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Learning the Importance of Business Management

Understanding the Importance of Business Management is paramount. This blog covers the crucial role that effective management plays in achieving organisational success. Discover the key principles, strategies, and real-world examples that highlight the significance of business management for both new entrepreneurs and established enterprises.

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Business Management is the compass that guides decision-making and the fuel that drives growth. Therefore, it’s time to learn about the importance of managing your business. Not sure how? Read this blog to explore the multifaceted Importance of Business Management. Also, learn how it is crucial for businesses in shaping their organisational structure. 

Table of Contents  

1)  The fundamentals of Business Management 

2)  Why is Business Management Important? 

    a)   Strategy and vision 

    b)  Resource allocation 

    c)  Decision-making 

    d)  Risk mitigation 

    e)  Adaptation to change 

    f)  Market expansion 

    g)  Innovation and creativity 

    h)  Efficient operations 

     i)  Customer satisfaction 

     j)  Profitability and financial stability 

3)  Conclusion 

The fundamentals of Business Management  

Business Management is the backbone of any organisation, providing structure, direction, and purpose to its operations. At its essence, it is an amalgamation of various organisational activities and resources to achieve specific goals and objectives. 

It's a multifaceted discipline encompassing many responsibilities, strategies, and techniques. Effective Management of Business ensures that the organisation functions cohesively, adapts to changes, and thrives in a competitive environment. Effective Business Management extends its influence on various aspects of an organisation, including the following:   

The fundamentals of Business Management revolve around key principles and practices that form the core of effective organisational leadership. At its essence, Business Management encompasses planning, organising, leading, and controlling resources to achieve specific goals and objectives. Let's look at how it works: 

a)   Planning: This stage involves setting clear goals, developing strategies, and outlining the steps necessary to achieve them. Effective planning provides a roadmap for the organisation's future. 

b)  Organising: Organi sing involves structuring the resources and workforce to ensure that they align with the established plan. It includes defining roles, responsibilities, and establishing a framework for efficient operations. 

c)  L eading: Leadership within Business Management is about inspiring and motivating the workforce to achieve the company's goals. It involves effective communication, setting a positive example, and providing guidance. 

d)  Controlling: Control mechanisms are crucial for monitoring progress and ensuring that the organisation stays on track. This includes assessing performance, identifying variances, and making adjustments when necessary. 

In addition to these core functions, Business Management also addresses aspects like strategic thinking, risk management, innovation, resource allocation, and continuous improvement. By mastering these fundamentals, organisations can enhance their decision-making, adapt to change, achieve sustainable growth, and maintain a competitive edge in the dynamic world of business. 

Ready to unlock your leadership potential? Explore our Leadership Training and fuel yourself with the skills to inspire teams, drive innovation, and lead with confidence.  

Why is Business Management Important?  

Business Management is the linchpin of success for any organisation, irrespective of its size or industry. It serves as the guiding force that ensures an enterprise's sustainable growth, profitability, and adaptability. Thus, it’s crucial to understand why Business Management is essential for those aspiring to thrive in today's dynamic business landscape. So, let’s explore the Importance of Business Management, highlighting its role in shaping strategy, resource allocation, decision-making, and risk mitigation:  

1) Strategy and v ision  

Business Management serves as the backbone of a well-defined strategy and vision for an organisation. A strategic plan outlines an organisation's long-term goals and the steps required to achieve them. 

It's the roadmap that guides the company's direction, helping it to stay focused and consistent. Without effective Management of Business operations, an organisation might lack a structured approach to strategic planning. This can lead to confusion, inconsistency, and missed opportunities. 

2) Resource a llocation  

Efficient resource allocation is pivotal for an organi sation's success. Proper resource allocation involves distributing assets such as finances, human capital, and technology to areas where they are most needed. 

Effective Business Management ensures that resources are utilised optimally, avoiding waste and misallocation. Inefficient allocation can lead to budget overruns, poor workforce productivity, and underutilisation of technology and infrastructure. 

3) Decision- m aking  

The Importance of Business Management is reflected when making important decisions. Business Management provides a structured framework for gathering information, analysing data, and making informed decisions. It allows organisations to consider various factors and potential outcomes before making choices. Without effective management, organisations risk making hasty and uninformed decisions that can lead to costly mistakes and missed opportunities. 

4) Risk m itigation  

Every business face s risks, whether they are related to economic fluctuations, market competition, or unforeseen events. Effective management involves identifying and assessing these risks. It also includes creating risk mitigation strategies that reduce vulnerabilities and safeguard the organisation. Without a structured approach to risk management, businesses may be ill-prepared to handle unexpected challenges, potentially leading to financial losses and reputational damage. 

5) Adaptation to c hange  

Today, adaptability has become a key to survival. Effective Business Management equips organisations with strategies and tools to respond to changing market conditions, technological advancements, and shifting consumer preferences. It allows them to shift quickly, seize opportunities, and remain competitive. Without such adaptability, businesses risk becoming stagnant, unable to keep up with evolving industry trends. 

6) Market e xpansion  

Market expansion is a crucial avenue for growth. Business Management provides the framework for assessing market potential and devising market entry strategies. Effective management ensures that an organisation is well-prepared to enter new markets, be it through organic growth, mergers, acquisitions, or international expansion. Without a systematic approach to market expansion, businesses might miss out on untapped opportunities and underperform in their current markets. 

Gain an in-depth knowledge of strategic planning, financial management, and operational excellence with our Business Management Training – join today!  

7) Innovation and c reativity  

Innovation is the lifeblood of businesses in the modern era. Effective Business Management fosters a culture of innovation and creativity within the organisation. Managers encourage employees to think creatively, take calculated risks, and generate new ideas that can lead to groundbreaking products or services. However, a lack of management support for innovation can stifle creativity and hinder an organisation's ability to stand out in a crowded market. 

8) Efficient o perations  

Efficiency is c rucial to business sustainability. Effective management optimises processes, reduces operational costs, and enhances overall productivity. Efficient operations not only lead to cost savings but also free up resources that can be reinvested in growth initiatives. Without management, businesses may struggle with inefficiencies, leading to higher costs and reduced competitiveness. 

9) Customer s atisfaction  

Meeting and exceeding customer expectations is paramount for business growth. Without effective management, businesses might overlook critical customer feedback and fail to adapt to changing consumer preferences. Thus, Business Management is crucial to ensure that the organisation is responsive to customer needs and preferences. It helps align processes, products, and services with customer demands, enhancing satisfaction, loyalty, and retention. 

10) Profitability and f inancial s tability  

Business Management includes financial planning, budgeting, and investment decisions. Effective management is instrumental in maintaining profitability and financial stability. It ensures that the organisation's financial health is secure, providing the means for long-term sustainability. A lack of Financial Management can result in financial instability, hampering an organisation's ability to weather economic downturns or invest in future growth. 

11) Employee d evelopment and r etention  

A skilled and motivated workforce is a valuable asset . Business Management includes human resource aspects such as recruitment, training, and retention strategies. Effective management creates an environment where employees are motivated, engaged, and empowered to contribute to the organisation's growth and success. Without such management, businesses may struggle to attract and retain top talent, leading to skill gaps and high turnover.  

12)  Compliance and r esponsibility  

In today's global business environment, compliance with legal and ethical standards is vital. However, without management oversight, organisations may inadvertently violate regulations. This can result in legal liabilities and reputational damage. Effective Business Management ensures that the organisation adheres to these standards, reducing the risk of legal issues and safeguarding the company's reputation. 

13) Environmental r esponsibility  

Sustainability is not limited to financial health but extends to environmental responsibility. Without Business Management, businesses may neglect environmental considerations and miss opportunities to embrace sustainability as a competitive advantage. Effective management incorporates strategies for reducing the organisation's environmental footprint. This commitment to environmental responsibility benefits the planet, aligns with the values of socially conscious consumers, and can also lead to cost savings in the long run. 

Conclusion  

We hope this blog has aided in improving your understanding of the Importance of Business Management and its role in various aspects of business. Business Management is the driver of strategy and the catalyst for adaptation. In commerce, the usefulness of mastering this craft is not just restricted to an individual but beneficial for a larger economy. As businesses brave uncertainties and embrace innovation, the role of Business Management remains pivotal. 

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The Importance of Business Management

• April 4, 2022

Recently, we wrote about what business management is and why a Bachelor's Degree in Business Management is worth acquiring. Today, we're going to explore what makes business management so important. 

As part of our discussion, we'll go over what business management includes, what roles business managers play in an organization, and why you should consider starting a career in this field. 

After you've discovered what makes business management so important, fill out our information request form to receive more information about CSU Global's 100% online Bachelor's of Science Degree in Business Management or our online Master's of Science Degree in Management . 

If you're ready to get started, submit your application today! 

What is Business Management and Why is it So Important?

Business management is the act of overseeing the organization, coordination, and execution of various business activities. This may include managing different aspects of the business, like sales, marketing, and accounting. 

Essentially, business managers are responsible for ensuring that the day-to-day operations function smoothly. 

Business management is a crucial part of an organization’s success, and every organization in any industry can benefit from a great business manager who has expertise in best practices and relevant processes. 

The core responsibility of a business manager is to ensure that a business remains both operational and profitable, which is what makes business management such an important position.

What Do Business Managers Actually Do? 

Business managers are responsible for overseeing a business' finances and operations. 

The specific details of any given business manager's duties will depend on their organization and industry, but here are some of their typical responsibilities and tasks:

• Overseeing different departments, including marketing, sales, HR, accounting, and others
• Preparing and managing budgets, payments, and other financial aspects of the business
• Advising stakeholders and leaders on matters of compliance
• Responding to communications from upper management or employees. 
• Planning and conducting staff meetings
• Interpreting sales data, customer reviews, and other factors to determine areas for improvement
• Applying critical analysis in decision-making to help increase the organization's value
• Integrating appropriate technology
• Interviewing and observing employees to mitigate problems and come up with innovative solutions

As you might imagine, these responsibilities can apply to individuals working in nearly any industry or field, which is one of the best reasons to consider a career in business management.

Where Do Business Managers Work? 

Business managers can find positions in virtually any organization or industry. 

While it's common to assume that business managers may only be found in large corporations, they can find work in a much more extensive range of environments. 

Below are some of the most common places of work for business managers: 

• Restaurants
• Non-profit Organizations
• Construction

While the typical business manager works in-house within an organization, many others serve as independent consultants. 

One thing to consider is that getting your Bachelor’s Degree in Business Management doesn’t mean it’s the only potential career for you.

The skills and abilities you’d develop during a B.S. in Business Management Program would lend themselves to many other careers, including roles like:

• Actuarial analyst
• Corporate investment banker
• Data analyst
• Forensic accountant
• Insurance underwriter
• Project manager
• Stockbroker

And should you decide to complete a Master's Degree in Management, you’d be suited for more senior-level, leadership roles, including jobs like:

• Healthcare administrator
• Information systems manager
• Marketing executive
• Chartered management accountant
• Supply chain manager
• Strategy manager

If you’re interested in helping organizations improve their operations and ensure profitability, then business management could be the perfect field for you.

Should You Pursue a Career in Business Management?

Deciding to pursue a career in business management depends on what you enjoy, what you are good at, and what you want to accomplish in terms of your professional goals.

If you have enjoyed successful leadership roles in the past, or if you’re simply interested in learning how to become an effective leader, then business management could be the right choice for you. 

Virtually every organization or company needs a business manager, and many of them need several to run different units, departments, or divisions of the company. That means you can find employment as a business manager in pretty much any industry you are interested in, like hospitality, technology, or healthcare. 

One compelling reason to study this field is that the skills you learn during your degree program are incredibly transferable. In other words, you'll learn about concepts related to finance, statistics, economics, and even psychology that will make you a manager capable of solving real-world problems.

Accordingly, pursuing an education in business management should lead to developing a versatile set of knowledge and skills that provides you with a range of professional opportunities. 

Demand for Business Managers is Projected to Continue Growing

According to the Bureau of Labor Statistics , employment in management occupations, including the types of roles that are perfect for business management graduates, is expected to grow around 8% by 2031, resulting in nearly a million new jobs. These management positions will be available across a wide range of industries. 

