General Business Administration Bachelor PDF

GENERAL BUSINESS ADMINISTRATION Bachelor Wiesbaden Business School Prof. Dr. Markus Faber AGENDA 1 INTRODUCTION 2 BASICS OF BUSINESS ADMINISTRATION 3 MATERIAL 4 PRODUCTION 5 MARKETING 6 OBJECTIVES 7 MANAGEMENT 8 ORGANIZATION 9 HUMAN RESOURCES 10 FINANCING AND INVESTMENT 11 ACCOUNTING / CONTROLLIN...

GENERAL BUSINESS ADMINISTRATION Bachelor Wiesbaden Business School Prof. Dr. Markus Faber AGENDA 1 INTRODUCTION 2 BASICS OF BUSINESS ADMINISTRATION 3 MATERIAL 4 PRODUCTION 5 MARKETING 6 OBJECTIVES 7 MANAGEMENT 8 ORGANIZATION 9 HUMAN RESOURCES 10 FINANCING AND INVESTMENT 11 ACCOUNTING / CONTROLLING 12 MEGA TRENDS AND PERSPECTIVES 2 1 INTRODUCTION Why? What? How / When? 3 INTRODUCTION Why? Why is it relevant for you? Why did you choose to study “something” with Business Administration? Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 4 INTRODUCTION What? Objectives of the course “General Business Administration” - Understanding Business (Administration / Management) as a Science - Knowing the most relevant Corner Stones of Business Administration - Being able to understand a Company as an Organism - Preparing you for the Courses to come - Changing the own Perspective so far: Shifting from Customer to Producer Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 5 INTRODUCTION What? “Systems” Apple + Tesla Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 6  einer Gewinn eines Unternehms Wert Aktie - > - Aussichten in der Zukunft INTRODUCTION What? Unternehmen Frankfurter DAX 40 die an 140 größten , Börse Papiere haben (Deutsche Aktien Index Source(s): https://www.visualcapitalist.com/the-50-most-valuable-companies-in-the-world-in-2023/ Welt als Absatzmarkt Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 7 INTRODUCTION What? The operating institution (1/2) Money and equity markets Finanzen + Kapital Equity (deposits / profits) Debt (credit / interest) Außenwelt unternehmen Accounting and Controlling s Sourcing Finance Market müsseder ei fällt weg Beschaffungsmarkt Supplies Storage beijust-in- time Absatzmarkt richtigene un- Produktion Verkauf BTG Materials Government · Basic Sales and finished Werbung Assets factors marketing goods Pro- nicht direkt of the verkauft BTB Operating duction products / Private Staff Storage services resources businesses Geld was Dispo- finished made sition goods , Liquidity direkt Tue BTC Human steht Households / resources Finance individuals Accounting and Controlling Kunde ist König , da Kunden für Einnahmen des Unternehmens verantwortlich sind Goods Taxes / fees / contributions Grants / subsidies /Infrastruktur/rechtlicher Rahmen Financing 30 % (subventionen) Financial information (fehlen / bei miro nachgucken Government Source(s): Based on Wöhe, 2002. Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 8 INTRODUCTION What? The operating institution (2/2) Company Corporate management muss sicherstellen Organismus , funktioniert dass der ganze Target system Corporate strategies Finanzmarkt Financial markets Financing and Financial, balance sheet Corporate controlling Investment and income statements Beschaffungsmarkt Revenue Absatzmarkt Costs Procurement Sales markets markets Material Production Marketing (Product goods / (Production factors) services) Produkt /Dienstleistung Corporate operational accounting machen 70 % des BIP aus Financing Bezahlung Goods Financial information Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 9 INTRODUCTION How / When? Relevant information: see StudIP Literature: … and many, many more. But most relevant: Script and Content of the Course in der Bib gibt es Financial Times Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 10 2 BASICS OF BUSINESS ADMINISTRATION Science History of BA Science Science and BA 11 SCIENCE Parameters of Science 1. Identification and increase of knowledge (research) - Qualitative : I see something and describe it in an objectiv way for future -mostly the - Quantitative have data and try to find a pattern : increase your own knowledge from the past/present 2. Imparting and broadening knowledge (teaching) - Education / Training for jobs - Universities - In-company training : Schulungen/Seminare Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 12 SCIENCE Business Administration and Science Characteristics of a science with four elements we need identify all a four science to there is also a financial/social.... side for Business Administration  Focus on the economic side of the business Object of … Includes the economic principles and processes in the company knowledge  The decisions to be made on the use of scarce goods are regarded as the object of knowledge limited money/time/resources goods (e. g. A distinction is made between theoretical and practical: Knowledge  Theoretical knowledge objectives are characterized by the acquisition of knowledge target  Practical focus on empirical decision-making processes and the development of new bases for decision-making e. g. mathematics/law/psychology  Every science requires certain methods in order to achieve the specified goals. Methods  By its very nature, methodology is an interdisciplinary science  A system presents the knowledge gained in a context System  The context can represent cause-and-effect mechanisms, among other things Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 13 SCIENCE Business