6 Realistic Ways To Make $100,000 Online (WITH PROOF!)

The world is full of opportunity today. You have the ability to make money while in bed, sitting on your phone, or even while you are asleep. This opportunity is made available by something called the internet.

Before we jump into six ways you can make $100,000 or more online, I need to tell you, how much you make is fully dependent on you and how much work and time you’re willing to put in.

If you are only willing to put in a few hours of effort, you won’t make a penny!

Each of these methods will take months if not a year or more to build a six figure income source, but it is possible. I know someone who is making at least $100,000 a year doing each of the following things and I will share each one as an example.

1. YouTube Channel

One of the coolest ways to make money is to start a YouTube channel. Once your channel becomes established, you can run ads on your videos and collect a check every single month!

You will need to continue to post new content in order to keep the views coming in, but if you enjoy doing this it can be a great way to earn passive income. Take Financial Education for example. He uploads a daily stock market commentary video and typically gets 10,000 to 20,000 views per video.

In a recent video, he shares just how much money he is making on YouTube!

HOW TO MAKE $100 PER DAY PASSIVE INCOME ONLINE, Financial Education

Now, don’t be fooled by this seemingly easy way to make money. This takes a lot of effort. Jeremy started his YouTube channel over two years ago in January of 2016. Since then, he has posted over 850 videos!

Here is one of his earliest videos explaining what a checking account is.

In order to be successful on YouTube, you need to be extremely patient and see the bigger picture! You also need to improve your content and quality with time, otherwise people will lose interest in your videos.

Personally, I know about a dozen people who are making over $100,000 a year with a YouTube channel. While it is difficult, it is not impossible!

2. Personal Coaching/Consulting

Coaching and consulting is a huge business opportunity. Often times, people need a second opinion to break past a certain barrier in their personal or professional life.

Take my friend Jake Woodard for example. He spent years learning about personal development and working on himself mentally, physically and spiritually. Now, he has a six figure coaching business online. He helps people through one on one coaching and speaks at events all over the world.

Jake Woodard, Life Coach

Once you have established credibility in your field, take on a few clients pro bono. This means that you will be doing it for free, in exchange for a testimonial of course! Once you have real results and proof of your work, you can take on paid clients.

Jake Woodard spends a lot of time building out his social media presence, and you will need to do this too! Most of his clients find out about him from one of his powerful videos being shared around on Facebook.

3. Affiliate Marketing

Affiliate marketing is a very simple business. You simply refer a sale to someone and earn a commission in the process!

The idea here is you market someone else’s product for them and earn a commission on each sale you are able to provide for the original seller. This works best when you have a large audience of some sort on social media. This could be a blog, a YouTube channel or even an Instagram account.

One of the best ways to do this is with Amazon Affiliate Links. In this video, Ryan Scribner will teach you how to make passive income with these links.

Every time someone clicks on the product and buys it, you get paid a commission.

There are countless affiliate opportunities out there. The key here is to become the authority in your niche and then reach out to the biggest companies serving these customers. Many of these companies will pay you for referrals!

So, just how much money can you make with affiliate marketing? Let’s take ODi Productions for example. He makes over $100,000 a month with affiliate marketing! He dropped out of his dream school UCLA with a 3.5 GPA in order to pursue entrepreneurship full time and create an online business.

Now, he owns his dream car and lives in his dream apartment thanks to affiliate marketing. He states that it took him a little over two years to build out his business.

Here is a video where he explains more.

4. Social Media Marketing

Use what you do every day to your advantage. There are so many businesses getting left behind because they don’t know how to use social media. If you are able to help businesses with their social media and get them more customers, they will pay you massive sums of money.

Take Josue Pena for example, he has a social media marketing agency that does close to $100,000 per month in revenue. It took Josue months to learn the ins and outs of social media, but now clients all over the world pay him for his expertise.

Here is a video that talks about his social media marketing agency.

Click here for a free Instagram training guide by Josue Pena!

Become an expert on Instagram and other social media platforms, then go look around where you live for local businesses you think could use some help. Take over their social media, and get them more customers while earning a monthly retainer in return.

Once you become too busy, hire an employee or outsource the work to someone overseas! This business is very easy to scale.

5. Blogging

Blogging can be a fun creative outlet that can turn into a side hustle though affiliate marketing and selling ad space. One example of this is Good Financial Cents. Jeff Rose started this blog over 10 years ago, but in one month alone he made over $100,000!

Check out this video Jeff Rose did talking about that.