Below are the projected growth rates for four of the fastest-growing, relevant positions: 

• Medical and Health Services Managers - 28% projected growth
• Financial Managers - 17% projected growth
• Social and Community Service Managers - 12% projected growth
• Public Relations and Fundraising Managers - 8% projected growth 

Knowing that the demand for business managers will continue to grow over the coming decade means that your skills should be incredibly relevant to a wide range of jobs, providing you with lots of potential career opportunities.

Business Managers Are Critical to Organizational Success

Business managers play a critical role in ensuring the success of their organization. These professionals monitor and manage everything from budgets to human resources, so their importance cannot be overstated. 

Regardless of the industry or organization type, a business manager is most likely involved in running things behind the scenes, planning projects, overseeing budgets, and making the strategic day-to-day decisions that lead to real business success. 

Some of the most critical daily tasks that business managers are asked to handle include: 

• Ensuring compliance with laws and industry regulations
• Maintaining high standards of operation
• Designing and implementing innovative solutions
• Overseeing budgeting and purchases

Without a capable business manager at the helm of day-to-day operations, organizations are at risk of failing to preserve their operational capacity and profitability. 

In this way, the business manager plays a significant role in the process of ensuring an organization’s success, which is what makes this such a great role for anyone looking to have a significant impact on their work. 

Business Managers Have Excellent Earnings Potential

Highly skilled business managers are a valuable addition to any organization, and earnings tend to reflect that. Business managers often out-earn other members of an organization, thanks to their critical position. 

Recent BLS statistics indicate that the salary expectations for managers in a variety of industries are quite high. The median annual wage for occupations in management as of May 2021 is $123,370 - the highest salary recorded in the BLS database of major occupational groups. 

The top-earning positions within management are: 

• Computer and Information Systems Managers - 2021 Median Pay: $159,010
• Architectural and Engineering Managers - 2021 Median Pay: $152,350
• Advertising, Promotions, and Marketing Managers - 2021 Median Pay: $137,900
• Natural Sciences Managers - 2021 Median Pay: $137,900
• Financial Managers - 2021 Median Pay: $131,1710

Other management positions in different industries see similarly high wages, so don’t feel like you have to choose one of these areas when it comes time to choose a career specialty.

Once you’ve developed the skills needed to succeed in business management, your knowledge and abilities will transfer easily to a role in nearly any industry, so you can feel free to pursue a career in whatever field is of particular interest to you.

Keep in mind that higher wages come with more experience and education, and that to maximize your earnings potential, you might want to consider completing a Master's of Science Degree in Management. 

How to Launch Your Career in Business Management

The best way to start a career in business management begins with earning your degree in the field. 

A good business manager is expected to be well-rounded and capable of directing multiple departments within an organization. They should have a solid understanding of economics, statistics, and marketing.

The reason it’s so important to develop your abilities in all these different areas is that business managers are often expected to oversee the work of several people, teams, or departments while maintaining the profitability of the organization. 

These concepts - and how they interact in business - are significant areas of study which you’ll focus on during courses in business management. Obtaining your degree proves to potential employers that you have spent the time required to develop your abilities and knowledge in these areas, proving that you’re prepared to take on the difficult role of a business manager. 

To increase the odds of launching a successful career in business management, consider enrolling in CSU Global's 100% online Bachelor's Degree in Business Management or our online Master's of Science Degree in Management . 

These programs will provide you with everything you need to jumpstart a successful, lifelong career in the exciting and challenging field.

Should You Get Your Business Management Degree Online? 

Yes, you should consider getting your business management degree online with CSU Global. 

Our accelerated programs are delivered 100% online, so you've got more freedom and flexibility than you would with a traditional on-campus program. 

Juggling family and work responsibilities while pursuing a degree can be challenging, but our online courses provide you the freedom to study when it's convenient for you. 

Here are a few other advantages you can look forward to if you choose to enroll in one of our online programs: 

• Accelerated 8-week courses
• Monthly class start dates
• The freedom to attend your virtual classes from anywhere in the world

If you're ready to get your degree, but require flexibility, then our 100% online programs are the perfect way to complete your educational goals. 

Why Should You Pick CSU Global's Online Business Management Program? 

Our online business management degree programs are designed to provide you with all the knowledge, skills, and abilities you need to launch or advance your career as a successful business manager.

You can count on your degree being respected in the workforce, as both programs are regionally accredited by the Higher Learning Commission and ACBSP Accredited by the Council of Business Schools and Programs .

In short, if you’re serious about becoming a professional business manager, you’d be hard-pressed to find better options than the programs provided by CSU Global.  

Reasons to Choose our B.S. in Business Management program

Our Bachelor’s of Science Degree in Business Management program will provide you with the foundational knowledge you need to drive organizational success by training you to become an effective, skilled, and analytical manager in a professional setting.

This program currently holds several excellent rankings, including:

• A #3 ranking on The Best Online Bachelor’s in Business Intelligence from The Best Schools .
• A #10 ranking on 50 Best Online Business Administration Degrees from Online Schools Report .
• A #10 ranking on Top 15 Online Bachelor's in Business Administration Programs 2021 from Best College Reviews .  

Reasons to Choose our M.S. in Management program

Our Master’s of Science Degree in Management program will train you to become a business leader by providing you with the abilities to analyze, communicate, and make effective and strategic business decisions.

This program holds several impressive rankings too, including:

• A #1 ranking on Top 25 Best Online Master’s in Management for 2020 from Best Masters Programs .
• A #1 ranking on Top 25 Best Value Online Master's in Management Degrees for 2020 from Value Colleges .
• A #6 ranking on 15 Online Master’s in Management (MIM) Degrees for 2020 from Great Business Schools .

Obtaining your Master’s Degree in Management will ensure that you’re prepared to move into upper management and executive-level positions.

Furthermore, your degree from CSU Global is sure to impress potential employers since we’re regarded as an expert in higher education, and because we hold several excellent rankings, including:

• A #1 ranking for Best Online Colleges & Schools in Colorado from Best Accredited Colleges .
• A #1 ranking for Best Online Colleges in Colorado from Best Colleges .
• A #10 ranking for Best Online Colleges for ROI from OnlineU .

Finally, to help reduce your costs, we offer competitive tuition rates and a Tuition Guarantee that ensures your affordable tuition rate won't increase for as long as you remain enrolled as a student with us.

To get additional details about our fully-accredited, online Bachelor’s and Master’s Degrees in Business Management, please give us a call at (800) 462-7845, or fill out our Information Request Form .

Ready to get started right away? Apply now!  

Why Management Is Important For Business Business Essay

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Introduction.

Traditionally, the term “management” refers to the activities (and often the group of people) involved in the four general functions: planning, organizing, leading and coordinating of resources. Note that the four functions recur throughout the organization and are highly integrated. Emerging trends in management include assertions that leading is different than managing and that the nature of how the four functions is carried out must change to accommodate a “new paradigm” in management. This topic in the helps the reader to accomplish a broad understanding of management and the areas of knowledge and skills required to carry out the major functions of management.

DEFINE MANAGEMENT?

According to (Management Innovations, 2008) “management is the process of reaching organizational goals by working with and through people and other organizational resources”.

Management has the following 3 characteristics:

It is a process or series of continuing and related activities.

It involves and concentrates on reaching organizational goals.

It reaches these goals by working with and through people and other organizational resources.

In addition, Management brings together all Six Ms i.e. Men and Women, Money, Machines, Materials, Methods and Markets. They use these resources for achieving the objectives of the organization such as high sales, maximum profits, business expansion, etc.

WHY MANAGEMENT IS IMPORTANT FOR A BUSINESS?

All of us have seen, heard, worked under or been part of a management one time or other. But have you ever wondered what makes management such an integral part of any activity? The roots of the word ‘management’ can be traced back to the Latin word ‘manu agree’, which means ‘to lead by hand’. This shows that an effective management is one which actually guides the employee onto a path of efficient and productive work, while leading by example. Thus we can safely conclude that a good manager will not ask employees to do something that he/she may not do himself/herself. In true sense, effective management involves directing and organizing people or resources under one’s influence, to ensure better co-ordination, productivity and best possible positive output in any field. Whether it is a singular person managing at a small scale or multiple persons involved in large scale operations, the overall impact of good management is always the same, that of exponential profit.

Let’s look at some key points which make management important to any process.

Achieving Company Targets

Help your front line deal with price objections.

Increase your average order value.

Know your customers.

Be business intelligent.

Focus on your existing customers.

Re-generate the accounts that have stopped trading with you.

Target profitable new business

When a company begins its operations, specific goals are setup which can only be achieved if all the parts of the organization function together and efficiently. Proper management makes sure that each part of the company works towards achieving a common goal without disarray. Management actually plans, executes and balances the resources of a company in such a way that there is maximum work output to attain the goals of organization swiftly, while retaining work quality. In absence of proper management, different sections go on to attain individual targets. However, common goal may not be achieved, which would further lead to delays, losses and low quality output.

Reduction In Wastage

When resources of a company are effectively managed, wastage is reduced, thereby lowering overall costs and attaining the state of ‘resource optimization’. This means that company is making profits not only from output, but also from better and optimum use of input. Proper utilization of resources and reduced wastage prevents both under employment and exploitation of resources. Management can identify resources which are scarce and find alternatives for the same, thus reducing the cost again.

Simplifies The Organizational Structure

Management controls effective work division, specialization and resource allocation. This creates a uniform flow of work and specifies boundaries of responsibilities, authority and rights, which do not overlap. This structure is necessary, as it clarifies to each employee his position and field of influence in the organization. In such a scenario, every employee would know his/her basic rights, duties, immediate superiors and subordinates, along with the knowledge of opportunities awaiting him, as his relation with the company grows.

Increases Stability

The company should be maintained in such a fashion that external market turbulences do not hamper the company’s functioning. This requires effective changes that need to be made in the company, without hurting the company’s stand or its workers too much. Without proper management this will not be possible. Management will provide increased stability and adaptability to the company, helping it survive market conditions and grow with time. Also, the workers would not be apprehensive about losing their job, which would, in turn, help them work with peace of mind.

Provides The “Feel Good Factor”

It is extremely important to keep the workers happy for the successful functioning of the company. A company which is managed with efficacy prospers rapidly and, in turn, produces better revenue, thereby opening avenues of growth for the workers involved. The upward climb in the growth chart assures the workforce of not just better salaries, but better positions, which provides motivation for better work.

Profits Galore

This is a cumulative effect of all of the benefits mentioned above. Proper management helps to build efficient organizational structure, set targets that are testing yet achievable and optimize resource utilization. Such a scenario increases profits by maximizing productivity and reducing costs. Happy and de-stressed workers work with more zeal and enthusiasm. This increases quality and quantity of output, which aids in the growth of the company, beating competition and emerging out victorious!

THE NATURE OF MANAGEMENT

The basic purpose of management in an organization is to clearly tell those persons who work for the organization what they have to do and when and to ensure that they can and do it.

It therefore needs management to look after staff in all kinds of functions serving the organization such as business strategy, contracting, accounting, investment, law, research, methodology, recruitment, safety, administration, public relations, shareholder relations and so on as well as the fundamental functions of selling the company’s products or services and delivering these according to agreed contract terms.

Nature of management can be described as follows.

Continuous Process:

Management is a never ending process. It will remain the part of organization till the organization itself exists. Management is an unending process as past decisions always carry their impact for the future course of action.

Universal in Nature:

Management is universal in nature i.e. it exists everywhere in universe wherever there is a human activity. The basic principles of management can be applied anywhere whether they are business or non-business organization.

Example: planning, organizing, staffing, directing and controlling effectively and achieve the desired result.

Multidisciplinary:

Management is basically multidisciplinary. Though management has developed as a separate discipline it draws knowledge and concepts of various other streams like sociology, psychology, economics, statistics etc. Management links ideas and concepts of all these disciplines and uses them for good-self of the organization.

Management is a group activity:

Management is a vital part of group activity. As no individual can satisfy all his needs himself, he unites with his co-workers and work together as an organized group to achieve what he cannot achieve individually.

Management is goal oriented:

Management is a goal oriented activity. It works to achieve some predetermined objectives or goals which may be economic or social.

Management is dynamic in nature i.e. techniques to manage business changes itself over a period of time.

System of authority:

Authority is power to get the work done by others and compel them to work systematically. Management cannot perform in absence of authority. Authority and responsibility depends upon position of manager in organization.

