In Part 2 we’ll elaborate our description of our Universal Business Model by using eight examples of widely diverse businesses that still share the same internal structure that we described in Part 1.
In the following eight lessons, we target Grades 9–12. Yet even these examples have the potential to transform into a curriculum for Grades K-8 when professionally adapted to each age group.
============ LESSON 2.1 =================
A SMALL POTATO FARM
The Universal Business Model applies equally to middle-sized businesses of every kind.
Let’s look at a fictitious small farm in Idaho Falls, namely, Papa Potatoes which sells potatoes to local wholesalers. Papa Potatoes has 2,000 acres of land and employs 100 permanent workers, as well as seasonal farmworkers. So, let’s look at the departmental structure of their company.
(Dept. 1) Papa Potatoes is Owned by Mrs. Papa. Local farmers highly regard her farm. The Owner and her small staff of managers manage all Department functions.
(Dept. 2) Papa Potatoes company calls its company rules, “HR Policy.” Trusted supervisors are authorized to enforce these rules to hire new workers and lay off any workers who break HR Policy. HR supervisors ensure that the company observes national and local laws and company rules on the farm. HR Policy ensures that all employees get the maximum Health Benefits that Papa Potatoes can afford.
(Dept. 3) Papa Potatoes’ Production Department Manager is a veteran potato farmworker who supervises all field farmworkers and advises the Owner about purchasing additional farm tools and supplies and hiring seasonal farmworkers.
(Dept. 4) Papa Potatoes’ Advertising Department Manager places a standard Papa Potatoes Ad in every issue of the local, weekly farming newsletter (and seasonally in the “Small Farm Today” national magazine). These Ads invite new prospective buyers to contact Papa Potatoes Sales.
(Dept. 5) Papa Potatoes’ Sales Department Manager screens prospects and maintains good business relationships with current customers and prospects.
(Dept. 6) Papa Potatoes’ Accounting Department Manager collects all income, then pays all taxes, payroll, benefits, insurance, mortgage, farm tools, and farm supplies. She makes GAAP standard reports for the IRS and the Owners.
(Dept. 7) Papa Potatoes’ Distribution Department Manager is a veteran transportation clerk who schedules trucking companies to deliver potatoes to local customers and schedules freight-train companies to ship potatoes nationwide.
(Dept. 8) Papa Potatoes’ Marketing Department Manager politely invites past customers (via mail or email) to complete a customer survey. They use the survey results to improve Production and Advertising.
============ LESSON 2.2 =================
A SOFTWARE STARTUP
For another example of our Universal Business Model in a mid-sized business, let’s look at a fictitious software startup company in Unalaska, namely, Pym Software. They sell apps for mobile phones through the “Microlist” App Store. The company employs 25 full-time workers Let’s look at their departmental structure.
(Dept. 1) Pym Software’s Owner is Pamela Pym, 24. She designs all of the latest Pym apps and supervises all Departments (so far).
(Dept. 2) Pamela calls her company rules, “HR Policy,” which she enforces through her trusted HR Department Manager, who hires qualified workers and fires any worker who breaks HR Policy. The HR Manager enforces all applicable laws along with HR Policy and sees that all employees get standard Health Benefits.
(Dept. 3) Pym Software’s Production Department Manager is a veteran software app coder who guides all Pym software coders in following Pamela’s app design.
(Dept. 4) Pym Software’s Advertising Department Manager prefers to advertise entirely on mobile phones. The Ad Manager places a Pym Software Ad in mobile app games and in social media to invite prospective buyers to buy through the “Microlist” App Store.
(Dept. 5) Pym Software’s Sales Department Manager monitors automated online Sales statistics through various online Sales apps. business relationships with current customers and prospects.
(Dept. 6) Pym Software’s Accounting Department Manager is a CPA who collects all income, pays all taxes, payroll, benefits, insurance, mortgage, farm tools, and farm supplies. She makes GAAP standard reports for the IRS and the Owners.
(Dept. 7) Pym Software’s Distribution Department Manager works closely with the “Microlist” tech support team to ensure applicable distribution and timely cancelation of the Pym Software subscription.
(Dept. 8) Pym Software’s Marketing Department Manager reaches out to all Pym subscribers to send User feedback on their apps. Pym Managers use the survey results to improve Production and Advertising.
