Business Management

Teamwork is the cooperative effort of members of a group to achieve a goal. It takes all employees working together to get the tasks done at JA BizTown and to make a business successful.

Business Costs

• You will calculate business costs--to know how much money to operate your business

​

• You will need to pay for: human, natural, and capital resources

​

• When a business is just starting it has not received revenue from sales. Revenue is the amount of money received from the sales of goods or services.

​

• New businesses often borrow money to get started. These borrowed funds will need to be repaid.

​

Business Loan

• Your team will apply for a loan.

​

• You will need to complete the paperwork and planning needed to make your business a success. (Page 53)

​

• Salary- the money an employee earns for his or her work.

​

• Operating costs- the total cost of all expenses needed to run a business.

​

• Different businesses will have different costs. Example: Radio ad is not an expense for the radio station, but it would be for the restaurant and bank.

​

Business Operating Costs

• You will add all salaries and operating costs to get the total business costs.

​

• When we put you with your team you will do this same task and then apply for a loan from the bank.

​

• You will pay interest on your loan.

​

• You will complete a loan application and promissory note. A promissory note--is a promise to repay a loan within a certain time period.

​

​

Customer Service

• JA Biztown citizens will have to put the needs of customers above their own needs

​

​

Customer Service

• Without customers and the money they spend a business would not generate revenue or make a profit $$

​

​

Customer Service

• Share a time when you experienced great customer service:

Ideas--at a store, restaurant, amusement park, hotel, airplane, library, etc…

​

​

Page 54

​

​

Ranking

Things that are often ranked: sports teams, cities, colleges, high school students’ academic records, contest winners, products, businesses

​

​

Ranking = the process of putting things into a position on an ordinal scale -- usually first, second, third -- in relation to other similar things

Criteria

• Before ranking criteria must be defined -- so everyone knows what is being compared.

​

​

Criteria = the standards used to evaluate alternatives

​

Example: Ranking baseball teams by wins and losses, player batting averages, or team World Series championships

Criteria/Ranking

Ranking:

​

• Students (grades, attendance, behavior)

​

• Cities (population, square miles, affordability

​

• Vacation spots (fun for family, cost, safety)

​

• Colleges (graduation rates, tuition costs)

​

​

Criteria for Ranking

School Lunches

• Rank elementary schools based on their school lunches. What specific details could we list about school lunches that would help judges rank them?

​

​

​

Page 55

​

​

​

Quality Task Committee

• Have you ever heard of people ranking businesses?
• Some businesses are ranked by their revenue.
• Revenue is the amount of money received from selling goods or services. (Price of the good X number sold)
• Businesses are ranked in many other ways too.
• How might citizens rank quality businesses?
• What criteria would you choose?

​

What is a QUALITY BUSINESS?

(5 min) In your table groups brainstorm some ideas of what a quality business is on page 56.

Characteristics of a quality business:

• Good customer service
• Strong community involvement and support.
• Satisfied employees
• Employee teamwork
• Strong Business ethics
• Competitive pricing
• Creative ideas and solutions

​

JABizTown Quality Task Committee (QTC)

In Groups:

• Write your assigned criterion in the center of page 57.
• Discuss specific details for evaluating its criterion in the outlying web circles.

Biz-QTC Summary Report

Share out:

Present your webs with your classmates and record their answers on page 58.

Setting the Stage:

• What would you pay to buy this Twix from me?
• Because the Twix is a “hot item” you would be able to sell it for a high price.

​

​

​

• Would you pay the same price for a paperclip?
• What do you think would be a fair price?
• This is called a selling price of the product.

​

• BizTown offers you the opportunity to buy goods to bring home. You will want to spend your money wisely, do not pay more for an item than you think it’s worth.
• Good businesses price their goods or services based on what customers are willing to pay.

Price, Profit, and Revenue

BizTown will have several items for sale. Price setting is an important decision because it affects a business profit.

Profit-is the money left over after a business pays all of its costs.

Price is important because it often determines whether a person will buy a product and that affects the revenue of the business making the product.

Revenue- is the price of a good or service multiplied by the quantity sold.

Example: if a JA BizTown business sells memory bracelets for $2.00 and sells one each to 50 customers, then its revenue will be $100.00.

• Revenue must exceed costs for a business to earn a profit.

revenue > costs = profit

• If a business sets prices too high, it might not have many customers and may end up losing money because it did not see enough to cover its costs.

revenue < cost = loss

• If a business sets prices too low, it may sell a large quantity, but each item sold could cost more to produce than its price, The business would then have a loss.

Which Price-The challenge is to set a price that is just right- not too high and not too low.

• Complete the chart as a class.
• Which price is the highest profit
• How much profit will they earn at 40 cents?
• What would happen if they lowered the price to 30 cents?
• What would happen if they raised the price to 50 cents?
• At which price will they lose money and how much?

Debrief:

What does the table tell us about setting prices?