Management is an art:

Management is considered as art as both requires skills, knowledge, experience and creativity for achievement of desired results.

Management is Science:

Management is considered as science. Science tells about the causes and effects of applications and is based on some specific principles and procedures. Management also uses some principles and specific methods. These are formed by continuous observations.

FUNCTIONS OF MANAGEMENT:

The 4 basic management functions that make up the management process are described in the following sections:

INFLUENCING

CONTROLLING.

Planning involves choosing tasks that must be performed to attain organizational goals, outlining how the tasks must be performed, and indicating when they should be performed.

Planning activity focuses on attaining goals. Managers outline exactly what organizations should do to be successful. Planning is concerned with the success of the organization in the short term as well as in the long term (Rothbauer-Wanish, 2009).

For example, a manager of a new local restaurant will need to have a marketing plan, a hiring plan and a sales plan.

ORGANIZING:

Organizing can be thought of as assigning the tasks developed in the planning stages, to various individuals or groups within the organization. Organizing is to create a mechanism to put plans into action.

People within the organization are given work assignments that contribute to the company’s goals. Tasks are organized so that the output of each individual contributes to the success of departments, which, in turn, contributes to the success of divisions, which ultimately contributes to the success of the organization.

INFLUENCING:

Influencing is also referred to as motivating, leading or directing. Influencing can be defined as guiding the activities of organization members in the direction that helps the organization move towards the fulfillment of the goals.

The purpose of influencing is to increase productivity. Human-oriented work situations usually generate higher levels of production over the long term than do task oriented work situations because people find the latter type distasteful.

CONTROLLING:

It includes verifying the actual execution against the plans to ensure that execution is being done in accordance with the plans.

It measures actual performance against the plans.

It sets standards or norms of performance.

It measures the effective and efficiency of execution against these standards and the plans.

It periodically reviews, evaluates and monitors the performance.

If the gaps are found between execution levels and the plans, controlling function involves suitable corrective actions to expedite the execution to match up with the plans or in certain circumstances deciding to make modifications in the plans.

For example, if the company has a goal of increasing sales by 5% over the next two months, the manager may check the progress toward the goal at the end of month one. An effective manager will share this information with his or her employees. This builds trust and a feeling of involvement for the employees.

EXPLAIN THE PANNING PROCESS WITH EXAMPLES

Planning is the first and most important function of the management. It is needed at every level of the management. In the absence of planning all the business activities of the organization will become meaningless. The importance of planning has increased all the more in view of the increasing size of organizations. In the absence of planning, it may not be impossible but certainly difficult to guess the uncertain events of future.

When we look at planning in the context of management process, it is called activity; it is being a part of management. But on the other hand, when it is studied separately it is called a process because to complete one has to clear many steps one after the other. So far as the number of steps included in the planning process is concerned it depends on the size of the organization. Different organization can have different planning process. The following steps are generally taken in the business organization during the planning process (Management, 2010).

Setting the objectives;

Objectives are those end points for whose attainment all the activities are taken. In the planning process objectives are determined and defined first of all so that all the employees concerned can be informed about them to get their complete cooperation. Objectives have a hierarchy of their own organizational objectives, departmental objectives, and individual objectives.

Developing the premises: the basis of planning is those factors which influence the possible results of different alternatives. Before taking a final decision about any alternative a forecast of this assumption is made. The rate of success of planning will be in direct proportion to the rate of the success of forecasting. The assumption of planning is two types:

Internal premises: capital, labor, raw material, machinery etc.

External premises; Government policies, business competition, taste of customer rate of taxes. etc.

Identifying alternative course of action: Generally, there is no work which has no alternative method of doing it. On the basis of the objectives of the organization and limitations of planning, alternative course of doing a particular work can be discovered.

Evaluating alternative courses: All those alternative courses which are up to the expectations of the minimum preminary criteria are selected for intensive study. It will be seen as to what extent a particular alternative course can help in the attainment of the objectives of the organizations. There is however, one problem which confronts us while analyzing these alternative courses. Every alternatives course has its merits and demerits.

Selecting an alternative: alternative a careful analysis of different alternatives the best one is selected. Sometimes the analysis yields more than one alternative course with similar merits.

Implementing the plan: After having decided the chef plan and the subsidiary plans, they are to be implemented. After implementing the plans the sequence of different activities has to be decided. In other words, it is decided as to who will do a particular job and at what time.

Follow up Action: the process of planning does not end with the implementation of plans. Plans are formulated for future which is uncertain. It is of great importance that there is a constant review of plans so as to ensure success in the uncertain future. The moment there appears to be changes in the plans also. In this way we can say planning is continuously moving process.

EXPLAIN THE DIFFERENCE BETWEEN MANAGERS AND LEADERS

The difference between leader and manager can be summarized this way: “When you are a leader, you work from the heart. As a manager, you work from the head.” Although it is probably more complex than that, the point to remember is the difference between what you do as a leader and what you do as a manager-and the constant need to be able to do both. Furthermore, the head and heart need to be partners, not independent operators.

A manager focuses attention on efficiency, effectiveness, and making sure the right things happen at the right time. For instance: You are in a manager role when you set performance objectives with staff, prepare budgets, review cash flow projections, develop action plans, and evaluate programs or fund raising strategies or any other aspect of the company. Managing may also include doing hundreds of other tasks that require focused and logical attention to the good health of the organization.

On the other hand, a leader is a strategist, a visionary, and some-one who inspire others to greatness. For example, you are leading when you share your vision for your organization, or when you bring staff and people together to design a program or develop a strategy or resolve a problem. Leaders motivate staff and people, serve as role models, inspire people to cooperate, build community and capacity inside and outside the organization, and create learning environments in which people can grow and develop themselves without fear.

Leaders follow their own intuition which may in turn be more benefit to the company. Their Followers are often more loyal to them. Managers do things by the book and follow company policy. Their Subordinates may or may not be loyal to them. A Leader in practical terms motivates others to do the task. A Manager in business terms ensures tasks are done through others (Jones, 2013).

Some people think of the words Manager and Leader and think they are the same. The two are related, but the jobs are different. They might look the same, but don’t mean the same. Both Manager and Leader have different responsibilities in an organization. Leader will influence and set example for others to follow, this is called “do as I do, and Manager is do what I say”. In real life, some Managers possess leadership qualities and some Leaders possess some managerial qualities. Managers and Leaders are two different kinds of characters. It’s not easy to see the difference because the qualities of Managers and Leaders are each combined in the same person (sundayma, 2012).

But if ones observe the qualities in each person, one will know that Leaders and Managers are different because Manage tends to manage the work and rules, and Leaders deal with personal issues of people, and also know that a Leader does not have subordinates, a leader has followers. Sometimes societies and organizations need either a manager or a leader, or sometimes they need both managers and leaders. Their motivations, personal history, their way of thinking and attitude are different.

In short we can say,

– The manager administers; the leader innovates.

– The manager is a copy; the leader is an original.

– The manager maintains; the leader develops.

– The manager focuses on systems and structure; the leader focuses on people.

– The manager relies on control; the leader inspires trust.

– The manager has a short-range view; the leader has a long-range perspective.

– The manager asks how and when; the leader asks what and why.

– The manager has his or her eye always on the bottom line; the leader’s eye is on the horizon.

– The manager imitates; the leader originates.

– The manager accepts the status quo; the leader challenges it.

– The manager is the classic good soldier; the leader is his or her own person.

– The manager does things right; the leader does the right thing.

HERZBERG MOTIVATION THEORY

Herzberg classified these job factors into two categories-

Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if these factors are non-existent at workplace, then they lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate/reasonable in a job, pacify the employees and do not make them dissatisfied. Hygiene factors include:

Pay – The pay or salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry in the same domain.

Company Policies and administrative policies – The company policies should not be too rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks, vacation, etc.

Fringe benefits – The employees should be offered health care plans (mediclaim), benefits for the family members, employee help programs, etc.

Physical Working conditions – The working conditions should be safe, clean and hygienic. The work equipment’s should be updated and well-maintained.

Status – The employees’ status within the organization should be familiar and retained.

Interpersonal relations – The relationship of the employees with his peers, superiors and subordinates should be appropriate and acceptable. There should be no conflict or humiliation element present.

Job Security – The organization must provide job security to the employees.

According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the employees for a superior performance. These factors are called satisfiers. These are factors involved in performing the job. Employees find these factors intrinsically rewarding. The motivators symbolized the psychological needs that were perceived as an additional benefit (Herzberg’s Two-Factor Theory of Motivation, 2012). Motivational factors include:

Recognition – The employees should be praised and recognized for their accomplishments by the managers.

Sense of achievement – The employees must have a sense of achievement. This depends on the job. There must be a fruit of some sort in the job.

Growth and promotional opportunities – There must be growth and advancement opportunities in an organization to motivate the employees to perform well.

Responsibility – The employees must hold themselves responsible for the work. The managers should give them ownership of the work. They should minimize control but retain accountability.

Meaningfulness of the work – The work itself should be meaningful, interesting and challenging for the employee to perform and to get motivated.

In short, Herzberg theorized that employees must be motivated to experience job satisfaction but that unacceptable working conditions can only result in a lack of satisfaction. The data analyzed for the study reported here indicate Extension agents left the organization for both reasons: lack of job satisfaction and job dissatisfaction (Herzberg, 1968). The presence of sufficient maintenance factors prevents employment discontent, whereas adequate motivators may direct occupational contentment (Mausner, & Snyderman, 1959).

When salary occurred as factor in the lows (causes of dissatisfaction) it revolved around the unfairness of the wage system within the organization… It was the system of salary administration that was being described… it also concerned an advancement that was not accompanied by a salary increase. In contrast to this, salary was mentioned in the high stories (events causing satisfaction) as something that Herzberg’s Theory of Motivation went along with a person’s achievement on the job. It was a form of recognition; job satisfaction meant more than money; it meant a job well done; it meant that the individual was progressing in his work (Herzberg, 1968)

Management is the integration and co-ordination of resources in order to move effectively towards desired objectives. All organizations have some missions that include their reasons for existence. To be effective, organizations must have targets, objectives towards which managers hope to move. Managers influence all the phases of modern organizations. Sales Managers maintain a sales force that markets goods. Personnel managers provide organizations with a competent and productive workforce. Plant managers run manufacturing operations that produce the clothes we wear, the food we eat, and the automobiles we drive.

In short, all societies, whether developed or developing, need a huge lot of good managers.

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ContentsINTRODUCTIONDEFINE MANAGEMENT?WHY MANAGEMENT IS IMPORTANT FOR A BUSINESS?THE NATURE OF MANAGEMENTFUNCTIONS OF MANAGEMENT:EXPLAIN THE PANNING PROCESS WITH EXAMPLESEXPLAIN THE DIFFERENCE ...

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Why I Want to Study Business: Essays

Studying business has advantages. here are 14 essays on the theme of why i want to study business ..

Andrew Lancaster

CONTRIBUTOR

Founder and Director of Unicurve.com

We'll let fourteen university students explain for themselves why they chose to study business. Here are some of the best essays into an essay competition on study motivation. Each business essay is from an American student who wants to complete a degree in business, business management, business administration or similar.

But first let me outline why I think business is an excellent choice for university study. These observations are based on my own Australian experiences in studying business and economics, from having recruited many business graduates into the public service, and with the knowledge gained from running a company.

Why Studying Business is a Good Idea

Business is a really solid study area. By doing choosing a business major, you'll develop skills that are relevant for almost any kind of work. And you gain a qualification that has value in the job market.

Do something useful while you figure out your career

Many business students begin their studies without really knowing where it will lead. The advantage of a business degree is that you build skills that are useful in any professional field, such as competencies in analysis, finance, planning and strategy. You also develop the ability to present different kinds of information clearly and logically.

The stats on business graduates are encouraging. Employment and early-career salaries for business graduates are competitive with vocational fields such as engineering, teaching and nursing. And business studies is a much surer bet than an arts degree for those who start university not knowing what they eventually want to do.

Be a professional or do your own thing

You can see from the Why I Want to Study Business essays that, for many, the motivation to study business is a dream to be self-employed at some stage in the future. Business students often have the ambition to be an entrepreneur or at least run their own small business.

