What is Business Management
So you prefer to begin a business nicely what sort of business?
First You must know what is a business management
I’m not talking about what you might make sell or service instead I’m talking about the owner who will own and run your business.
Let’s go through some of the common forms of business ownership.
Let’s begin with a sole proprietorship.
In business management, a sole proprietorship is one owner with all of the management power. An owner that can claim all the profits.
They raise all the risk and get all the rewards, however, add another more owners.
Then we have a partnership each owner is a partner in business management.
Each in the profit that all partners run the firm, it is not necessarily a partner that’s active in managing the firm is a general partner.
A partner that invests money, however, is in any other case now not lively in running the company.
There is a limit partner perhaps a partnership wants to grow but they need more cash to expand the present business.
And can sell some of their shares in the company to investors.
The company is now a corporation those investors become their stockholders.
It is most important for business management. Therefore they’re the owners and they can easily sell their shares at any time.
Corporations are legal entities in effect they have legal rights just like a person which means the corporation is responsible for anything that might go wrong.
The owners that are the stock-holders they can elect a board of directors that board can choose the top executives in the company.
But the board of directors cannot influence day-to-day activities in the company.
What does this mean well to a certain degree in a corporation stockholders own and managers manage in the business management?
There are many other nuances in trying to choose the best ownership model for your organization.
Hopefully, now you know some of the basics associated with the most common ownership models.
And you’ll be able to consider the important issues and asked the right questions as you move forward in developing your organization.
There are in the following manner describe the various aspects which are important for business management.
In business management, one of the aspects that you need to learn is material management.
In business pretty much everything customers enjoy requires some materials like that:
- A great meal required delicious ingredients,
- A movie experience required at ease seats,
- Even your massage was once made higher with aromatic nourishing oils.
Companies have to understand that each and every material buy is an opportunity to enhance the product or service.
It is provided that procurement and materials management are the segments of the company.
That suppliers purchase the materials and then make sure that this inventory is stored and used effectively.
If executed proper procurement and material management can enhance customer satisfaction.
They can contribute to the company’s profitability and by partnering with reliable suppliers.
They can help the company to develop a stable supply chain that can be counted on to continuously deliver high-quality products and services to the consumer.
- To illustrate the above points, let’s use a cellphone as our example product and buying parts for this cell phone:
Let’s consider just one part of the cell phone the battery. what does your company need to think about?
First, consider the consumer what does the consumer expect they want to value a long-lasting battery at a reasonable price.
They probably also want a battery that is safe a small light-weight battery that won’t overheat.
If this is what the customer values and if those are the things that we advertised the battery.
In some way needs to the customer’s expectations a great battery helps make your cellphone better.
A better cellphone will sell more units and thus our revenues will grow. Now, that we made the customers happy.
Let’s bear in mind that revenues by yourselfself may not deliver you a profit. We want to reflect on the consideration of our company’s needs.
Cost control in business management:
The company desires to manage costs whilst we’re buying for terrific batteries for your customers.
We have to know what the total cost of purchasing these batteries will be I’m not just talking about the per-unit cost. You should think about the total cost of these batteries.
And the cost of storing batteries costs associated with theft & damage the cost of negotiating and placing orders from battery companies.
Don’t forget that any individual wishes to pay for the delivery of these batteries. So, if keeping costs low is important to your company.
You’ll need to remember inventory costs include the cost to buy hold and order inventory.
That brings us to the final party worried about your battery purchase.
The battery provider will sooner or later dictate battery cost and the quality of the battery.
But they also impact your cellphone company.
In different ways, if they can fill orders rapidly we can maintain low inventory ranges even if we run out of stock.
It might not take long to get a new cargo for that sort of service even though we are going to possibly have to pay a higher price.
On the other hand,a slower supplier may have lower per-unit prices but will need to carry more inventory.
Since we have to place orders early just to be sure they’ll be able to fill them before.
We run out of batteries this takes care of your battery needs today.
But what about the next generation of cellphones. We’ll need stronger batteries that fit in your new phone design.
And we still need to control our costs in modern business.
Suppliers are business partners, when we saw more cellphones they sell more batteries.
On the other hand, if they make batteries higher we might also sell more phones.
Because of these suppliers and revolutionary producers have to work collectively to apprehend the client to improve new technologies.
And also to develop manufacturing and logistics strategies for your company to buy cellphone batteries.
Simple questions that whether customers are happy with the materials they buy or use.
- Do we consider our supplier a partner involved in helping us develop better and services?
- Do we think about the price of protecting stock or simply the cost of purchasing?
If your answer to any of these questions is no you are probably lacking an opportunity to maximize your company’s potential.