You can start a blog for next to nothing. In fact, some sites will allow you to start a blog for free! Take the Investing Simple blog for example. We pay about $50 a year for hosting and a domain name. The main investment here is your time!

If you want to learn more about starting a blog, here is a guide I recommend that talks about how to get your blog started with under $100 and in 24 hours!

6. Selling An Online Course

Ready to demonstrate how to write the perfect resume? Knit a sweater? Read tarot cards? Buy a car? Balance a checkbook?

If you’re an expert (or willing to do the footwork and become an expert) on any topic, you can create an online course to teach others your skills.

Setting up the curriculum requires a time commitment, as does marketing your course, but once it’s up and running, you’ll earn passive income based on the number of students.

Teachable Course Earnings

Ryan Scribner offers a free course all about building a successful online course or membership site. 

This is one of the best ways to make passive income. Once the course is completed, you just collect the payments! Hosting sites like Teachable will handle the rest. There are countless examples of people who are making $100,000 or more with an online course.

Take Tai Lopez for example. In this video, Tanner J. Fox estimates that he does close to $90,000,000 a year in revenue from his online courses and coaching!

Thanks to the internet, there are now hundreds of ways to make money online. In my opinion, these are the most profitable ways of making money online today. The number one thing you have to remember is that this is going to require a lot of time and patience. Nobody on this list became an overnight six figure earner. Stick to one idea and commit to your success as an online entrepreneur!

50 Businesses You Can Start (With Little To No Money!)

 

It feels good serving the community and it’s good for the soul.

In fact, helping others can lead you to a longer life and happiness.

So why not make money helping others? After all, it’s good for you and for the customers. One of the easiest businesses you can start is a service based business. Whether you are helping elderly people or busy business owners, you are identifying a need and filling it. As you help more people, your business will primarily grow through word of mouth and recommendations.

Here are 50 business ideas where you will be able to make money helping others!

1. Home Painting:

If you are a good painter, you can do it yourself. Or, you could hire it out to someone else! Outdoor painting is more dangerous, but if you have the equipment and the skill you can charge significantly more.

2. Plumbing/Electrical Work:

Skilled trades like plumbing, electrical and carpentry fetch a high rate. It is not uncommon to pay a plumber or an electrician $100 an hour for labor! Educate yourself and get the proper licensing and insurance, then open a skilled trade business!

Electrical Tools, MaxPixel

3. Interior Decoration:

If you have an eye for design, offer your services and build your reputation through free work. After you have a portfolio of completed projects, create a website and market your service to others!

4. Landscaping:

This includes almost anything that improves a home’s yard, whether it’s laying sod, putting down and watering grass seed, installing fences or planting and watering flowers. You can do this yourself, hire people or contract it out!

5. Lawn Care:

Elderly people especially do not want to be out in the heat mowing the lawn. You can mow lawns during the Summer and push snow in the Winter! Most people who hire someone to mow the lawn also hire someone to plow the snow.

6. Auto Repair:

If you have the proper skills and certifications, you can start a great business doing automotive repairs and maintenance. Down the road, hire a few employees and manage this business from behind the scenes.

7. Videotaping Services:

Everybody wants memories of special events like weddings, graduations, or birthday parties. Take it a step further and offer drone video recording!

Drone With Camera, Pixabay

8. Photography:

Photography has an easy market in small communities, as everyone likes having pictures of themselves or important moments. Build your reputation by having the best camera, editing skills, and prices. A great website and business cards are essential!

9. Limousine Rental:

Limousines are big investments, but if you find a place where they are used commonly, you will become profitable after a few months or years. Down the road, you could own a fleet of limousines and have a team of drivers.

10. Tutoring:

There are hundreds of smart high-school students who need money. Hire them to tutor or do it yourself! This is by far the easiest business you can start as a young person. No equipment needed, just your brain!

11. Nanny Placement:

There are many large websites out there that connect sitters with parents in need. You could do this on a smaller scale and mark up the service being provided!

12. Transportation Service:

Greyhound is an awesome company that has done this successfully. You can start by getting a driver and a bus, then offering popular routes that people sign up for. Or, you could keep it simple and drive for Uber or Lyft!

Uber App, Flickr

13. Child Care:

Parents always want their children to be looked after. If you like dealing with children, or know people who do, this is a very easy business to start!

14. Organize Kid’s Birthday Parties:

Help them develop a theme, then use that for invitations, decorations and entertainment. Many parents would gladly hire you to plan and run a child’s party. The more unique your parties are, the more you can charge!

Remember, people pay for experience!