Kristen and Tobey will sell lemonade in front of their house. They asked around and found out how many glasses people would buy at different prices. This information is given in the first and second columns. They also know that their cost will be 25 cents per glass.

Let’s compute their profit at different prices:

​

Price Setting

• Inventory- goods that a business has in stock to sell.
• Complete page 60 in your Citizen Guides.
• Discuss as a class.

Price Setting For a JA BizTown Business

• Citizens will learn a price-setting method based on business inventory.
• What is the average price per item?

(163/57=2.86, rounded to $3.00)

• Complete page 61 in your citizen guide with a partner or table group.
• Share out your answers.

Summing It Up

• Setting the right ________ is crucial because prices affect the revenue of a business.
• Revenue must exceed __________ to earn a profit.
• __________ are affected by business costs and what consumers will pay.
• Highly desired - or “hot” -items can be priced a bit ________.
• Businesses consider their ________ when setting prices.
• A business’s ________, including salaries, rent, and utilities, must be paid by adding a portion of those expenses to the selling price of each good or service it offers.

My Business Costs pg 62 (Teacher page 38)

Business Management: Advertising

• Advertising helps bring buyers and sellers together.
• Advertising is a way of persuading people to want goods or services.
• It is an operating cost at JA BizTown
• You need to come up with an advertisement that is appropriate for your business (ie: you wouldn't try to sell baby clothes in a sports magazine. )
• Good ads do the following:
• Grab our attention
• Hold our interest
• Create a desire for the product
• Prompt us to buy the product.

Now it’s your turn! Research some popular ads and complete pg 63 in your citizen guides. Go here

Slogans, Logos, and Jingles

Slogan: is a short, memorable motto or phrase used in an advertising campaign.

Logo: is a graphic mark or emblem used to promote instant public recognition of a business or product.

Jingle: is a catchy tune used to advertise a business or product.

• State the name of the product
• Have a simple or repetitive tune
• Tell one distinctive feature about the product.
• Make a valid claim.

​

Let’s Have Some Fun!!!

1. What’s in your wallet?
2. Win from Within
3. Eat Fresh
4. Live Mas
5. You’re in Good Hands
6. I’m Lovin’ It
7. We Have the Meats
8. Just Do It
9. Moving at the Speed of Business
10. Silly Rabbit

Preparing for the Visit pg 29

• Cut out your voter registration card and staple it to the inside of the back cover of your checkbook.

​

Completing a Deposit Ticket pg 64

• Copy your first deposit ticket in your real checkbooks using the net pay you circled.
• Record $2.00 cash back.
• Write your name and account number on every check and deposit slip in your checkbook.

​

​

Opening a Savings Account…

You will be opening a savings account at JA BizTown Bank and will need to set aside $1.50 (only one time). You will need to now write a check for $1.50 Pay To The Order Of: Financial Center.

DO NOT REMOVE THE CHECK…YET

Check Registers…

• Enter the three transactions (deposit, cash withdraw and your check for your savings account) into the check register.
• Double check your math with a partner.

Direct Deposit Page:

​

​

Stocks:

1. When you buy stocks, you own a share of the company. Anyone that owns part of a company is called a shareholder.
2. The benefits of investing in stocks are that if the company makes a profit, the stock price will increase. This is one of many ways citizens can save and earn additional money.
3. Shareholders try to purchase shares of stock when the price is low and sell stock when the price is high so they will earn a profit when they choose to eventually sell your stock.
4. A Financial Advisor is an individual that helps people determine which stocks to invest in and then helps customers purchase and sell stocks.
5. The main goal for investing is to choose the stock that will perform best in the stock market and earn the investor the highest profit. There is always a risk with stock investments since a “profit” is not guaranteed.

You will be required to invest $1.50 to purchase one of three stocks chose by the Financial Center employees during your lunch break. This is an investment/savings opportunity for students to earn extra JA BizTown cash for your smart investing choices. The winning stock is announced before the afternoon breaks. The citizens that invested in that stock will receive JA BizTown bucks!

Citizen Checklist:

JA BizTown Daily Schedule:

15 min Citizen Welcome/Orientation

​

45 min Business Start-up

​

15 min Opening Town Meeting

​

60 min Employee Work/Break Rotations

(Three sessions/20 min each

​

10 min Uninterrupted Staff Meeting

(at each business)

​

90 min Employee Work/Break Rotations

(Three sessions/30 min each

​

10 min Business Cleanup

​

10 min Final Staff Meeting

(at each business)

​

15 min Closing Town Meeting

Friendly Letter:

1. Hand write a letter to your assigned friend on stationary.
2. Fold the letter and stuff it in an envelope.
3. Seal the envelope, place a “stamp”, address it, then add your return address.

Letter to the Editor:

1. Choose a reason for writing your letter…
1. How to make Williamsburg better?
2. How to make our school better?
1. Type a letter in Google Docs a letter to the editor.

​

Family Letter

Assessment