Online Adaptation

In the last decade, business has completely changed-evolving faster than ever recorded. Due to the introduction and gradual imposition of online commerce, bright young minds are now a necessity to survive in the corporate world. Without stating any absolutes, the business owners and decision makers that have passed their prime are having a massive amount of difficulty adjusting their business models. The technological storm that has reshaped business is sure to separate the up and coming from the come and gone.

While the internet was created nearly a third of a century ago, online shopping did not take off until the late nineties. At this point, the idea still seemed completely experimental to executives and shareholders, and served more as a gimmick of a selling point than a legitimate venue. The serious online purchases began when fashion retailers seemed to realize they had more products than they could fill a store with. They arrived at the conclusion of allowing consumers to order any in-stock factory items online, which could be delivered to the store in the style, color, and specified size with the click of a button. This still only attracted a small demographic of shoppers, as the internet didn’t become commonly used until the twenty first century.

Until the year 2000, more than half of the world had never heard of the internet. With a status this low, corporate heads left the marketing and retail processes to the physical and feasible locations, like billboards and shopping centers, respectively. By 2005, the interest was being introduced in most national public schools and workplaces. As computers were finally becoming recognized for their potential usefulness in commerce, the users were becoming infatuated with the internet superhighway.

Perhaps it was the introduction of computers at an age of mental development in high school, or a simply coincidental turn of events, but the newly certified, up and coming MBA graduates all seemed to ambush the internet market between 2005 and 2010. Two years after this malicious change in business, there were companies becoming established specifically through the internet medium. These slow rising entities now compose some of America’s most wealthy corporations, with names like Google, eBay, and Yahoo!.

These online companies were clearly onto something, and the former kings of commerce raced to adapt. While most quit after one or more failed attempts to infuse the internet, others did a smooth job of adapting. A specific example of this successful adaptation is the internet-based pizza business. This service of deliver and product of fast and delicious Italian cuisine can now be ordered through the internet. Customers found this to be innovative and fun to use. This exemplified the industry’s quick thinking and ability to suit an unpredictable market. On the opposite side of the spectrum, shopping supercenters and grocery stores did a poor job of adapting to fit the advantages of the internet. They are unable to provide delivery or exclusive online products, making their websites essentially null in purpose.

For all business owners and investors in the modern era, it is important to remember that the internet was created and populated with commerce extremely recently. This could foreshadow the sporadic behavior of the online market, which could change in format, usability, or any other virtual features in a matter of years. Young executives must have an adjustable and flexible business model to be ready for any curveballs that the marketing world may throw in the near future. Online commerce presents a problem for outdated executives, especially in terms of communication. As new online traditions are founded and new technology is developed, there starts to be an assumption of the knowledge that comes from the creators of the products or additions. For example, a computer program now assumes that the customer understands the basic functions of the machine.

Technologies that were completely unknown a mere century ago are now controlling the way business is done. This applies more to the internet than anything else. The online world is still being constantly construed, forcing business owners to immediately adapt to achieve success.

Saving for Retirement

A footnote of the American dream is the difficulty that many workers encounter when attempting to save enough to retire. Retirement is supposedly the carrot on a string that motivates the gears of industry, but as time advances and the population grows; it becomes far less attainable for any member of the middle class. For those with proper education and adequate desire, certain tips can help save for the suggest four hundred and one thousand dollars needed to live comfortably after their working years.

Most companies that have a decent human resources department or a compassionate relationship with their employees offer a 401k contribution fund, which can be used to produce a sustainable savings fund. This works in two different ways, depending on the company, both in terms of finance and ranking in the corporate world. The first of these is actually a legal ability held by any employee, which states any member of a company has a right to put a percentage of their paycheck towards a retirement fund. This stands to reason, as the entire goal of the working environment is to create a comfortable and sustainable income. The percentage that the paycheck can contribute varies based on state law and corporate policy. Another opportunity offered by several companies is a “match” of funds. This means that each time a member of their work force makes a deposit into their retirement account, the company will also deposit the same amount. In such cases, the contributions are carefully monitored to avoid any fraudulent activity, which can ensure the validity of the policy.

