Business 2005

1. WHAT IS AN ENTREPRENEUR?

DEFINITION OF AN ENTREPRENEUR

Entrepreneurial spirit represents the foundation of the majority of businesses throughout the world.

The term "Entrepreneur" was introduced by Richard Cantillon, a French economist, in the 18th century.

According to the Webster's Dictionary:

"Entrepreneur is one who organizes and directs a business undertaking, assuming the risk for the sake of profit."

This term is also used to describe:

"People who are innovators and are prepared to take risks in developing and introducing new ideas, products, or services to society."

In fact, the majority of all new businesses throughout the entire world have been founded by entrepreneurs. Some of these businesses are among the largest conglomerates in the world today.

2. ARE YOU AN ENTREPRENEUR?

TEST YOURSELF!

Here are some major differences between a typical Entrepreneur and somebody who should definitely stay on a job.

Test Yourself And See Where You Belong!

DIFFERENCES BETWEEN AN ENTREPRENEUR AND A "STAY-ON-THE JOB" PERSON
Entrepreneur	A "Stay-On-A-Job" Person
Is an optimistic realist ("sees glass half-full"). Wants to be his own boss. Is prepared to take chances in life. Is prepared to take financial risks. Is prepared to work 25 hours per day. Is prepared to take responsibility for failure. Is a "can-do" person. Is familiar with business principles. Is comfortable in a business environment. Enjoys taking charge and being in control. Is a self-starter. Enjoys creating new things. Can visualize the big picture. Provides his own inspiration. Is a natural salesman. Has a strong personality and character. Gets new ideas everywhere. Would like to find out how far he could reach. Views problems as challenges. Converts negative experience into strength of character. Is a dreamer with feet on the ground. Believes in hard work. Would like to continue reading this program.	Is a pessimistic realist ("sees glass half-empty"). Prefers to stick to a good job. Wants to play it safe in life. Wants to invest money in 401(k). Is not prepared to work hard for success. Blames everyone around him. Does not mind doing things later. Is unfamiliar with business principles. Gets nervous in a business environment. Wants limited responsibility on the job. Prefers to be a part of an existing team. Prefers to follow existing ways. Thinks in terms of small details. Needs to be inspired by others. Does not like to "have to sell" to others. Does not mind forfeiting certain goals in life. Gets new ideas only on the job. Is satisfied with weekly pay-check security. Views problems as a "pain in the neck." Allows negative experience to sway his judgment of others. Is a skeptic. Believes in luck. Would like to take a nap.
If you identify yourself with the "Entrepreneur" profile - please continue with the Business 2010 Program ! If not - then... you definitely must read this program!

Note:

Any reference to gender means "he" or "she" throughout this program.

3. WHEN DID THIS ALL BEGIN?
A BRIEF HISTORY OF MANAGEMENT SCIENCE

The Management Science was developed throughout the history of mankind over many thousands of years. A few examples related to the management science development process and its contributors are presented next.

