Topic 2. Business Management
Purpose of Management
"Business management is the process of planning, organizing, integrating, directing and controlling the resources (intellectual, human, material, financial, among others) of an organization, with the purpose of obtaining the maximum benefit or reaching its objectives"
The purpose of business management focuses on the constant need of society to acquire new products and quality services. The supply of quality goods and services is the most basic obligation of a company
The success of a correct business management will depend on some factors such as: location, competition, access to financing sources, product quality, distribution channels, etc. However, the entrepreneur can create his own management model adapting to his current and future business skills and available resources.
The purpose of business management has as its main purpose the technological changes that happen to the world day by day. These changes derive from the constant need of society to obtain new products that are up-to-date, cutting-edge and at a considerable price.
The Business Organization and its environment
We can identify the two main types of environments that directly affect the company and which are:
Proximate environment is the term used to define all those factors of production and distribution "close" to the company. Thus, the workforce, financial entities, suppliers and, of course, the target market for the promotion and sale of their products, we can consider them "close" or "nearby".
This environment also includes economic, union and trade union organizations, the autonomous community to which it belongs and competing companies.
The company will also have to interact with official bodies that are related to its economic activity, such as Industry, Security, Health, Education, etc.
The general environment is the one that has direct and indirect effects on the general management of the company, and it is interesting to know these interrelationships, because they can provide the company with business opportunities in other geographical areas, both within the country itself and in other international communities.
Planning processes. Corporate Objectives and Strategy
The corporate strategy of a company allows the design of a specific plan in which the actions that must be carried out to grow satisfactorily over time are defined. In other words, it is the route or guide that must be followed to achieve the proposed objectives.
In the business field, purpose or goal that a company sets about what it would like to become, from a global and long-term perspective, depending on the definition of the organization's mission and the situation of the environment in which it finds itself.
The planning process is a process made up of various elements and is organized into three major phases: Investigation phase (Analysis or diagnosis). Information gathering. Analysis, discussion, reflection on the information obtained.
Planning consists of selecting the ideas you have and ordering them based on the structure of the text you must write, also thinking about the communicative purposes of your writing. It is ultimately about deciding what we will say in general and in what order
Formulation of the Strategic Policy of the Company They examine the different alternatives of a company, in the face of changes and what should be the most appropriate policy in the future. They examine the different alternatives of a company, in the face of changes and what should be the appropriate bed policy in the future.
The policies of a company are the set of internal rules that are designed to regulate and define the rules of conduct within an organization. They describe the responsibilities of both employers and senior managers as well as employees at all hierarchical levels.
Relations within the Organization. Corporate Design and Decision Making Every business or company, regardless of its size, needs to be effective a Business Plan, clearly expressed and written that helps us to develop it.
One way to understand the mission and the economic capacity to carry it out is to forget the previous actions of the company and clearly arrive at the new essential promotional designs, which is where the company should base its new strategy.
Management Levels and Structure. The levels of business management guarantee obtaining optimal results in an organizational system. If one of these levels fails, the entire structure suffers, losing its objectives and ability to respond to unforeseen events.
One way to understand the mission and the economic capacity to carry it out is to forget the previous actions of the company and clearly arrive at the new essential promotional designs, which is where the company should base its new strategy.
Business management levels are a guarantee of the success and effectiveness of these organizations. The three levels are business, tactical, and operational. Among them, the master lines that will move the business activity and what will be done to maintain the course are planned.
Executives at the strategic business management level make the decisions that will affect the entire structure of the company, but they are not concerned with its day-to-day activities, which are delegated to another management.
Communication in the Company. Centralization or Decentralization Centralization and decentralization are two opposite terms referring to processes of administration and control of authority, on the other hand, departmentalization is a process that consists of grouping the functions of the company according to the nature of the activities.
Management Systems. A management system is a tool that allows controlling, planning, organizing and, to a certain extent, automating the tasks of a company. Its objective is to unify all the company's operations in a single software in order to facilitate decision making and data analysis.
Business Intelligence (BI). Business Intelligence (BI) systems
They are oriented to the management and storage of large volumes of information and to support management in decision-making.