15. Marketing:

A lot of companies don’t know much about internet marketing. Contact companies and offer your marketing services. This could be as simple as helping a local business design a website or get listed on Google!

16. Computer Instruction:

Most people don’t know how to use computers, especially older people. Offer to teach them courses in Microsoft Word, Excel or any other element in which you are well versed. Many public schools offer continuing education courses where you can teach your skill to a class of people.

17. Consulting:

You can consult in almost any professional field, like accounting, branding, business or any other area of expertise. This can be one of the most profitable businesses out there!

18. Window Cleaning:

Window cleaning services cost an average of $207, and they don’t require much skill or many materials! If you have the skill and the required insurance, you could start a window washing business. With the help of scaffolding or a lift, you can do multi story buildings and charge a premium for this!

Professional Window Cleaner, Wikimedia

19. Power Washing:

This is the use of high pressure water spray to remove loose paint, mold, grime, dust, mud, chewing gum and dirt from surfaces and objects such as buildings, vehicles and concrete surfaces.

Invest in a power washer and go to town. Look for houses that are listed for sale and call the seller. A power wash is one of the easiest ways to boost curb appeal!

20. Mobile Car Wash:

Mobile car washes are a great idea before paying for a physical location. Travel through streets and charge to clean cars in the customers driveway or business parking lot. There is little overhead with this and it is convenient for the customer!

21. House Sitting:

This is best done on holidays and vacation periods. House sitting involves taking care of and living in houses so they won’t be empty. Start with your friends and family and grow this business through referrals.

22. Catering/Personal Chef:

Like to cook? Good at staying organized? Catering requires you to provide food and beverages for special events like dances, weddings, or graduations.

Another option is to be a personal chef. Show up for your customer, cook a meal in their home, clean up and get paid!

23. Debt Collection:

Companies hire debt collectors to collect on what is owed to them. Debt collectors track people who owe money to make sure they proceed with their payments. This business will require some persistence and thick skin!

24. Accounting:

There are so many free accounting programs, and low cost ones online. Become an expert and offer consultations for a fee to businesses.

25. Language Translation:

If you know more than one language, or someone who does, you can offer translation services online. You could also teach foreign language classes or do tutoring!

26. Essay Writing:

Are you great at writing college papers? Offer to write or review papers for students for a fee! Down the road, you could hire people to write for you.

27. Business Travel Management:

Plan out the costs of a business trip, book the cheapest hotels, best options for restaurants, and make an itinerary. Travel agents often earn a commission on referrals to restaurants, hotels and vacation spots!

28. Vacation Planner:

People who want to vacation want everything to go smoothly. Work for them and plan their vacation, find their hotel, activities, and restaurants for their dream vacation! High end clients will love this service.

Vacation Resort, MaxPixel

29. Private Investigation:

Private investigators collect information for anyone who hires them, whether it’s businesses, families, or parents.

30. Windshield Repair:

Install and repair windshields. If you offer this service at peoples’ homes, you can charge a pretty penny. Mobile windshield repair is a great business!

31. Event Planner:

Planners meet with clients to discuss and organize the event, search and book locations, food, entertainment, staff and cleanup. Offer catering as well for the whole package!

32. Junk Removal:

It seems like everyone has a pile of crap they want to get rid of today. Go door to door and offer to clean out garages, sheds and basements!

Remember, not everything is junk! You can get paid to haul it away and then resell it on Craigslist or online.

Junk Removal Business, Flickr

33. Personal Organizer:

Help people organize the items they have and eliminate clutter. You could also sell organization solutions like bins and closet shelving!

34. Notary:

Get your notary license and offer a notary service. People will often pay $50 or more for a notary in a pinch!

35. Resume Writer/Editor:

Prepare professional resumes for applicants to either jobs or colleges.

36. Tailoring:

Adjust people’s clothes using needle and thread or sewing machines. You could also offer a wash and fold laundry service, great for college dorms!

37. Pet Sitting:

Supervise pets or take them for walks while the owners are away. If you are a true animal lover, open a dog daycare!

38. Freelancing:

Freelance jobs range from writing, editing, photography, to web design, graphic arts or computer programming. You can advertise your services on sites like Fiverr and Upwork.

39. Virtual Assistance:

Virtual assistants perform administrative tasks such as replying to emails, scheduling meetings and making travel arrangements. Contact busy people and offer to be a virtual assistant for them!

40. Social Media Manager:

Take charge of business accounts and help them grow online. Business owners are busy. If you can help them get more customers through the door, they will gladly pay you $1,000 a month or more!