Business can be the logical path to a range of other careers as well. You can major in a certain area within business if you want to be, for example, an accountant, banker, business manager, economist, marketing executive or stock market trader.

Become a leader eventually

At a postgraduate level, business management is the most popular area of study. In many different career streams, you eventually reach a point where further progress requires you to learn how to manage people and resources.

Dreaming of a Better Sleep

I wake up groggily and glance at the clock. I'm taken aback upon noticing the time is 8:38 PM. I'd gotten home from school and hadn't done anything other than sleep! So, I sat in bed, contemplating what to do. I could do homework or go back to sleep. (Which sounds better?!). Alas, my to-do list had just one thing: "work on my startup."

I'm 17 and trying to start my own business. The enterprise will create motorized mattress overlays to help patients in hospitals avoid health issues. I got started on it through one of my school classes and am graded on what I do, so I already had a small drive to do well.

However, my purpose behind this business is to help people. My dream to help millions of people around the world is what pushes me to work hard in every aspect of my life.

It motivates me to study, even when I can barely pull myself out of bed. My ultimate goal of helping people feel better is what drives me to sit down and get to work. I know that every class taken and every skill learned will better enable me to achieve my dream.

So, I study, even when I would rather sleep. I just think back to my purpose and realize that this dream that I have to change the world is the motivation behind every minute of studying that I do.

Liza Tarakanova Business, Mercy College

Math and Accounting

When I first started college, I wasn't sure what I wanted to do. I didn't have a clear plan and thought I wanted to pursue nursing. But when I took the basics, I realized it wasn't for me.

I felt lost and didn't have any hope for the future. I even considered dropping out of college and getting a job instead.

My lack of focus in school reflected in my grades. Despite my doubts, my family encouraged me to continue with my education.

Taking a semester off due to financial constraints gave me time to reflect on my goals and aspirations. I got a job and worked hard, but found myself missing the academic environment.

I realized that I enjoyed learning and had a passion for math. This made me realize that I needed to go back to school and complete my education.

It took me some time, but I finally found the motivation, drive, and determination to pursue what I truly wanted. I am now excited to pursue a career in accounting. However, I also want to remember that one's job does not define them, and I hope to travel and inspire others to continue their education and not lose hope.

Jacqueline Murillo Business, University of Houston-Downtown

Small Business Customers

Walking around my home town, you're bound to see a bunch of small businesses. These small businesses have one thing in common; they are trying to become successful.

The beginning of their success starts off with their customers. As I walk into one of these little businesses, you are greeted by the employees and immediately feel as if you are apart of their family. I see how great they interact with their customers. That is when I realize what I want to do.

I want to own a local business and have that strong relationship with my customers. That is my dream and my motivation to continue study to get my degree in business so I can be one step to making my dreams a reality.

My other motivation is my family. I want to make my parents proud since I'm going to be the first in my family to go to college. Not only would I make my parents proud but I would also be a good role model for my younger brother to continue his studies.

Diana Gonzalez Business, New Jersey City University

Working for the Right Reason

I dream to work for a company that I can help grow and improve. Being a leader is really my strongest trait and I dream that one day I can use it to work for a beneficial company. A beneficial company to me is defined as a company that is improving the world with products or services, like creating biodegradable packaging.

My ultimate goal that keeps me going when times are difficult is that one day I can make enough to create my own scholarship or give money to a hopeful student that cannot afford college on their own. I truly value my education and it would mean the world to me if I could give this gift to someone else in the future.

Like I mentioned briefly, there is more to my education than just getting by. I want to achieve, and achieve highly, so that I can give back in the future. I am not only working toward a better future of my own, but the future of other potential students.

Eleanor Bernero Business Management and Communication, Carthage College

Motivated by Environmental Success

There are roughly 7.5 billion people in the world today and so far I haven’t felt any different than the next person, average. That being said, my greatest fear is settling for average.

As for my dream, it’s to run my own company one day and then use my influence and resources to change the world’s perspective about how we treat the environment. We mistreat the only home that we’ve ever known. My dream is to change that view, and that’s what motivates me to pursue my studies and apply myself every day.

I have already begun working towards my dream. As evident through the topic of my self-selected senior project; The Economic and Environmental Advantages of Switching Branford High School Completely to Solar Energy. As I become older and more educated on the subject, I would like to start an eco-friendly company that provides environmentally responsible products.

My inspiration stems from my idol, Elon Musk. He has made such an enormous impact through his innovative mindset and technologies. In order to be able to achieve my dream, I need to pursue my studies vigorously and come out at the top of my class; only the most intelligent and dedicated individuals place themselves in a position to exact change in the world.

I will excel in my studies throughout my college education to ensure the fulfillment of my dream to be a leader in the industry of eco-friendly products and goods.

Trey Duval Business, Indiana University - Bloomington

A future without a headset

My dream no longer includes working in a call center every holiday and weekend with escalated customers. You see that’s what it use to be back when I wasn’t motivated or cared to be successful, back when I was content with just doing the bare minimum and being average. I don’t think one should even call that a dream but rather, just getting by which was okay with me.

It took me awhile to realize that I could do and be more, that life was full of opportunities and that if I really wanted it, it could be mine. I have dreams now and it took me a lot of realization to start working towards them.

My dream is to get my degree in Business in science. I see myself working at Sandia Labs here in my hometown of Albuquerque, New Mexico. I see myself at the labs working in a leadership position overseeing highly classified projects and groups. My goal is to be successful and I am extremely motivated on making this a reality and everyday that goes by is one step closer.

I know that a good education and degree will land me a good job in the field of my choice, doing what I am passionate and excited about along with keeping me financial stable. I find motivation and comfort that one day all this hard work will be worth it and that I will make my family really proud of me. That the struggles we are going through now are just temporary and that things will be better soon. That thought keeps me going because I can’t let them or myself down.

Johanna Business in science, University of Phoenix

Desserts and Cupcakes

I have a dream of one day owning and operating my own business. My passion lies in the food industry and I've always been drawn to the idea of running a chain of restaurants, similar to Applebee's.

To make this dream a reality, I've decided to start small and build my way up. My first step is to open a make-your-own dessert place and then franchise it. From there, I hope to expand and open multiple restaurants. Eventually, when I reach retirement age, I envision having a small cupcake shop.

I'm driven to work hard and study by the thought of decorating cupcakes in my own little shop at the age of 70. I imagine a beautiful home filled with memories and friends from work. I also think about the potential for my business to be passed down to my children or to leave a legacy for my family through its sale.

I'm determined to make my dream come true. I know that all the hard work will pay off in the end, not just for me, but for my family as well.

Brigit Blanchard Business Administration, Youngstown State University

Restaurant Takeover

When my dad was in high school, my grandparents open a restaurant right across the old Sonic that we had in our little town. When my dad left to be in the army, my grandparents still had the restaurant running. A couple of years goes by and my dad came back to his home town but he didn't come alone. I was with him!

So when I turn 9, I started to work at the restaurant on weekends when I didn't have school and I would work during summers too. Ever since I was that age I knew that I wanted to take over the restaurant not because it was force upon me it's that I wanted to do it. I wanted to do for my grandparents.

My grandparents are my inspiration for everything. They are the reason why I am going to finish school and go to college. So that's why I want to go to college for business management so I'll know what the business needs. I know I'll go through difficult time but my grandparents well get me through those times by being there for me. So this is my essay!

Jazmin Mendoza Business Management, Western Texas College

Communism to Capitalism

My motivation in life to succeed is my parents' story about how they moved here from the Soviet Union with nothing. They came here from Yerevan, Armenia in 1992, and now do what they need to in order to support us. My parents inspire me to do well in school so I can have a life that's better than the one they have, and allow my family to have the privileges that we never had.

The ultimate goal is to do well in my life, and I want to be able to provide my parents with whatever they need after they retire. My parents came and did everything that was needed in order to graduate. Now my mother has her bachelor degree in business and my father manages a fairly decent company. I plan to do more than I need and go even further than my parents did.

I want to own my own company and enjoy life to the fullest. I want to always be there for others if they need me. Even if my parents never had the greatest financial status, they were able to always help the people that needed it. I was raised to not be a selfish person and I intend to continue to be like that. Whether it's for my future children, or my friend, I want to be able to help that person. That is my drive.

Haik Kolsuzyan Business Management, California State University Northridge

Building Success

Large. It must be huge! Influential, astounding, connects human beings. My business can not be ordinary. It must be relatable, but also innovative.

How will I achieve such a feat with so many adjectives attached? I must be able to provide both goods and services, I can not be just another money machine. I must understand the concepts of business from the inside-out, not just so that I can create a successful business but so I can introduce new ideas into the management of a business.

If I can learn what most businesses do and how they are successful, I can build off of that to create a business truly unique in its style and class. My goal of studying the innards of business and its practice is not merely to get a good grade in the course or to impress future employers, but it is to breed my inner inventiveness in a way that will allow me to separate myself from the pack.

I do not want to be ordinary, I want to stand out. I want to force others to be intrigued by my style of going about things, and I want my style to reek of success. This is why I will study hard and why I will persevere when the going gets tough. I want to be original.

Justin Boldoser Business Management, Ohio University

The Economics of Happiness

Self-interest determines human behavior. This mantra is repeated over and over by economists, but what if self-interest was no longer equated – as it so often is – with selfishness? What if self-centered aspirations could be replaced with a yearning to help those in need?

While living abroad for several years, I saw first-hand the tragic consequences of authority corrupted by greed.

When those who lead consistently act to secure their own self-interests, a culture of egocentrism and distrust begins to be instilled in society. The sad result, which I saw far too often, was a people vainly striving for happiness from within that could only truly come from looking outside themselves.

As I observed these things, a dream began to form. A dream to change the stereotypes of greed and ambition that surround the world of business, which I wish to enter.

My dream is to become the type of leader in business who cultivates an atmosphere of giving instead of taking, of helping rather than hindering. If the activities from which individuals receive the most satisfaction could be those of altruism, suddenly self-interest, which seems to guide human behavior, becomes synonymous not with selfishness, but selflessness.

As I struggle to grasp basic economic principles and decipher graphs of supply vs. demand, I am driven by this idea of changing people’s very disposition — helping them find happiness, while also being a force for good in a world that so desperately needs it.

Joshua Mortensen Economics, Brigham Young University - Provo

A Simpler Life

Three years ago, two hours before the new year was brought in, my friend and I formed our dream job. We wanted to open a bookstore cafe.

The following year, I researched bookstore cafes and my friend drifted from the dream. Surprisingly, I held on.

Normally, I would flit from the idea of one occupation to another; however, after this idea was formed, I could not let go. I made plans as to what kind of ambiance my bookstore cafe would hold to what kind of foods and beverages would be sold, even to what would happen with leftover food.

Eventually, I put the dream on hold to try and find a prestigious occupation that would make everybody around me happy. No matter what, though, I always come back to the idea of owning a bookstore cafe. Owning a bookstore cafe combines my passions of business, helping others, and books.

During that year of research I did, I realized just how much people can be helped with such a simple business. The unsold leftover food would not be thrown away and wasted; I would instead take the leftover food to the homeless. I could hold poetry and music nights to help those who dream of being writers and musicians. I could steer a person toward a life-changing book.

There is so much potential behind owning a bookstore cafe, and I know that no matter what, this will always be my ultimate motivator in my studies.

Catherine Kamerick Business, Undecided

Entrepreneurship Is My Dream

I am excited about the next phase of my life. However, others who have graduated before me have shared that college can be difficult at times. I know I am going to have to work extremely hard over these next four years if I plan to accomplish my professional dream.

I have been raised in a home where my father owns his own business. As I prepare for college, it is vital that I keep my eye on the prize.

I want to own and operate a Chick-fil-A restaurant. During high school, I have been fortunate enough to work for this impressive company. It is a company that is respected in the community and emphasizes philanthropy.

I have dreamt of owning my own store as it is a company that strives for excellence. It excites me to think I will be a part of a company that offers an outstanding product.

I view my future career as an important aspect of my life. I want to work in a place where I know I will thrive. Keeping my eye on this goal will help me overcome the difficult times I will face while in college. Each day I will give my all to my academics knowing that my goal is something I can and will accomplish.

Carson Jacob Borders Business Administration, Lee University

Marketing Exec and More

When someone is in high school, they learn many things. If there is one thing that I learned, it is that grades and meeting one's goals comes at a certain price. Sometimes, that price is missing out on things that others get to do. Studies, meaning grades and achievements, do not come at an easy price.