Administration in the Context of Science The sciences overview Science Ideal sciences Real sciences Logics Mathematics Methods Humanities Natural sciences Geisteswissenschaften Biology Chemistry Physics Social sciences Law Arts Languages Economic sciences I I Political Business Sociology Psychology Economics sciences Volkswirtschaftlehre Administration Betriebswirtschaftslehre Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 14 HISTORY OF BA SCIENCE Main Steps of Development Antiquity Middle Ages Modern Times 19th Century 20th Century 400 B.C. Starting 1200 1650 onwards 1800 onwards 1900 onwards  Lively long-  Compatibility of  The state  Trade as an  Birth of modern distance trade between countries economy and promotes trade because taxes are good for states industry business  Plato: Skepticism religion = was very important  Mercantilism earn money  National administration towards the  Thomas  Maximization of economy (A.  First business pursuit of profit (Socioligy) Aquinas: Just state wealth Smith) schools around  Aristotle: Money price  Import duties  First industrial 1900 has no intrinsic  Prohibition of revolution machines > - made production  Business value interest until the  Cheap labour administration easier + faster Reformation as independent ~ it was not allowed to take interest if you science since lead someone money 1912 young science Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 15 SCIENCE AND BA Needs, Definitions, Principles (1/5) Maslow’s hierarchy of needs we buy stuff to satisfy our needs (individual as a should know company you what needs your costumers have to understand them better sell more products and be more successful i thinking about doing a company in an other country are my basics needs covered there i ↑ ↑ only if these needs are fulfilled think about the next can you Source(s): McLeod, S., Simply Psychology, 2018 Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 16 SCIENCE AND BA Needs, Definitions, Principles (1/5) Needs Maslow's pyramid of needs is a model developed by the psychologist Abraham Maslow (USA) to describe the motivation of people  Deficit and growth motives. marketing : companies araise a need costumers didn't know they have necessity of economic Needs Means to satisfy needs activity and application of the economic principle we buy stuff to satisfy our needs (individual The assumption is that people naturally strive for self-realization. However, deficit needs must first be satisfied. Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 17 SCIENCE AND BA Needs, Definitions, Principles (2/5) Kinds of individual economies : e.. g university , clean water  Producers (Private / Governmental)  Consumers (Private / Governmental) - e Streets.. g What is a Company? I mird people working together strategy based on depending on customers,... many 1 the market The company can be characterized as an open, dynamic, complex, autonomous, market-oriented, social system. build the I all the people - " company is (no.... in working a company on my own government a company always changing Principles:  Maximizing (maximal output should be achieved)  Minimizing (goal to be achieved with minimal input)  Optimizing (achieving maximum output with minimum input) Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 18 SCIENCE AND BA Needs, Definitions, Principles (3/5) Effectiveness: Efficiency: Wirkung  Assessment of target achievement, i.e. the extent to  Assessment of the relationship between the service which the planned targets have been achieved. provided and the use of resources.  Can be measured by efficiency and profitability.  Can be measured by productivity.  Doing the right things, i.e. performance effectiveness.  Doing things right, i.e. performance. Goods: Physical goods Non-physical goods e.. g health care Services e.. g information Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 19 SCIENCE AND BA Needs, Definitions, Principles (5/5) Comparison of market economy and planned economy e. g. North Korea Socialist centrally planned economy Capitalist market economy  centralized control  control via the economic system  state ownership  private property  plan fulfilment : government creates the plan  market regulates supply, demand and prices "the invisible hand of the market"-A Smith  . without freedom of choice for the companies freedom of choice  state ownership of the means of production  state and private ownership of the means of (including land and buildings) production (including land and buildings) no competition Prerequisite for both economic systems:  Use of production factors Compliance with the principle of economic efficiency Beachtung   Maintaining financial equilibrium (maintaining solvency) Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 20 SCIENCE AND BA Code of conduct of Business Administration Science Visible reality Value judgements research form a judgment after Practically normative direction Companies as part of the observable reality companies from the  value judgments in the statement area are deliberately (relevant section of reality) perspective of psychology avoided try to understand  a company Experience object of it is not the task of the scientist to evaluate the ethical and Business administration social objectives pursued by companies  the objectives must be determined empirically and must companies from