you can find it listed in one of the two files above.
4. Look up the starting price of each stock using the Yahoo Finance page. Look up the price on September 2 and at the close of business day last Friday. To do this, simply click on the 3m below the stock chart and slide your cursor on the chart to September 2 and record the opening price for that date.
5. Record the starting prices in Column B and last Friday's closing prices in Column C of the Google Sheets file you've created.
6. Using a calculator or formula, calculate the increase or decrease percentage of each stock price. To do this, divide the ending stock price by the beginning. Here's an example using ConocoPhillips (COP).
73.54/81.06 = 90.7%
In this case, the stock decreased by 9.3%. Make the calculation for each stock in your portfolio. and put the number in the last column, D.
7. Next, you'll need to analyze your portfolio. Create a Google Docs file in the same folder. Name the file Analysis. Format the file with Times New Roman, 12 point, double spaced text. Analyze your portfolio by answering the following questions:
a. Which of your stock picks was the best performer, based on the spreadsheet?
b. Which was the worst performer?
c. Research your options. If you could sell any one stock and buy any one stock, which would it be? Why do you think your new pick would outperform the old? Keep in mind that past performance is no guarantee of future performance. Also, what stock might have been a poor performer may turn ut to be an outstanding performer in the future.
When you are finished, you'll have a shared folder named Portfolio Review. Inside that portfolio, you'll have the following files:
1. Google Sheets file named Portfolio with beginning, ending, and calculated increase or decrease in price.
2. Google Docs file named Analysis with your portfolio analysis. Format your paper in 12 point Times New Roman, double-spaced text.
This assignment is worth 20 points. All of your work is due at the end of the class so you'll need to stay focused in order to get this work completed.
Rubric:
Portfolio spreadsheet - 10 points
Stocks listed - 3 points
Beginning stock prices - 2 points
Ending stock prices - 2 points
Growth percentage calculations 3 points
Stock Analysis Document - 10 points
Question 1 answered - 2 points
Question 2 answered - 2 points
Question 3 answered 2 points
Grammar, usage and punctuation - 4 points
Make sure you use complete, well structured sentences.
Total points available - 20 points
Management Class A1
Management Class A2
Assignment:
Your assignment for this class is to review the performance of each stock in your portfolio. Follow these steps carefully.
1. Create a new folder on your Google Drive called Portfolio Review. Share it with me.
2. Create a new Google Sheets file in your Portfolio Review folder. Name the file Portfolio.
3. On your Google Sheets file, list each stock ticker in your portfolio in column A. If you can't find it in your CNNMoney portfolio, you can find it listed in one of the two files above.
4. Look up the starting price of each stock using the Yahoo Finance page. Look up the price on September 2 and at the close of business day last Friday. To do this, simply click on the 3m below the stock chart and slide your cursor on the chart to September 2 and record the opening price for that date.
5. Record the starting prices in Column B and last Friday's closing prices in Column C of the Google Sheets file you've created.
6. Using a calculator or formula, calculate the increase or decrease percentage of each stock price. To do this, divide the ending stock price by the beginning. Here's an example using ConocoPhillips (COP).
73.54/81.06 = 90.7%
In this case, the stock decreased by 9.3%. Make the calculation for each stock in your portfolio. and put the number in the last column, D.
7. Next, you'll need to analyze your portfolio. Create a Google Docs file in the same folder. Name the file Analysis. Format the file with Times New Roman, 12 point, double spaced text. Analyze your portfolio by answering the following questions:
a. Which of your stock picks was the best performer, based on the spreadsheet?
b. Which was the worst performer?
c. Research your options. If you could sell any one stock and buy any one stock, which would it be? Why do you think your new pick would outperform the old? Keep in mind that past performance is no guarantee of future performance. Also, what stock might have been a poor performer may turn ut to be an outstanding performer in the future.
When you are finished, you'll have a shared folder named Portfolio Review. Inside that portfolio, you'll have the following files:
1. Google Sheets file named Portfolio with beginning, ending, and calculated increase or decrease in price.
2. Google Docs file named Analysis with your portfolio analysis. Format your paper in 12 point Times New Roman, double-spaced text.
This assignment is worth 20 points. All of your work is due at the end of the class so you'll need to stay focused in order to get this work completed.
Rubric:
Portfolio spreadsheet - 10 points
Stocks listed - 3 points
Beginning stock prices - 2 points
Ending stock prices - 2 points
Growth percentage calculations 3 points
Stock Analysis Document - 10 points
Question 1 answered - 2 points
Question 2 answered - 2 points
Question 3 answered 2 points
Grammar, usage and punctuation - 4 points
Make sure you use complete, well structured sentences.