Look at your stuff, how was your stuff made which items were made well and which items were not.
Which organizations do you constantly have faith to make good stuff for your favoured car, clothing and electronics companies?
If they can supply outstanding items over a long period of time appropriate manufacturing and quality control are vital components of constructing a world brand.
Concentrate on Manufacturing part of business management:
What customers are loyal too. So let’s take a seem to be at some of the main or primary issues manufacturing managers suppose about each day.
And let’s use a car corporation as our example.
So as soon as they have a design for a car they want to recognize the demand how many cars will be wanted every month.
Perhaps it is a manufacturer-new model so we would possibly now not sell too many the first year.
But forecast telesales will grow significantly next year.
So just how big should our facility be remember a facility that’s too big will be a waste of money.
If it’s too small then we will not be having enough cars to sell.
In manufacturing cost is almost always a key consideration.
So we have to know how much money will it cost from materials, labour, transportation facilities and energy to make each vehicle.
- How flexible is our manufacturing process?
- How many choices do we give to customers?
- Do we let them choose a car colour?
- Do we offer a navigation system can they get upgrades on seat entertainment systems?
Sunroofs which us to quality what exactly this quality mean to you aesthetics durability, reliability and speed.
A manufacturer must make a car that their market deems to be high quality and even then what’s good today won’t be good enough next year.
Manufacturing facilities must be ready to continuously improve.
Then there’s the question where the cars will be manufactured and by whom should we make them in the country.
Where they will be sold or should we make them in another country should our company make them or should we hire a contract manufacturer to make the cars for us.
What our issues manufacturers consider when making these types of decisions are in the following manner:
- Cost of materials
- Real estate taxes etc.
So is it possible that the country has more access to skilled labour or do they have easy access to material and energy-related resources?
Perhaps, the contract manufacturer has so much experience making these types of high-quality products.
That you know they can make them better than you could ever make them yourself location can also impact speed.
Perhaps their location makes for easy movement of inbound and outbound materials.
Your final product is big and expensive manufacturing location may impact your delivery times.
And you might be able to avoid import taxes currency might also be a factor.
Imagine that you are selling a product in Europe investing euros and getting paid in Euros.
Minimizes the chance that profits might be wiped out by big swings and exchange rates.
And in some cases choosing a manufacturing location might take into account the stability of the country political stability, crime rates, inflation rates, labour laws and culture executives.
Don’t worry about what might happen tomorrow at their factory that might be five or even ten thousand miles away.
The companies that make your favourite stuff Apple, Lexus, Nike, Samsung, and Mercedes.
The above company have transformed their corporate images into global brands.
But without a backbone of high-quality manufacturing, those companies would not survive.
Making their customers happy means that every single product you buy from them meets or exceeds expectations.
Customer satisfaction must be there in business management.
So as you use your favourite product today think about:
- Who made it
- When it was made
- Where it was made and
- What they are doing right now to make the next product.
You buy from them even better in just the last few years.
The term logistics have gotten very popular global companies like DHL, UPS and FedEx are known as logistics companies.
Logistics mean is it just getting finished goods to a customer’s home or to a store where these goods can be put on a shelf ready for purchase.
That’s logistics however it is simply a small phase of what the world of logistics encompasses.
You can see logistics doesn’t just happen in the last mile before a product gets to the hands of the user.
Logistic happens before a product is even made in the most simple supply chains raw materials and components are shipped to manufacturers.
Finished goods are shipped to distribution centres and from there, products make their way to a retail store or picking and packing warehouse.
Where eventually they can be shipped to your domestic all alongside the way.
There are vital choices to be made that will influence whether or not the cargo used to be shortly delivered safely on time.
And of course, set a reasonable cost plus we want to know that our logistics process is flexible for:
- Big orders
- Small orders
- Perishable products
- Heavy products
- Dangerous goods etc..
Above goods are destined for big cities and others heading towards a farm domestic orders and foreign orders.
Nowadays customers want to be informed customers want to have the ability to track their shipments.
Marketing and manufacturing are important in business management.
The person who wants to learn business management, they must learn marketing management.
But a great product that comes with a big shipping cost and then arrives late damaged or to the wrong address ruins.
The customer experience as a result logistics specialists is constantly making decisions that must make customers happy and keep the company profitable.
How can a logistics manager keep the company profitable?
Keep inventories low move inventory as quickly as possible and at the lowest possible cost, empty trucks and containers waste fuel.
So keep trucks and containers full by planning effectively and don’t get caught unprepared stock-outs rush.
Shipments and shipping errors are extremely expensive and can mean the loss of a customer forever.
In the end logistics managers are tasked with making all sorts of decisions that balance cost, speed and customer satisfaction.