Many banks offer 401k loans, the purpose of which is to accumulate interest on the current funds while contributions from actual earnings slowly replace the loan. This is a risky process, as many loan interactions tend to be, especially for those that have difficulty budgeting themselves. The terms of a retirement loan become more flexible the closer the person is to retirement, as well as the amount of time put into a current job. Many workers that take out an unnecessary or early loan will almost always end up spending it. This leaves them without any sort of savings, as well as a significant debt to the bank system. A 401k loan, if necessary, should not be taken out until age forty, or when fifteen or more years are put into a career.

Early saving is an important part of saving for retirement, as reason stands to support. While retirement almost always seems like it could not come soon enough, it is not an excuse to delay a deposit into a savings account. As previously mentioned, an important part of this process is to modify payroll to automatically set aside a percentage at each payday. It is never too early to put aside for retirement, and even those that have acquired a job very recently can begin to do so.

Investing money to build up a 401k can be a viable option, depending on the place of investment. Bonds and regulated saving funds are always safe for slowly accumulated money, but for a low income employee, it may not generate enough in addition to weekly or monthly income deposits. Many business legends and savings articles recommend small investments in the stock market to gather savings. As this is a less stable option, it provides a way to make educated and profitable deposits.

Constantly monitoring savings is a simple tip for a successful retirement fund. It is suggested that each year, the annual contributions as well as unfortunate withdrawals should be accounted for and tracked to the source to assure that the transaction was legitimate and reasonable. For successful years that are accurately documented, the same annual deposit habit may be repeated in the following fiscal year.

Retirement funds are not simple. They cannot be easily attained or contributed to, but there are business and corporate policies in place to assist with the process. Many employers will match a worker’s weekly, monthly, or annually placed deposits, while others will make up for a percentage of the fund’s addition. Retirement loans are extremely risky and almost never a good idea. On the other hand, investments made with the current savings can be beneficial based on their return rate. A 401k plan can still be successfully executed in this day and age, as long as proper care is applied.

Business news: Gopayment

While credit cards have developed a bad media reputation because of the potential debt intricacies, a recent phone and tablet app has brought some good news to the table. Especially for the demographic of business owners, Gopayment has brought sales to a virtually new platform. The application is free, and allows users to download it and pay a small fee for each transaction. These transactions can take place absolutely anywhere with an encrypted card reader. This makes any business that can move its goods or services completely mobile.

This application began in the app store for the iPhone, and became popular almost immediately with entrepreneurs. The app gives the ability to transfer the funds from the customer directly to a bank. This coexists with growingly used bank applications, which will then allow the owner to directly buy more supplies or improved products, as well as being able to pay their employees, even if they aren’t quite as mobile.

The extent of security that the application creators put into this is widely impressive from a business standpoint. After downloading the program initially, each user must apply separately to become approved for accepting credit cards. Without this feature, many users would be nervous to give their credit cards to smaller scaled entrepreneurships in fear of fraud. Once approved, the Gopayment user can begin right away. The card reader plugs directly into the audio jack, and the program itself brings up a screen that prompts the customer to sign for the purchase.

The payment options for Gopayment are relatively unique, as they have two options that depend upon the frequency of the card reader use. The encouraged option is to pay a monthly fee of about thirteen dollars, which makes the sales percentage for using the program a mere 1.7%. The other option, for customers that may have less expensive products or less use for the app¸ the monthly rate can be ignored at the cost of an additional one percent per sales transaction.

As with any innovative and new technology, there can be confusion between the user and the programmer, which can lead to frustration for less than competent products and services. To solve this, the creators of Gopayment added a support line that runs twenty four hours a day, seven days a week. This helps to take credit card payments internationally without any trouble, as well as giving a helpful and guiding voice if and when the user runs into any sort of mechanical trouble or bugs in the program.