DEVELOPMENT OF THE MANAGEMENT SCIENCE
Period	People Involved	Results Accomplished
± 3,300 years ago	Egyptian Building Contractors	The Pyramids, Giza, Egypt Built by Tutankhamun (1334 B.C.- 1325 B.C.) and Ramsesses 11 (1279 B.C. - 1212 B.C.)
± 3,000 years ago	Israeli Building Contractors	The First Temple, Jerusalem, Israel Built by King Solomon (960 B.C.)
± 2,600 years ago	Greek Building Contractors	The Acropolis, Athens, Greece (650 B.C. - 480 B.C.)
± 2,200 years ago	Chinese Building Contractors	The Great Wall, China (221 B.C - 207 B.C.)
± 1,900 years ago	Italian Building Contractors	The Coliseum, Rome, Italy (72 AD - 96 AD)
1887-1889	French Building Contractors	The Eiffel Tower, Paris, France Built by Gustave Eiffel - Main Contractor
1856-1915	Frederick W. Taylor	"Father" of Scientific Management. (2) Published Principles of Scientific Management in 1913. Introduced Job Fractionation, i.e. sub-division of larger tasks into smaller tasks. Promoted the Time and Motion Studies and Piece Rate compensation method for workers.
1913	Henry Ford	Introduced the First Assembly Line at Ford Motor Company.
1868-1924 1878-1972	Frank B. Gilbreth Lillian M. Gilbreth	"Pioneers" of Scientific Management. Introduced the Time and Motion Study Method. Introduced the Job Simplification Method. Authored The Psychology of Management. Developed a three position plan for promotion of employees: 1) Do your job; 2) Train your successor; 3) Get ready for promotion. (3)
1861-1919	Henry L. Gantt	"Pioneer" of Scientific Management. Developed and introduced the Gantt Chart for scheduling of production activities. Developed new standards for work performance. Introduced production bonuses.
1868-1933	Mary Parker Follet	"Pioneer" of Scientific Management. Recognized the importance of the team work. Recognized the importance of cooperation among employees. Developed humanistic approach to management.
1841-1925	Henry Fayol	"Pioneer" of Scientific Management. (4) Published General and Industrial Management in 1929/30 (Translated from French). Identified six related management activities: 1) Technical; 2) Commercial; 3) Financial; 4) Security; 5) Accounting; 6) Managerial - planning, organizing, commanding, coordinating, and controlling. Developed 14 Key Principles of Management.
1880-1949	Elton Mayo and associates from Harvard University School of Business Administration.	Conducted Hawthorne Experiments and discovered that workers: Perform better if they are observed by superiors and their results are monitored (The Hawthorne Effect) Are part of a team; Participate in a meaningful event.
1906-1964	Douglas M. McGregor	Developed *Theory X* and Theory Y. Theory X is based on a pessimistic approach and suggests that people don't really like to work; they are generally not ambitious, avoid responsibility, seek security in the workplace, lack imagination, creativity, and initiative. Theory Y is based on an optimistic approach and suggests that people actually like working under suitable conditions; they are self-starters, willing to accept responsibility, are creative and imaginative. Published the *Human Side of Enterprise* in 1960, with the message that managers should take a more positive approach toward employees, delegate authority, making jobs more challenging, providing rewards for superior performance, and treating workers with respect and dignity. (5)

4. THE MAIN APPROACHES TO BUSINESS MANAGEMENT IN THE 1950's - 1960's

The main approaches to Business Management developed in the 1950's - 1960's are summarized below.

THE MAIN APPROACHES TO BUSINESS MANAGEMENT IN THE 1950's - 1960's
No.	Description
1	The Process Approach. This approach views management as a continuous task of planning, organizing, leading, and controlling a group of employees.
2	The Behavioral Approach. This approach focuses on understanding human behavior and evaluating factors that influence workers' performance and productivity. The behavioral approach caused the development of managerial skills in the area of human resources management, and provided basic guidance in dealing with employees.
3	The Systems Approach. This approach suggests that an organization is a set of interrelated parts - such as people, materials, and equipment - that are arranged in one structure. This structure is located in a constantly changing environment which includes customers, suppliers, banks, government agencies.
4	The Contingency Approach. This approach represents a step-by-step methodology and suggests that here is no universal solution to management problems. Managers, therefore, need to learn various management techniques and apply same to solve their specific problems.

The Contingency Approach is further described below. (6)

THE CONTINGENCY APPROACH

Step 1: Perform A Situational Analysis.

This entails analysis of company's current strengths and weaknesses; and projection of external opportunities and threats.

Step 2: Identify Current Problems.

Formulate a statement of problems based on the situational analysis.

Step 3: Establish Performance Standards.

State performance standards to resolve expected problems, formulated above.

Step 4: Generate Alternative Solutions.

Generate alternative solutions to the expected problems.

Step 5: Evaluate The Proposed Solutions.

Evaluate the proposed solutions in terms of their consequences to the company.