Take Josue Pena for example. He has an Instagram network with over 4 million followers and his social media marketing agency brings in close to $100,000 a month!

41. Florist:

Sell or produce flowers. Learn some flower arranging skills online and make pretty arrangements. Offer flower delivery for an up charge!

42. Barber Shop:

You could offer an at home barbershop if you can’t afford a physical location yet. Down the road, you can open a barbershop and rent chairs to barbers for the day!

Barber Service, Pixabay

43. Car Rental:

Rent out your car for a few hours, or even a few days. If you live in a tourist area, you could rent luxury vehicles and sports cars! You could also be a personal driver.

44. Website Design:

This is an acquired skill many people don’t have time for. Design company or personal websites and offer to update the sites if the owner pays you a retainer.

45. Security Services:

Secure homes by setting up monitoring equipment and access points. There are a number of security companies you can work with doing this!

46. Financial Consultant:

Guide people to make better spending decisions and help them to create a budget and stick to it!

47. Real Estate Agent:

Become a real estate agent and earn a commission for selling real estate!

48. Pool Service Technician:

This is one of the best businesses you can start. Open pools for people, clean them weekly and winterize them at the end of the season.

Pool Cleaner, AdventureJay

49. Graphic Design:

Design logos, advertisements, or communications such as newsletters or direct mail for business owners.

50. Grocery Shopping:

Shop for other people, or have them order what they want online and you deliver it to them. There are a number of apps that you can use to get paid to shop for groceries!

Chapter 1: Introducing Management GMS Notes

What are the challenges of working in the new economy?


Talent
People and their talents – what they know, what they learn, and what they do with it – are the ultimate foundations of organizational performance. Intellectual capital is the collective brainpower or shared knowledge of a workforce than can be used to create value (Intellectual Capital = Competency x Commitment). A knowledge worker is someone whose mind is a critical asset to employers and adds to the intellectual capital of the organization.


Diversity
Workforce diversity is the composition of a workforce in terms of differences among people whether it be their gender, age, race, ethnicity, religion, sexual orientation or able-bodiedness. Prejudice, or the holding of negative opinions and attitudes to a diversified population, sets the stage for diversity bias. A subtle form of discrimination is called the glass ceiling effect – an invisible barrier or “ceiling” that prevents minorities from rising above a certain level of organizational responsibility.


Globalization
Globalization is the worldwide interdependence of resource flows, product markets, and business competition that characterizes our new economy. It is a process in which improvements of technology combine with the deregulation of markets to bring out flows of people, goods, services and money.


Technology
The forces of globalization ride on the foundation of the Internet and the growth of communication technologies. Bar codes, automatic tellers, email, blogs, text messaging, online media and social networks are some of the technologies driving the world.


Ethics
Ethics is a code of moral principles that sets standards of what is “good” and “right” as opposed to “bad” and “wrong.”


Careers
The Shamrock Organization is an analogy to discuss career patterns characteristic of the new economy. The three leaves of the shamrock structure include full time core workers, independent contractors and part time temporaries. A portfolio worker is someone who always has the skills needed to readily shift jobs or even careers.


What are organizations like in the new workplace?
An organization is a collection of people working together to achieve a common purpose. All organizations share a broad purpose-providing goods or services of value to customers and clients. Organizations are open systems, meaning it transforms resource inputs from the environment into product outputs. Productivity measures the quantity and quality of outputs relative to the cost of inputs. Performance effectiveness is an output measure of task or goal accomplishment (eg. meeting a daily target). Performance efficiency in an input measure of the resource costs associated with goal accomplishment.

What is the makeup of the external environment of organizations and how is an organization linked to its environment?
The general environment of organizations consists of all external conditions that set the context for managerial decision-making. Forces that keep an organization in existence and help make important decisions include economic (growth, unemployment rate), legal-political (laws, political trends), technological (Internet access, IT systems), socio-cultural (population demographics, education system) and natural environment conditions (recycling infrastructure, “green” values).


Managers must be concerned with economic conditions in the general environment, particularly those that influence customer spending, resource supplies and investment capital. They must also understand the legal- political conditions, as represented by existing and proposed laws and regulations, government policies, and the philosophy and objectives of political parties. Internet censorship is the deliberate blockage and denial of public access to information posted on the Internet. Also, not only should managers stay abreast of the latest technologies for their work applications, they must also be aware of their work implications. The socio-cultural conditions of a society or region take meaning as norms, customs, and social values on such matters such as ethics, human rights, gender roles and lifestyles. They also include environmental trends in education and related social institutions as well as demographic patterns. Lastly, when it comes to natural environment conditions, there are public concerns for global warming, carbon emissions, and protection of the natural environment. Sustainable businesses are firms that operate in ways that both meet the needs of customers and protect or advance the well-being of our natural environment. Sustainable innovation creates new products and production methods that have reduced environmental impact.