In order to achieve your goals, you need determination. So one may ask, "what is your goal?" I would tell them, "my goal is to become a marketing executive, wife, and mother." My dream is to be in the board rooms, making decisions, all the while having a successful family, and a husband who supports me in all that I do.

When I think back on my life, in 50 years, I am not going to be thinking and wishing I had done more. Because, I will have accomplished my dreams, and have my grandchildren running around in my living room while I think of how I accomplished my dreams.

Now, I know that doing these things may seem as though they are easy to do, however, I know that they will take determination in order to succeeded. Success is not an easy accomplishment. However, my dreams are my dreams, and I will reach them, no matter the cost.

Leah Carothers Managerial Marketing, Kent State University

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Importance of International Business Management for Running a Successful Company Research Paper

Introduction, findings and analysis, conclusions and recommendations, reference list.

Well established modern business organizations have increasingly been seeking to expand their operations beyond the boundaries of their mother countries. Consequently, international trade has been stirred up and accelerated thanks to advancement made by man in Information Communication Technology (ICT) and other areas during 19 th and 20 th Centuries.

Business organizations particularly from world’s major economies and the emerging Asian economies offering goods and services in different commercial sectors or industries are striving to establish a high profile presence in the international markets in an attempt to enhance their profitability and remain competitive in an era of accelerated globalization.

Some of them are part and parcel of the business organizations known as multinational corporations (MNCs) or multinational enterprises (MNEs) which have operational branches in virtually all stable nations world over. There are various reasons that encourage business organizations desire to expand in to the international or foreign markets.

Ireland, Hoskisson and Hitt (2008) have identified four main reasons that usually motivates companies, or business organizations seek to expand in to international markets namely the desire to use current resources and gain access to new resources, seeking to expand or develop new markets, competitive rivalry and controlling core competences and learning.

These authors point out that companies search for economies of scale in the use of their existing resources by expanding in to new foreign markets. At times they enter international markets in order to reach specific valuable resources like raw materials, specialized knowledge, or cheap labour.

As companies become well established in the domestic markets, they begin searching for international markets in order to increase their revenue and gain more profits, enhance their competition with major rivals and influence further development of their core competencies (Ireland, Hoskisson and Hitt, 2008; Ajami and Goddard,2006).

Increased and accelerated international business activities have brought up the need for special managerial knowledge and skills on how to manage profitably and successfully companies that seeks to expand their operations in to new global markets. The need for this knowledge has been partly due to the fact that irrespective of the many benefits that a business organization accrues because of expanding into new foreign markets, they encounter various problems and challenges in their preferred international markets Dewan & Sudarshan (1996).

Furthermore, the internet, as a matter of fact, has made international business inevitable because companies, as well as consumers, can now access more information about markets and goods respectively easily than they could before the advent of the internet technology. In other words, as Lane, DiStefano and Maznevski (2005) put it, as the international economy grows and expands current and new business managers are forced to learn how to work as efficiently in foreign countries as they do in their mother countries as well as how to develop bridges across the world by controlling both likeness and differences.

Also, business organization has realized that their survival in a world that is ever becoming small in line with technological advancements can no longer be hinged upon domestic market alone. These needs have seen institutions of higher learning design international business management study programmes meant to produce professionals with necessary knowledge, attitudes and skills needed to manage global business organizations successfully.

International business differs in many ways from domestic business and so does global business management from domestic business management. International business management refers to the practice of controlling, directing and guiding business operations in host countries where socio-economic and political conditions, general and business laws and business practices are critically different and unique from domestic business practices and conditions which managers are normally conversant with Newlands and Hooper (2009).

In other senses, the term international business management refers to human activities involving exchange of goods and services directed towards personal satisfaction between and among more than two countries and the study discipline concerned with such activities and practices.

The purpose of this paper is to discuss the importance of international business management for running a success company. It aims to establish the nature of international business. It also seeks to identify strategies that a company can adopt in order to sustain its competitive advantages at the international markets so as to safeguard its profitability and survival.

The significance of international business management for running a successful company rests upon the many advantages that accrue from a company’s expansion into new international markets and development of an international identity by a company Korine and Gomez (2002). To begin with, going global gives a company numerous financial advantages.

For instance, the larger the network of a successful company the easier it is to move to places of maximum safety and with highest returns and profit Mead and Andrews (2009). Managing a successful company internationally is a strategic plan that managers can use to mitigate business risks by moving company’s capitals from insecure and socio-politically unstable markets to safer markets.

It also enables a company to focus its energies up on the most profitable markets in a region or segments in a given market, thereby boosting its profits. Secondly, running a business internationally offers production and marketing advantages Mead and Andrews (2009). For example, access to new international markets enables a company to reduce its production costs by accessing valuable inexpensive raw materials as well as cheap labour.

International business management also enables a company to reach and acquire specialized knowledge in new global markets which is unavailable in home markets. Also, a company that is managed internationally is able to partner with local marketing companies, thereby deriving marketing advantages in the sense that a company product gets identified with already known companies and brands.

Also, a company gets an opportunity to market its identity in new markets. International business management also enables a company to enjoy economies of scale through use of their existing resources to expand into new foreign markets. Even though there are various similar managerial practices between domestic and international business, international business has four primary areas of business which raises concerns that global managers must understand for their companies to be successful Newlands and Hooper (2009).

They include cultural differences, commercial environments, politico-legal environments and financial issues. When doing business in different countries cultural differences must be put in to consideration carefully in order to shun cultural clash which is harmful to business Shenkar and Luo cited in (Newlands and Hooper, 2009; Briscoe, Schuler and Claus, 2008).

The main cultural difference to consider is language without which communication can not take place effectively within a business organization Newlands and Hooper (2009). The management must also put enough efforts to understand people’s social customs. For instance, they should learn how people greet each other, work ethics, their sense of individualism versus collectivism, their concept of hierarchy, personal space among many other social aspects which affects business activities Newlands and Hooper (2009).

International business managers must also understand the politico-legal environment in which their companies will conduct its business. It is important to note that different countries have unique political and legal systems Newlands and Hooper (2009). The management must consider issues such as dispute resoluition, employment regulations and contracts. Thirdly; international business managers must note and understand that different countries have different economic or commercial environments Newlands and Hooper (2009).

For example, some countries are more developed and highly industrialized than others, while others are emerging economies. At the same time, different economies grow at different rates so that while some are growing rapidly others are declining Newlands and Hooper (2009). In addition, resources availability, infrastructure and support needed for conduct of business differ from one country to another.

Last but not least, international business managers must consider financial issues Newlands and Hooper (2009). They must note that countries while countries have to trade with each other they have different currencies which operate at different exchange rates in the international markets. Those are some the main aspects of international business which managers must consider carefully in order for their companies to succeed in international markets.

In order to promote and maintain competitiveness in the international markets the following points should be considered by all international designers of a company’s business plan. First, since international markets are increasingly dynamic arenas for competitive interaction; to compete successfully marketing managers of a company should have an in-depth understanding of the diverse needs and demands of customers in various global markets in which these firms intermingle Aswathappa (2010).

Secondly, the company should ensure that consumers’ attitude towards its products which are of course foreign to them is positive because their attitude profoundly influences their purchasing behavior Aswathappa (2010). Finally, those designing a company’s marketing strategies should consider the already confirmed fact that country-of-origin literature contributes considerable knowledge of consumers’ attitude toward foreign products in various countries and can make available insights into the importance of such knowledge for the determination of successful international marketing Aswathappa (2010).

It should also be understood that although numerous developing countries and emerging economies have emerged as vital points of products in international business activities, research on the attitudes of consumers towards foreign should be intensified in the developing countries.

Other strategies that a company can embrace include maintainance of a long-term differentiation strategy geared towards production of goods and services that consumers recognize as being different (Aswathappa, 2010; Harrison 2009). However, international managers should note that a successful differentiation strategy is successful after an intensive study of the customers’ needs and preferences in order to establish the viability of integrating one or more differentiating features into a product.

Successful differentiation feature allows a company to continue charging higher prices for its products and acquire customer loyalty because customers may become strongly attached to the differentiated features Aswathappa (2010). International managers should also take advantage of their companies’ economies of scale in order to attain the lowest cost in all industries in which it is a player.

According to Aswathappa (2010), certain elements of cost should be pruned in order to achieve low cost. These elements include economies of scale, learning and experience curve effects, level of competence utilization, connection with suppliers and distributors, R&D costs, labour, taxes, energy and shipping expenditure Aswathappa (2010).

However, it is important to note that cost leadership strategy as a method of dealing with problem of competitiveness in the global markets is usually effective in situations whereby the market is composed of many price-sensitive buyers or when consumers are not concerned very much about the differences from brand to brand as well as when there is a large number of customers with adequate purchasing power Aswathappa (2010).

Countries must inevitably do business with each other regardless of their diverse business practices and varying business conditions and environments. International business management becomes an important means through which managers use their special knowledge, attitudes and skills in bridging the similarities and differences between domestic and international business activities.

International business managers must note that even though there are certain business practices practiced at home that are also doable at the global markets, international business differs sharply with domestic business. They must particularly take note of the all significant cultural differences and learn how to harmonize and manage employees from different cultural backgrounds.

They should also consider keenly politico-legal differences between various countries where their operations are carried out. Managers must also consider economic or commercial environments of the different countries in order for their companies to succeed in new international markets. Financial issues should be considered carefully because different countries have different currencies with diverse features and abilities within the global foreign exchange markets.

It is recommendable that given the accelerated rate of globalization those training as business managers should study deeply how to manage business organizations internationally. Those working for companies operating internationally should get on job training on matters and trends pertaining international business management in order to safeguard success of their companies.

Ajami, R. A., & Goddard. J. (2006). International business: theory and practice . Armonk NY: M.E. Sharpe.

Aswathappa. (2010). International Business 4E. New Delhi: Tata McGraw-Hill Education.

Briscoe, D. R., Schuler, R. S., & Claus, L. M. (2008). International Human Resource Management. London: Taylor & Francis.

Dewan, J., & Sudarshan, K. (1996). International Business Management . New Delhi: Discovery Publishing House.

DiStefano, J. J., & Maznevski, M. L. (2005). International management behavior: text, readings, and cases . Hoboken, NJ: Wiley-Blackwell.

Harrison, J. (2009). Foundations in strategic management . New York, NY: Cengage Learning.

Ireland, R. Duan, Hoskisson, R. E., & Hitt, M. A. (2008). Understanding Business Strategy: Concepts and Cases. New York: Cengage Learning.

Korine, H., & Gomez, P. (2002). The leap to globalization: creating new value from business without borders . Hoboken, NJ: John Wiley and Sons.

Mead, R., & Andrews, T. G. (2009). International Management . Hoboken, NJ : John Wiley and Sons

Newlands, D. J., & Hooper, M. J. (2009). The global business handbook: the eight dimensions of international management . London: Gower Publishing, Ltd.

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Importance of Management

Management is a multidimensional phenomenon that covers the ongoing processes in the organization related both to its internal and external environment. Modern management serves to develop the organizational culture and innovations. It allows organizations to survive and thrive. The importance of this phenomenon is determined by company’s ability to manage economic performance, achieve competitive advantage, social and economic benefits, motivate employees, and more. An immense contribution of innovations depends on the managers’ ability to overcome different challenges such as risks, costs, and time successfully. Effective management contributes to using emerging technologies and improving workplaces. It also helps organizations achieve their goals, make better decisions, be more efficient, and earn more profit. Thus, management plays a vital role in any organization because it involves the coordination of personnel activities.

The Background of the Concept

Management aims to direct, control, staff, and organize employees with the aim to accomplish organizational goals. In addition, it also serves to provide planning of organizational activities. These processes are important in the coordination of human and material resources necessary for the effective achievement of tasks. The literature reveals that with the help of a set of principles, methods, and forms of managing organizations, management helps them to thrive and survive in the modern market (Scott, 2011). Therefore, it can aid business to adapt to such areas of professional activity as economic, marketing, accounting, control, educational, and research.

