General Business Administration Overview
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Questions and Answers

Which of the following describes raw materials?

  • Secondary components of a company's products
  • Consumed directly in production
  • Main components of a company's products (correct)
  • Not incorporated into the products

Operating materials are incorporated into the final products of a company.

False (B)

What are auxiliary materials in the context of materials management?

Secondary components of a company's products

Operating materials are consumed directly or indirectly in the __________ of a company.

<p>production</p> Signup and view all the answers

Match the following types of materials with their descriptions:

<p>Raw materials = Main components of products Auxiliary materials = Secondary components of products Operating materials = Consumed in production Finished goods = Products ready for sale</p> Signup and view all the answers

Which of the following is a primary focus of corporate management?

<p>Corporate strategies (B)</p> Signup and view all the answers

The objective of corporate controlling is to track financial, balance sheet, and income statements.

<p>True (A)</p> Signup and view all the answers

What are the two types of research mentioned in the parameters of science?

<p>Qualitative and quantitative</p> Signup and view all the answers

The __________ markets refer to the sources where companies acquire their production factors.

<p>procurement</p> Signup and view all the answers

Match the following financial concepts with their correct descriptions:

<p>Revenue = Total income generated from sales Costs = Expenses incurred to produce goods or services Financial statements = Reports summarizing the financial performance Investment = Allocation of resources with the expectation of returns</p> Signup and view all the answers

Which of the following statements best describes the 'target system' in corporate management?

<p>The goals and objectives that the management aims to achieve (B)</p> Signup and view all the answers

Financial markets are solely used for trading stocks and bonds.

<p>False (B)</p> Signup and view all the answers

List one main goal of corporate operational accounting.

<p>To provide financial information for decision-making</p> Signup and view all the answers

In the context of the operating institution, which market involves deposits and profits?

<p>Equity Market (A)</p> Signup and view all the answers

Human resources are considered operating resources.

<p>True (A)</p> Signup and view all the answers

What is the primary function of accounting and controlling in an organization?

<p>To manage financial information and ensure proper financial health.</p> Signup and view all the answers

The financing options for businesses include taxes, fees, contributions, grants, and __________.

<p>subsidies</p> Signup and view all the answers

Match the following categories with their corresponding target audience:

<p>B2B = Private businesses B2C = Households / individuals B2G = Government Sales and Marketing = End consumers</p> Signup and view all the answers

Which of the following accurately represents debt in the context of the operating institution?

<p>Interest paid on credit (A)</p> Signup and view all the answers

Grants are a form of financing that must be repaid to the government.

<p>False (B)</p> Signup and view all the answers

Name one basic factor essential for production resources.

<p>Materials</p> Signup and view all the answers

What are the input factors involved in production?

<p>Human resources and raw materials (B)</p> Signup and view all the answers

Increasing manufacturing costs will lead to a decrease in production output.

<p>True (A)</p> Signup and view all the answers

Name one objective of production management.

<p>Reduce production costs</p> Signup and view all the answers

The combination of input factors in production results in marketable __________.

<p>products/services</p> Signup and view all the answers

Match the following components to their corresponding outputs in production:

<p>Raw Material = Products Human Resources = Services Auxiliary Material = Consumables Consumables = Production Support</p> Signup and view all the answers

What does a break-even analysis help determine?

<p>The quantity of sales needed to cover costs (B)</p> Signup and view all the answers

Demand-oriented pricing is solely based on the prices set by competitors.

<p>False (B)</p> Signup and view all the answers

Name one special form of competitive pricing.

<p>Price leadership or price cartel</p> Signup and view all the answers

In demand-oriented pricing, the company's prices are guided by the perceived ______ of a product.

<p>value</p> Signup and view all the answers

Match the following pricing strategies with their descriptions:

<p>Demand-oriented pricing = Based on perceived product value Competitive pricing = Based on competitors' prices Price leadership = Leading the market in pricing strategy Price cartel = Collaboration among competitors to set prices</p> Signup and view all the answers

What is the first step in the marketing management process?

<p>Analysis of the Situation (C)</p> Signup and view all the answers

Market segmentation involves dividing the overall market into heterogeneous submarkets.