The specific environment consists of the actual organizations, groups and people with whom an organization interacts and conducts business. Members of the specific environment are called stakeholders. Value creation is an analysis of the extent to which the organization is creating value for and satisfying the needs of its multiple stakeholders.

A competitive advantage refers to something that an organization does extremely well, a core competency that clearly sets it apart from other competitors thus giving it an advantage over others in the marketplace. Competitive advantage is linked with strategic positioning – helping one’s firm or organization do different things or the same things in different ways from one’s major competitors. As mangers pursue competitive advantage, decision making is often complicated by uncertainty. Environmental uncertainty means that there is a lack of complete information regarding what exists and what development occurs.


Organizational effectiveness is sustainable high performance in using resources to accomplish a mission and/or objective. The system resource approach looks at the input side and defines organizational effectiveness in terms of success in acquiring needed resources from the environment. The internal process approach looks at the transformation process and defines organizational effectiveness. The goal approach looks at the output side and defines organizational effectiveness in terms of how to measure achievement of key operating objectives. The strategic constituencies approach looks at the external environment and defines organizational effectiveness in terms of the organization’s impact on stakeholders.


Who are managers and what do they do?
A manager is a person who supports, activates, supervises and is responsible for the work of others. They are responsible for not just their own work but for the overall performance accomplishments of a team, work group, department or sometimes, the entire organization. 

3 Levels of Managers: Top managers are responsible for the performance of an organization as a whole or for one of its larger parts (CEO, Pres., Vice Pres.). Middle managers report to top managers, and they are in charge of relatively large departments or divisions consisting of several smaller units (division manager, plant manager). A team leader or a supervisor is examples first line managers who are in charge of a small work group composed of nonmanagerial workers.


Types of Managers: Line managers are responsible for work that makes a direct contribution to the organization’s outputs. Staff managers use speial technical expertise to advise and support the efforts of line workers. Functional managers have responsibility for a single area such as finance, marketing, production, HR etc. General managers are responsible for activities covering many functional areas. Administrators are the name for managers in nonprofit or public organizations.


Accountability is the requirement of one person to answer to a higher authority for performace results in his or her area of work responsibility. Effective managers successfully help others achieve both high performance and satisfaction in their work. Quality of work life is an indicator of the overall quality of human experiences in the workplace. A high QWL offers fair pay, safe working conditions, opportunities for growth, etc.


The concept of the upside-down pyramid reflects the changing nature of managerial work today. Operating workers are at the top, serving customers, while managers are at the bottom serving them.


What is the management process and how do you learn managerial skills and competencies?
The process of management involves planning, organizing, leading, and controlling the use of resources to accomplish goals. Planning is the process of setting performance objectives and determining what actions should be taken to accomplish them. Organizing is the process of assigning tasks, allocating resources, and coordinating the activities of individuals and groups to implement plans. Leading is the process of arousing people’s enthusiasm to work hard and inspiring their efforts to fulfill plans accomplish objectives. Controlling is the process of measuring work performance, comparing results with objectives and taking corrective action as needed.


A manager’s informational roles involve the giving, receiving and analyzing of information. A manager is a monitor, scanning for information, a disseminator, sharing information, and a spokesperson, acting as official communicator. Through agenda setting, good managers develop action priorities that include goals and plans spanning long term and short term frames.


Networking is the process of creating positive relationships with people who can help advance agendas. Social capital is a capacity to get things done with support and help of others. Learning is a change in behavior that results from experience. Lifelong learning is continuous learning from daily experiences. A skill is the ability to translate knowledge into action that results in desired performance.


