Business Class with Can Kaya

Today we had our business class with Can Kaya. The notes I took during the lesson is below:

Sole trades/ sole proprietor

Ex: bakkal, law firms, barbers, doctors office, lawyer, I might own a consulting firm it might be a sole proprietorship yet it may employ 10-15 people. I as the only owner and the managing owner will have the efficiencies to control.
Unincorporated business owned by an individual for profit.
The individual runs the business on their own and has sole responsibility for its success and failure.
Advantages
Owners retain all profits
Easy to form
Owners have flexibility
Disadvantages
Unlimited liability
Financing limitations
Management deficiencies
Lack of continuity( if I die than the company will die since I am the only owner)

Risks

Low risk- being a shareholder to migros.
Invest your cash into a bank. At the end of one full year you are going to receive 10% more because of the interest rate.

Higher risk- purchasing the shares of a company(becoming a shareholder)
Taking more risks does not mean you are going to receive higher gains

Internal locus of control vs. external locus of control
People believe that the future is in their own control and acts accordingly vs. people believe that its fate

Partnerships
More managerial help, more finance but more conflict. Partnerships can be formed from 2-20 people.

Advantages
Expended financial capacity
Easy to form
Management skills( some partners might have better experiences- you can benefit)

Disadvantages
Lack of continuity (if one of the partners die, will have a great influence in the company.)
Difficult to solve
Interpersonal conflict
Unlimited financial liability

Vision&Mission of a Business Organization

Today in our business class we had a discussion based on an appropriate mission and vision. The notes I took during the course is below..

Vision- objective in long term. (Time horizon is great)

Mission- purpose of its existence

Fashion- opinions and social fears people face
E.g. Obsessive concern with terrorists

SOCIAL AND TECHNOLOGICAL FACTORS AFFECT CHANGES

OBJECTIVES

1) Very long-term objectives- vision
2) Long term objectives-strategic objectives
3) Medium-short term objectives- tactical objectives

Tactics = short term objectives
Strategy= long term objectives (fulfils your vision)
Vision = it fulfils the purpose of your existence ( in other words fulfils your mission)

Vision of Koç School
The goal of Koç School is to be respected nationally and internationally as a model K-12 school, offering an educational program of the highest academic and ethical standards.

*How do you know that the school is respected?

We started a discussion to find a correct answer to this question. Even though we didn't reach an exact answer most of the responses was that one can understand that Koç School is respected by its graduates and the schools they attend after high school. It can also be said that the student image of Koç School is effective in being a respected school.

--Mission is what the company aims to do something / the purpose of its existence

We analyzed our schools mission and vision and didn't find it as accurate as we thought it was.
Koç School’s mission is vague because it doesn’t state the aim/objective of its existence. It’s not stating a purpose it’s stating a description, which is not quite accurate.

Objectives must be SMART & strategic. (SMART = specific, measurable, achievable, realistic, time bounded)

Business Quiz 2

Last week we had our second business quiz and a discussion based on the questions. The answers of the questions we found at the end of the discussion are as follows:

1)Why the public sector is important?

Resources are taken under control
Ownership of strategic resources is necessary.
Country might lack capital.
Protection of the public-police, justice, jail
If smt goes wrong in the prison you say talk to the firm.

2)What is a public good?

When you consume a public good it doesn’t become less. Non excludability. Just because someone uses a service it doesn’t mean that others cannot. The service provided to everyone is equal.
Non- rivalrous.

Provided equally to everybody so that people won’t compete with each other.

E.g. If I enjoy a benefit of a light house you don’t have to enjoy less.
Private investors have no reason/incentive to provide public goods because of the free rider problem

3)What makes a firm efficient? Management or ownership

Management.

4) What are merit goods?

A good which is generally considered to be a good for everybody but private sector won’t provide it for everybody. Because they earn a profit from it. Not everyone can afford it if it is provided only by the private sector. So the public sector provides it for everybody to benefit from it.

E.g. schools.

Public good- owned by the government
Merit good- owned by public (free or reduced prices) and private sector(not everyone can afford)
Franchisor- IB
Franchisee-KOÇ