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5- Business management
Business management definition is managing the coordination and organization of business activities. This typically includes the production of materials, money, and machines, and involves both innovation and marketing.3 min read
1. What Does Management Do?
2. What Is Business Management System?
3. Business Management Tactics
4. Management Styles
Business management definition is managing the coordination and organization of business activities. This typically includes the production of materials, money, and machines, and involves both innovation and marketing. Management is in charge of planning, organizing, directing, and controlling the business's resources so they can meet the objectives of the policy.
Types of business management
There are nearly two dozen branches of business management. Here is an overview of the 22 sectors in this wide field:
Financial management
Financial management deals with finding a healthy balance between profit and risk so that even with a setback, the business is profitable in the long term. This type of business management involves planning, directing and coordinating with the accounting, investing, banking, insurance, securities and other financial activities of a business.
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The three key elements of financial management are financial planning, financial control and financial decision making. Short-term financial management is often referred to as "working capital management" and relates to cash management, inventory management and debtor management. Both the assessment and technique of financial decisions fall under this type of business management.
Marketing management
Marketing management focuses on the practical application of marketing techniques and the management of a company's marketing resources and activities. The four major areas of marketing management are company analysis, collaborator analysis, competitor analysis and customer analysis. Marketing management also includes brand management, as well as marketing strategy and pricing.
To maximize return on investment, it's essential to develop branding opportunities and to execute marketing tactics based on careful analysis of all aspects of your business. The scope of a business's marketing management depends on a business's size and industry. Effective marketing management uses a company's resources to increase its customer base, improve customer outlook and feedback, and increase the company's perceived value.
Sales management
Sales management involves overseeing and leading sales teams. As a sales manager, you drive your sales reps to foster strong relationships with prospects, convert them to leads and move them through the sales pipeline. Sales management often works hand in hand with marketing management.
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Human resource management
Human resource management (HRM) focuses on the recruitment and management of an organization's employees. This includes compensation, hiring, safety and wellness, benefits and other aspects of employee administration.
A common misconception about HRM is that it's solely the responsibility of a human resources department or individual. In reality, all department managers should understand that effective HRM enables employees to contribute effectively and productively to the overall direction and goals of the company. In the past, HRM focused more on personnel administration, but a modern HRM approach uses employee programs to make a positive impact on both the staff and the business as a whole.
Strategic management
Strategic management is the application of strategic thinking to the job of leading an organization. Many of the other branches of business management revolve around strategic management, because the success of a business is often determined by financial, marketing and operational strategies.
Strategic management focuses on the big picture of a business: Where do you want to be, and how can you get there? Strategic management is adaptive, incorporates a competitive strategy and keeps an organization relevant. The most important element of strategic management is the formulation of the organization's goals, taking into account external factors such as regulation, competition and technology.
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Production management
Production management is the decision making involved in the manufacturing of products or services. Production management techniques are used in both manufacturing and service industries. This type of business management is about converting raw materials into a finished product or service, and as such, this sector often references the "four M's": machines, methods, materials and money.
One of the main focuses of production management is ensuring that production is efficient, and this includes inventory control and employee training. Inventory control is by far the most important responsibility of product managers and involves tracking all components of production, such as required materials and finished goods.
Another major focus of a business's production management team is the research and development (R&D) of both the production process and the product itself. Businesses looking to expand, cut costs and develop newer and better products must conduct R&D as a part of their product management.
Program and project management
Project management is the planning, execution and supervision of projects. Project managers prioritize obtaining the tools or knowledge needed to fulfill both short-term and long-term project requirements. Program management is similar: It involves the same task for many projects, not just one.
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Knowledge management
Knowledge managers create, distribute and manage a company's knowledge. Project managers may turn to knowledge managers when their projects call for information that would be difficult to find elsewhere.
Operations management
Operations management is the responsibility for ensuring that all departments of business operations are efficient. Managing the operations of a business means dealing with a plethora of departments, strategies and processes. Operations teams need to consider the acquisition, development and utilization of resources their business needs to deliver the goods and services clients want.
Service management
Service management varies widely depending on the industry and the business. Sometimes, it's synonymous with IT service management, but the two sectors differ in a few areas. First, service management usually incorporates both automated systems and skilled labor and often provides service development, even if it is not IT related. One focus of service management is the managing and streamlining of workflow to automate or support human decision making. Service management is what enables a provider to understand its services from both the organization's and the consumer's perspective and to ensure that the services facilitate the desired outcomes of their clients. No matter the service, managed-service providers need to understand and manage the costs and risks involved, as well as the value and importance of the services to their clients.
