Business Administration Concepts

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Questions and Answers

What is stated about value judgments in the context of business administration?

They are encouraged to define company objectives.

They are deliberately avoided in the statement area. (correct)

They must be derived from cultural norms.

They should always be included in scientific research.

From the psychological perspective, what do companies represent?

An observable reality. (correct)

A purely normative ideal.

A complex value judgment system.

A subjective interpretation of ethics.

What should determine the objectives of companies according to the content?

Public perception and opinion.

Empirical research findings. (correct)

Financial performance metrics.

Normative theories of ethics.

What aspect is emphasized when analyzing companies in business administration?

Understanding companies from a relevant perspective. Signup and view all the answers

How should the objectives of companies be approached in business administration studies?

They must be identified through empirical analysis. Signup and view all the answers

What is the main risk associated with purchasing umbrellas that are not in the right fashion?

Risk of capital quality loss Signup and view all the answers

Which factor increases the planning need when buying umbrellas?

Risk of supplier handling Signup and view all the answers

What financial consequence can result from capital lock-up when purchasing umbrellas?

Loss of investment opportunities Signup and view all the answers

What challenge arises from high storage costs in umbrella purchasing?

Impact on profit margins Signup and view all the answers

Which of the following is a potential risk when there is no instant adaptation of production quantities?

Overproduction leading to excess inventory Signup and view all the answers

What is the primary focus of materials management?

Procurement of raw materials and components Signup and view all the answers

Which term is often used synonymously with materials management?

Procurement management Signup and view all the answers

What are considered as the main components of a company's products?

Raw materials Signup and view all the answers

Which tier represents the unfinished goods in materials management?

Tier 2 Signup and view all the answers

What role does logistics play in materials management?

Managing the storage and flow of goods Signup and view all the answers

What is the correct relationship between raw materials and auxiliary materials?

Raw materials contribute mainly to the product in quantity and value. Signup and view all the answers

Which of the following is NOT an area of materials management?

Market Research Signup and view all the answers

How are components regarded in the supply chain hierarchy?

As intermediate goods Signup and view all the answers

What is the main focus of corporate management?

Making decisions to ensure existence Signup and view all the answers

How does the 'just in time' production method benefit an automobile manufacturer?

Reduces production delays Signup and view all the answers

Which market is primarily concerned with the procurement of raw materials in a company?

Procurement market Signup and view all the answers

What do corporate strategies primarily aim to provide?

Long-term profitability and sustainability Signup and view all the answers

What type of information does corporate operational accounting provide?

Information relevant to financial decision-making Signup and view all the answers

What is the primary function of financial markets in a corporate context?

Facilitating funding and investment Signup and view all the answers

Which aspect of the business is concerned with analyzing gain and loss?

Corporate controlling Signup and view all the answers

What percentage of jobs in Germany does the service sector approximately account for?

Roughly 75% Signup and view all the answers

What role does marketing play in the corporate environment?

Sells finished goods and services Signup and view all the answers

Which element is part of the target system in corporate management?

Revenue generation Signup and view all the answers

What characterizes methodology in the context of sciences?

It is an interdisciplinary science that utilizes various methods. Signup and view all the answers

How does a system present knowledge?

It connects knowledge through cause-and-effect mechanisms. Signup and view all the answers

Which of the following options best represents the sciences?

Includes both natural and social sciences. Signup and view all the answers

What distinguishes ideal sciences from real sciences?

Ideal sciences do not rely on empirical experiences. Signup and view all the answers

In which historical period is Business Administration considered to have emerged as a science?

19th Century Signup and view all the answers

Which of the following is NOT classified as a social science?

Biology Signup and view all the answers

Which area of study focuses on the behavior of groups?

Political sciences Signup and view all the answers

What is the primary focus of economic sciences?

Market behavior and company analysis Signup and view all the answers

What aspect is highlighted when discussing methodologies in Business Administration?

Interdisciplinarity plays a key role. Signup and view all the answers

Which of these is a key feature of natural sciences?

