What is business management?
Business management refers to the techniques used by managers to keep an organization functioning. In a nutshell, it defines what it takes to run a business. Basically, a business manager's job is to make sure that the company operates smoothly while being profitable at the same time. This means they have to handle everything from marketing and finance to human resources. They also oversee day-to-day operations such as hiring new employees, setting prices for goods or services, maintaining inventory levels, making payroll decisions, and more.
From a management standpoint, every business falls into one of three categories: service, manufacturing, or retail. Each type has different management needs and operates under a different set of rules. Service businesses are those that provide a product or service to consumers but don't actually produce it in-house—think restaurants, fitness centers, accountants, or lawyers. Manufacturing companies create tangible products in-house by assembling raw materials into final goods—auto manufacturers such as Ford or GM are classic examples. Retail establishments sell already-made goods directly to customers—Walmart or Amazon being excellent examples here.
The role of a business manager
A business manager's responsibility is to make sure the company runs smoothly. This includes tasks like accounting, budgeting, HR, marketing, and keeping employees on task. A business manager can work with a company's founder or CEO to set goals. They also keep records of how the company is doing financially by reviewing reports on profitability. If you're interested in becoming a business manager, consider earning a bachelor's degree in management or an MBA program.
As you're deciding what to study, it's important to consider your career goals. A business manager may perform a variety of tasks. Some business managers handle finances, while others are in charge of marketing. If you'd like to own your own business one day, consider earning an MBA so that you can run your own company. Many college students work while they go to school, so make sure that you have enough hours if you work full-time as well as attend class. You should also stay in good standing with your professors by turning assignments in on time and being active during class discussions.
Business management subjects
Business management is a broad term that encompasses all aspects of owning, running, or managing a business. There are many different jobs in the world of business management, but they typically fall under one of two categories: operational or managerial. Operational tasks include those related to general administration (often under the title of office manager) such as human resources and procurement. In contrast, managerial tasks may include marketing, finance, production planning and control, and purchasing.
In addition to standard business management, some organizations employ specialists in specific functions such as marketing management or accounting management. Others have staff that carries out all managerial tasks—operational and managerial—in addition to others such as general administration. There are also those working on a freelance or consultancy basis. In terms of organization size, businesses can range from sole proprietorships (the smallest) through partnerships, corporations, non-profit organizations, franchises, and associations (such as trade unions) up to multi-national organizations.
Internal vs external perspective of business management
Business management looks at the business from two different perspectives: internally, with the company's employees, and externally, with its customers. This perspective offers a unique perspective on how to manage the business. When working in an organization, it is essential to know what the best practices are to keep a business running smoothly. There are various methods of managing businesses that can be used depending on the type of industry you work in or your level of experience.
Managing a business from an external perspective involves focusing on your customers. This means that you need to know who they are, how they will interact with your business, and what problems they have. Answering these questions allows you to develop strategies for reaching out to your customers in a meaningful way so that you can gain new business, retain current clients or grow market share if necessary. Identifying trends in your industry may also help you decide which ways of marketing or selling to focus on, as well as whether it is time to introduce new products or services into your company's portfolio. By ensuring that all customer concerns are met, it should be possible to build long-term relationships with them while increasing profits through greater sales volume.
The five phases of business management
A business has five phases to it:
1. Start-up phase- this is when you are just starting out, taking the first step towards your goal of being a business owner. You may be starting a new venture on the side or with one other person, or you may have already taken that first step by quitting your job and making the leap. Your goal in this stage is to validate your idea, either by getting enough customers to purchase your product or service or by convincing investors to invest in you.
2. Survival Phase- as an entrepreneur, you will always face challenges during this stage of your business life cycle. These challenges can come from both inside and outside of your company.
3. Growth Phase- this is where you need to think about scaling up. Do you want to grow internationally or expand into another region? Should you hire more employees or buy more inventory? The choices here are endless! Remember, now is the time to start thinking about long-term goals rather than short-term gains.
4. Stability Phase- if you make it through all those growth stages then congratulations! Now your business should be able to run autonomously without too much worry about going under at any moment! But don't get too comfortable; change doesn't wait for anyone!
5. Decline Phase- as much as you may want to avoid it, decline eventually happens. If your business doesn't shift with changing market conditions, then it can eventually succumb to failure. You'll want to be able to spot signs of decline early so that you can start planning for a new business venture before it's too late!