ESSENTIAL MANAGERIAL SKILLS


Conceptual skills – the ability to think analytically and achieve integrative problem solving
Human skills – the ability to work well in cooperation with other people (emotional intelligence is the ability to manage ourselves and our relationships effectively)


Technical skills – the ability to apply expertise and perform a special task with proficiency
Managerial Competency – a skill based capability for high performance in a management job (this includes teamwork, communication, self-management, leadership, critical thinking and

professionalism) 

Chapter Two: Management Learning (Past to Present) GMS Notes
CLASSICAL MANAGEMENT APPROACHES (assumption: people are rational)

1. Scientific Management (Frederick Taylor)
   
2. Administrative Principles (Henri Fayol)
   
3. Bureaucratic Organization (Max Weber)
   

Scientific Management emphasizes careful selection and training of workers and supervisory support. Frederick Taylor’s goal was to improve the productivity of people at work. Four key principles of scientific management include:

1. Develop rules of motion, standardized work implements and proper working conditions for each job (motion study – the science of reducing a task to its basic physical motions)
   
2. Carefully select workers with the right abilities for the job
   
3. Carefully train workers and provide proper incentives
   
4. Support workers by carefully planning their work and removing obstacles
   

Administrative Principles


Henri Fayol had five “rules” of management, which close resemble the four modern functions of management (planning, organizing, leading, controlling). These five “rules” include:


1. Foresight – to complete a plan of action for the future
2. Organization – to provide resources to implement the plan
3. Command – to lead, select and evaluate workers to get the best work toward the plan
4. Coordination – to fit diverse efforts together and ensure information is shared and problems solved 
5. Control – to make sure things happen according to plan and to take necessary corrective action


Bureaucratic Organization is a rational and efficient form of organization founded on logic, order, and legitimate authority.
Advantages of bureaucratic organization:
- clear division of labour (jobs are well defined)
- clear hierarchy of authority (each position has well defined responsibilities and authorities)
- formal rules and procedures (written guidelines direct behavior and decisions in jobs)
- impersonality (rules/procedures are impartially and uniformly applied, no one gets preferential treatment) - careers based on merit (will have a job that best suits your abilities, competencies, etc.)


Possible disadvantages include:
- excess paperwork or “red tape”
- slowness in handling problems
- rigid in the face of shifting needs
- employee apathy (people feeling that they can’t change anything) - resistance to change


BEHAVIOURAL MANAGEMENT APPROACHES
In the 1920’s, there was a great emphasis on the human side of the workplace. 

Mary Parker Follett was part of an important transition from classical thinking to behavioural management. She believes that managers and workers should work together without one party dominating the other. She emphasized group and human cooperation; both are which are still highly relevant in today’s management styles. She also believed that making every employee an owner in a business would create feelings of collective responsibility.


Hawthorne effect – the tendency of people singled out for special attention to perform as expected


Human relations movement – suggests that managers using good human relations will achieve productivity 

Organizational behaviour – the study of individuals and groups in an organization


Maslow’s Theory of Needs

Abraham Maslow, a psychologist, created a theory regarding people’s needs. He defines a need as a physiological or psychological deficiency that a person wants to satisfy. According to Maslow, people try to satisfy the five needs in sequence. 

Douglas McGregor had two theories regarding managerial assumptions. Theory X assumes people dislike work, lack ambition, act irresponsibly and refer to be led. Theory Y assumes people are willing to work, like responsibility and are self-directed and creative.


Chris Argyris believes that classical management approaches are inconsistent with mature adult personality. Argyris believes that managers who treat people positively and as responsible adults will achieve the highest productivity. He advises managers to expand job responsibilities, allow more task variety and adjust supervisory styles to allow more participation and promote better HR relations.


MODERN MANAGEMENT FOUNDATIONS

Management science and operations research use quantitative analysis and applied mathematics to solve
problems. Operations management is the study of how organizations produce goods and services.

Contingency thinking – tries to match management practices with situational demands

Total quality management – managing with an organization-wide commitment to continuous improvement,
product quality and customer needs

Knowledge management – the process of using intellectual capital for competitive advantage



Chapter 3: Global Dimensions of Management GMS Notes


Globalization – the process of growing interdependence among elements of the global economy

Global management – involves managing operations in more than one country

Global manager – one who is culturally aware and informed of international affairs

Global business – conducts commercial transactions across national borders


Why companies go global? Reasons include greater profits, more customers, access to suppliers, lower labour costs and easier access to financial resources (capital).


KNOW FIGURE 3.1!

MARKET ENTRY STRATEGIES

A common first step into international business is global sourcing – the process of purchasing materials, manufacturing components or business services from around the world. A second form of international business is importing – selling locally made products in foreign markets. The opposite of importing is exporting – buying foreign made products and selling them in domestic markets. A third form of international business is the licensing agreement, where foreign firms pay a fee for rights to make or sell another company’s products in a specified region. Franchising is a form of licensing in which the foreign firms buy the rights to use another’s name and operating methods in its home country.