the not be derived from norms perspective of sociology vs. judgment (without research) that fits your norm companies from the Normative evaluative direction perspective of …  value judgments in the area of statements are consciously demanded, although they elude scientific proof  overriding values (of the researcher) are incorporated into Object of knowledge of Business administration: the research statements as norms, as target ideas “Planned allocation of scarce resources to given needs” Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 21 3 MATERIAL Basics Procurement Storage 22 MATERIAL Basics Decision- and function-oriented overall model Company Constitutive decisions Location Legal form Rechtsform Cooperations Management Controlling, Organization, Human Resources Performance Research and Development, Logistics Real goods material Suppliers Procurement Production Nominal Customers goods Accounting / Finance Economy Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 23 MATERIAL Basics The object of materials management is vertical integrated Endproduct 1 unfinished (Tier 1) good 1 what do I need ? Where I them ? goods can get the supply and Component 1 (Tier 2) the disposal of goods for all areas Raw material (Tier 3) get from someone else in accordance with the respective requirements through procurement and through logistics. storage/floating of the goods The terms merchandise management and procurement management are often used synonymously with materials management. Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 24 MATERIAL Basics Objects of materials management and kinds of material Materials Management Material Raw materials: Raw materials Raw materials are the main components of a Auxiliary materials company's products in terms of quantity Operating and/or value. materials Unfinished goods Logistics Auxiliary materials / supplies: Auxiliary materials are secondary components time goods in the right place at the right Procurement Finished goods of a company's products in terms of quantity Other goods and/or value. Information Operating materials / consumables: Human resources Operating materials are not incorporated into Assets the products of a company but are consumed directly or indirectly in their production. Services Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 25 MATERIAL Basics Objectives of the materials management minimize Costs Procurement costs for employees Materials costs trade-off - good quality or Logistics costs low costs optimize maximaze Deadline compliance Time Output Quality Throughput time Supply readiness time between ordering and getting a product Right time, location, quantity, status-quo Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 26 MATERIAL Procurement we just do what others want us to do production Objectives of procurement: Ensuring the needs-based supply of those goods that are used in the operational provision of services Strategically: Outsourcing decisions (make-or-buy) in the longrun (1 year ) + only one supplier comes with a high risk (if they fail / price Quantity of suppliers and locations costs of to many suppliers are hard to coordinate transport Operative: short term (less than 1 year) Planning of needs of the company Planning of stocks Procurement politics Supplier politics Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 27 MATERIAL Procurement Requirements types and requirements planning in procurement Procurement planning - raw materials Sales Planning - auxiliary materials - other goods / services Production planning - unfinished goods - finished goods Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 28 MATERIAL Procurement Determination of requirements using the example of an automotive parts list Product Parts Parts Parts Primary need Secondary need Secondary need Secondary need 5 Wheel nut 4 Wheel 1 Rim 1 Landing Gear … 1 Floor Assembly Vehicle … 1 Power Train Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 29 to all parts together to create the product need put MATERIAL Procurement procurement costs : · no/Low storage costs (building/handing) maintenance ofmachine als Deployment principles handling less costs for supplier ↑ order something just when e (normally buy it one time e car manufacturers.. g Single Procurement Stock Procurement Just in Time  Cheaper per product because  Lower / no storage facility  Short storage times of higher quantities needed  Low capital lock-up +  No production delays  Relatively low procurement  Lower storage costs  Wait for better prices costs T haveto interte  Risk of ageing  No cheap purchasing times  Planning need is much higher  Risk of capital quality loss  No instant adaption of  Risk of supplier delays / I  Capital lock-up production quantities logistics delays  High storage costs Z-Goods Y-Goods X-Goods Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 30 MATERIAL Procurement Cost trends as a function of order volumes Costs control place handling , Total costs , Storage costs agreements with suppliers Optimum order Order costs request - e.. g for... (RFX) , ,. transport request for proposal quantity Quantity ordered q Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 31 MATERIAL Storage Comparison of manual and automatic bearings Manual bearings Automatic bearings  Goods are brought to the man  Flexible space allocation  Storage of many articles, batches, MHD