Untitled Quiz

General Business Administration - Bachelor

• Course offered by Wiesbaden Business School, taught by Prof. Dr. Markus Faber
• Course covers a broad range of topics in business administration

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?

• Why is Business Administration relevant for students?
• Why did students choose to study Business Administration?

Introduction - What?

• Objectives of the course "General Business Administration"
• 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 - What? - Systems

• Example: Apple and Tesla

Introduction - What? - Top 50 Most Valuable Companies

• Data from 2023, ranks companies by market cap
• Data included for a range of global sectors

Introduction - What? - Operating Institution (1/2)

• Diagram illustrating the interconnectedness of sourcing, supplies, assets, operations, finance, accounting, and controlling within a company
• Shows the flow of transactions with external actors (government, customers).

Introduction - What? - Operating Institution (2/2)

• Diagram illustrating the company's relationship with financial markets, procurement markets, material, production, and sales markets.

Introduction - How/When?

• Relevant information: See StudIP
• Literature: (specific books by Wöhe and Vahlen)
• Other materials: Script and Content of the Course; Financial Times

Basics of Business Administration - Science

• Identification and increase of knowledge (research)
• Qualitative aspects
• Quantitative aspects
• Imparting and broadening knowledge (teaching)
• Education for jobs
• Universities
• In-company training

Basics of Business Administration - Science - Business Administration and Science

• Characteristics of a science with four elements
• Object of knowledge (focus on economics in a company; decisions about scarce goods)
• Knowledge target (theoretical and practical)
• Methods (interdisciplinary science, methodology; gaining information in a context)
• System (cause-and-effect mechanisms in context)

Basics of Business Administration - Science - Business Administration in the Context of Science

• Ideal sciences (logic, mathematics, methods)
• Real sciences (biology, chemistry, physics)
• Social sciences (sociology, political sciences, psychology)
• Humanities (law, arts, languages)
• Economic sciences (economics, business administration)

History of BA Science - Main Steps of Development

• Antiquity (400 B.C.) - Lively long-distance trade, skepticism towards profit, Aristotle's view of money
• Middle Ages (1200 onwards) - Compatibility of economy and religion, Thomas Aquinas' Just Price, prohibition of interest
• Modern Times (1650 onwards) - State promoting trade, mercantilism, maximization of state wealth, import duties
• 19th Century (1800 onwards) - Trade as an industry, national economy (A. Smith), first industrial revolution, cheap labor
• 20th Century (1900 onwards) - Birth of modern business administration, business schools, business administration as an independent science since 1912

Science and BA - Needs, Definitions, Principles (1/5)

• Maslow's hierarchy of needs (physiological, safety, belongingness, esteem, self-actualization)

Science and BA - Needs, Definitions, Principles (2/5)

• Kinds of individual economies (producers, consumers, private, governmental)
• Company characteristics (open, dynamic, complex, autonomous, market-oriented, social system)
• Principles (maximizing output, minimizing input, optimizing)

Science and BA - Needs, Definitions, Principles (3/5)

• Effectiveness (assessment of target achievement, measured by efficiency and profitability; doing the right things)
• Efficiency (assessment of the relationship between service provided and use of resources, measured by productivity; doing things right)
• Goods (physical, non-physical, services)

Science and BA - Needs, Definitions, Principles (5/5)

• Comparison of market economy and planned economy (socialist centrally planned economy and capitalist market economy)
• Prerequisites for both economies (use of production factors, economic efficiency, financial equilibrium)

Science and BA - Code of Conduct of Business Administration Science

• Visible reality versus value judgments
• Experience object of business administration
• Object of business administration knowledge

Material - Basics

• Basics
• Procurement
• Storage

Material - Basics (Decision and Function-Oriented Model)

• Company constitutive decisions (location, legal form, cooperations); general management (controlling, organization, human resources)
• Performance (research and development, logistics); procurement; production; marketing; accounting/finance; economy
• Suppliers → real goods → nominal goods → customers

Material - Basics

• The object of materials management (supply and disposal of goods for all areas in accordance with requirements)
• Procurement and logistics
• Merchandise management and procurement management are synonymous with materials management

Material - Objects and Types of Materials Management

• Raw materials; auxiliary materials; operating materials/consumables; completed goods; other goods; info + resources; assets; services

Material - Objectives

• Costs
• Time
• Output (quality, supply readiness, right time, location, quantity, status quo)

Procurement (Basics)

• Objectives (ensuring needs-based supply)
• Strategic considerations (outsourcing decisions, supplier quantity/location)
• Operative considerations (planning needs, stock planning, supplier policies)

Procurement (Requirements Planning)

• Requirements planning (procurement planning, production planning, sales planning, using an example of an automotive parts list)
• Deployment principles (single procurement, stock procurement, just-in-time)

Procurement - Cost Trends

• Cost trends as a function of order volumes (optimum order quantity, trade-offs)