============ LESSON 2.3 =================
A GROCERY STORE
Our Universal Business Model applies to mid-sized businesses of every kind. Let’s look at a fictitious grocery store in Nebraska, namely, Mum’s Quick-Mart, which sells groceries on a convenience basis. Mum employs 10 permanent workers. So, let’s look at Mum’s departmental structure.
(Dept. 1) Mum’s Quick-Mart is family Owned by Mr. and Mrs. Mum. The owners perform all Department functions as aided by a small staff of trusted lieutenants.
(Dept. 2) Mum’s Owners call their company rules, “HR Policy.” HR for Human Resources. These rules enforce HR Department Policy through their managers who can hire and fire employees as needed. HR Policy ensures that the company observes national and local laws. HR policy ensures that the whole company respects HR Policy and that all employees obtain the maximum Health Benefits as Mum’s can afford.
(Dept. 3) Mum’s Production Department Manager is a veteran store manager who orders new products for sale and guides store workers in shipment receiving, stocking, shelving, and marking products. She advises Owners of worker changes.
(Dept. 4) Mum’s Advertising Department Manager places a Mum’s Quick-Mart Ad in every issue of the local, weekly farming newsletter (and twice a year in the “Small Farm Today” national magazine). These Ads invite new prospective buyers to contact Mum’s Quick-Mart Sales.
(Dept. 5) Mum’s Sales Department Manager ensures that all products are appropriately priced; that the cash register is operable and contains adequate cash to make change for the day; and that all employees maintain good business relationships with customers.
(Dept. 6) Mum’s Accounting Department Manager is a credentialed accountant who counts and records all income, and then weekly pays all taxes, payroll, benefits, insurance, mortgage, tools, and supplies. She makes GAAP standard reports for the IRS and the Owners.
(Dept. 7) Mum’s Distribution Department Manager teaches employees proper cash register comportment, courtesy, and up-selling because a typical grocery store’s Distribution occurs at the checkout counter.
(Dept. 8) Mum’s Marketing Department Manager politely invites customers to write their remarks for their suggestion box. They use these remarks to help improve Production and Advertising.
============ LESSON 2.4 =================
A TYPICAL OFFICE WORKER
Here’s an example relevant to individual employees, not business owners. Office workers (like most employees) typically see their role as getting the job, showing up for work, and doing whatever managers tell them to do. Our same, Universal Business Model applies equally to them, too. Take the case of a typical office worker in an office of 100 cubicles. We might also regard her as a mini-company in herself. Here’s how:
(1) Jane Jones is an office worker at Acme Cars. She owns herself. Her customers (so to speak) are her supervisors who give her money for applying her office skills. Her key stockholder is Ms. Acme, so Jane strives to promote herself to Ms. Acme and her stable of managers.
(2) Jane’s personal HR Policy is to arrive at work early, healthy, well-groomed, in a decent mood, and ready to serve Acme Cars for 8 hours according to her job description. Jane also abides by Acme Cars’ HR Policy.
(3) Jane’s personal Production Department is based on her education and experience — the criteria that led Acme Cars to hire her. Jane thoroughly applies her skills to her job description and desk workload at Acme Cars.
(4) Jane’s personal Advertising Department plan is to obtain more job certificates, kudos, and acclaim from Ms. Acme to display prominently on her cubicle walls. (She will also include these on her resume just in case she needs to seek another job.)
(5) Jane’s personal Sales Department plan is her professional manners in dealing with Ms. Acme and her staff so that they consistently respect her work and look forward to solving problems with her.
(6) Jane’s personal Accounting Department routine is to live within her budget and to balance her checkbook.
(7) Jane’s personal Distribution Department routine is to deliver all projects on time and under budget so that Acme managers enthusiastically return to her whenever they need specific deliverables.
(8) Jane’s personal Marketing Department plan is, at staff meetings, to consistently ask Mr. Acme and his staff if “everything is all right.” Whatever their reply (positive, negative, or other) Jane writes it down as a reference to continually improve her performance.
================= LESSON 2.5 ==================
GENERIC SERVICES
Our Universal Business Model can even apply to Service businesses if we only bend our definition of “Production” a little. Services businesses have Production Departments in the following manners:
· A Retail business “produces” a convenient selection and Sales environment.
· A Legal firm “produces” Justice.
· A Gardening service, musicians, and dancers “produce” Beauty.
· A Medical firm “produces” Health.
· A Janitorial service “produces” Cleanliness.