DIRECT INVESTMENT STRATEGIES

Firms may decide to make substantial investments in operations in foreign countries. Such foreign direct investment, or FDI, involves setting up, buying all, or buying part of a business in another country. The term insourcing describes job creation through foreign direct investment. When foreign firms do invest in a new country, a common way to start is a joint venture. A joint venture operates in a foreign country through co- ownership by foreign and local partners. A global strategic alliance is a partnership in which foreign and domestic firms share resources and knowledge for mutual gains. A foreign subsidiary is a local operation completely owned and controlled by a foreign firm. These subsidiaries are set up by greenfield investments, where an entirely new operation in a foreign country is built.


Political risk – the potential loss in value of a foreign investment due to instability and political changes in the host country

Tariffs – taxes governments levy on imports

Protectionism – a call for tariffs and favourable treatments to protect domestic firms from foreign competition 

NAFTA – links Canada, US and Mexico in an economic alliance. It is a trade zone with limited barriers. 

European Union – a political and economic alliance of European countries 

GLOBAL BUSINESSES
Global corporations, also known as multinational corporations or “MNCs”, are business firms with extensive international operations in many foreign countries (eg. Walmart, Toyota and BMW). A transnational corporation is an MNC that operates worldwide on a borderless basis.


KNOW FIGURE 3.2!


ETHICAL CHALLENGES FOR GLOBAL MANAGERS

Corruption – involves illegal practices to further one’s business interests (high in Iraq, Haiti, Sudan) 

Child labour – full time employment of children for work otherwise done by adults

Sweatshops – employ workers at very low wages for long hours and in poor working conditions 

Sustainable development – meets the needs of the present without hurting future generations


CULTURE AND GLOBAL DIVERSITY

Culture – shared set of beliefs, values and patterns of behaviour common to a group of people 

Culture shock – the confusion and discomfort a person experiences when in an unfamiliar culture 

Ethnocentrism – the tendency to consider one’s culture superior to others

Cultural intelligence – the ability to accept and adapt to new cultures

Stages in adapting to a new culture

1. Confusion – first contacts with the new culture leave you anxious, uncomfortable 

2. Small victories – continued interactions bring you some successes

3. The Honeymoon – a time of cultural immersion with local ways viewed positively

4. Irritation and anger – when the “negatives” overwhelm the “positives”

5. Reality – able to enjoy the new culture while accommodating less desirable elements

Low context cultures – emphasize communication via spoken or written words

High context cultures – rely on nonverbal and situational cues as well as on spoken or written words 

Monochronic culture – people tend to do one thing at a time

Polychronic culture – time is used to accomplish many things at once

Proxemics – how people use space to communicate


KNOW FIGURE 3.3!

Hofstede’s dimensions of natural culture

1. Power distance – the degree to which a society accepts unequal distribution of power

2. Individualism-collectivism – the degree to which a society emphasizes individuals and their self interests 

3. Uncertainty avoidance - the degree to which a society tolerates risk and uncertainty

4. Masculinity-femininity – the degree to which a society values assertiveness and materialism

5. Time orientation – the degree to which a society emphasizes short term or long term goals

Comparative management – studies how management practices differ among countries and cultures

Managers with ethnocentric attitudes believe the best approaches are found at home and tightly control foreign operations. Managers with polycentric attitudes respect local knowledge and allow foreign operations to run with substantial freedom. Managers with geocentric attitudes are high in cultural intelligence and take a collaborative approach to global management practices.


Chapter Five: Entrepreneurship and Small Business Management GMS Notes


Entrepreneurship – risk-taking behaviour that results in new opportunities

Entrepreneur – one who is willing to pursue opportunities in situations others view as problems or threats
             
                       - they are born with these traits (“nature” views)

                      - they learn these traits (“nurture” views)


Entrepreneurs have several distinguished characteristics. They include (1) internal locus of control, (2) high energy level, (3) high need for achievement, (4) tolerance for ambiguity, (5) self-confidence, (6) passion and action orientation, (7) self-reliance and desire for independence, and (8) flexibility. 

Necessity-based entrepreneurship – takes place because other employment options don’t exist

Small business – has fewer than 100 employees, is independently owned and operated, and does not dominate its industry

- employs 5 million workers, about 48 percent of the Canadian workforce


Franchise – a form of business where one business owner sells to another the right to operate the same business in another location


Family business – owned and controlled by members of a family


Family business feud – occurs when family members have major disagreements over how the business should
be run


Succession Plan – describes how the leadership transition and related financial matters will be handled 

Succession problem – is the issue of who will run the business when the current head leaves


Small businesses often fail for a number of reasons including (1) lack of experience, (2) poor financial control, (3) bad or no strategy, (4) ethical failure, (5) insufficient commitment, (6) poor leadership, (7) growing too fast, and (8) lack of expertise.