The app allows salespeople to collect tips as well, which can be transferred to a bank account in the same transaction as the profitable revenue. All forms of money and tips are always agreed upon and easy to understand for both parties. To assist this feature, Gopayment offers receipts. These are not in any way a traditional receipt that would be given to someone in person in a transaction with an actual credit card machine. The tablet or phone can send a receipt, listing the price, sales tax, and tips charged to the customer, through text or email. These virtual representations of a purchase gives the user an increased feeling of security, and are just as credible and legitimate as a paper receipt.

The formatting for purchases with this application is arguably perfect. Above the signature section is a digital reminder of the total that will be charged to the customer’s card. The payment information section includes the name of the consumer as well as the date, sales tax, tip, receipt information, and a couple other things. The screen never seems to appear too crowded and is laid out for ease of use. Products can be ordered in paid for in controllable quantities, which can go up and down with an addition and subtraction button. All sales are tracked and easy to comprehend, as the terms and service of Gopayment help to guide the fiscal process.

Gopayment, though recently introduced, has already had a monumental impact for small businesses. For small shop owners that never dreamed of selling anything anywhere else can now unload products on the go. As the program grows and is used more often, its appearance in the business world is sure to increase.

Social Media in Relation to Business

While technologies grow, humans have begun to change their communication behavior. Instead of face to face talk and physical feelings, society now sends and receives information through the internet superhighway, specifically social media websites. The most popular of these is currently Facebook, closely followed by Twitter and Google chrome. While the companies that produce these websites and potentially fund them play some economic role on the nation and world, business interactions have changed vastly within the websites themselves. From customer reviews to advertisements, the thought process within the mind of the consumer has become complex and more informed. Even the necessities of the average human have changed with the use of online communication. This includes an increase in fast foods, as well as sufficient equipment to fit the task of taking on a virtual world of peers.

To better understand its effect on business, it is important for one to first have a full knowledge of the use and purpose of a social media website. To keep people connected, some of the first of these websites formatted a search bar to find lost friends, classmates, and family members. At the same time, dating websites started to rise in use, an idea that branched from the possibility that a lover can be picked based on information they share in common. As this became something of the norm for many, a general social media website was developed by a student at Harvard. This, arguably, perfected the idea of laying out semi-personal information to get a quantitative perspective on human personalities. While the format and user friendliness of the websites become indisputably substantial, this website, which goes by the name of Facebook, is used by hundreds of millions worldwide. This caused a chain reaction of other social media websites, which now control not only a large portion of personal information but also fiscal business transactions, in theory. These websites have streamlined and changed the behavior of the growing demographic of computer users.

As part of these websites focus on talking to friends and family, an additional feature of many consists of the socialization with, for lack of a better term, strangers. Talking to new people is not always in the interest of personal information, but also shared interests, which often relate to products within the global business market. Fan pages and company profiles allow users to share their experiences with new phones, foods, and services. As these different goods and sources of revenue change and modify, possibly for the worse, the public now knows about it instantaneously. Profile holders can comment and discuss the benefits and disadvantages they found with the new or trusted product. This proves advantageous, as instead of advertisement, the public can read actual information about what others have to say.

Advertisements alone are the source of power for social media websites. As more members join the websites, there is a higher potential for a company’s advertisement to be viewed, and thus the value of the advertisement is increased. Companies like Facebook, Twitter, and YouTube can make millions by simply giving up a small portion of their home screen. These portions are filled by the highest paying company, usually one with significant corporate merit. They are given creativity to fill this with anything that can catch the eye of a consumer, and in modern days, the advertisements adapt to the page being viewed to specify the type of customer they go after. This has increased the financial success of companies with advertising budget, as well as giving a strong source of income to the creators of such websites.