What types of decisions well should we use a truck, train, ship or plane?
What type of packaging is needed to keep the items safe?
They also consider storage issues like:
What’s better having high levels of long term inventory in a warehouse,
Low levels of inventory moving quickly through distribution centres and
If you’re shipping globally you’ll need to consider issues like import and export laws tariffs and documentation.
Logistics is about a lot more than delivery and don’t forget materials don’t just move in the direction of the customer.
Reverse logistics deals with returned items requiring repair that need to be sent to a repair centre and reusable and recyclable.
Packaging as companies look to control cost reduce waste and eliminate product loss while still getting the right goods to the right place at the right time.
Companies need to consider all of the pieces of the logistics puzzle.
Logistics is beneficial for everyone involved customer get what they want how they want and when they want it.
And companies can make it all happen with minimal cost and waste.
Now that you have a better understanding of some of the vital pieces of the logistics puzzle.
- Setting a direction and Articulating your guiding principles for your organization:
Let’s think about which pieces your company may not be considering the last two elements of setting a direction for your organization.
Articulating your guiding principles and your goals guiding principles dictate how you want the organization to behave especially when your leaders aren’t around.
You’re placing out a precept that an associate can use when they’re confronted with a situation.
Where they don’t know what to do, what you want, looking through as they’re evaluating those decisions because if you have clear guiding principles.
The moves they’re going to take will be constant with the path of the organisation which eventually helps you attain that vision and mission.
In terms of your goals, you’re going to set out those things that after two-five years.
You’ll look back and say, we achieved those goals and try to make them as measurable as possible it can be a dollar.
How much revenue or profit, it can be a number of new customers that you add those guiding principles and goals.
You need to be clear enough that they will guide behaviour which helps people to behave in a manner.
That’s consistent with the organization’s mission and goals should be driving you to achieve your vision over time.
When people had been attempting to discern out whether or not they make an ingredient exchange to a product or a packaging alternate to the product.
They asked people to step returned and say if you made that alternate would you be at ease giving that product to your family.
If the answer was yes, go ahead and make the change if the answer is no stop immediately other guiding principles.
The organization is going to achieve that goal of having a more talented organization.
So think about what you want, your organization to look like in the future.
How do you favour your associate to behave and then be in a position to put in place a precept that they can apprehend when they’re confronted with a decision.
Setting a goal for your organization:
Now in terms of goals laying those out very clearly and then sharing them across the organization.
So assume about what the goals are of your organization.
What’s the vision where are you trying to go and what set of goals will help you get.
And through articulating them without a doubt the organisation is going to drive in the proper direction.
Whether your company wants customers or if you’re already successful company wants even more customers.
Knowing that consumer is necessary for securing sales so as the company appears to begin selling their products and services.
Decide the Target Market:
Often one of the very key questions they need to confront early in the process is who should my company want as customers who are our target market.
Well, your target market must likely encompass people that you are successful in satisfying.
Still earning a profit that way they’re comfortable and you are happy.
How do companies describe their target markets nicely target markets can be described in a range of specific ways.
Is your target market made up of men or women and analyse that is in the following manner:
- How old are they
- Where do they live
- What language do they speak
- What are their hobbies
- What do they do for a living
- How much money do they make or better yet how much money do they spend?
And is it viable your target market is now not made up of people?
Perhaps your target market is made up of other companies and it doesn’t matter where your company is today.
If you are a new startup company a giant international company with a wealthy record or possibly your future company is solely thinking in your head.
Knowing your market is important to be successful today and in the future.
Why well a company and its marketing team and sales force have only so much time and money they need to use their resources wisely.
We’re no longer simply making sales nowadays we’re building a target market that is loyal to our brand.
So whether you want to know your customer’s desires today or tomorrow:
Whether you want to use your company’s money and time wisely or if you just want to find new customers for your products and services.
Understanding your target market is imperative to the evolution of your company.
Family, friend, business partners there are so many people in our lives and so many others.
We have but to meet the growing and maintaining relationships with all of them.
It can be difficult but these are the people we count on for support stability and growth.
Nowadays companies understand that their customers serve the same purpose.
Customers aid the company, a loyal customer base offers steadiness and our existing and future customer supply an opportunity for growth.
So how can companies attain their customers, how can they create an emotional connection that will drive a person to purchase your product or service?
Well, there are three basic issues that need to be considered that are in the manner:
- Who’s the target market you’d like to reach
- What does the company want to say and
- How will that message be delivered
Let’s start by considering the target market.
A proper marketing branch will isolate people that they would like to target as potential customers.
Sometimes the market is quite narrow so attaining most of them would possibly be alternatively simple.
