What is Business Management?
In a nutshell, business management is the process of managing a company. It's an area of study that helps students learn how to manage a company or organization. There are many different strategies that can be used to manage a company, and this is where business management comes in. I actually took my first course in business management at The College of New Jersey back when I was still in high school. It was quite an interesting class, and it taught me many things about the world of business. If you want to be successful as a manager or entrepreneur, then you need to know the basic principles of business management before starting your own venture. If you're interested in learning more about what exactly goes into managing a large corporation or small start-up, then stay tuned for my next post! In this post I'll walk you through some fundamental concepts which will aid as as foundation for future posts dealing with specific aspects of running your own business enterprise! You never know what might be included next! Let's get started:
The Five Basic Strategies: Market Orientation
This strategy focuses on customer satisfaction and making sure they always come first within the context of satisfying customers by providing them with products and services which best fit their needs at all times. They are management decisions made to meet the changing needs of customers and other stakeholders. Cost Leadership -This strategy focuses on providing the best possible product to the customer at a lower cost than competitors. It is used in products that are mass produced and provides large quantity sales at a low price. It is one of the most common strategies used today, especially in manufacturing industries. Differentiation -This strategy focuses on offering products and services which differ from those of competitors: how to make your product better than what your competitor offers, or how it offers something else which isn't available anywhere else. This was one of my favorite strategies we learned about; I thought it was very unique and creative!
These organizations focus on managing costs while still maintaining good quality for their customers; they produce goods quickly but also manage costs carefully through use of technology, efficiency improvements, outsourcing, etc.. They may decide not to compete directly with rivals by focusing on markets where there aren't any other similar providers or by targeting niche markets with only moderate competition from rivals.
Operational efficiency tries to improve costs by eliminating waste within an organization rather than focusing on lowering prices or increasing value for customers.
The Strategic Planning Process:
Step 1: Defining The Business Situation- The first step in strategic planning is figuring out where you are currently as an organization (i.e. market position, strengths, weaknesses, opportunities and threats). This is called the environmental analysis.
Step 2: Identifying Strategic Objectives- The second step in strategic planning is figuring out what you want to accomplish within an organization. The four parts of this step are: Setting Organizational Goals -These are concrete statements or targets for an organization's performance which will be used to determine whether the strategy was a success. Setting Strategy -This helps you figure out exactly how your business will achieve its goals and objectives by focusing on making choices about what resources will be used to accomplish those goals and objectives. What do I mean by resources? You have resources such as physical assets (i.e buildings, equipment), human capital (i.e employees), financial capital (i.e money) and information technology systems that can help you achieve your goals. Forming Implementation Plans -These plans include identifying who is responsible for different task assignments, creating deadlines for each task assignment, identifying any possible obstacles that might be encountered along the way as well as planning any additional training needed to aid in accomplishing tasks. Monitoring Progress And Making Adjustments- This part of the strategic planning process helps make sure businesses stay on track with their strategies; it also includes monitoring results from previous actions taken with regard to management decisions made from initial steps of a strategy plan.
Business management is one of my favorite subjects, even though I haven't taken any business classes since high school. It's a fascinating subject, because it deals with how businesses operate. The world of business management is constantly changing; new strategies are always being discovered and perfected by today's top companies. It's an exciting topic to study, especially if you're interested in running your own business someday! If you have any comments or suggestions for future posts on this blog, then please feel free to leave them in the comment section below. Thanks for reading!