While it seems that the corporate business world thrives as it resonates with the satisfaction of social media users, there will always be disadvantages. The most common of these is a lack of balance between advertisements and actual content. Others include discrepancies between the website owners and advertisement content. These can hold back the growing trend, but has shown no major dent in the relationship between business and social media.

Websites that specialize in person to person communication have modified the way business is conducted. With online advertisements connected to popular websites, companies can get the word out about their products and services faster than ever. In addition, other users of said products and services can compare and bounce ideas off of each other. As this online habit increases, as will its impact on business.

Intellectual Property in Business

As a thought is not a feasible and measurable thing, it can be hard to track the source of an idea. This leads to thievery and dispute, which eventually lead to the logical incorporation of patents. Without these, companies would have nothing to base their success on, as any competitor could easily match the strategy or design of another without violating any sort of laws or moral guidelines. Patented property most commonly consists of images, designs, inventions, and discoveries. While some of these grant ownership to the source, others, like discoveries, simply credit the person to have their ventures and achievements known and verified. Patents help to establish ownership of non-physical objects, and affect the way business is conducted everywhere.

The idea of being able to own things like these caught on fast, developing something called the WIPO treaty: an international agreement to abide by patents. The reasoning behind this treaty was fundamental, and defined by the creators of the treaty in the following definitive statement:

“One is to give statutory expression to the moral and economic rights of creators in their creations and the rights of the public in access to those creations. The second is to promote, as a deliberate act of Government policy, creativity and the dissemination and application of its results and to encourage fair trading which would contribute to economic and social development.”

The ladder portion of this quote summarizes the intent of intellectual properties purpose of keeping a morally clear and focused form of technological growth for the business community. Instead of debating over mock products and stolen designs, a fiscal honor system allows to consistently building upon trust and advancement.

The phrase and concept of intellectual property was developed in seventeenth century Germany. Rather than every idea being shared as a community, discretion came into play at the hands of a sense of deserved ownership. The influence of a group of northern Germans won over the legislation of the German government, ruling it appropriate to own creations, thoughts, strategies, and anything else related to intellectual ownership. The spread of acceptance for this theory spread very slowly through Europe, reaching the United Nations in 1967, creating the aforementioned WIPO treaty (world intellectual property organization.) Prior to this, there were trace signs of intellectual ownership in governments before this point in time.

There remains a debate of morality for the effectiveness of intellectual property. It has become widely accepted as a reasonable concept in recent years, but there are still apparent criticisms. One main example of this is the theory that exclusive information may lead to commercial disputes, eventually leading to and involving real, physical objects and services including the income. An advocate to such criticism, Richard Stallman, describes this confusion as a tangled mess that feeds money to those that endorse it. This man runs something called the Free Software Foundation. Not alone in his endeavor, other groups of people agree that perhaps thoughts and improvements should be shared for the common good of all. Though this is a debatable point of view, these critics are simply outnumbered.

As it exists now, the concept of intellectual property serves to benefit businesses greatly. Plagiarism and violating copyrights are not only morally corrupt to most, but illegal in many forms of the act. Trade marks, patents, and copyrights are easy to obtain in the United States, and allow a business to have ownership of designs, pictures, and certain forms of ideas. For innovative businesses, this allows them to keep the upper hand for new product designs for a longer amount of time. Eventually, generic and barely law abiding products get out and are sold for less, making the brand name once more nothing but an expensive label. When it comes to capitalism, this intellectual property can be valued, especially in a place with as much corporate competition as America.

Intellectual property stands to be a controversial subject, especially because of the recently agreed upon jurisdiction of the United Nations in 1967. Its heavy influence in America, however, serves a powerful purpose and delivers a hefty impact to commercial business. This concept created an entire change in the game of business, making ownership of ideas full of loopholes, and only temporarily valuable, rather than businesses focusing on advancing designs as a whole. Intellectual property has increased competition and made commerce vastly more cutthroat.