Total points available - 20 points
Sunday, November 16, 2014
Europe and the debt crisis
You thought you understood Europe as a trading bloc? You were wrong. Here's a quick overview. Make a note of the definitions of the EU, Eurozone, Shengen and EEA.
Now that you understand a little about Europe as a trading block, you're ready to understand the European debt crisis. Here's a quick explanation.
Discussion questions:
1. What is the difference between monetary and fiscal policy?
2. What caused the European debt crisis?
3. Why must Europe either seek to unify politically or get rid of the euro and go back to separate currencies?
Now that you understand a little about Europe as a trading block, you're ready to understand the European debt crisis. Here's a quick explanation.
1. What is the difference between monetary and fiscal policy?
2. What caused the European debt crisis?
3. Why must Europe either seek to unify politically or get rid of the euro and go back to separate currencies?
World Trade Regulation
International trade is regulated by several organizations. Let's look at a few key organizations.
World Trade Organization - The WTO is an organization created to regulate trade and set trading rules between countries. Organized in 1996, the WTO is a forum where countries can negotiate and enforce trading rules and tariffs. You can learn more at their web site.
The World Bank - The World Bank is an institution established in 1944 under the auspices of the United Nations. It's purpose is to reduce poverty in poor nations. You can learn more about it's organization here.
Assignment: Create a study sheet with definitions of these three organizations. Make sure you know how each organization differs from the others.
World Trade Organization - The WTO is an organization created to regulate trade and set trading rules between countries. Organized in 1996, the WTO is a forum where countries can negotiate and enforce trading rules and tariffs. You can learn more at their web site.
International Monetary Fund - The IMF was established to help countries import food and other necessary goods by providing low interest loans. Read more about the IMF here.
The World Bank - The World Bank is an institution established in 1944 under the auspices of the United Nations. It's purpose is to reduce poverty in poor nations. You can learn more about it's organization here.
Assignment: Create a study sheet with definitions of these three organizations. Make sure you know how each organization differs from the others.
Comparative Advantage and Product Life Cycle
There are 2 basic reasons we have trade. Comparative Advantage and Product Life Cycle Theory. You can read about both of these theories in your book on page 95. Here, I'll give you a brief overview plus a couple of videos to help you understand the concepts.
Comparative Advantage
Comparative Advantage is a basic concept of international trade. It means simply that countries should produce the good for which they are best suited to produce. Here is a good explanation from Investopedia.
Product Life Cycle Theory
The product life cycle theory suggests that exports happen when a product hads reached the maturity stage of development within a home market. Once the market has been saturated, the product wil then begin growth overseas. Here's a short video explaining the different stages of a product life cycle.
So which of these theories do you think works best. Could you think of a sample of each?
Comparative Advantage
Comparative Advantage is a basic concept of international trade. It means simply that countries should produce the good for which they are best suited to produce. Here is a good explanation from Investopedia.
Product Life Cycle Theory
The product life cycle theory suggests that exports happen when a product hads reached the maturity stage of development within a home market. Once the market has been saturated, the product wil then begin growth overseas. Here's a short video explaining the different stages of a product life cycle.
So which of these theories do you think works best. Could you think of a sample of each?
Sunday, November 9, 2014
The truth about inversions.
Recently, CNBCs Rick Santelli interviewed the CEO of Abbot Labs about corporate inversions. His explanation of the issues is fascinating.
http://bizappshhs.blogspot.com/2014/11/making-impact-with-graphics.html
http://bizappshhs.blogspot.com/2014/11/making-impact-with-graphics.html
Federal Government vs International Business
This past September, Burger King purchased a Canadian restaurant chain, Tim Horton's, and proceeded to move their corporate headquarters to Canada. Why move? The simple answer is to escape high US taxes on corporate profits. Such merger deals, called inversions, have been a hotly debated issue in Washington. Here's a quick video explaining the issue.
Some lawmakers say that taxes should be lowered on corporate profits to encourage companies to re-invest and stay in the United States. Others believe that the United States should increase restrictions on the ability of companies to move profits off shore.
You can read more about what inversions are at this Investopedia site.
This article from Bloomberg Business News outlines the Burger King deal and gives a pretty interesting overview of the struggle in Washington to deal with inversions.
Another issue closely related to inversions is the issue of "earnings stripping." This involves declaring dividends in a foreigns nation in order to reduce the taxable income of US corporations.
