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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 1950âs and 60âs which gained much momentum in the 1970âs 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 companyâs 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.