Alternative Fuels and Business

While the race for oil fueled a major part of the American economy for the last century, the growing scarcity of the substance has begun to shift financial interest to those companies focused on more sustainable forms of energy. From wind power to nuclear energy, the world is fast realizing the importance of such worthy commodities. Some energies are more plausible, like the currently existent types of vehicles that run on used oils and greases from fast food companies. While the validity and fiscal power of alternative energy based corporations grow, the oil companies and their ties to the economy are dwindling further each day. This leaves a void between the current power of alternative fuel and the former importance of natural gasses, which the former is rushing to fill.

While there are many debatable and potential ties between the United States government and middle-eastern sources of oil, this article focuses specifically on concrete and purely economic based oil companies. One of the most powerful of these is the Anadarko petroleum corporation. Based in Texas, they are among the largest independent oil companies and are responsible for the unearthing of a large portion of American based oil. While there is not much to speak to in terms of unique properties, this heavily involved corporation serves as a perfect example for the decreasing wealth and power of petroleum and natural gas based industries. The numbers for fiscal years do not directly represent a financial hit, but they do show a gradual halt in their previously exponential patterns of growth. Another famous company brought havoc to the entire oil transportation system- BP oil. Their internationally known incident in the Gulf of Mexico sent consumers running to the hills in fear of the potential oil damage. Ravaging the area environmentally, it took some time for society to trust this specific company once more. Now, with the downfall of petroleum deposits, BP has become weaker than ever before. It can be reasonably predicted that similar companies will follow suit in the near future.

Oil franchises that helped found the economic state of America are now given a choice to change their ways and adapt to the trends that will come in the future, or be forced out of the business. Rising companies have taken advantage of the lag in decision making for some of these oil companies, establishing a name for them when it comes to solar and wind power. Getting in front of these classic companies has given room for innovation from new companies to expand, bringing new minds to the table when it comes to alternative energy based technology. One example of such a company is Maxwell Technologies Inc. (MXWL) which was previously established as a general technology and electric company. As the overwhelming hold of the oil companies began to wane, Maxwell took full advantage of the increased interest in other sources of energy. This company took part in the development and manufacturing process of some electric cars to a certain degree, which can be found on the market today.

When it comes to the natural gas crisis and its impact on business, there is a lot to be said that pertains to the current and future status of major companies and investors. The auto industry in particular will be forced to adapt to the environmental implications of classic oil companies. As nearly one hundred percent of current vehicles run on some sort of oil, gasoline, or petroleum based substance, this is sure to have both stockholders and manufacturers scrambling to compete with one another. To make matters more interesting, there has still not been an agreed upon alternative fuel source to replace oil with. There are many developing options, but electric, solar, wind, and nuclear energies are virtually tied for the ability to replace natural gasses. This will prospectively increase the variety of new technologies, and transitively the manufacturers of said technologies.

As the last of the earth’s oil is scavenged by billion dollar companies, smaller businesses have started to wedge themselves into the growing market of alternative energies. The general public will soon see the apparent implications upon international economies, from varying investment potentials to a complete change in the market for energy based items.

Supply and Demand

Supply and demand is taught in schools as one of the most basic economic concepts. As soon as children can learn about currency and its relation to goods and services, they are next taught the demands of the market. These demands completely control the supply of goods and services that companies and corporations create on a massive scale. The matriarch and patriarch of the international marketplace, supply and demand are the controlling factors of almost everything in modernized society. The two concepts seem simple to understand and gauge based on the current status of the markets, but they run deeper than almost any other historical and commerce related desire.

Rather than a simple indicator of what companies should sell, supply and demand actually act as a numerical price indicator for everything that can be bought. The in depth, college level subject runs on the foundation of four basic rules.

  1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and higher quantity.