<p>False (B)</p> Signup and view all the answers

Define marketing management.

<p>The management of the general marketing problem-solving process, including the design and implementation of the marketing concept.</p> Signup and view all the answers

The __________ refers to all consumers targeted as actual or potential buyers of a company's products.

<p>sales market</p> Signup and view all the answers

Match the following roles in the purchase process with their definitions:

<p>Initiator = Person who starts the purchase process Decision Maker = Person who has the final say in the purchase Influencer = Person who affects the purchase decision User = Person who ultimately uses the product</p> Signup and view all the answers

Which part of the marketing management process involves setting specific targets?

<p>Planning (B)</p> Signup and view all the answers

Marketing evaluation occurs before the implementation of the marketing concept.

<p>False (B)</p> Signup and view all the answers

What is the purpose of market research?

<p>To gather information about the sales market, customer behaviors, and preferences.</p> Signup and view all the answers

Flashcards

Raw Materials

The main components of a product, significant in quantity or value.

Auxiliary Materials

Secondary product components, less significant in quantity or value than raw materials.

Operating Materials

Materials not part of the final product, consumed during production.

Unfinished Goods

Partially completed products in the production process.

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Finished Goods

Completely manufactured products ready for sale.

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Materials Management

The process of overseeing the procurement and use of materials.

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Money markets

Markets where short-term debt instruments are traded.

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Equity markets

Markets for trading stocks and other ownership interests.

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Equity (deposits/profits)

Funds raised by offering ownership in a company.

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Debt (credit/interest) instruments

Borrowed funds requiring repayment with interest.

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B2B

Business-to-business transactions.

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B2C

Business-to-consumer transactions.

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B2G

Business-to-government transactions.

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Accounting and Controlling

Functions focused on financial record-keeping and analysis.

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Sourcing

Acquiring materials or resources for a company.

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Production

Creating goods or services.

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Sales and Marketing

Promoting and selling goods or services.

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Liquidity

The ability of an entity to quickly convert assets into cash.

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Operating Institution

The main organization running the business (often a company).

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Corporate Management

The process of controlling and directing a company.

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Corporate Strategies

Plans for achieving a company's goals.

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Financial Markets

Where companies raise capital and invest in assets.

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Financing & Investment

Acquiring money and using it to grow or improve a company.

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Financial Information

Data about a company's finances, like profits and losses.

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Corporate Controlling

The process of managing corporate activities to achieve targets.

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Balance Sheet

A financial statement that presents a snapshot of a company's assets, liabilities, and equity at a specific point in time.

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Income Statement

A financial statement that shows a company's revenues and expenses over a period of time.

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Procurement

Acquiring goods or services needed for production.

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Sales Markets

Identifying places and processes for distributing goods or services.

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Production

The process of creating goods or services.

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Marketing

The process of promoting and selling products or services.

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Business Administration (BA)

The study of how businesses operate and manage.

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Science and BA

The application of scientific methods to business and operations.

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Qualitative Research

Research focusing on in-depth understanding of a topic.

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Quantitative Research

Research using numerical data and statistical analysis.

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Production

The process of transforming inputs (raw materials, resources) into marketable products or services.

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Input Factors

Resources used in the production process, including raw materials, auxiliary materials, consumables, and human resources.

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Output

The resulting products or services after the production process.

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Production Costs

All expenses associated with the production process.

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Manufacturing Costs

Specific costs directly related to the production process.

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Throughput Time

The time taken to complete the production process.

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Quantity

The amount of products or services produced.

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Quality

The degree of excellence of the product or service.

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Deadline Compliance

Meeting the required timeframes for production.

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Run size

The scale of production in a single batch.

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Batch size

Number of products produced in a single run.

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Break-even Analysis

A financial analysis determining the point where revenues equal costs, resulting in zero profit or loss.

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Break-even Quantity

The amount of product needed to be sold before a company begins to make profit.

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Demand-Oriented Pricing

Pricing strategy based on perceived value by the consumer.

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Competitor/Industry Pricing

Pricing decisions based on competitor or industry standards.

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Price Differentiation

Varying prices based on different customer segments or product variations.

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Marketing Objectives Definition

Specific, measurable goals a company aims to achieve through marketing efforts.