Think: Most countries tax businesses based on the earnings made within their own boarders whereas the United States taxes corporations based on the earnings from their entire worldwide operations. Should the United States change it's tax policy to emulate that of the rest of the international community?
The US has the highest tax rate of any industrialized nation (35%). Companies currently are holding over two trillion dollars in overseas accounts because they don't want to bring the money back and pay taxes on it. Should the US lower its tax rate to encourage investment here at home?
Are US companies being unpatriotic for wanting to avoid paying taxes or are they just acting in their own (and their shareholders) best interests?
Assignment: Write a one page Google Docs paper titled Tax Inversion. Format your paper in 12 point Times New Roman, double-spaced text. Answer the questions above. Share your paper by the end of class. Your paper will be graded based on the following:
Total available points 10
Some lawmakers say that taxes should be lowered on corporate profits to encourage companies to re-invest and stay in the United States. Others believe that the United States should increase restrictions on the ability of companies to move profits off shore.
You can read more about what inversions are at this Investopedia site.
This article from Bloomberg Business News outlines the Burger King deal and gives a pretty interesting overview of the struggle in Washington to deal with inversions.
Another issue closely related to inversions is the issue of "earnings stripping." This involves declaring dividends in a foreigns nation in order to reduce the taxable income of US corporations.
Think: Most countries tax businesses based on the earnings made within their own boarders whereas the United States taxes corporations based on the earnings from their entire worldwide operations. Should the United States change it's tax policy to emulate that of the rest of the international community?
The US has the highest tax rate of any industrialized nation (35%). Companies currently are holding over two trillion dollars in overseas accounts because they don't want to bring the money back and pay taxes on it. Should the US lower its tax rate to encourage investment here at home?
Are US companies being unpatriotic for wanting to avoid paying taxes or are they just acting in their own (and their shareholders) best interests?
Assignment: Write a one page Google Docs paper titled Tax Inversion. Format your paper in 12 point Times New Roman, double-spaced text. Answer the questions above. Share your paper by the end of class. Your paper will be graded based on the following:
- Grammar usage and punctuation 0-3 points
- Formatting 0-3 points
- Quality and completeness of your answer 0-4 points
Total available points 10
Thursday, November 6, 2014
Cub Cadet
In May of 2009, MTD Products closed the Cub Cadet manufacturing facility in Brownsville. The closing of the plant resulted in the loss of 200 full-time jobs and 280 part-time jobs. It was a huge blow to the local economy.
The big question left behind was, why did this happen? First, it might be useful to understand a bit of the history of the Cub Cadet company. You can read a bit about the history of Cub Cadet here. Cub Cadet was eventually bought by Yanmar, a Japanese company. You can read a bit about the company here. Yanmar also has a Wikipedia page which provides some useful background information.
What happened to Cub Cadet and Brownsville is just a small part of a bigger picture. To understand whats happening with the local economy, you need to understand globalization.
Discuss the following questions in class:
1. What changes in American society encouraged International Harvester to get into the lawn tractor business?
2. What was the primary selling point for the Cub Cadet brand?
3. Why do you think Yanmar would be interested in getting into the lawn tractor business in the US? What additional information would you like to know?
Assignment: Write a paper in Google Docs titled "Cub Cadet." Answer the questions above in a paper formatted to 12 point double-spaced, Time New Roman. Put your name and page number in the header of the paper. Your paper will be graded using the following rubric:
Formatting: 1-3 points
Spelling and Grammar: 1-3 points
Completeness of answers: 1 point per question. (4 points total)
Maximum points: 10
Monday, November 3, 2014
NAFTA
Twenty years ago, President Clinton signed the North American Free Trade Agreement (NAFTA) into law. The law reduced tariffs on good imported and exported among Canada, Mexico and the United States. The hope was that by reducing tariffs, new markets would open up for American products to be exported. Looking back, the effects of NAFTA have been mixed. Read the following article on the growth of the automobile industry in Mexico. Also, read this article on the results of NAFTA. For a good overview of the pros and cons of NAFTA, read this article on Investopedia.
Discuss: After reviewing the materials, what do you think of NAFTA? Do you think it was a good idea or bad? What have been some of the good results and what are the bad? How has NAFTA changed the types of jobs that are available to American workers?
Assignment: Type a one page paper formatted with double-spaced, 12 point, Times New Roman. Name your paper NAFTA. Explain why you think NAFTA was a good idea or bad. Will NAFTA result in a net benefit for the United States? Use evidence from the materials you were provided.
Rubric:
Formatting: 0-3 points
Spelling and grammar 0-3 points
Content and quality of your answer 0-4 points
Total 10 points
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