This rule explains that once a company or group of companies make the maximum supply of a product based on manufacturing variables, they can no longer increase production.  Using the word equilibrium to describe the average status of most companies, this part of the rule explains that the value of the maximum amount of products will increase if the demand continues to do the same. To create an example, if all fast food consumers began to eat nothing but French fries, the restaurants would begin to exclusively create and serve French fries and nothing else. If the demand then continued to increase, the restaurants couldn’t suddenly make French fries that come from thin air, they can only increase the price of a fry until the demand eventually slows. This will maximize profit and keep the demand of the customers as a neutral and controllable level. This is a very unlikely situation, and the example serves specifically to show the impact of an increased demand.

  1. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and lower quantity.

This is essentially the opposite of the first rule, and, to follow the first example, would result in less production of French fries. The example restaurant would begin to serve more burgers and chicken, while lessening the amount of fries. The price of fries would drop to try to keep them on the menu, but if the demand did continue to slow, they would eventually be taken off of the menu completely.

  1. If demand remains unchanged and supply increases, then it leads to lower equilibrium price and higher quantity.

This is the most basic of the four rules. If the previously mentioned example restaurant suddenly received an order of fries twice the size of the ordinary ones, they would try to increase the purchases of fries by decreasing the price, and therefore their value. The higher quantity of fries in this situation is therefore self-explanatory.

  1. If demand remains unchanged and supply decreases, then it leads to higher equilibrium price and lower quantity.

The last of the rules and most similar to the third, the fourth states that a decrease in product would result in an increase in price. If a strange potato disease were to wipe out half of the French fry shipment, the restaurant would receive less sellable French fries (lower quantity.) To attempt to recoup their losses, they would raise their prices on average to attempt to make up for the loss. This would continue until the unchanged demand eventually began to fall due to the overwhelming expense.

These four instances, or rules, are commonly occurring. They mix with one another, making the financial equations far more complex than the sale of French fries at fast food restaurants. With the overwhelmingly large variety of products, services, and needs that eventually equal out to demands, the economic concepts run far deeper into the veins of international commerce. Economists have put together a chart, representative of the asymptotes of supply, price and demand, which correlate to every single type of business. With the correct variables and factors, this chart can tell a business owner exactly what how much to sell and what to charge for the product in order to get the most money out of the consumers. Business owners use supply and demand as the complete determinates of sales.

Marketing

Marketing has become the lifeblood of business. It shapes the desires, thought processes, and financial decisions of all consumers. Even if specific slogans and advertisement based persuasions do not resonate with the reader or viewer, they are still exposed to the image or slogan of the products and services. This has a subconscious effect on the human mind, imprinting the idea of having that bottle of soda or seeing that movie while the mind is at ease. This creates the seed of desire, which will eventually grow, based on factors like continued exposure and accessibility, until one or more of the good is purchased. This is the end result for marketing experts; the official goal of the job.

Marketing has advanced to a point that entire companies are based upon and composed of marketers that look to be contracted with corporations that actually produce things. Marketing, then, is classified as a service. A popular and growingly advantageous service at that, marketers are present in almost any large scale company. They take the product or service, and make it as compelling as possible to the eye of a customer. Advertisements come through a large amount of formats, from the most popular, the television commercial, to the physically largest, like billboards and banners, they are placed all throughout the life of the consumer.

To compare it to an advertisement itself, the human life is much like a television show in terms of content. The majority is informational and important content, with subtle product placement, like brands of food being eaten and types of shoes being worn. The rest, however, is full of blatant advertisement. For the show, this would be the commercial segment, but it has gotten to a point that life itself has so many marketing fillers, that almost twenty percent of our time is spent reading a magazine ad, passing a poster for a new movie in the mall, almost every possible visited location is now filled with the work of marketing agents. There is no place, no activity that can be performed without some sort of sales pitch or attempt to initiate a financial transaction.