They rely heavily on experiential learning. Signup and view all the answers

What is the primary function of production in the context of input factors?

To transform input factors into marketable products or services Signup and view all the answers

Which of the following directly impacts the compliance with production deadlines?

Throughput time Signup and view all the answers

Which factor is affected when prioritizing production costs?

Manufacturing costs Signup and view all the answers

What trade-off can occur if production output quality is decreased?

Increased production quantity Signup and view all the answers

In the production process, which input factor refers to materials that aid in the production but are not the main raw materials?

Auxiliary materials Signup and view all the answers

Which objective of production management is aimed at achieving cost efficiency?

Reduce manufacturing costs Signup and view all the answers

What is the relationship between production output and manufacturing costs based on efficiency?

Increased output can lead to lower manufacturing costs per unit Signup and view all the answers

What happens to production costs as deadlines become stricter?

Production costs increase Signup and view all the answers

Study Notes

Agenda

Introduction
Basics of Business Administration
Material
Production
Marketing
Objectives
Management
Organization
Human Resources
Financing and Investment
Accounting/Controlling
Mega Trends and Perspectives

Introduction (What?)

Understanding Business Administration/Management as a Science
Knowing the most relevant Cornerstones of Business Administration
Understanding a Company as an Organism
Preparing for future courses
Shifting perspective from customer to producer

Introduction (The Operating Institution (1/2))

Sourcing (materials, operating resources, human resources)
Supplies (material, assets)
Finance & Capital (equity markets, debt)
Accounting & Controlling (taxes, fees, contributions, grants, subsidies)
Market (sales, marketing, products/services)
Government, Private businesses, households/individuals
Money & Equity markets (deposits/profits, credit/interest)
All companies have long-term goals and need an "overall model"

Intoduction (The Operating Institution (2/2))

Company, Financial markets, Financing and Investment
Procurement markets (production factors, financing)
Corporate management (target system, corporate strategies, financial balance sheet)
Corporate controlling
Costs, Revenue, Sales markets (product goods/services)
Corporate operational accounting

Basics of Business Administration

Science
History of Business Administration Science
Science and Business

Science

Identification and increase of knowledge (research)
- Qualitative (e.g., observation)
- Quantitative (e.g., data analysis)
Imparting and broadening knowledge (teaching)
- Education
- Training for jobs
- Universities
- In-company training
Business Administration and Science
- Characteristics of a science with four elements
  - Object of knowledge (economic side of businesses)
  - Knowledge target (theoretical, practical)
  - Methods (interdisciplinary science)
  - System (cause-and-effect mechanisms)
Business Administration in the Context of Science
- Ideal sciences (e.g., logic, mathematics)
- Real sciences (e.g., natural sciences, social sciences)
- Economic science
- Business Administration

History of BA Science

Antiquity (400 B.C.): Lively long-distance trade, Skepticism towards profit, Aristotle: Money has no intrinsic value
Middle Ages (starting 1200): Compatibility of economy and religion, Thomas Aquinas: Just price, Prohibition of interest
Modern Times (1650 onwards): State promotes trade, Mercantilism, Maximization of state wealth, Import duties
19th Century (1800 onwards): Trade as an industry, National economy (Smith), First industrial revolution, Cheap Labour
20th Century (1900 onwards): Birth of modern business administration, First business schools, Business administration as independent science

Needs, Definitions, Principles

Maslow's hierarchy of needs (basic, physiological, psychological)
Kinds of individual economies (producers, consumers)
Maximizing, minimizing, optimizing
Principles of Effectiveness and Efficiency
Goods/Physical Goods vs. Non-physical goods (e.g., Services)
Comparison of market economy and planned economy