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Marketing Strategy Definition

A detailed plan of action to achieve marketing objectives.

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Marketing Instruments Definition

The tools and methods used to implement marketing strategies.

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Marketing Mix Creation

Combining marketing instruments to create a cohesive marketing strategy.

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Marketing Concept Implementation

Putting the marketing strategy into action across various channels.

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Marketing Evaluation

Assessing the success of a marketing strategy and identifying areas for improvement.

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Marketing Management

The overall process of planning and implementing marketing strategies for a business.

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Sales Market

All potential and existing buyers of a company's products or services.

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Market Segmentation

Dividing a large market into smaller, more homogenous groups based on shared characteristics.

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Study Notes

General Business Administration Bachelor Program

  • Offered by Wiesbaden Business School
  • Instructor: Prof. Dr. Markus Faber
  • Hochschule RheinMain

Course Agenda

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

Introduction - Why?

  • Questions to consider: why would you choose business administration?
  • Importance for students: what makes the course relevant for the individual

Introduction - What?

  • Objectives: understanding business administration/management as a science, knowing cornerstones of business administration, understanding a company as an organism, preparing for future courses, changing perspective
  • System approach: 'Systems' are central to the understanding.

Introduction - What? (Continued)

  • The top 50 most valuable companies in the world (2023): Includes data on market cap and sector with graphical representation including country breakdown
  • Image of an operating institution (two parts) shows connections between various factors (suppliers, materials, assets, finance, production, marketing, government, sales markets and various actors)

Introduction - How/When?

  • Relevant information: available on StudIP
  • Required literature: Wöhe - Introduction to General Business Administration (27th edition, Vahlen) and other recommended materials
  • Emphasis on course script and content

Basics of Business Administration

  • Introduces the field of business administration/management
  • History of business administration as a scientific discipline
  • Parameters of a scientific discipline (identification and increase of knowledge, imparting and broadening of knowledge)
  • Business administration in the context of other sciences

History of BA Science

  • Main steps of development from Antiquity to the 20th century
  • Key historical periods and their influences

Science and BA

  • Maslow's hierarchy of needs: visual depiction, outlining basic through self-actualization needs

Science and BA (Continued)

  • Kinds of individual economies (producers, consumers, private, governmental).
  • Definition of a company: open, dynamic, complex, autonomous, market-oriented, social system
  • Guiding principles of companies: Maximizing (achieving maximum output), Minimizing (achieving maximum output with minimum inputs), Optimizing (achieving maximum output with minimal input)

Science and BA (Continued)

  • Effectiveness: assessment of achievement toward goal (measurable by efficiency and profitability)
  • Efficiency: analysis of the relationship between the service provided and use of resources (measurable by productivity)
  • Goods: physical or non-physical goods and services
  • Comparison of market economy and centrally planned economy

Science and BA (Continued)

  • Code of conduct: Visible reality vs. Value judgments.
  • Distinction between practical normative direction and evaluative direction with respect to the nature of the disciplines underlying business administration.

Material Basics

  • Decision- and function-oriented overall model (diagram)
  • Material management object: supply and disposal of materials for various areas, in line with procurement and logistics principles
  • Types of materials: raw materials, auxiliary materials, operating materials, consumables.

Material Procurement

  • Procurement objectives: ensure a needs-based supply of goods for operational provision of services
  • Strategically: outsourcing decisions (make-or-buy), quantity of suppliers, locations
  • Operatively: planning needs, planning stocks, procurement policies, supplier policies
  • Requirements planning: procurement planning (raw materials, auxiliary materials, other goods/services), production planning (unfinished goods, finished goods), sales planning
  • Determining requirements using parts list (e.g., vehicle, landing gear, floor assembly, wheels, wheel nut, rim)
  • Deployment principles: Single Procurement (emphasize short storage, low capital, and low storage costs), Stock Procurement (emphasize low per-product cost from higher quantities, but risks of storage and obsolescence), Just In Time (low storage and relatively low procurement costs, but higher planning needed)
  • Cost trends and order volumes (chart - total costs, storage cost and order costs)