To someone that has not witnessed the last half-century of human and commercial behavior; the amount of advertisement in the world would be shocking. This is completely due to the work of the previously mentioned marketing agents and companies. An overwhelming amount of thought is put into the posters, commercials, and printed ads: thoughts that are debated and manipulated by rooms and buildings full of people. These ideas and finalized versions of advertisements are then reviewed and possibly changed by the corporate leaders selling the product or service. On average, an advertisement won’t last for more than a couple weeks, until it is then suited to fit a new consumer desire or instinct.

To speak more towards to appeal of instinct and its relation to marketing, there are usual multiple draws to the born desires of men and women. For men, the most common is an attractive woman in an advertisement. Companies that specialize in manly things like razors and motorcycles will usually be given an advertisement from there marketers that in some way involves a woman with extremely attractive attributes. This rule also applies to woman products in some cases, though it is a less common sort of appeal. Other advertisements will also include foods that are extremely hunger-fulfilling or “mouth-watering” to affect the vulnerable minds of people that have not eaten recently. Marketing, in its most pure and naked form, preys on the weaknesses of our most powerful instincts, especially sex and hunger.

Marketing has grown exponentially in the increasingly globalized society that humanity has established. It is now an inherit part of daily life. In placement of actual content is the attempt to hypothetically access ones purse or wallet. Many would classify advertisements as dishonest, which this article will neither agree nor disagree with. One confirmed element is that there is intention behind ads that differs from simply informing or interacting with people in a communicative format. As this trend increases, it is gradually changing society. By modifying content to fit the agenda of marketers, the composition of commerce and business itself is being changed. Marketing has a strong grip on the status of our world.

CEO

The CEO (chief executive officer) is the highest executive position in the corporate world. This officer controls the inner workings and actions of company departments and employees. The chief executive officer makes the most important decisions, like where to place budget cuts and what sort of direction the company should continue to go in or change to fit. In addition, they are responsible for supervision, communication, and motivation. This is obviously a tasking role, especially for large scale corporate offices. The in depth responsibilities and measurable authority of a CEO is controlled by the board of executives, which includes the owner of the company and the top investors and shareholders. The CEO plays a key role and holds a considerable amount of power in any type of company.

The chief executive officer is one of three possible chief positions, each of which is usually filled in a corporation. The other two are the COO, chief operating officer, and the CFO, chief financial officer. Depending upon the status of these positions, the CEO’s job can be adapted to include more or less responsibility and decision making.

The first classified role of the CEO is as the communicator. The employees, each and every one, look to the CEO to be their leader. This makes it up to him or her to inform those on the company’s pay roll of any changes that may have an effect on the status of their job, or the goal of their business driven actions. An example of this would be a company that sells a slowly outdating product and decides to modify their product. For this instance, a hypothetical cell phone company will be used. The salespeople may be used to giving a pitch for a phone made in 2008. This would eventually become their norm, in the same way that the factory workers would become accustomed to assembling and manufacturing this 2008 model of the phone. When the new phone is created by the design experts to be labeled as the 2009 model, the workers will need to change their daily work lives. This is where the CEO comes in and decides how to slowly make the change to the new 2009 phone and generate the more income. For an actual cell phone company in the twenty first century, the CEO would use methods of delegation to assist in the transfer. He would pass the information down to regional managers or directors, who would then give the procedures and policies for the new phone to department heads, and the information would slowly follow the chain downwards until it reached the most basic and numerous of the employees.

During this act of delegating communication, the CEO also has the responsibility of being the supervisor. If the information delivered is flawed or construed in any way, the product or “2009 cell phone” for all intents and purposes, may be produced, sold, or distributed incorrectly.  This will ultimately lead to a decrease in revenue for the company, so the CEO must play the role of the supervisor to immediately correct any potential flaws, therefore establishing their second responsibility.