On the other hand, some target markets are large and diverse.
They contain people with very different lifestyles this could pose challenges in reaching all of them in a simple and cost-effective manner.
So we may need to dissect the target market into smaller slices.
Reaching each slice with a different message or using a different medium. Now that we know the market,
What do we want to say to them are we trying to make them curious?
Do we want to stir emotions, excitement, inspiration and fear?
Perhaps the goal is to build trust some companies want to invite customers to be part of a group ultimately.
We hope the customer will be called to action make a purchase join our club, visit our website while a good product or service will satisfy a customer.
Customers need to be aware that the product exists.
They must trust they will get value their purchase and they must be driven to seek out the product or service and then purchase it.
Developing a message that can quickly inform, inspire and move someone act that’s not easy.
It requires creativity and a deep understanding of human behaviour with our message in hand.
It’s now time to deliver the message to our target market.
How can we make contact with the customer digitally in their cars, at an event or in a trusted atmosphere etc?
Perhaps they hear about us through a friend or maybe they learn about us at a store.
Each of those mediums is different.
So a marketing executive has to be able to send the same message using different mediums.
Your message something that can be delivered by using audio, video, pictures, digital messaging etc..
Your message should be simple enough that it can be powerfully delivered by other people.
We need to remember that our budget is limited so as we consider identified a target market for our message.
Crafting a message for that market and then delivering that message. So it is heard or seen by our customer.
We have to ask ourselves are we maximizing our investment if we spend a million dollars to communicate with 2,00,000 potential customers.
Then how many of those people will need to purchase our goods and services such that we make a profit.
Human Resources management:
One should learn the subject called Human resources management for taking advantage of successful business management.
Relationships are a street, both parties need to feel enriched by the relationship by knowing your target market.
Crafting a meaningful message and knowing how to deliver that message via multiple mediums.
Companies can communicate with customers new or old and nowadays why do companies decide to bring on new people.
Perhaps they need to grow a department, they need to replace a person that left.
It’s feasible the organisation requires a new kind of worker to fill a cutting-edge need.
Whatever the purpose to make a suitable hiring decision;
The company needs to be in a position to describe the role to be stuffed with what kind of worker they favour to fill that position.
And additionally how a whole lot it will cost to correctly fill that position.
Let’s say we want to hire someone to redevelop our website.
And then to control and develop the website in the future how would you describe the positions.
So that it sounds fascinating so that we can attract the very fine candidates inspired professionals.
But for a person with a bit of journey and for any individual inspired to strengthen a strong career.
This particular web development job sounds exciting they’re interested.
They like us that’s good but do we like them.
Let’s tell them what we expect hopefully the qualified have now moved on.
And the best candidates are now working on their resume look we can’t interview everyone. So we need to do our best to find great candidates and entice them to apply for the job.
Communicating a job description and job requirements and then being sure that the best people know about the job.
Job is only the first phase of finding a great person to join our company.
Now, that we have applicants we need to figure out which candidate is the best fit for that job and our company.
Let’s consider what we might want from our web developer are in the following manner:
- They need to talk to executives.
- They need to have the ability to develop creative content,
- They need to have technical skills,
- They have to understand our culture and ethics and
- They have to be trustworthy.
How could you see if the candidates have everything it takes to be successful in this job interviews?
How could you test their ability to develop creative content?
How about asking to see some of their past work?
Did they have a portfolio of work or how about technical skills?
We can have them take a test maybe we can give them some homework that they could bring to the interview are trustworthy.
Nowadays, most companies will also do some sort of background check with law enforcement and perhaps also with past employers and once the interviews are over.
You’ll also need to consider some other issues what happens if no one is fully qualified.
Hiring Decision is most important for business management.
You willing to take someone that is mostly qualified also are your hiring practices legal and ethical is diversity for your company.
Government-mandated or part of a plan for corporate excellence and who gets to make the final hiring decision their new boss a top executive.
The person that interviewed them or perhaps someone in human resources and even when you find the best candidate and decide to make them an offer.
There is still the question of whether or not they will accept the offer the best candidates.
Often have lots of options to choose from offers, counteroffers, negotiations and signing a contract.
It may be all part of the process once they accept the position you will need to gather their personal information.
It is for company records and signs them up for a benefits package.
Once we have them in the system as a new employee might go through a corporate orientation.
And then they might get trained on equipment or business processes imagine going through all of that, all that time and all those resources.
Then finding out you hired the wrong person.
Great people are the key to a great work environment and excellent customer satisfaction.
Recruiting, evaluating, hiring and training employees is extremely expensive.
Companies that do not take these processes seriously waste lots of time and money.
And then stuck with a subpar workforce.