Storage (Basics)

• Comparison of manual and automatic bearings (flexible space allocation, short training times, handling costs)
• Barcode shapes (linear, stacked, 2D, 3D)
• RFID system - structure

Storage - Cycle

• Pallets and containers cycle, challenges (returning empty containers, documentations, defective containers, stock fluctuations)

Production - Basics

• Production management (design, implementation of transformation of production factors in internal services/products using production processes)
• Input factors (raw materials, auxiliary materials, consumables, human resources)
• Combination of factors
• Production Process
• Output (products/services)
• Objectives (cost optimization, deadline compliance, throughput time, quantity, quality)
• Different types of production (individual, serial, mass)
• Shop floor
• Workshop / flow production

Production - Planning

• Differences between inventory management and production planning (independent demand(forecasting), dependent demand (intermediate products))
• Process of production planning (business planning, aggregated планирование, master production scheduling, material requirement planning, process planning, manufacturing resource planning)
• Dimensions of aggregation (time, spatial, factual)
• Production control alternatives (push/pull)
• Target operationalization

Marketing - Basics

• Problem-solving process (analysis of situation, definition of objectives, definition of strategy, definition of instruments, creation of marketing mix, implementation, evaluation)
• Monitoring functions (planning, controlling, management, assignment, decision)
• Sales market (all consumers to whom a company turns, purchase decision process)
• Market research (object of purchase, purchasing goals, purchasing influencers, decision makers, buyer, user)
• Market segmentation (geographic, demographic, socio-psychological, behavioral)
• Product ideas - idea selection (interesting because of economic reasons, fit in existing portfolio, performance, technical feasibility, high risk)

Marketing - Product

• Product development (research, development, prototyping, tests, optimization, market surveys, production launch/marketing tools)
• Design considerations (functionality, service abilities, operational safety, susceptibility to failure, durability, value retention)
• Product policy (retention, product changes, product innovation, product elimination, horizontal/vertical/lateral diversification, differentiation)

Marketing - Place

• Distribution (design and control of product transfer)
• Sales channels (direct, indirect, mixed paths, sales bodies, own bodies, others)
• Logistical distribution ( part of logistics of a company; activities of transfer; main objectives-right product at right time/location at minimal cost, objective: high delivery service at minimal cost)
• Degree of distribution (product availability)
• Direct and Indirect sales paths
• Franchising

Marketing - Price

• Conditions policy (pricing of products/services, terms and conditions, rebates/discounts/credit financing
• Pricing policy decisions (price-performance ratio, customer/target oriented)
• Practice-oriented price determination (risk appetite, competitor behavior, pricing strategies)
• Causes for price setting (new product introductions, modifications, changes, optimized prices)
• Price orientations (cost-oriented, profit-oriented, demand-oriented, competitor/industry-oriented)
• Cost orientation (progressive costing, mark-up costing, full cost accounting, partial cost accounting)
• Profit orientation (setting a profit target, break-even analysis)
• Demand-oriented pricing (value perception by buyer, based on market data)
• Competitive pricing (bases price on competitors)
• Price differentiation (spatial, time-related, according to target customer group, sales path, and body, according to order size, according to quantity)
• Price increases/reductions (market, cost, volume, competition)

Marketing - Promotion

• Communication policy and public relations (aim is to inform about products, create positive image with current/future customers)
• Public relations
• Advertising concept/functions (information delivery/market transparency)
• Main objectives of advertising (announcement, information, image/building, action-trigger, immediate sale, further activities, message forwarding)
• AIDA concept
• Elements of advertising concept (advertising object, target group, objectives, budget, location, period, media, message)

Objectives - Types

• Factual objectives - Specific actions in business operations; performance, financial, social, and ecological
• Formal objectives - Overarching, expressed success of entrepreneurial activity, productivity, economic efficiency, profitability
• Formal and Factual Objectives are based on Economic Efficiency and are also tied to Environmental protection

Objectives - Types (Functions)

• Decision-making process: Orientation, evaluation, selection
• Decision realization: Coordination, motivational, appraisal
• Review of consequences: Control

Objectives - Types (Example)

• Resource objective (conserve/keep scarce resources)
• Emission and waste objectives (avoid, reduce, recycle, dispose of polluting emissions/waste)
• Risk objectives (minimize potential dangers, prevent incidents, risk limitation)

Objectives - Setting Process

• Management cycle (will formation, measure decisions, organization, will enforcement, control,
• Step-by-step development of a possible target system (target search, operationalization, ordering, feasibility check, decision, implementation, review)
• Base of the target search (theory of firm - premises: homo economics, individual decision makers; reality/empirically - existence of other goals, security, qualitative growth, social responsibility)
• Target Operationalization
  • Target content
  • Target extent
  • Temporal reference
  • Organizational reference (who, departments, goals, employees)