What is business management
Business management simply deals with the different activities, strategies and decisions made in order to effectively run a business or any organization. It also includes the management of planning, organization, direction, and control of the resources and movements of an organization in order to achieve its goals and aims. Business management involves interaction and integration of various skills, discipline and processes so as to ensure the efficient running of a business and its ability to respond to market, technology and other changes.
1 Key Functions of Business Management
There are core functions business managements identified and the P-O-L-C structure can be used to summarize them which include planning, organizing, leading and controlling.
A Planning:
The first step towards achieving the goals of the business or the organization is business management planning. This includes identifying the goals, determining the ways that such goals may be achieved, and specifying the resources necessary for the implementation of such strategies. It needs looking at both the internal and external environment factors. These include the market environment, competition, and internal/internal weaknesses.
2.Which Skills is needed in Business Management:
Leadership: An encouraging and upbeat aspect is required when dealing with workers emphasizing the organization’s overall vision and objectives.
Decision-making: One of the most challenging tasks for any organization is to evaluate circumstances and act in a way that is most beneficial.
Communication: Performs the function of making communication effective at all operational levels.
Problem-solving: When problems arise, making sure they are resolved satisfactorily and within a reasonable timeframe.
3. Importance of Business Management
Efficiency: A primary benefit of good management is that there will be effective utilization of the available means to cut down on waste and increase the yield.
Goal Achievement: Business planning ensures that consistent targets are set and met as a result of a developed and executed strategy.
Profitability: A business unit will achieve more income and control costs and make profit as a result of effective management.
Adaptability: Effective management gives corporations the ability to be more fluid and change with the trends within the market or industry.
Conclusion: Management is very important for business. It combines both planning and organization in terms of sound decision making and excellent management in order to deliver sustainable performance over time. By focusing on four key functional activities of business planning, organizing, leading and controlling an orchestra, challenges can be overcome, opportunities grabbed and targets achieved.
4. Issues Related To Management Of Business
Managing Change:
In the modern business culture change is a source of strategic concern. Technological changes, mergers, and changes in customer requirements all make it necessary for organizations to maintain an effective change management process in order to remain competitive in other aspects.
Talent Management:
In the current job market with a lot of competition, it’s not easy to find and retain the right employees. Effective management includes discovering skills shortages, providing growth opportunities for employees, and creating an environment that will bring in valuable people.
Financial Management:
Cash flow management, budget management and cost containment is vital to the organizations survival and even more so during economic recessions. The business managers must employ their knowledge of the finances of the firm in decision making such that the firm can remain profitable and be sustainable in the long run.
Competition and Innovation:
The development of innovations is now becoming rapidly increasing and businesses have to compete with other major businesses and new businesses coming into the market as well. To stay at the top of the industry and not to fall behind requires imagination, willingness to take risks and constant improvement of goods and services.
Customer Expectations:
The customers are always looking for customized and high end products along with great service. Customer relationship management, brand loyalty development and sustaining customer value are quite a headache with all businesses and they need to be tackled.
Legal, ethical compliance in management:
Business managers deal with law, values and their business activities in a legally regulated environment. Questions like privacy, IP rights, or governance are certainly aggravated in a global and digital context.
5.Key elements of planning include the following:
Strategic planning: These are the set of goals that the company aims to achieve in the long run in order to have better success.
Tactical planning: These involve setting specific targets to be achieved in a short period so as to achieve strategic goals.
Operational planning: In tactical planning, day to day management of resources and tasks is carried so that those plans can be executed.
Organizing: is the procedure of combining all of the resources (people, cash, machinery, etc.) to carry through the plan of action that was developed at the planning stage. It includes the organization of the business, the authority levels inside the structure, and the distribution of tasks that ensure the smooth functioning for the company's operations.
6. This task involves additional activity including:
Resource allocation: The act of placing various resources such as finance, humans and even physical assets where they are desired most.
Departmentalization: The placing of the employees into departments that are based on the special they work in, for instance, marketing, finance and operations.
Delegation: The power to carry out a particular task and, or make decisions is delegated to the people that it is appropriate.
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