New Venture Creation 

First mover advantage – comes from being first to exploit a niche or enter a market

Stages in the Life Cycle of an Entrepreneurial Firm 

Business plan – describes the direction for a new business and the financing needed to operate it
- the plan describes the details needed to obtain start-up financing and operate a new business 
- every business plan should have an executive summary, cover certain business fundamentals, be well organized with headings, easy to read, and no longer than 20 pages


Choosing the form of ownership
Sole proprietorship – a form of business where an individual pursues a profit
Partnership – a form of business where two or more people agree to contribute resources to start and operate a business together
Corporation – a legal entity that exists separately from its owners
Limited liability Corporation – a hybrid business form combining advantages of the sole proprietorship,
partnership, and corporation
Financing the New Venture
Debt financing – involves borrowing money that must be repaid over time with interest
Equity financing – involves exchanging ownership shares for outside investment monies
Venture Capitalists – make large investments in new venture s in return for an equity stake in the business
Initial public offering (IPO) – an initial selling of shares of stock to the public at large
Angel investor – a wealthy individual willing to invest in a new venture in return for equity in a new venture
Chapter 6: Planning Processes and Techniques GMS 200 Notes
Planning – the process of setting objectives and determining how to accomplish them Objective – specific results that one wishes to achieve
Plan – a statement of intended means for accomplishing objectives


The Planning Process 

1. Define your objectives
2. Determine where you stand/current position
3. Develop premises regarding future conditions (anticipate the future) 4. Analyze alternatives to make a plan
5. Implement plan and evaluate results
Planning improves focus, flexibility, coordination, control. Complacency trap – being carried along by the flow of events
Canadian Elliot Jacques suggested that people vary in their capability to think with different time horizons. He believed that most people work comfortably with only 3 month time spans, a small group works well within a 1 year span and rarely do people work with a 20 year time frame in mind.
Strategic Plan – identifies long term directions for the organization
Vision – clarifies the purpose of the organization and expresses what it hopes to be in the future
Tactical Plan – helps implement all or parts of a strategic plan
Functional Plans – indicate how different operations within the organization will help advance the overall strategy
Operational Plans – identifies short term activities to implement strategic plan
Policy – standing plan communicates broad guidelines for decisions and actions
Procedure/rule – precisely describes actions that are to be taken in specific situations
Budget – a plan that commits resources to projects or activities
Zero based budget – allocates resources as if each budget was brand new
Forecasting – attempts to predict the future
Contingency planning – identifies alternative courses of action to take when things go wrong
Scenario planning – identifies alternative future scenarios and make plans to deal with each
Benchmarking – uses external and internal comparisons to plan for future improvements
Best practices – things people and organizations do that lead to superior performance
SMART GOALS – Specific, Measureable, Attainable, Referred to, Timely
Hierarchy of goals/objectives – lower level objectives are means to accomplishing higher level ones Management by objectives – process of joint objective setting between superior and subordinates Improvement objectives – describe intentions for specific performance improvements
Participatory planning – includes the persons who will be affected by plans and/or who will implement them

Chapter 7: Strategy and Strategic Management GMS Notes
Competitive advantage – the ability to do something so well that one outperforms competitors
- typical sources of competitive advantage include cost and quality, knowledge and
speed, barriers to entry and financial resources
Sustainable competitive advantage – ability to outperform rivals in ways that are difficult or costly to imitate
Strategy – a comprehensive plan guiding resource allocation to achieve long term organization goals
Strategic intent – focuses and applies organizational energies on a unifying and compelling goal
There are three levels of strategy: corporate, business and functional
Corporate strategy – sets long term direction for the total enterprise (ex. growth and diversification strategies, restructuring strategies, global strategies, e-business strategies, cooperative strategies)
Business strategy – identifies how a division or strategic business unit will compete in its domain
Functional strategy – guides activities within one specific area of operations (supports business strategies)
Strategic management – process of creating and implementing strategies
Strategic Analysis – process of analyzing the organization, the environment, and the organization’s competitive position and current strategies
Strategy formulation – the process of creating strategies to guide the allocation of resources
Strategy implementation – process of putting strategies into action
Mission statement– expression of the organization’s reason for existence in society
Stakeholders – individuals and groups directly affected by the organization and its strategic accomplishments

Strategic constituencies analysis – assesses interests of stakeholders and how well the organization is responding to them