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IT management
IT management focuses on overseeing and handling the technology resources of a business to meet its needs and priorities. IT managers and teams ensure a business's technology is aligned with the company's strategies. The three key elements of IT management are IT configuration, IT service and IT financial management.
IT management also involves meeting business goals while fulfilling customer expectations. IT managers must focus on individual components and the delivery of end-to-end services using the best methods for reducing costs and improving employee efficiency. IT management incorporates the education and development of managers who can effectively manage the planning, design, selection, implementation, use and administration of emerging and converging information and communications technologies.
Public relations management
In public relations management, you communicate with public figures, primarily journalists, who can inform the public about your company's latest news, products and more. Public relations strategies may vary by industry, but they have a consistent end goal: a strong public image.
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Supply chain management
Supply chain management is the oversight of how raw materials move from manufacturers, wholesalers or other starting points to your business. Your business ultimately uses these raw materials to create its products.
Procurement management
Like supply chain management, procurement management can involve the acquisition of products from another entity. It may also involve arrangements for services from third-party providers, and its focus is typically more on budgetary limits and deadlines than on the supply chain.
Research and development management
An R&D manager oversees the product research and development efforts of a team or an entire company. R&D managers may manage researchers and developers, conduct research and development tasks themselves, or perform both of these roles.
Engineering management
Engineering management and R&D management are among the types of management with the most overlap. Engineering management may involve more manufacturing – turning research into sellable items – than R&D management, but often, these two types of management entail similar tasks.
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Design management
Like R&D management, design management is the oversight of how products evolve from an idea to a tangible item. However, design managers may focus equally on an item's appearance and functionality, whereas R&D managers often prioritize function over form.
Quality management
Quality management is the oversight of all quality assurance tasks. It often involves product or service planning. After customers or clients first use the product or service, a quality manager will assess the improvements that users seek and guide the team through implementing these changes.
Risk management
Risk management involves assessing business practices and identifying problem areas. Once potential flaws are identified, risk managers consult company executives and other department heads to discuss how these risks can be minimized.
Change management
Change management is a broad type of management that addresses a wide variety of company transitions, whether internal or external. Change management may entail guiding teams through policy changes or the implementation of new teams. It can be as broad as assisting with company mergers and acquisitions.
Innovation management
Innovation management is the oversight of several other types of management. Innovation managers may work to coordinate the tasks of R&D, strategic and change managers in order to streamline work toward overarching company goals.
Facility management
As with other types of management, resource allocation plays a key role in facility management. However, with facility management, the resource in question is usually a full building, such as an office or data center.
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Business Management System
Business Management System, or BMS, is a toolset that's used for tactical implementation and strategic planning of practices, processes, policies, guidelines, and procedures to use in the deployment, execution, and development of business strategies and plans, as well as any associated management activities. They provide a foundation for both tactical and strategic business decisions when it comes to current processes, tasks, activities, and procedures with the goal of meeting all objectives an organization has and satisfying the customer expectations and needs.
The main idea of Business Management System is to give management the tools for monitoring, planning, and controlling their activities and measure the performance of a business. They also aim to put into effect continuous improvement processes in the company. This system finds the principles of the organization's existence and is linked closely to business success criteria. It is a multi-level hierarchy of different business solutions that show how an organization that's profit-oriented will perform different functions, such as marketing, sales, staffing, and purchasing to complete a task successfully.
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Business Management Tactics
The functional group of a BMS finds what the tactical techniques and approaches are when it comes to implementing business plans that are linked to their business strategies. Tactical solutions should only be brought up during the decision-making part. They should be executed based on the timeframes that are in the document for the business management strategy. Extra business schedules can be formed and assigned to this tactical implementation practice as well.
Business Management Tactics are defined as activities that follow the business standards that were identified in the company's policies. They put into effect business tasks and plans so they can meet the goals that have been prioritized.
There are also processes and guidelines in this functional group to develop businesses management plans. The guidelines have practical instructions and directions to show how decision makers can control all the tactical solutions. They include operations and procedures that show how performers get daily tasks and activities accomplished. This group also directs the staff towards the completion of business solutions and recognizing implementation plans that are aligned with the management tactics.
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Management Styles
There are several types of management that are common, including democratic, autocratic, paternalistic, and laissez-faire. Democratic management style is used when employees are able to give feedback or input on business decisions. Autocratic management lets the business owner be the person in charge of making all decisions and leading the company through the business environment. When the best work environment possible is created for each employee, it's known as paternalistic management. Laissez-faire has the most employee autonomy and lets decisions be made with little to no business owner oversight.
Traditional management is a hierarchy of employees, with low, mid, and senior-level management. The manager creates expectations for the goals employees need to make.
