Chapter 1: What is an MBA?

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Lecture description

Chapter 1: What is an MBA?

Erik enquires about starting his café.  He has heard of an MBA, but isn’t sure what this entails.  Susan explains both from an educational standpoint as well from a functional perspective.  The value behind starting a business from an MBA perspective is reviewed.

Susan asks Erik what he hopes to accomplish by opening his café to which he responds he is hoping to provide a public service, great products (food/beverages), and a fun, social environment while, of course, generating a profit.  Susan notes that Erik has the following goals: profit maximization, providing a public service and running a business to create social benefit.

Learn more from the full course

Business Administration for Your Business - BUS102

MBA, Finance, Accounting, Marketing, Management, Strategy, Entrepreneurship, Sales, Human Resource, Business English

01:24:52 of on-demand video • Updated June 2018

  • The students could understand Introduction to MBA Basics.
English [Auto] Chapter 1 What is an MBA. Hey Susan it's nice to see you. Hi Eric. Same here. What's new with you. Well I'm hoping to open a new cafe for my research it looks like I'll have to figure out what an MBA is. Can you help me with this. That's great. An MBA I can definitely help you with that. Excellent. So what is it exactly. An MBA is a Masters level degree that helps us prepare for careers in business and management. It can help me learn how to manage a cafe. Right. Having an MBA can allow someone like you to gain insight into starting a new venture. It can help with a lot of things really what else can it help with MBA knowledge can also help with purchasing a new home buying a vehicle tax reporting managing a family's budget. There are a number of ways in which someone can apply concepts learned to everyday life. Can you help me understand some of these concepts. Absolutely. According to the Australian Institute of Business the top seven skills developed from an MBA are broad business understanding effective communication skills strategic problem solving networking skills how to cope well with pressure research and analytical skills and leadership know how all of these things will be important for you to grasp. Sounds like these things are exactly what I need I think anyway. Can you break each of them down for me. Sure. Communication and networking skills will help you interact with your customers and other entrepreneurs in the restaurant community. These skills will help to ensure you know exactly what people are looking for. Research analytical and strategic problem solving skills will help you keep abreast of any changes and developments in your industry and be prepared to handle any issues that arise. Of course you'll have to know how to cope well under pressure and the fast pace food industry and be able to lead others so you can manage the day to day. I think I understand where should I go from here. Let's talk a little more about what you hope to accomplish by opening your business. OK well I haven't actually sat down and thought about it but let's see I want to create a space where people want to come to you you know a fun environment where people can visit with friends and family. Maybe some light music and obviously great food. I want people to be satisfied when they leave. So you want to provide a public service. And one of your main goals in doing so is to create a social benefit. Did I understand correctly. Yeah definitely. I want people to want to come through the doors you know and I need them to so I can make money. Yes you do. Generating a profit is the main goal of every business to satisfy clients with value. How can I make sure the cafe is profitable to satisfy my clients. Well there are several ways in which you can make sure the money comes in what are some of your thoughts on how you will do this. Okay. I guess I'll have to develop a menu breakfast lunch and dinner. I want people to feel like they can stop by for a quick coffee or dessert to maybe they're catching a meal on their lunch break or meeting a friend they haven't seen in a while. I want to be the place they think of when making plans. You're touching a bit on the value creation of your business and alluding to a marketing plan you can take a closer look at. Each of these things but there are some more basic aspects of the business that are very important such as such as making potential customers aware of what you're offering. You'll also have to make sure to provide them with excellent customer service so you'll need to advertise in higher staff. I don't know much about how to do either of those things. That's OK I can help. Let's take a step back for a moment. Do you understand now what your main objectives of opening the cafe are from an MBA perspective providing a public service great food and a fun social environment while of course generating a profit. Sounds like you're on the right track from what you've told me. I've noted your top three goals as profit maximisation providing a public service and running a business to create social benefit. Yes this is exactly what I'm hoping for. It all seems very overwhelming though and I was hoping starting the cafe would be simple. It's not that complicated Eric really you'll just have to learn what it will take to make sure the cafe is successful. I think it's best we sit down and take a closer look at each part of your business plan. This is what an MBA can help with. Do you have time. Yes that would be great. Good. Then get ready to take some notes with and let's begin. Let's start with a few questions to make sure you understand what an MBA is and why it's important to opening your cafe. Question 1. A MBA is a master's level degree that can help prepare for a a natural disaster be a career in health and medicine see a career in business management. D a career in fine arts ie none of the above. As we've discussed it can help with a number of things. First and foremost it's use for see a career in business and management. That's correct. An MBA will help you to start and manage your cafe best into some of the skills an MBA can help a business owner to develop. Our a networking B communication C problem solving D leadership E all of the above. I choose E.. An MBA can help with all of these things. That's right. In addition to all of these an MBA will provide a broad business understanding. It can also help you to cope well under pressure and develop research and analytical skills. 3 What are the three primary goals you're hoping to achieve an opening a cafe a filling space in the community hiring brands and offering extended hours. B. Profit maximization. Providing a public service and running a business to create social benefit. C. to set up wing it and hope for the best d to compete with an already established cafe in the area offer a wider menu selection and set up an arcade. None of the above be profit maximizing. Providing a public service and running a business to a great social benefit. Yes exactly as we discussed. The cafe provides a public service that will be offering patrons an opportunity to socialize. Bottom line it must generate a profit to stay open. You did great Eric. Thank you Susan. I'm ready to learn more.