in a small space +  Fast removal of whole units Mindesthaltbarkeitsdatum / best before date  Short training times  Direct access to every segment Low personnel + not so difficult to work there deployment robots  Low forklift use  High picking performance Low picking error rate  Large proportion of picking time is spent on  Low inventory effort transportation (man to goods) and searching  Paperless communication  High personnel costs  Costs: forklift maintenance, repair of inventory I  High error rate  Space allocation is fixed  High inventory costs I  Service know-how required  High printing costs if no MDE mobile data entry  Costs: maintenance, spare parts Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 32 MATERIAL Storage Barcode shapes of robots/machines language European Artical Number BTC products - le.. g Supermarket books " data in less more space Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 33  e Decathlon.. g MATERIAL Storage Schematic structure of a passive RFID system 3) Scanner Intermec UAP-2100 WAN/ Tag-Antenna Radio Controlled Identificator WLAN / LAN 2) RFID- Antennas 4) Data procesing 1) RFID-Tags Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 34 MATERIAL Storage Pallets and containers cycle nigh costs Commerce Challenges: Forwarding Returning empty containers for "filling“ Documenting and invoicing exchanges between the parties involved Identifying and sorting out defective containers Provision Balancing out stock fluctuations Industry Paletts depot Specialist companies Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 35 4 PRODUCTION Basics Organization Planning 36 PRODUCTION Basics Production management: The object of production management is the economic design and implementation of the transformation of existing production factors into products and internal services using production processes. Production as a transformation of input factors into marketable products / services: Raw Material Auxiliary Material Combination of input Products / Consumables factors Services Human Resources Input Production Output Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 37 make or buy product e.. g Apple PRODUCTION Basics Objectives of production management Costs machinery Production costs ↓ Manufacturing costs ↓ trade-off scale of economies unit decreases if you produce more the production cost of one Time Output Deadline compliance ↑ should be optimize Quantity ↑ Throughput time ↓ Quality ↑ time from input to output e g.. their quality some companies decrease e.. g Ikea-Decia Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 38 PRODUCTION Organization Depending on the run size and batch size, i.e. the number of identical products produced in succession, and whether or not the equipment is converted, there are different types of processes: only produce one item at a time Individual production e.. g Ship-building many items of one kind then produce another kind Serial production e.. g trains , sandwiches Mass production e. g. high volume cars production Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 39  PRODUCTION & Organization Shop floor manufacturing and assembly production Step 1 production step 2 production step process must be controlled by humans - used which machinery should be Storage Immovable equipment designed for similar operations is grouped together in so-called workshops The products are transported between the workshops according to the production sequence Frequently used for series production → Very flexible, very fail-safe → but high control effort, medium productivity Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 40 control - steuern PRODUCTION Organization Floor production and assembly storäge Fixed equipment designed for the production of a specific product is arranged one after the other according to the production sequence. High productivity of employees High inflexibility with regard to product types Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 41 PRODUCTION Organization Group production and assembly / series production Grouping relevant production steps Mixture of workshop and flow production Parts of production are combined into groups within the framework of flow production Flexibility advantages of workshop production are combined with productivity advantages of flow production Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 42 PRODUCTION Planning Differences between inventory management and production planning Inventory management Production planning Stock levels are planned so that an end product is We know the demand for the end product available in the optimum quantity We plan the production of intermediate products, The demand for the product is usually a forecast the input quantity of which depends on the end (historical values) product→ dependent demand → independent demand → dependent demand Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 43  PRODUCTION Planning Process of Production Planning whole company tries to understand the development of markets and demands Business Planning figures/volumes what do I have to produce in the next 1/2 years Aggregated Planning Manufacturing Resource Planning (also quantity + time when /where will I produce including other divisions) Master Production Scheduling Capacity planning and consideration of changes Business planning Material Requirement