Lastly, the chief executive officer is usually in charge of motivation, to some extent. It is commonly up to the leader to keep the employees actively interested in what they are doing. At this point, the mission statement is usually emphasized, giving the most basic interpretation of the company’s purpose and intentions. To keep employees on track, they must constantly feel that they are progressively benefiting themselves. This is the first priority of all workers, as their personal pay holds the wellbeing of one or more persons. Next, it is important for employees to know or believe that their work, and the impact of the company, is affecting the world in a positive manner. Depending on what the company does, this can be a difficult role for a CEO. Fortunately, most people would not choose to work in a place they are completely ethically opposed to.

While their responsibilities vary based on decisions from the executive board and owners, the CEO always has a full plate when it comes to work load. They need to be sure the company is in line, from the large scale managers to the small scale factory workers. When changes in the company are implicated, it is up to the CEO to explain and deliver the information necessary to adapt. The CEO is crucial to any company.

CFO

CFO

The CFO is unofficially agreed upon to be the second most important executive position, not including the owner of the company. Shadowing the chief executive officer, the CFO (chief financial officer) is responsible for making large financial decisions for the company, as well as analyzing the information they find and are given, and lastly they are tasked with the responsibility of informing the CEO with their findings, and their rationale for the analysis. The CFO used to be a far less important job, but with the rapid expansion of the corporate commercial world, they have become fundamental to the decision making of a company.

Years ago, before the cataclysmic commercial boom of twenty first century globalization, the CFO was not a commonly utilized position. They remained usually for the purpose of supervising intricate financial segments that the CEO could not get to, due to rapidly changing company policies or growing profits. As this began to be the case for most of the companies on the verge of the year 2000, there seemed to be a shift in the usability of the chief financial officer. They were slowly, and on average, given control of the complete financial segments of full corporations. In recent years, the CFO has been a very desirable and important executive position.

The first job of the CFO can best be described as approval. As small scale clients and transactions take place, there are always potential financial liabilities, or risks, that have desirable awards. From possible lawsuits to less than credible transactions on account or credit, the chief financial officer decides whether or not to approve the most to least important of these. The CFO wants to increase the financial activity by opening new client relationships, but needs to avoid losses. A badly placed approval that results in a loss will reflect directly to the person holding this executive seat.

Next, the CFO is held accountable for financial planning. The majority of this job is in relation to taxes. A work force of accountants are usually tirelessly calculating accumulated earnings, owed amounts, and interest rates for all sorts of sales, financial, and business taxes. The CFO, in terms of planning, has to have the right accountants doing the right jobs, in the right places, with the right equipment. This, as well as an accurate compilation of their findings, is very important not only for taxes, which can have dire consequences when neglected, but also the basic structural sales patterns of the companies, which sprawl through a considerable amount of corporate and individual clients. The CFO, obviously, cannot be responsible for individual calculations that are handled by accountants, and is instead the decision maker of their positioning and the sources and destinations of their information and analysis of earnings, losses, and the like.

The optional third most important job of a CFO is the analysis of the accountant’s findings. For the chief financial officers that do hold this responsibility (about fifty percent of American CFOs do not) they must do so in a professional and advice based format. Their findings are then reported to the CEO, a step which can partially be considered as the fourth and final job of a CFO. The findings must be concise, because the corporations that do employ a chief financial officer usually do so because the chief executive officer is extremely occupied. Due to this fact, they must have a basic financial outline of their weekly to monthly findings in most cases, which are composed of a few different things. First, the introduction of information must include a short summary of any clear and present problems, or a statement claiming everything is completely on track. Usually, charts of sales income, tax revenue, and similar statistics are to follow the summary, giving the CEO a good idea of the current direction. There is also somewhere on this report that will provide an analysis of the financial findings, giving reason to the advice that is given to the CEO.

The CFO had a dramatic rise to importance at the beginning of the twenty first century, most prominently due to an increase in the workload for the CEOs. To take on the more in depth financial decision making, more corporations hired an executive to take care of the financial spectrum of things. This chief financial officer is less than debatably described as the second most important executive seat. He or she takes on three to four responsibilities, which are crucial to the success of a company.