Material

Basics
Decision-and-function-oriented overall model (constitutive decisions, location/legal form/cooperation, management/controlling, procurement, production, marketing, real/nominal goods, suppliers, customers, economy)
The object of materials management (supply, disposal, procurement, logistics)
Objects of materials management and kinds of material (raw materials, auxiliary materials, operating materials)
Objectives of materials management (deadlines, time, throughput time, procuring costs, materials costs, logistics costs, output, quality, supply readiness)
Procurement (outsourcing decisions, planning of needs, stocks, supplier policies)
Requirements types (raw materials, auxiliary materials, other goods/services), production planning and sales planning
Determining requirements
Deployment principles (single, stock, just-in-time procurement)
Cost trends
Comparison of manual and automatic bearings
Barcode shapes
RFID system
Pallets deployment cycle

Production

Basics
Production management (economic design and implementation of transformation of factors using production processes)
Production as a transformation of input factors into marketable products/services (raw materials, auxiliary materials, consumables, human resources)
Objectives of production management (deadlines, time, throughput time, production costs, manufacturing costs, output quality)
Organization (individual production, serial production, mass production)
Shop floor: Manufacturing and assembly (immovable equipment, workshops, production sequence, productivity, inflexibility)
Floor: Production and assembly. (fixed equipment, high productivity, high inflexibility regarding product types)
Group production and assembly/series production (mixture of workshop and flow production)
Planning (differences between inventory and production planning, independent/dependent demand)

Marketing

Basics
Problem solving process (analysis of situation, definition of marketing objectives, definition of marketing strategy, definition of marketing instruments, creation of marketing mix, implementation of marketing concept, marketing evaluation)
Monitoring functions (controlling, planning, assignment, management, decision)
Sales market (types, analysis, research)
Characteristics of a market (customer, object of purchase, purchasing goals, purchase influencers, decision-makers, buyer, user, process, location, etc.)
Market segmentation (geographical, demographic, socio-psychological, behavioral segmentation)
Product ideas/idea selection
Product development process (idea search, concentration, selection, development suggestions, development, definition, construction, prototyping, testing, optimization, market surveys, production, product launch, marketing tools)
Product design (functionality; service ability; operational safety; susceptibility to failure; durability; value retention)
Product policy (product retention, diversification, changes, innovation, elimination)
Place / Distribution (design and control of transferring product from producer to buyer)
Sales channels (direct, indirect, mixed paths, sales bodies, own bodies, other)
Degree of distribution
Franchising (contractual cooperation between independent companies); franchisor; franchisee
Logistical distribution (activities to transfer entrepreneurial services, right products, time, location, quality, costs)
Price (causes for price setting, introduction of new products, modifications, changes, perspectives)
Different perspectives for pricing (cost-oriented, profit-oriented, demand-oriented, competitor/industry-oriented)
Cost orientation (progressive costing, mark-up costing, full cost accounting, partial cost accounting)
Profit orientation (profit target, break-even analysis)
Demand-oriented pricing (based on perceived value by the buyer, market data, demand conditions)
Competitor/industry orientation (based on competitor prices, industry prices)
Price differentiation (according to target customer group, sales path, order size, quantity, spatial, time-related)
Price increases/reductions (economic necessity, active strategy, promotional prices)

Objectives

Types of objectives (factual, formal)
- Factual objectives (performance, financial, social/ecological)
- Formal objectives (overriding, performance)
- Examples: productivity, economic efficiency, profit and profitability
Functions of objectives (decision making, coordination, evaluation, motivational)
Target setting process (will formation, measure decisions, organization, will enforcement, controlling, control)
Target operationalization (target content, target extent, temporal reference, organizational reference)
Target ordering/hierarchization (ultimate goal/purpose, intermediate/subgoals)
Checking for feasibility (resources, target conflicts, time horizons, performance potential, target selection)
The theoretical base of the target search (premises)
Reality/empirically determined catalogs of objectives (profit maximisation, existence of "other" goals).

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Description

This quiz explores key concepts in business administration, focusing on value judgments and psychological perspectives of companies. It also discusses how objectives are determined and the aspects related to analyzing companies within the field. Test your knowledge on fundamental principles that shape business strategies.