And so forth. That is, we may call the results of the activity of a Service company to be the result of its “production” activities. Here’s an example of a Retail Sales company:
============= LESSON 2.6 =================
RETAIL STORE
Retail stores can often sell a Production company’s stock faster than the Producers themselves. Production companies like this and often give the best Retail performers the lowest wholesale prices as an incentive.
A Retail company sees the logic — the Production company lacks the freedom to concentrate exclusively on Sales. A Retail company, by contrast, has this freedom.
Let’s look at a fictitious Retail store in New Mexico, namely, MyLuxury which offers only famous brand fashions for an upscale clientele. Let’s look at their departmental structure.
(Dept. 1) Ms. Maria Prufrock is the Owner of MyLuxury as a private company. She has an expensive building lease on Main Street, and upscale display windows and decor. Ms. Prufrock enjoys signing wholesale contracts to buy only the most popular goods. MyLuxury retail stores provide a unique design for its sales floor to attract the upscale customer. Ms. Prufrock relies on top Department Managers to manage her Departments brilliantly.
(Dept. 2) The HR Department Manager at MyLuxury executes company rules (“HR Policy”) with the authority to hire and fire employees according to HR Policy. The HR Manager ensures that the company observes national and local laws and that the whole company respects HR Policy. The HR Manager also manages employee Benefits (health, sick days, vacation time).
(Dept. 3) The Production Department Manager of a Service company (including Retail services) has a specific “spin” on Production. Instead of manufacturing a Product warehouse, the Production Manager collaborates with the Owner to accept shipment of wholesale goods into the company warehouse.
The “product” of MyLuxury Retail stores is a concept — the unique mix of upscale fashion stored in MyLuxury warehouses — ready to sell. Their retail stock includes Gucci, Chanel, Hermes, Dior, Saint Laurent, Fendi, Lancôme, Estee Lauder, Moncler, Givenchy, Versace, Armani, Even the best Production companies can’t sell such a wide variety of goods.
The Production Manager fills the MyLuxury stockrooms and store displays with the most upscale products available. It’s the selection of goods that defines the Production Department of any Retail store. A Retail company produces a unique stock inventory to sell to a target population.
(Dept. 4) MyLuxury’s Advertising Department Manager hires copywriters to write brand awareness Ads for social media, Email, the MyLuxury website, and Ads in local newspapers and magazines. These Ads flaunt MyLuxury’s unique inventory of goods for sale to tempt upscale buyers to visit the store to see for themselves.
(Dept. 5) MyLuxury’s Sales Department is the lifeblood of MyLuxury’s success. The Sales Manager’s Sales staff collectively know every detail about every product for sale in the MyLuxury warehouses. They know how to directly speak with this special audience of prospects. The Sales Manager always maintains good business relationships, past, present, and future.
(Dept. 6) The Accounting Department Manager validates payment transactions, and at days end, tallies the daily sales income and allocates percentages for taxes, payroll, loans, internal expenses, and stock replenishment. The Accounting Manager makes GAAP Financial Reports for the IRS and the Owner. The Accounting Manager pays all bills and authorizes (or denies) purchase orders made by the Production Dept.
(Dept. 7) MyLuxury’s Distribution of exclusive fashion apparel to discriminating buyers occurs inside the Retail store itself. A computerized cash register validates payment transactions, and the cash register clerk bags the purchased items and politely hands them to the buyer.
(Dept. 8) MyLuxury’s Marketing Department Manager continually invites past patients to fill out a survey form regarding feedback on the service they received at MyLuxury. Marketing staff will keep an eye open for glowing positive feedback, to use these as Testimonials to forward to the Advertising Manager. The Marketing Manager summarizes all survey results into Marketing Reports for the Owner and all Department Managers
============ LESSON 2.7 =================
MEDICAL SERVICES
The Universal Business Model applies to all middle-sized businesses of every kind.
Let’s look at a fictitious hospital in Appalachia, namely, MyHospital which provides emergency medical care to locals. MyHospital has large buildings and employs 50 permanent workers, as well as seasonal workers. Let’s look at their departmental structure.
(Dept. 1) Doctors Feelgood and Dealgood are Owners of MyHospital as a partnership. They have taken out substantial loans to finance the building lease, new hospital furniture and medical equipment. The Owners still perform surgery as needed, and prefer to let Department Managers run their Departments.
(Dept. 2) A resolute HR Department Manager MyHospital executes company rules (“HR Policy”). The HR Manager has the authority to hire employees and to fire employees who fail to uphold HR Policy. The HR Manager ensures that the company observes national and local laws and that the whole company respects HR Policy. They manage employee Benefits (health, sick days, vacation time).
