Introduction to Business Management

Definition and Purpose of Business Management

• Business management refers to the activities and responsibilities associated with running a company.
• This includes planning, implementing, controlling, monitoring, innovating, and leading within an organisation with the goal of achieving objectives.
• The main objective of business management is to maximize productivity, efficiency, and profitability.

Roles of a Business Manager

• Business managers are the people who oversee the activities and functions of a company.
• They are responsible for developing business plans, tracking progress towards goals, managing resources, and making important decisions.
• Business managers provide direction and guidance to the workers, create policies, handle administrative tasks, and resolve any issues or conflicts.

Business Environment

• The environment in which a business operates significantly impacts its potential for success.
• It includes internal factors such as employees, management, and business culture, as well as external factors like economic conditions, market trends, competitors, and regulation.
• Understanding the business environment helps in identifying opportunities and threats, shaping strategies, and making informed decisions.

Types of Business Organisations

• There are several types of business organisations based on ownership, structure, and objectives, each with its own strengths and weaknesses:
  • Sole trader: A single individual owns and runs the business.
  • Partnership: Two or more people share ownership of the business.
  • Private limited company: A business owned by individual shareholders who have limited liability.
  • Public limited company: A large company whose shares are traded on a stock exchange, allowing the public to buy and sell shares.

Business Functions

• Businesses perform several functions to deliver their products or services to the market. These include:
  • Operations: Production and delivery of products or services.
  • Marketing: Identification of customer needs, development of products or services to meet these needs, and promotion of these to the market.
  • Finance: Management of the organisation's money, including budgeting, investing, and risk management.
  • Human Resource Management: Recruitment, development, and management of the organisation's staff.

Stakeholders in a Business

• A stakeholder is anyone who has an interest or impact on the business. This can include employees, customers, suppliers, investors, and local communities.
• Stakeholder interests can sometimes conflict, requiring careful management and negotiation.

Corporate Social Responsibility (CSR) and Ethics

• CSR refers to the business's commitment to ethical behaviour and contributing positively to the social, economic, and environmental well-being of the community it operates in.
• Business ethics involve maintaining a moral code of conduct in all aspects of business, from production to marketing and finance.