TOPIC 1- BUSINESS MANAGEMENT INTRODUCTION.pdf

BUSINESS MANAGEMENT FOR ARCHITECTURE 01 A R A 510 INTRODUCTION TO BUSINESS MANAGEMENT FOR ARCHITECTURE PR- TOPIC 1 WHAT IS ARCHITECTURE? ROLE OF ARCHITECTURE IN THE ECONOMIC DEVELOPMENT Architecture is not just an inspiration or an attraction but is also a major part of economic development. For...

BUSINESS MANAGEMENT FOR ARCHITECTURE 01 A R A 510 INTRODUCTION TO BUSINESS MANAGEMENT FOR ARCHITECTURE PR- TOPIC 1 WHAT IS ARCHITECTURE? ROLE OF ARCHITECTURE IN THE ECONOMIC DEVELOPMENT Architecture is not just an inspiration or an attraction but is also a major part of economic development. For some, it might just be a space to live in, however, for some, it’s a symbol of status and pride.  ROLE OF ARCHITECTURE IN THE ECONOMIC DEVELOPMENT Because of the growing population and the demand for modernization, the value of land as a commodity is sky- rocketing. It not only attracts locals living in the vicinity but also attracts visitors from all over the globe. ROLE OF ARCHITECTURE IN THE ECONOMIC DEVELOPMENT For Example: a hotel with good architectural design attracts lots of customers – it helps increase the economy of that particular location. Whereas the same hotel with bad architecture will not create an impression – this aspect will eventually lead to a decrease in the economy. ROLE OF ARCHITECTURE IN THE ECONOMIC DEVELOPMENT ROLE OF ARCHITECTURE IN THE ECONOMIC DEVELOPMENT The City of Baguio has been characterized by many planners as un- plannable. Characterized by urban sprawl and massive stifling congestion in many of its residential areas, the city daunts the most serious urban planner who seeks to impose order and developmental sustainability to the chaos and disorder within it. It is not that the city was built and subsequently administered without plans. It was, as a matter of fact, an originally planned settlement – a colonial hill station designed by the world-renowned architect Daniel H. Burnham (Reed, 1999) who had been careful enough to note that existing circumstances then “point to the development in the near future of a town not exceeding 25,000 inhabitants.” (Burnham & Anderson, 1905, p. 1) However, by 2010, it has grown into a city of 325,880 residents and a population density of 5.2 per square kilometer (Cleto, 2010). ROLE OF ARCHITECTURE IN THE ECONOMIC DEVELOPMENT BAGUIO SESSION ROAD ROLE OF ARCHITECTURE IN THE ECONOMIC DEVELOPMENT DUBAI WHAT IS BUSINESS MANAGEMENT? BUSINESS MANAGEMENT BUSINESS MANAGEMENT Business management is the process of planning, organizing, directing, and controlling the activities of a business or organization to achieve specific goals and objectives. It involves overseeing all aspects of a business, from finance and operations to marketing and human resources. Key Functions of Business Management Planning Setting goals, developing strategies, and creating action plans. Key Functions of Business Management Organizing Structuring the organization, allocating resources, and assigning responsibilities. Key Functions of Business Management Leading/ Directing Motivating and inspiring employees, providing guidance, and making decisions. Key Functions of Business Management Controlling Monitoring performance, measuring results, and taking corrective actions.  Key Functions of Business Management Planning: Setting goals, developing strategies, and creating action plans. Organizing: Structuring the organization, allocating resources, and assigning responsibilities. Leading: Motivating and inspiring employees, providing guidance, and making decisions. Controlling: Monitoring performance, measuring results, and taking corrective actions. Areas of Business Management 1. Financial Management Budgeting, financial planning, accounting, and financial analysis. Basic business accounting will answer questions such as how much you can spend on marketing, or whether you have the ability to secure a loan from a bank. By understanding profit margins, cash flow, and managing debts and expenses, you are equipping yourself with the knowledge to ensure that your business stays profitable. Areas of Business Management 2. Human Resource Management Recruitment, selection, training, performance management, and employee relations. Data from Gartner found that successful managers who display high levels of empathy affect their employee’s performance three times more than those who display lower levels of empathy. Areas of Business Management 3. Operations Management Production planning, quality control & quality assurance, inventory management, and supply chain management. Lean