(Dept. 3) The staff of MyHospital comprises the Production Department. HR screens family doctors and staff by past performance. Nurses in addition require a fitness exam. HR screens surgeons by past performance, a fitness exam, and a history of fiscal responsibility. The Production Manager advises the Owners about new hospital equipment purchases, among other budget items.
(Dept. 4) MyHospital’s Advertising Department Manager hires blog writers for the MyHospital Blog, and copywriters for Brand Awareness Ads on social media, in Email, on the MyHospital Website, and inside every issue of Local Hospital Weekly. These Ads simply proclaim the existence of MyHospital so that prospective patients might contact MyHospital Appointments and Schedules when the need arises.
(Dept. 5) MyHospital’s so-called “Sales” are redefined by the Patient Appointments Department Manager. Patient Appointments software can screen patients and their Insurance profiles. Patient Appointment employees always maintain good business relationships with past, present, and future patients.
(Dept. 6) A Certified Public Accountant (CPA) runs MyHospital’s Accounting Department, requiring intake clerks to note any changes in Insurance and to collect any co-pay charges. At the end of the day, the CPA tallies the daily income and allocates percentages for taxes, payroll, loans, internal benefits, internal insurance, internal rent, hospital equipment, hospital supplies, and expenses. The CPA makes GAAP Financial Reports for the IRS and the Owners. The CPA pays all bills and authorizes (or denies) purchase orders made by the Production Dept.
(Dept. 7) MyHospital’s on-site Distribution of skilled labor-time and equipment-time to individual patients closely follows reports from MyHospital’s Appointments and Schedules Department.
(Dept. 8) MyHospital’s Marketing Department Manager continually invites past patients to fill out a survey form regarding feedback on the service they received at MyHospital. The Marketing Manager summarizes all survey results into Marketing Reports for MyHospital Owners and Department Managers
============ LESSON 2.8 =================
A PUBLIC SCHOOL
Our Universal Business Model also applies to local government offices, such as Libraries, Fire and Police Departments, and Public Schools.
Let’s look at a fictitious school in Southern California, namely, Ambrose Elementary, with about 600 total students, about 30 students in each classroom, and about 20 full-time teachers. Let’s look at the departmental structure of Ambrose Elementary.
(Dept. 1) The Ark Independent School District (AISD) in coordination with the CSBE (California State Board of Education) functions as the Owner of Ambrose Elementary. AISD officially oversees all Departmental administration.
(Dept. 2) Ambrose Elementary’s school principal functions as the HR Department Manager to administer Ark City Council rules for Human Resources (HR) Policy overseeing laws for the promotion and discipline of teachers and staff, as well as salary, wage, and benefits guidelines.
(Dept. 3) Ambrose Elementary’s school principal functions as the Production Department Manager who administers the application of the official K-8 curriculum. The Production Manager binds all teachers to use this K-8 curriculum to instruct all students.
(Dept. 4) Ambrose Elementary’s school principal functions as the Advertising Department Manager by managing the school website that offers answers to Frequently Asked Questions. The website also assures parents that registering their children in Ambrose Elementary is in their family’s best interest.
(Dept. 5) Like any public school, Ambrose Elementary is free to all children of residents. Nor are any residents absolved from property taxes whether they have children or not. For this reason, the Ark City Council functions as Ambrose Elementary’s Sales Department Manager, to ensure the collection of funds adequate to run the school and cover all necessary payments and expenses.
(Dept. 6) Ambrose Elementary’s Accounting Department Manager is a CPA elected by the City Council who receives funds budgeted to cover teachers’ and staff salaries, wages, taxes, benefits, insurance, loan payments, as well as janitorial and ground keepers’ tools and supplies. The elected CPA pays the bills regularly and makes GAAP standard financial reports for the Ark City Council accountants.
(Dept. 7) Ambrose Elementary’s school principal also functions as the Distribution Department Manager who oversees the teachers’ “distribution” of CSBE curriculum content to all classroom students according to the CSBE schedule. The principal also issues guidelines to define teacher’s discretionary exceptions.
(Dept. 8) The president of the local Parents and Teachers Association (PTA) functions as the Ambrose Elementary Marketing Department Manager. At PTA meetings, parents, and teachers voice concerns to City Administrators and each other. These meeting results help improve Ambrose Elementary operations.
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