Material Storage

  • Comparison of manual and automatic bearings: pros and cons of each storage system are identified, including costs, space requirements, picking efficiency and personnel training
  • Barcode shapes: linear, stacked, 2d (QR), 3d (color)
  • Schematic structure of a passive RFID system (diagram)
  • Pallets and containers cycle: various stages of the cycle (forwarding, commerce etc.) and challenges (returning/filling, documentation, damaged pallets)

Production Basics

  • Production management is the economic design and implementation of the transformation of existing production factors into products/services
  • Production as a transformation of input factors into marketable products/services.
  • Objectives of production management: costs (production costs, manufacturing costs), time (deadline compliance, throughput time), output (quantity, quality)
  • Types of production (individual, serial or mass depending on run size and batch size)

Production Organization

  • Shop floor manufacturing and assembly: immobile equipment and product transport between workshops
  • Floor production and assembly: fixed equipment sequentially arranged
  • Group production and assembly/series production: combination of workshop-style flexibility and flow efficiency
  • Differences in inventory management vs. production planning: Stock levels for final product vs. demand for intermediate products
  • Process of Production Planning (Business Planning, Aggregated Planning, Master Production Scheduling, Material Requirement Planning, Process Planning), Manufacturing Resource Planning.
  • Dimensions of Aggregation: regarding time (years, hours/seconds), regarding spatial (company, machine), regarding factual (financials, process)
  • Production control alternatives: Push (central control, ordering/approval) and Pull (decentral control, taking/ordering)

Marketing Fundamentals

  • Problem solving process (situational analysis, objective definition, strategy definition, instruments definition, mix creation, implementation, evaluation), Monitoring functions
  • Sales market: all consumers purchasing the company's goods and services
  • Key characteristics of a market (customer, object of purchase, purchase goals, initiator, influencer decision-maker, buyer user, purchase process and purchase location)
  • Market segmentation methods: Geographical, Demographic, Socio-psychological, Behavioral
  • Product ideas and their analysis (fit in portfolio, technical feasibility, risk assessment, capacity assessment)

Marketing Product Design

  • Key considerations for product design (functionality, service ability, safety, failure susceptibility, durability, value retention)

Marketing Product Policy

  • Product retention, product changes, product innovation, product elimination
  • The horizontal, vertical, and lateral diversification of a product line.

Marketing Place

  • Distribution: designing and controlling the transfer of products from producer to buyer
  • Sales channels: (direct, indirect, mixed paths), sales bodies (own, others).
  • Logistics: storage, order processing and transportation
  • Degree of distribution:
  • Direct sales path structure: producer, consumer
  • Indirect sales path structure: producer, wholesaler, retailer, consumer
  • Franchising: contractual agreements between parties involved with transfer of rights to distribute goods and services

Marketing Pricing

  • Conditions policy: terms and conditions including prices, rebates, discounts, financing etc.
  • Pricing policy decision: corresponds to all decisions in the sales program serving to shape price-performance ratios for customers
  • Practice oriented price determination: heavily influenced by the risk appetite of decision-makers, competitors and marketing strategy, pricing strategy
  • Causes for price changes: increases (economic necessity or active strategy, oversupply, capacity utilization, etc), reductions (cost increases, inflationary trends)
  • Different perspectives for pricing: cost-oriented, profit-oriented, demand-oriented, competitor/industry-oriented and price differentiation strategy, including considerations like time-related,
  • Cost orientations: progressive costing/markup pricing, full cost accounting, and partial cost accounting, including determining minimum price (a price floor)

Marketing Promotion

  • Communication policy and public relations: disseminating info to current and potential customers and those interested in the company
  • Public relations: building trust and creating relationships between a company potential partners and other stakeholder groups
  • Advertising concepts: functions of advertising, main advertising objectives including announcement, information, image building and triggering action, elements of the marketing concept, advertising period, media and material and advertising message
  • AIDA concept (Attention, Interest, Desire, Action), promotional message contents (brand, product properties, benefits, status of product, advantages vis-a-vis competitors, product availability and conditions of purchase/price, special services.)

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Explore the foundations of business administration with insights into its relevance and significance in today's world. This course covers various essential topics, including management, marketing, financing, and human resources. Get ready to understand business as a dynamic system and its implications for future learning.

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