management - business methodology that's designed to increase quality and efficiency by eliminating wasted resources like time, money, and effort. The idea is to produce only the best and most valuable services or products for customers and clients at the right price. Areas of Business Management 4. Strategic Management Developing long-term goals, analyzing the competitive environment, and formulating strategies. A good business strategy should give you a clear vision of your target audience, your business’s unique value proposition, available resources you can utilize, and how to stay competitive. Areas of Business Management 5. Marketing Management Market research, product development, pricing, promotion, and distribution. Marketing is more than advertising or having a social media presence. Learning marketing fundamentals can help you gain insight into who your customers are, what marketing channels you need to utilize, and how to build a strong and recognizable brand. 5 P’s in Marketing: Product, Place, Price, Promotion, People. Areas of Business Management 1. Financial Management: Budgeting, financial planning, accounting, and financial analysis. 2. Human Resource Management: Recruitment, selection, training, performance management, and employee relations. 3. Operations Management: Production planning, quality control, inventory management, and supply chain management. 4. Strategic Management: Developing long-term goals, analyzing the competitive environment, and formulating strategies. 5. Marketing Management: Market research, product development, pricing, promotion, and distribution. Importance of Business Management Importance of Business Management Effective business management is crucial for the success of any organization. It helps to: Improve efficiency and productivity Enhance decision-making Optimize resource utilization Build a strong organizational culture Achieve organizational goals Importance of Business Management in Architecture Importance of Business Management in Architecture 1. Financial Sustainability: ▪Profitability: Architects need to ensure their firms are financially viable to sustain operations and growth. ▪Cost Management: Effective management of project costs is crucial for delivering projects on time and within budget. ▪Fee Negotiation: Understanding the value of architectural services and negotiating fair fees is essential. Importance of Business Management in Architecture 2. Project Management and Delivery: ▪Time Management: Architects must efficiently manage project timelines and meet deadlines. ▪Resource Allocation: Effective allocation of human and financial resources is crucial for project success. ▪Risk Management: Identifying and mitigating potential risks in projects is essential for avoiding costly delays and disputes. Importance of Business Management in Architecture 3. Client Relationship Management: ▪Client Acquisition: Understanding client needs and building strong relationships is vital for business growth. ▪Client Satisfaction: Delivering projects that meet client expectations is crucial for repeat business and referrals. ▪Contract Negotiation: Drafting and managing contracts effectively protects the architect's interests. Importance of Business Management in Architecture 4. Business Development and Marketing: ▪Brand Building: Creating a strong brand identity is essential for attracting clients. ▪Market Analysis: Understanding market trends and client preferences helps in developing targeted marketing strategies. ▪Business Development: Identifying and pursuing new business opportunities is crucial for growth. Importance of Business Management in Architecture 5. Firm Management: ▪Human Resources: Managing and developing a talented team is essential for the firm's success. ▪Office Management: Efficient office operations contribute to productivity and profitability. ▪Strategic Planning: Setting clear goals and developing strategies for the firm's future is crucial. IF YOU ARE DEMURE AND MINDFUL, BRING OUT 1 TO 2 SHEETS OF BOND PAPER  PR- SW- 01 Understanding the Course and its Relevance What do you think is the most important aspect of business management for architects? How do you see business management impacting the architectural profession as a whole? Can you give an example of how business management could be applied to a specific architectural project? Personal Reflection How do you envision your role as a business leader in the future? What steps can you take to develop your business management skills? Are there any specific areas of business management that you would like to explore further?