Management was introduced into business with the need to explain why the organization thrived or collapsed. Researchers in this field try to find out what the success of the organization is. Therefore, they have achieved their goal, using tests and practices by the method of attempts and errors. Organizations form the basis of the world of management that encourages leaders to find the most effective methods of managing employees. Many studies assert that the primary task of management is to create an organizational culture and a creative climate, which stimulate employees to innovate (Scott, 2011). As a rule, managers of various units are initiators of technological and organizational changes.

• Functions of Management

Management has different functions in organizations. Moreover, it permeates the whole company, affecting all spheres of its activities. However, with the diversity of the interaction between management and an organization, it is possible to define the boundaries of activities that constitute the essence of management. Thus, experts have determined that it serves to focus on the quality and competitiveness of products, increase the degree of profit and consumer customer satisfaction, improve the image and reputation of the organization, and ensures financial stability (Griffin, 2017). In addition, management allows companies to ensure the rational use of all types of resources and increase labor productivity. Moreover, it plays an important role in the introduction of the latest achievements of scientific and technical progress. Therefore, managerial functions are rather multifaceted.

Furthermore, creative managers know how to use functions to benefit an organization. Griffin (2017) believes that any enterprise is a complex system that needs to determine management functions, taking into account several factors, such as material, labor and financial resources, equipment, buildings, and others. In addition, it should focus on the management process, involving planning, organizing, regulating, controlling, and accounting. Thus, planning helps organizations determine the main directions of their business, including perspective orientation and early recognition of problems. Moreover, it outlines the state of the facility and provides specific measures aimed at supporting favorable development trends or deterring negative ones. It also creates an objective basis for effective control.

Another function that aims to eliminate deviations from the specified mode of operation is regulation. It allows organizations to redistribute material, technical, and financial resources. Regulation involves the process of developing corrective measures and implementing organizational, technological, economic, and technical decisions that ensure timely and unconditional elimination of identified problems (Dodgson, Gann, & Phillips, 2014). The regulatory function is a flexible instrument, through which the production process is continuously introduced into a strict framework provided by the plan. Therefore, it helps managers implement decisions and monitor their execution.

Management also aims to coordinate, motivate, control, and direct employees that benefit an organization. Thus, coordination allows firms to ensure an even flow of production. In order to achieve coordinated work of units, managers hold meetings with other managers to identify service activities and material support of production. Next, motivation contributes to the better performance of the personnel, and as a result, the organization can delegate rights and duties in accordance with accepted management decisions (Dodgson et al., 2014). Furthermore, the directing function of management allows organizational leaders to influence the behavior of employees. Therefore, the functions mentioned above are the basis for management.

The Purpose of Management

The purpose of management is aimed at the most effective use of workforce to achieve organizational and personal goals. Today, everyone understands that in order to make profit and maintain competitiveness, management must optimize the return on investment of any resources, such as material, financial, and most importantly, human. When an organization really cares about people, its general philosophy, climate, and mood necessarily affect its performance. Consequently, the concept of management is based on two main aspects, which are functional and organizational (Griffin, 2017). From the functional perspective, human resources management involves the following: (1) the definition of the overall strategy; (2) the planning of the personnel needs; (3) staff selection and evaluation; (4) development and training; (5) promotion system, and so on (Griffin, 2017). In fact, organizationally, management covers all employees in the organization that are responsible for working.

Furthermore, management focuses more on practical actions than on conceptual procedures and rules. Thus, it plays a great role in solving problems and tasks assigned. Moreover, it maintains the development of all personnel members and each individual employee, creating necessary working conditions. The recent studies suggest that management is focused on the future since it helps the company develop strategic objectives (Scott, 2011). Moreover, unlike other specialties, it influences employees, encouraging them to gain organizational goals. Managers are key professionals in organizations. Therefore, to perform their activities, managers must play a number of roles, such as interpersonal, informative, communicative, analytical, technical, and decisive.

The goal of the organization is fixed in the form of individual characteristics. In this respect, management helps companies identify activities necessary for their success. Dodgson et al. (2014) believe that strategic management describes how the firm with its available resources is going to compete under current and future conditions. Moreover, it helps the organization meet needs of its customers for a long time. Most companies formulate a strategy they must implement quite successfully. It can solve the issue of the viability of the organization.

The Role of Knowledge Management in Organizations

In the modern economy, the engine of which is information, organizations see much more value in their intellectual assets than in physical. Knowledge management helps support knowledge that needs to be shared being the basis for cooperation. Moreover, it helps to promote innovations. According to the research by Dodgson et al. (2014), knowledge management provides an infrastructure for building electronic and social networks for the development of new products or services. In addition, it facilitates and provides access to various ideas, such as giving other people an opportunity to benefit from them. It also increases possibilities for cooperation and enriches the process of sharing explicit and indirect knowledge among employees. In fact, knowledge management encourages the free movement of ideas.

Furthermore, knowledge management provides necessary information that helps the decision-making process. Oftentimes, it contributes to the generation of new knowledge in by sharing and collaborating with co-workers. Knowledge management uses information and knowledge to bring organization’s actions in line with its mission and vision (Scott, 2011). Moreover, it increases the level of customer satisfaction, improves customer service by streamlining their response time and improves the result and experience gained by customers when using services. Ultimately, it creates competitive advantage, contributing to the achievement of knowledge of the highest quality and the satisfaction of clients’ needs. Therefore, knowledge management is the main engine of innovations in an organization.

Management plays a vital role in an organization since it helps to coordinate such activities as leading, planning, controlling, as well as organizing employees. In addition, management helps organizations develop strategic directions and improve customer satisfaction. It performs many other functions that help companies survive and thrive in a complex business environment. Management creates an organizational culture and innovation climate, which stimulate employees to innovate. Using planning, controlling, and regulating processes, it allows organizations to use their resources rationally and to increase labor productivity to compete. Since managers are key professionals in organizations, they play a number of roles, such as interpersonal, informative, communicative, analytical, technical, and decisive. Moreover, the goal of management is to use information and knowledge in order to bring organization’s actions in line with its mission and vision. Therefore, companies are prone to succeed due to effective management.

Dodgson, ?M., Gann, ?D. M., & Phillips, N. (Eds.). (2014). The Oxford handbook of innovation management. Oxford, UK: Oxford University Press.

Griffin, R. W. (2017). Management (12th ed.). Boston, MA: Cengage Learning.

Scott, J. T. (2011). The concise handbook of management: A practitioner’s approach . New York, NY: Routledge/Taylor & Francis Group.

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6 Common Leadership Styles — and How to Decide Which to Use When

• Rebecca Knight

Being a great leader means recognizing that different circumstances call for different approaches.

Research suggests that the most effective leaders adapt their style to different circumstances — be it a change in setting, a shift in organizational dynamics, or a turn in the business cycle. But what if you feel like you’re not equipped to take on a new and different leadership style — let alone more than one? In this article, the author outlines the six leadership styles Daniel Goleman first introduced in his 2000 HBR article, “Leadership That Gets Results,” and explains when to use each one. The good news is that personality is not destiny. Even if you’re naturally introverted or you tend to be driven by data and analysis rather than emotion, you can still learn how to adapt different leadership styles to organize, motivate, and direct your team.

Much has been written about common leadership styles and how to identify the right style for you, whether it’s transactional or transformational, bureaucratic or laissez-faire. But according to Daniel Goleman, a psychologist best known for his work on emotional intelligence, “Being a great leader means recognizing that different circumstances may call for different approaches.”

• RK Rebecca Knight is a journalist who writes about all things related to the changing nature of careers and the workplace. Her essays and reported stories have been featured in The Boston Globe, Business Insider, The New York Times, BBC, and The Christian Science Monitor. She was shortlisted as a Reuters Institute Fellow at Oxford University in 2023. Earlier in her career, she spent a decade as an editor and reporter at the Financial Times in New York, London, and Boston.

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Why did you choose business management? Interview questions answered

Managing a business is a dream of many young people. We want to earn big , live well, and leave some mark in our country , or at least in a local community. Needless to say, the vast majority of business management graduates won’t manage an entire business. They will end up working in sales, marketing, FP&A and other departments of big corporations, leading a small team of people at best–which isn’t a bad career by any means, to be honest. But what should you write on your application , or say in the school admission interviews ? What do the people in the admission committee want to hear from you? We will try to find the answers on the following lines.

Before we proceed to 7 sample answers , let me give you a few pointers. First of all, dare to dream . You can say that you want to run your own business one day (in a specific field), or manage some big operation in this or that industry. Big vision helps with motivation , and you will need some motivation to learn the subjects, pass the exams, and eventually earn your degree in business and management. Secondly, be as specific as you can . Saying that you hope to “manage a business” doesn’t sound too convincing. But saying that you want to run your own winery , for example, in this or that location , producing about 100,000 bottles of artisanal wine, sounds like a plan, and something that will give you the extra boost of motivation when you need it the most.

Of course, winery is just an example, and you can talk about any business, or any job you’d like to have one day. Just try to be specific, and do not worry much about the viability of your dreams . Few weeks later, nobody will remember what you’ve said in your school admission interview, or what you’ve written on your application. When trying to get in, however, it is nice to have some vision you can follow.

Let’s proceed to the sample answers. You will find on my list all sorts of answers. Answers for future entrepreneurs , for people who prefer the job security to the exciting yet risky journey of an entrepreneur, as well as some unconventional answers, and also an answer for people who simply do not know yet what they want to do with their life . I hope at least one of them will resonate with you, and will inspire you to come up with your own, unique answer to this tricky interview question. I wish you good luck!

7 sample answers to “Why do you want to study business management?” interview question

• I dream of running my own business one day. Have a certain vision on my mind, actually a couple of ideas. One is a game design studio , in my city, because I have many friends who are great programmers and can imagine creating something of true value with them. Another idea is a coffee plantation , artisanal coffee to be more precise. I am a coffee lover and see a lot of opportunity on this market. People will always drink coffee, and there will always be room for quality coffee growers and producers. Of course, before I can proceed with any of these two ideas, I have to learn how to run a business , how to manage both people and resources. Your study program is an ideal way of doing so, and that’s why I decided to apply.
• I see my future in a big corporation, one of the companies on Fortune 100 list . And I dream big- -one day I hope to manage at least one hundred people in the job, and earn a six figure salary . I know it is a long way, and not an easy one, because many people have similar dreams. But I am motivated and ready to study extremely hard , because I know that nowadays, a good degree is the first step , and without having it, a Fortune 100 company won’t even invite me for a job interview . That’s why I want to study business management, earn my degree, learn a lot, make some connections . Once done, I can progress to the next step in my professional career.
• To be honest with you, I chose business management because I am not sure yet what I want to do with my life . Business management is in a way a universal degree . Every organization–public or private, needs some managers. As a manager you can work in IT, healthcare, non-profit, finance, sales– you can work in any field . I hope that as I grow older, progress with my studies, meet interesting people at the college and understand life better, I will come to a firm conclusion about my future. And with a prestigious degree like this one, I will have many doors open …
• I have several reasons for doing it. First of all, I see the field as a great match to my strengths and personality . I’ve been always a leader in my circles , be it at high school, in as sports club, or even in my family. And I enjoy the role, and the responsibility it carries . What’s more, I’ve always dreamed of having a big impact , and in order to have a real impact–in any organization or community, you need to have a managerial or leadership position . I believe that with a degree in business and management I will have a chance to apply for such jobs, at least down the road, once I have gained some working experience. And I also believe that I will learn a lot about managing people and processes here, and am excited about the subject of study.
• The answer is simple: because I want to manage a business , my own business to be precise. I already have a small business , an online website in the car niche, offering quality content to the readers, as well as selling some car parts and relevant stuff. But I see some limitations with this model , and I also want to have some theoretical knowledge of running a business operation , and it is also nice to have something to fall back on , because every business can bankrupt, or your priorities in life can chance . With a good degree I can always apply for jobs–if something unexpected happens, or if I do not want to run my own business any longer.
• I chose business management because I want to manage our family business . It is a smaller company with twenty employees , and my father is already in his late fifties, and would love to leave me the reins one day, in few years from now. But I do not want to have the position just because I am the son of the founder of the company. I want to know my stuff, to understand the theory behind running the business . What’s more, I have big plans with this company. I want to expand to new markets and triple the number of employees. As you can see, I approach this very seriously . Earning a degree in business management–and more importantly, learning how to manage a business, is a crucial part of my plan…
• Speaking honestly, money is the answer . I do not dream of spending my life working in a fast food restaurant, or behind an assembly line in some big factory. Do not understand me wrong though– I respect these people , and understand their role in our society. There’s no shame in any work that is legal. At the same time, however, I do not want to be mediocre individual with a mediocre salary. I want to earn big , and hold a managerial role in some well-known company. Because I want to have a big impact in my job, and at the same time have enough money to live a great life, start a family , and so on. I see my studies here as the first step on this fascinating career journey. And that’s why I want to study business management, and invest into my education…

Special Tip : What if I told you that you can practice your answers to ALL tricky behavioral interview questions for (future) business managers, getting an immediate feedback from a life-like AI interview coach ? And that you can start doing it for free , and it is a lot of fun too? 🙂 Check out this page on our partner website , Real Mock Interviews, pick a question and start practicing for free , either on your mobile phone or on your computer. Enjoy and thank me later!

