Business
Management is the science of
management of a business by the collective effort of those who take part in the
decision making process of the business. Business management is a crucial
branch of study for all types of businesses from small businesses to large
corporations. Business management is the optimum allocation of resources, both
human and physical to achieve various organizational goals. In more specific
terms, business management deals with crucial decisions and steps that a
business has to undertake to accomplish its desired output and stability. It is
the summary of the issues addressed by the entrepreneur or the business
authorities to realize the long-term as well as the short-term objectives of
the business and the required profit margins.
Business
management essentially deals with
the issues of planning, organizing, directing and controlling. While planning
is undertaken by the manager or supervisor, directing is the supervision so
that workers work towards accomplishment of the goals the business has set to
achieve and controlling is the process of evaluation of output produced towards
that objective. It should be noted in this context that planning consists of
tactical planning (short term), strategic planning (long term) and contingency
planning which allows for alternative courses of the organization when the
primary plans that have been developed do not meet the desired
objectives.
Business
Management Strategy can be
defined as the strategies undertaken to attain the most efficient business
management for a corporation, medium-sized or small scale business. It was
first developed as a discipline in the 1950’s and 60’s which gained much
momentum in the 1970’s through growth and portfolio theory. Business management
strategies are the all inclusive steps that the businesses should follow to
attain its long-term objectives so as to achieve the highest rates of growth
and profits in the long run. Business management strategy can be illustrated as
a process of specifying a company’s objectives, developing policies and plans
to achieve these objectives and the allocation of resources in the direction of
implementing the policies and attaining these objectives. Most importantly,
business management strategy is a dynamic process which encompasses all the
industries and businesses in which the company is involved in a framework akin
to that of game theory.
In terms of advanced economic analysis, an optimal
game theory solution can be theorized in which all participants of the game
reach their optimal solution which will be identical to the solution if
everybody behaves independently of each other. Business management strategy or strategic management is a combination of strategy formulation and
strategy implementation and the fundamental premise rests on assessing the
competitors of a business and setting goals and strategies to counter any moves
of the existing and potential competitors and reviewing their personal
strategies annually or quarterly to determine how it has been implemented and
whether it needs to be replaced in the event of new competitors and a changed
social, financial, political and economic environment. Business strategy based
on the industrial organization approach is based on economic theory and deals
with issues such as competitive rivalry, resource allocation and the economies
of scale. Strategy formulations mainly include self evaluation and competitor
analysis which determines the objectives and the planning strategies are
devised according to them. Strategic planning sometimes will depend on various
external factors such as the policies of the government and other extraneous
reasons such as a market crisis. Strategy implementations deal with the
allocation of resources and assigning responsibilities or tasks to specific
individuals or groups towards the attainment of the planned objectives. It is
also concerned with evaluating the efficiency and efficacy of the process of
business management strategy, i.e. moving towards the set goals, adjustments to
the process if needed and documentation and integration of the process.
Business
management strategies can be
said to be fundamentally hinged on the basic market principles of getting
people their most suitable jobs, effective Research and Development activities,
establishing certain standards, delegation of duties and improving the cash
flow to the company.
Business
Management strategies can be
viewed from various approaches such as the industrial organization approach and
the sociological approach based on human interactions and strong human
relations between the lowest and highest level of managerial authority. There
is also a strategy hierarchy that can be divided into functional strategy and
operational strategy where functional strategies include marketing strategies,
product development strategies, human resource strategies, financial strategies
and information technology strategies as opposed to operational strategies
which include the day-to-day functioning of the business or the corporate
organization. In this context, we can mention the concept of the of Business
Process Management (BPM) which is defined as the juncture between Business
Management and Information Technology and deals with tools and techniques to
design, control and analyze the operational business processes of a business.
The main asset or quality of the business process management is the improvement
in the business processes through new software tools called the BPM systems
which have made such activities faster and cheaper.
BY
ECONOMYWATCH
http://smartmoneysuccess.com/
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