Most Effective Management Styles
1. Democratic Management Style.
2. Coaching Management Style.
3. Affiliative Management Style.
4. Pacesetting Management Style.
5. Authoritative Management Style.
6. Coercive Management Style.
7. Laissez-Faire Management Style.
8. Persuasive Management Style.
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Business intelligence (BI) combines business analytics, data mining, data visualization, data tools and infrastructure, and best practices to help organizations to make more data-driven decisions. In practice, you know you've got modern business intelligence when you have a comprehensive view of your organization's data and use that data to drive change, eliminate inefficiencies, and quickly adapt to market or supply changes. It's important to note that this is a very modern definition of BI—and BI has had a strangled history as a buzzword. Traditional Business Intelligence, capital letters and all, originally emerged in the 1960s as a system of sharing information across organizations. It further developed in the 1980s alongside computer models for decision-making and turning data into insights before becoming specific offering from BI teams with IT-reliant service solutions. Modern BI solutions prioritize flexible self-service analysis, governed data on trusted platforms, empowered business users, and speed to insight. This article will serve as an introduction to BI and is the tip of the iceberg. Business intelligence greatly enhances how a company approaches its decision-making by using data to answer questions of the company's past and present. It can be used by teams across an organization to track key metrics and organize on goals. Types of business intelligence tools and applications
* Ad hoc analysis.
* Online analytical processing (OLAP).
* Mobile BI.
* Real-time BI.
* Operational intelligence (OI).
* Software-as-a-service BI.
* Open source BI (OSBI).
* Embedded BI.
A business intelligence role could prove to be an exciting and gratifying career. BI consultants are essential for decision making on all levels within companies and are highly valued by senior stakeholders. With the insights they derive from data, BI professionals reveal strengths, weaknesses, opportunities and threats could help shape the future of businesses. Therefore, business intelligence analysts often work towards the development of new technologies and strategies.
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Business communication : the process of sharing information between people within and outside a company. Effective business communication is how employees and management interact to reach organizational goals. Its purpose is to improve organizational practices and reduce errors. The process of communication involves seven major elements -sender, message, encoding, channel, receiver, decoding and feedback. The four main goals of business communication are: •To inform •To request . To persuade . To build relationships . The Tao of communication: Effective communication achieves a balance between the sender of information and the receiver of information. On the basis of the above definition, the characteristics of business communication can be identified as:
* Business communication is goal-oriented.
* Business communication is all pervasive and inevitable.
* Business communication is dynamic.
* Communication is continuous.
* Business communication is time-bound.
Avoiding common communication barriers, such as physical separation, wrong communication channels, not understanding the audiences' need, or distractions, is essential for the success of a business. Be sure your company has the skills to communicate effectively and the technology needed.
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Business environment : the sum totals of all factors external to the business firm and that greatly influence their functioning. It covers factors and forces like customers, competitors, suppliers, government, and the social, cultural, political, technological and legal conditions. Business environment may be classified as:
1. Economic environment; and
2. Non-economic environment.
Economic environment includes economic conditions, economic policies and economic system of the country. Non-economic environment comprises social, political, legal, technological, demographic and natural environment. All these have a bearing on the strategies adopted by the firms and any change in these areas is likely to impact their operations. Classification of Environmental Sectors:
The classification of the general environment into different sectors helps an organisation to cope up with its complexities, comprehends the different influence operating and relating the environmental changes to its strategic management process. Different bases of classification have been adopted by different authors, but the basis is not an important as the fact that all relevant factors in the environment have to be considered. Depending upon a variety of factors such as the size of the organisation, level and scope of operations, geographical spread of markets, nature of products, type of technology used and managerial philosophy. The environment here has been classified into eight different sectors.
These sectors are:
1. Economic Environment
2. Market Environment
3. Technological Environment
4. Socio-cultural Environment
5. Political Environment
6. Legal/Regulatory Environment
7. Suppliers' Environment
8. International Environment
9. Demographic Environment
10. Natural Environment
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A business strategy outlines the plan of action to achieve the vision and set objectives of an organization and guides the decision-making processes to improve the company's financial stability in a competing market. A successful strategic plan provides the information and guidance the management team needs to run the company with greater efficiency and help the business reach its full potential. Strategic planning helps managers make decisions based on logical assumptions and a clearer view of the future. Here are 10 examples of great business strategies:
* Cross-sell more products.
* Most innovative product or service.
* Grow sales from new products.
* Improve customer service.
* Cornering a young market.
* Product differentiation.
* Pricing strategies.
* Technological advantage.
A strategy is a long-term plan that you create for your company to reach the desired, future state you envision. A strategy includes your company's goals and objectives, the type of products/services that you plan to build, the customers who you want to sell to and the markets that you serve to make profits