Ready to answer this one? I hope so! But it won’t be the only tough question you will face while trying to get to any great university. Check also sample answers to the following tricky questions:

• Does your academic record accurately reflect your capabilities?
• Do you consider yourself a leader?
• Why did you choose this university, and not another one?
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Business Management essay

Business management is essential for me because I have a great desire to successfully manage people and business projects, as well as to develop effective business-related policies.  I want to major in business in order to pursue my Bachelor’s Degree and become a true professional in business management. The reason that I am applying for the scholarship is that it will help me to pay for my academic tuition, academic resources (books, programs, etc.) and spend much more time on my studies.

Today I have to work full time in order to advance myself with a degree in business management. I am currently pursuing my Associate’s Degree, but I am not going to stop my education. To become a true professional in business management, it is necessary to learn more about the key business strategies that will help to enhance management practices and develop the proper skills and abilities. I am going forward to achieve my Bachelor’s Degree.

I am currently pursuing a career course that will help me to advance my leadership and management skills and have the opportunity to work in an advanced management field.  My specific academic goals contribute to my professional growth. Some of my academic goals include:

• To develop effective leadership and management skills in order to apply these skills in practice;
• To improve my academic performance in order to become more professional in decision making and goal setting practices;
• To develop good technical skills in order to apply new technologies in business practices;
• To learn more about business management strategies that could be applied in practice;
• To learn how to identify and successfully resolve various organizational and business problems;
• To develop my communication skills that are necessary in achieving strategic goals;
• To learn more about strategic planning in business;
• To use my skills and abilities to continue maintaining a “B” average;
• To do everything possible to keep satisfactory attendance.

My career plans depend on my academic achievements and work experience. I know that business management is not an easy field to work in.  I will be focused on my professional development. My work experience involves dealing with conflicts within management, problem solving, decision making, critical thinking, discrimination, as well as personal development. I have been well trained to deal with standard operating procedures and implementation of such standards, to satisfy the Department of Defense and be in compliance with the established laws and regulations of our Federal Government.

In addition, I will do my best to develop professional skills in business management practices that will help me to make good management decisions in my future career. To be a good manager, it is very important to develop not only effective interpersonal communication skills, but also good intuition, which helps to make effective management decisions.  I need general knowledge in HR management, finance and accounting operations. I know that Bachelor’s programs in this field are effective in achieving the established academic goals. The greatest pleasure for me would be to pass exams successfully. I believe that my personal skills and abilities will be useful in achieving my academic goals. I am self-confident, hard-working and persistent. I know that to become a good manager I should study hard. I know that a good manager should be competent in three key areas: managing people; managing and developing processes and policies; and managing and developing oneself. I believe that my Bachelor’s program in business management will help me to develop the proper skills to become competent in the above mentioned areas. Today I pay due attention to my personal development. I successfully deal with stresses and conflicts. A good manager should know how to avoid stressful situations which may lead to conflicts in the workplace. Besides, I use my creativity in decision making process to demonstrate the best traits of my character. Innovative ideas in business management provide massive opportunities for successful implementation of the established strategic goals.

Thus, it is necessary to conclude that my specific academic goals and career plans will motivate me to study hard. I know that to become a professional in business management, it is necessary to never give up and be quick about solving any problem or overcoming any barrier.  I realize that my academic and career goals are the essential goals I should achieve in the nearest future. Achieving these goals will help to succeed in the realization of my personal potential in profession and career. Business management practices guarantee professional success if a manager is goal-oriented and creative. One of my great desires is to pursue my Bachelor’s Degree in order to become a true professional in business management. I believe that I will be able to apply my best skills and abilities to succeed in academic performance and become a well-trained specialist. My work experience will help me to be confident in everything I need to do to attain my academic goals and career plans.

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The Importance of Leadership

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Leadership as a set of skills and qualities, the ability to create a vision and set goals, empowering and developing others, driving innovation and change, leadership in everyday life, in conclusion.

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Why Customer Satisfaction is Important for Your Business

Business success often lies in one simple yet profound concept: customer satisfaction. But why is customer satisfaction so important? At its core, it’s the measure of how well a product or service meets — or exceeds — customer expectations, acting as a litmus test for the effectiveness of your business strategies.

Understanding the importance of customer satisfaction goes beyond recognizing its role as a performance indicator. It plays an important role in fostering loyalty, encouraging repeat business, and serving as a differentiator in crowded markets. In other words, it's an essential element that can make or break your business's relationship with its customers.

What is customer satisfaction?

Customer satisfaction is a metric that determines how products or services supplied by a company meet or surpass a customer's expectations. It's about interpreting and fulfilling your customer's needs as closely as possible. Providing a product or service that's both high quality and good value can generate high levels of customer satisfaction.

Satisfied customers are happy customers. And happy customers who find value in your products or services are not only more likely to stick with your business but also to become advocates of your brand.

While they are closely related, customer satisfaction shouldn’t be confused with customer service. Customer service refers to the immediate experience or interaction an individual has with your business, such as the assistance they receive from your support team or the explanations given by a sales representative. While outstanding customer service can strongly contribute to overall customer satisfaction, the latter is a more comprehensive measure that includes things like product quality, value perception, and the extent to which expectations are fulfilled.

As such, capturing and understanding customer feedback is essential in accurately gauging customer satisfaction . This feedback provides essential clues about what you're doing well and where enhancements might be beneficial.

Recommended Reading

Customer Satisfaction: What It Is and 6 Ways to Boost It

Why is customer satisfaction important.

Understanding the importance of customer satisfaction isn't just about recognizing its role in a single sale but acknowledging how it cultivates a fertile ground for growth, loyalty, and continued success. Let's break down why customer satisfaction matters .

Customer experience

When customers are satisfied, they feel seen, heard, and valued. This positive interaction enhances their overall experience with your brand, making them more likely to return and engage further. It's like a snowball effect — the more satisfied they are, the better their experience and the bigger the snowball grows.

Customer loyalty

Satisfied customers are like the loyal friends of your brand. They're the ones who'll stick by you through thick and thin because they believe in what you're doing. This loyalty stems from their satisfaction. When they’re happy with your service or product, they're more inclined to choose you over competitors. It's a bond built on consistent, positive experiences.

Customer retention

Customer retention is simple, really: Happy customers don't just disappear. They have less reason to. If they find what they need with you, why look elsewhere? Retention is all about keeping these customers close, thanks to the satisfaction they've found with your offerings. It's both more cost-effective and efficient than constantly seeking new customers .

Customer lifetime value (CLV)

CLV is where the magic of customer satisfaction really shines through in numbers. Satisfied customers don't just buy once; they come back, and often they bring friends. Their repeat business and referrals increase their value to your company over time. Generally, the happier they are, the more valuable they become as long-term patrons of your brand.

The Role of Customer Stickiness in Building Enduring Loyalty

What Is Customer Retention + 16 Proven Retention Strategies

Customer Lifetime Value for Ecommerce: The Ultimate Guide

How to measure customer satisfaction.

With the right tools and understanding, navigating customer satisfaction becomes a straightforward and invaluable process. Let’s dive into some key metrics and strategies that can help you understand how your customers truly feel about your offerings.

Customer satisfaction metrics: CSAT and NPS

Starting with the basics, the customer satisfaction score (CSAT) and Net Promoter Score (NPS) are your go-to metrics. Customer satisfaction surveys measure immediate satisfaction with a product, service, or interaction, often through a simple question like, “How satisfied were you with your experience?” Meanwhile, NPS gauges a customer's likelihood to recommend your business to others, serving as a powerful indicator of loyalty and satisfaction over the longer term. Both metrics offer valuable — though different — perspectives on customer sentiment.

Other important metrics to consider

While CSAT and NPS provide a solid foundation, broadening your metric toolkit can uncover more nuanced insights. Consider customer effort score (CES), which assesses how easy it is for customers to get what they need from you. There’s also the first response time (FRT) and average handling time (AHT) within customer service, which can significantly impact satisfaction. By keeping an eye on these metrics, you can get a more complete picture of customer experience and satisfaction.

The role of customer feedback and surveys in gauging satisfaction

Customer feedback and surveys are the cornerstone of measuring satisfaction, and they give you a chance to open up a dialogue with your customers. Surveys, whether they measure CSAT, NPS, or other metrics, give customers a voice to express their satisfaction, concerns, and suggestions. Often, this feedback provides actionable insights that can guide improvements and innovations and, ultimately, increase customer satisfaction.

With the right approach and tools, measuring customer satisfaction can become an integral part of your business strategy. And remember, it's not just about numbers and scores but about understanding your customers and continuously enhancing their experience with your brand.

Customer Satisfaction Surveys: A Comprehensive Guide

Tips for improving customer satisfaction.

Boosting customer satisfaction isn't just about making your customers happy — it's about making them feel understood and appreciated. Let's explore some practical ways to enhance satisfaction levels across your customer base, ensuring every interaction they have with your brand feels both personal and positive.

Personalize the customer experience

Customers want to feel like more than just a number, and personalizing their experience can make all the difference. Simple touches, like using their name in communications, remembering their preferences, or making recommendations based on past purchases can significantly elevate their experience.

Use surveys effectively

Surveys, when used effectively through emails, in chat, or embedded in help docs, provide direct insights into what your customers think and feel about your service. You’ll want to make these surveys accessible and unobtrusive, ensuring that giving feedback feels as effortless as possible for the customer.

Engage with customers

Active engagement is crucial. Many customer service platforms offer messaging tools that allow you to reach out proactively and engage with your customers in real time. Whether it's offering assistance on a webpage or gathering quick feedback through a microsurvey , engaging with your customers creates a much better customer experience.

Act on reporting data

Gathering data is one thing, but acting on it is where the real magic happens. You can use the insights gathered from customer surveys and the analytics provided in your support tool to understand customer behavior and satisfaction levels. Look for patterns, pinpoint areas for improvement, and celebrate what’s working well. Acting on these insights shows customers that you value their feedback and are committed to continuous improvement.

Provide outstanding customer service

Never underestimate the power of a prompt and positive customer service response. Responding quickly and with a friendly tone can turn even a frustrated customer into a satisfied one. It’s all about showing empathy, offering solutions, and demonstrating that you’re there to help, no matter what.

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Elevating your business through customer satisfaction

Satisfied customers are the linchpin of a thriving business, fueling loyalty, retention, and — ultimately — a positive bottom line. It's about creating a cycle where customer satisfaction feeds into business success, which in turn fosters more satisfied customers.

With tools like CSAT and NPS surveys and advanced reporting features, Help Scout can give you clear, actionable insights into what your customers need and how they feel, enabling you to fine-tune your offerings and interactions to improve your customer satisfaction.

Sign up for a free trial and see how our tools can help you meet — and exceed — your customers’ expectations.

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Why Operations Management Is Important for Companies?

Introduction.

The area of operations management involves designing, planning, and supervising organizational production, manufacturing, or the offering of services. In particular, operations management concentrates on the integration of approaches that facilitate the efficient transformation of inputs to outputs with the view of fostering the success of an organization (Heizer 76). Different inputs that an organization can focus on transforming to desirable outputs include human resources, materials, and technology among other inputs.

The outputs that operations management seeks to deliver effectively and efficiently may include the goods or services the organization offers to its target market. Important to note, operations management mainly facilitates the functionality of a company’s supply chain management, including any other logistical issues (Slack et al. 21). In this view, the field of operations management seeks to ensure that an organization embraces a delivery-focused strategy in the implementation of its actions (Slack et al. 78).

