Introduction to Business Management PDF

Introduction to Business Management Business Basics Prof. Dr. Martin Fleischmann Business and Business Management Business Entity or organization that provides goods and Stakeholders of a Business services to consumers for the purpose of making a profit Revenue = income...

Introduction to Business Management Business Basics Prof. Dr. Martin Fleischmann Business and Business Management Business Entity or organization that provides goods and Stakeholders of a Business services to consumers for the purpose of making a profit Revenue = income Profit = revenue – expenses Entrepreneurs – people who take business risk Profit – the reward for taking risk Business Management Coordination of an organization’s or entity’s business activities Key tasks include planning, organizing, directing and controlling all business processes with the goal to generate and maximize value for all stakeholders Source: Skripak and Poff (2020) Business & Economics Economics: the study of the production, distribution, and consumption of goods and services. Source: Skripak and Poff (2020) External factors influencing a business Macro- and Micro-Environment Macro- Environment Culture Demographics Political/ Social Legal BUSINESS Micro- Trends Env. Economy Technology Functional areas of business A business can be divided into functional areas. Some examples include: Management: planning for, organizing, leading, and controlling a company’s resources so that it can achieve its goals Operations: designs and oversees the transformation of resources into goods or services Marketing: identifies customers’ needs and designs products and services in a customer-centric fashion to meet those needs Accounting: measure, summarize, and communicate financial and managerial information and advise other managers on financial matters Finance: planning for, obtaining, and managing a company’s funds And many more functional areas, such as Human Resources (HR), Legal, etc. Source: Photo by Leon on Unsplash, Skripak and Poff (2020) Production factors in business – pre-digital vs digital era Elementary factors Dispositive factor Operating Materials Work Management resources e.g. raw materials, e.g. machine Planning, e.g. machines, intermediate products, operator organizing, buildings, capital auxiliary materials controlling Operating Materials Work Management resources Transmitter-receiver Problem solver, Data, networking, Technologies & systems (e.g. RFID) human-machine assistance systems, networking interaction decentralization Source: Gutenberg (1966); Gabler Wirtschaftslexikon (2020) Voigt et al. (2019); Obermaier (2019)