Planning Orientation towards the value chain Hierarchical planning concept feedback line Process Planning Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 44 PRODUCTION Planning Dimensions of Aggregation Regarding: Time YEARS Hours / Seconds Regarding: Spatial COMPANY Machine Regarding: Factual FINANCIALS Process Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 45  PRODUCTION Planning Production control alternatives: Push vs Pull Push: Central control based on the bring-principle Pull: Decentral control based on the take-principle Order by Machine, Feedback, Approval ORDER ORDER ORDER ORDER Controller Material / Production Storage Production Storage Production Products Material / Production Production Production Product Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 46 5 MARKETING Basics Product Place Price Promotion 4 47 MARKETING Basics Problem solving process Monitoring functions understanding market + your position/situation 1. Analysis of the situation e. g gain new costumers introducing a new product Controlling. , 2. Definition of Marketing Objectives Planning C P 3. Definition of Marketing Strategy Management 4. Definition of Marketing Instruments feedback P 5. Creation of Marketing Mix 7 4P's : Product, Place , Price , Promotion A D Assignment Decision 6. Implementation of Marketing Concept 7. Marketing Evaluation → The management of the general marketing problem-solving process, in particular the design and implementation of the marketing concept, is referred to as marketing management. Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 48 MARKETING Basics Sales market: All consumers to whom the company turns as actual and potential buyers of its products and services in order to induce them to purchase its services / products. Characteristics of a market Market Research Customer I fulfill their needs Object of purchase I have your basic needs satisfied or is it luxury : do I need or want it Initiator Purchasing goals Influencer Purchase influencer I Decision maker ! important < most person Purchase process BTC only : one person Buyer BTB 1 different people in different positions Purchase causes User is it difficult to that product easy or get Purchase location it where is bought Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 49 MARKETING Basics Market segmentation refers to the division of the overall market into homogeneous submarkets according to various criteria. Geographical Demographical segmentation segmentation  Region country  Age  Population density  Gender  Climate  Size of the household  Language religione  Income · politics Socio-psychological Behavioral segmentation segmentation  Generally  Personality  With regard to products / services  Social class children labour , environment Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 50 MARKETING Product Product ideas – idea selection: Depending on several questions Is a product interesting How high is the risk involved primary because of economic in manufacturing this reasons? product? Does the new product fit in Is the idea technically the existing product portfolio? realizable? What is the performance capacity of your own company? Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 51 MARKETING Product Product development comprises the technical, market and production-oriented activities of the research and development department of an industrial company in order to create new or improved products or processes. Development Definition of potential some research institution product / process Product idea: Research only a few products are launched a lot of ideas are cancelled before Constructure development Idea search Product launch Idea Prototyping Definition of concentration Marketing Tools / Tests Correction of Tools Idea selection Development Optimization suggestions Market surveys Production Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 52 MARKETING Product Product design: Before designing the product, the elements and dimensions that can be determined on the product must be considered. Functionality / Marketing Overview Service ability Functional safety Design Packaging Product Operational safety Core Environ- Susceptability to failure mental Marking Impact Ycolour , symbol Durability Value retention Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 53 MARKETING Product Product policy: design of a company's sales program in terms of type and quantity, as well as the additional services offered together with the product. Product policy Product Product Product Product Product (program) retention changes innovation elimination diversification stop producing horizontal Variation buying another brand (same product) limited edition vertically Differentiation within a company y produce some new products lateral Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 54 MARKETING Place Distribution: design and control of the transfer of a product from the producer to the buyer. Distribution decide wether to do it on your Sales channels Logistics own or get help from companies specialized companies : · DB Schenker/DSV · DHL Deutsche Post USP , FedEx Sales Paths Sales Bodies Storage , , ,... BLG Logistic... Direct Own bodies Order processing make or buy : sales team Indirect Others Transportation Mixed paths Hochschule RheinMain – WBS – General Business Administration 2024 / 2025 55 MARKETING P