Week 1: Introduction to Business Principles PDF

Week 1: Introduction to Business Principles Management Definition: Attaining organizational goals effectively and efficiently using planning, organizing, leading, controlling, staffing, and coordinating resources. Functions of Management: ○ Planning: Setting objective...

Week 1: Introduction to Business Principles Management Definition: Attaining organizational goals effectively and efficiently using planning, organizing, leading, controlling, staffing, and coordinating resources. Functions of Management: ○ Planning: Setting objectives and outlining steps to achieve them. ○ Organizing: Arranging resources and tasks to accomplish objectives. ○ Leading: Guiding and motivating employees to achieve goals. ○ Controlling: Monitoring and evaluating progress towards goals. ○ Staffing: Recruiting, training, and retaining the right personnel. ○ Coordinating: Ensuring all parts of the organization work together. Efficiency vs. Effectiveness: ○ Efficiently: Doing tasks with minimal waste (e.g., automating repetitive tasks). ○ Effectively: Achieving desired outcomes (e.g., setting clear objectives). Combining Efficiency and Effectiveness: ○ Inventory Management: Using real-time tracking for accurate stock levels. ○ Customer Service: Structured scripts for efficiency with personalized responses for effectiveness. Manager’s Roles: ○ Figurehead, Leader, Liaison, Monitor, Disseminator, Spokesperson, Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator. Managerial Skills: ○ Top Level: Conceptual Skills – Solving long-term problems. ○ Middle Level: Human Relations Skills – Leading and ensuring good interpersonal relations. ○ Lower Level: Technical Skills – Using tools and specialized knowledge. Importance of Management Principles: ○ Efficiency: Maximizes productivity. ○ Effectiveness: Achieves organizational goals. ○ Consistency: Standardizes practices. ○ Adaptability: Responds to changes. ○ Accountability: Clarifies roles and responsibilities. Marketing 7 Ps of Marketing: ○ Product: Goods or services offered. ○ Price: Amount paid by customers. ○ Place: Distribution locations. ○ Promotion: Advertising and sales strategies. ○ Physical Environment: Tangible proof of quality. ○ People: Focus on customers and employees. ○ Process: Efficient customer-friendly processes. Implementing Strategy: ○ Market Research: Understanding customer needs and trends. ○ STP (Segmentation, Targeting, Positioning): Identifying market segments and targeting them.  ○ Customer Relationship Management (CRM): Building and maintaining customer relationships. ○ Branding: Developing a strong brand identity. Marketing Functions: ○ Market Research: Data collection and analysis. ○ Product Development: Designing products. ○ Promotion: Communicating product benefits. ○ Sales: Generating revenue. ○ Distribution: Ensuring product availability. ○ Pricing: Setting prices. ○ Customer Service: Enhancing satisfaction. ○ Market Planning: Developing strategic plans. Business Finance Definition: Managing financial resources in a business. Functions of Business Finance: ○ Financial Planning: Budgeting and forecasting. ○ Financial Analysis: Analyzing financial statements. ○ Capital Management: Managing short-term obligations. ○ Financing: Securing long-term financing. ○ Investment Management: Making investment decisions. ○ Cost Management: Controlling costs. ○ Financial Reporting: Preparing reports. ○ Risk Management: Mitigating financial risks. Principles of Finance: ○ Time Value of Money: Value of money today is more than in the future. ○ Risk and Return: Higher risk means higher potential returns. ○ Diversification: Spreading investments to reduce risk. ○ Liquidity: Ease of converting assets into cash. ○ Profitability: Generating more income than expenses. ○ Financial Leverage: Using borrowed funds to increase returns. ○ Efficient Market Hypothesis: All information is reflected in asset prices. ○ Cost of Capital: Cost of financing a business. ○ Cash Flow Management: Ensuring enough cash flow. Human Resource Management Functions of Human Resource Management: ○ Recruitment and Selection: Identifying and choosing candidates. ○ Training and Development: Enhancing employee skills. ○ Performance Management: Evaluating and improving performance. ○ Compensation and Benefits: Managing remuneration and benefits. ○ Employee Relations: Maintaining positive relationships. ○ Compliance: Adhering to labor laws and regulations.