Step 6: Select Solutions.

Select best alternative solutions in accordance to company needs.

Step 7: Test Solutions.

Implement a pilot test of the proposed solutions and revise whenever necessary.

Step 8: Implement Solutions.

Implement the solutions toward company needs.

Step 9: Evaluate Solutions.

Evaluate the effect of the implemented solutions.

Step 10: Revise The Process.

Revise the process as necessary.

5. DEVELOPMENTS IN BUSINESS MANAGEMENT IN THE 1970's - 90's

MODERN BUSINESS MANAGEMENT THEORY

Contemporary management theories developed by Peter F. Drucker, who is considered to be the one of the fathers of the Modern Management Science, relate primarily to medium-sized and large American companies. These theories deal with a broad range of aspects in business management and provide additional light on what effective management should be.

Peter F. Drucker has authored numerous best-selling books on business management and is well respected for his contribution to the development of the modern business management theory. His 31st book, Management Challenges for the 21st Century, has been published in 1999.

Drucker suggests that one of the most critical elements of success in business in the 21st century will be Business Knowledge - and this may apply to you too!

THEORY Z.

This theory, developed and introduced by William G. Ouchi in his book Theory Z, published in 1981, describes the basic elements of the Japanese Management Approach and explains what American business people can learn from their Japanese counterparts. (7)

William Ouchi introduced three types of companies - Type J, Type A, and Type Z, as illustrated below.

The Type Z companies are among the most successful and fast-growing types of businesses in the United States at present.

THREE TYPES OF COMPANIES ACCORDING TO THEORY Z


Type J	Type A	Type Z
Japanese business-style companies.	American business-style companies.	American companies with Japanese business-style characteristics.

KAIZEN

"KAIZEN - The Key to Japan's Competitive Success" was introduced by Masaaki Imai and published by Random House (currently published by The McGraw-Hill Companies, Inc.) in 1986. This remarkable "must-read" book explains the key elements of Japan's phenomenal economic success in the recent decades.

KAIZEN means gradual, unending improvement, doing "little things" better; continuously setting and achieving higher standards in everything and everywhere.

According to Masaaki Imai, KAIZEN is behind Japan's economic "miracle" and the real reason the Japanese have become the masters of flexible manufacturing technology - the ability to adapt manufacturing processes to changing customer and market requirements, and do it quickly.(8)

KAIZEN is gradually becoming a highly important element for success in business for American and other traditional Western companies. You owe it to yourself to learn more about KAIZEN as soon as you can.

THE BUSINESS ENGINEERING METHOD

The Business Engineering Method was introduced by Joseph Shetzen in his two-volume set - "Maximum Performance: The Dow Jones-Irwin Complete Guide to Practical Business Management", published by Dow Jones-Irwin (currently The McGraw-Hill Companies, Inc.) in 1990.

The prime purpose of this unique business management methodology is to enable small and medium-sized business owners "to engineer" their businesses for success with a "Be-Your-Own-Management-Consultant" tool and provide practical methods of analyzing routine business activities, developing sound business plans, and implementing cost-effective business solutions. (9)

The ultimate purpose of the Business Engineering Method is to provide you and your management team with essential knowledge (just like Peter Drucker suggested) and tools in various areas of practical business management to enhance your chances for success in business.

This may just be the "magic pill" you need for the long-term business success.

Note:

The Business 2010 Program which you are reading at present is based on the Business Engineering Methodology.

6. FOR SERIOUS BUSINESS OWNERS ONLY

Reprinted with permission.

7. THE LATEST INFORMATION ON THE INTERNET

You can obtain the latest information about various elements of Entrepreneurship and other related issues online. Simply select a search engine below and specify the subject of your choice.

. AOL Search

. LookSmart tm

. AltaVista ®

. Lycos ®

. Ask Jeeves sm

. MSN Search ®

. Direct Hit

. Netscape Search

. Excite sm

. Northern Light

. Google sm (our first choice)

. Open Directory