For example, ensuring effective use of resources to foster the performance of an organization denotes an aspect of operations management. As revealed in this paper, the concept of operations management offers an array of benefits to an organization since it is focused on the efficiency and effectiveness of service and product delivery. Importantly, it fosters the improvement of productivity besides enhancing the capability of a company to fulfill the competitive priorities of consumers.

How Operations Management is Important for Companies

Operations management is one of the three fundamental functions of companies besides the management of finance and marketing. Thus, the concept is very important in facilitating the success of a company in the wake of the increased competitiveness in various industries. Therefore, for a company to attain a competitive edge, it is important for it to enhance the efficiency and effectiveness of the operations it executes to deliver goods and services to customers (Heizer 17). For this reason, operations management is a crucial aspect of a company since it influences business success to a considerable extent. The need for identifying the different ways in which operations management promotes the competitiveness and success of a company is relevant in the context of this paper.

The Influence of Operations Management in Products and Services Management

Product or service management is an integral aspect of business operations since it facilitates the designing of commodities or technologies to offer to customers for internal application. The product manager is mandated with the responsibility of ensuring that the company develops the necessary products that meet the competitive priorities of consumers (Gmelin and Seuring 3). In this respect, product management entails activities that range from the development of product idea to the offering of support to customers who seek to acquire the products or services offered by a given company. Since operations management is important in facilitating the efficiency and effectiveness of transforming inputs into outputs, it affects product management to a considerable extent.

The development of a product idea is an input that seeks to turn the idea into reality by availing the actual item to the customer as an output. Operations management allows the product manager to take the necessary approaches required to develop commodities that can bolster the competitiveness of the company in the industry (Gmelin and Seuring 5). For instance, the product manager needs to undertake an in-depth analysis of the market, including an assessment of the prevailing competitive conditions in the industry as a way of ensuring the efficient and effective development of merchandise. As such, the product manager incorporates the principles of operations management to foster the changing of inputs to outputs that enhance the competitiveness of a company.

Important to note, the nature of an organization influences the product management approach it embraces. In this respect, companies in the manufacturing and service industries, for instance, General Motors, need to integrate unique product or service management strategies that foster their production, branding, and marketing aspects. Importantly, operations management streamlines the activities involved in the development of a product and the delivery of support structures for customers to access the item or service easily (Heizer 112). Thus, operations management plays a considerable role in fostering the efficiency and effectiveness of product management in a company, thereby enhancing the competitiveness of the business.

The Influence of Operation Management on Quality Control

Operations management influences the element of quality control in a company. In particular, total quality management (TQM) in an organization entails the integration of an unceasing process of lessening or eradicating errors in the area of manufacturing, smoothening supply chain management, enhancing customer satisfaction, and promoting human resource development (Dale 26). Therefore, an organization needs to put in place measures that streamline the functionality of quality control as a crucial element of business operations. As such, operations management is important towards bolstering the effectiveness of quality control since it provides the framework for the continuous improvement of processes that facilitate the production and delivery of products and services to customers.

Operations management ensures that an organization upholds the integral elements of TQM, including ethics, integrity, and trust (Heizer 134). For example, operations management upholds the essence of carrying out business activities within the required ethical standards, as well as legal provisions, to win the trust of customers, thus enhancing a company’s competitive edge. It is necessary for an organization to engage in activities that promote its brand image as a crucial strategy for improving its performance in the industry in which it operates (Mitra 33).

In this respect, operations management supports the function of TQM in a company by facilitating the transformation of inputs to outputs through the required ethical and legal standards. As such, a company that values the essence of ethics and integrity goes a long way in securing the trust and loyalty of customers, thereby fostering its competitiveness.

Furthermore, operations management underlines the essence of effective leadership and teamwork in an organization. Notably, leadership and teamwork make part of the key elements of TQM since they facilitate the continuous improvement of business processes (Dale 47). It is crucial for leaders in an organization to continuously influence teams in a way that encourages the realization of business objectives and goals in a collective and collaborative approach.

For instance, a team leader who instills the value of commitment among team members demonstrates an aspect of quality control that is geared towards enhancing the efficiency and effectiveness of its human resources. Notably, operations management underscores the relevance of incorporating the appropriate human resource management strategies required bolster the productivity of inputs in the form of employees. In this respect, operations management inspires a company to establish measures that foster the productivity of its human resources, hence facilitating the desirable execution of the set TQM initiatives.

Operations management also influences positively the aspect of communication in TQM (Mitra 102). The area of TQM requires a company to engage in communication strategies that foster the effective and efficient exchange of information necessary for decision-making. Important to note, operations management supports the integration of technology systems that improve business processes, as well as the products and services it delivers to customers (Dale 143).

For example, an international company such as General Electric can develop and implement a technology system such as communication software to streamline the flow of company-based information across it branches that are spread in different regions around the globe. As such, the operations manager supporting the design and integration of the technology system in this company also influences the element of quality of management by fostering the unceasing improvement of upward and downward communication.

The Influence of Operations Management on Logistics and Supply Chain Management

Operations management relates closely to logistics and supply chain management (SCM) processes, which significantly influence the performance a company. The logistics element of business processes concentrates on streamlining the movement of goods from the point of origin to the consumption position. Operations management influences the logistics of an organization by creating an environment that upholds the significance of meeting the requirements of customers (Jacobs and Chase 57). The extent to which an organization fulfills customers’ demands is influenced by the operations management of logistics.

The operations management of logistics reinforces a company’s inventory and transportation management. Inventory management ensures that the company has the required quantity of inputs besides determining when to re-order (Heizer 99). The inventory management of perishable goods is one of the areas that operations management has influenced considerably. Controlling the inventory of perishable products requires a logistics manager to guarantee timely procurement, transportation, and storage of such goods.

Operations management improves the inventory management of perishable goods by ensuring apt movement of the goods from the source to the customer (Slack et al. 120). For example, a company that needs to deliver a perishable product to a customer situated in a distant geographical location can secure courier services of a company such as DHL to foster the speedy delivery of the ordered item. Therefore, operations management is key in logistics area since it enhances the performance of inventory and transportation administration.

The SCM function ensures that a company acquires a multidimensional understanding of its supplier ecosystem. Importantly, SCM ensures that an organization obtains the necessary raw materials and other inputs required for the production of goods that fulfill the needs of its customers. Timeliness and quality aspects influence the success of a company’s SCM to a considerable extent (Jacobs and Chase 82). Given that operations management reinforces the elements of speed and quality in a company, it goes a long way in streamlining the efficiency of SCM.

Notably, operations management considers time as a form of input that facilitates the production and provision of products that fulfill the competitive priorities of customers. Thus, the apt transformation of inputs into goods and services is crucial towards improving customer experience (Khanna 201). In this light, the operations manager expects staff members in the supply chain department to engage in activities that favor the speedy acquisition of inputs such as raw materials and equipment from suppliers.

For example, a company in the construction industry that recently secured a tender to construct a building is required to engage in procurement activities that uphold the essence of timeliness to ensure that it meets project deadlines. Thus, integrating the aspect of speed in SCM through operations management enhances the competitiveness of a company by delivering the expectations of the customer in time.

Besides, operations management improves the functionality of SCM by streamlining the internal management of supplies. Operations management helps in the identification of inputs that the company requires at a given time of the year. As such, operations management helps a company to determine the volume of supplies it requires at a particular time in line with the demand patterns. For example, during peak seasons, the operations manager can facilitate the procurement of abundant supplies that meet the high demand for the associated products in the market (Heizer 39). Therefore, the operations management is integral in bolstering the management of supply chain in a way that fosters the success of a company in transforming inputs to outputs.

Moreover, quality is also an important part of operations management. A company needs to provide quality goods and services to customers as an important strategy for fulfilling their demands. In this respect, the SCM department needs to ensure that it procures raw materials or equipment of high quality to facilitate the production of superior goods or services (Jacobs and Chase 129).

For instance, a company specializing in the manufacture of fashionable women handbags such as GFG Bags needs to ensure that materials such as leather meet the quality standards. Therefore, since operations management upholds the importance of quality, it fosters the efficiency and effectiveness of SCM, thus resulting in the production and provision of worthy products to customers. By so doing, the business organization extends its competitive edge in the market.

The Influence of Operation Management on Accounting and Finance

Operations management contributes to the effective functioning of a company’s accounting and finance functions. In the accounting department, operations management facilitates the promptness of payments by underlining the relevance of planning (Fullerton et al. 416). For instance, an operations manager collaborates with the accountant to guarantee timely payment of bills for materials and supplies. The promptness of payments that a company makes is one of the portrayals of the impact of operations management on accounting.

Additionally, operations management enhances the ease of handling the payroll besides enabling the forecast of all associated costs. As such, there is the need for efficiency and effectiveness in handling information regarding employees’ salaries and the tax payable by a company. The failure of handle the payroll perfectly can expose workers and a company to significant risks (Fullerton et al. 419). The need to mitigate such accounting risks calls for the integration of operations management. The predictability of payroll costs goes a long way in improving the decision-making processes undertaken by accountants.

The smooth-running of the finance department of a company is also essential towards promoting the effective management of capital. Importantly, different strategies for acquiring capital, including credit and equity financing, benefit from heightened efficiency and effectiveness through the integration of operations management (Fullerton et al. 423). Therefore, by streamlining the operations of the financial departments, a company enhances its performance by heightening productivity, lessening costs, and enhancing scheduling to satisfy demand. Conversely, the absence of operations management in a company can expose it to significant obstacles in raising capital, owing to the underlying inventory imbalances and uneven productivity.

The Influence of Operations Management on Facility Planning and Management

The concept of facility planning and management performs an integral role in the incorporation of human resources and work processes, as well as job locations in line with the production system of an organization. The need to streamline facility planning and management is a priority since it promotes the realization of high productivity and customer-oriented production. For example, a manufacturing plant needs to guarantee the strategic location of the equipment used in the production process to trim the wastage of resources arising from the overlap of processes.

Furthermore, a smooth management of facilities ensures that a company enhances its access to customers, assets, and utilities (Heizer 179). Importantly, in laying out facilities to foster accessibility, operations management takes into account the nature of the company, the system of production, and the processes applied in the development of products or services.

The need for improving customers’ experience when they visit the company premises is a notable consideration of facility planning and management. In this view, the corporation needs to ensure that the layout of its facilities is customer-oriented. As such, operations management comes in since it is delivery-focused (Khanna 201). For example, retailers such as supermarkets ensure that customers enjoy their shopping experiences by easily accessing the products they intend to purchase. Thus, focusing on the delivery of desirable customer experiences is attainable through the integration of operations management in the area of facility planning and management.

Additionally, the incorporation of operations management in facility planning and management plays a notable role in boosting the interaction of various resources in the organization. Given that operations management is concerned with improving the relationship between different resources such as workers and information technologies to foster the production of quality outputs, it influences the facility management to a considerable extent. For example, an organization that integrates technological equipment needs to train its employees on how to operate it, thus maximizing its productivity. Therefore, operations management is important in promoting the effective and efficient interaction of human resources and facilities in a company.

Moreover, thanks to operations management, a company can use its facilities to meet the product demands in the market (Slack et al. 165). For example, the need for engaging the mass production of products during the peak season can prompt a company to consider installing additional production equipment to increase the volume of goods it produces. In this view, a company that integrates effective and efficient facility planning and management is poised to realize a greater profitability by responding accordingly to the demand for its products in the market.

Operations management concentrates on enhancing the smoothness of the processes associated with the turning of inputs into outputs. Notably, operations management fosters the management of products and services by streamlining the development of competitive products and services that meet customers’ needs. Furthermore, the quality control aspect of operations management ensures that a company engages in quality processes to deliver superior products or services to the targeted consumers.

Additionally, the smooth running of logistics and supply chain management enables a company to effectively and efficiently manage the flow of goods from the source to the end. Besides, the accounting and finance departments of a company realize greater efficiency and effectiveness in the aspects of managing payments, forecasting costs, and sourcing capital by incorporating the principles of operations management. Moreover, the strategic layout of facilities in the organization improves the experiences of employees, as well as customers.

Works Cited

Dale, Barrie. Total Quality Management . John Wiley & Sons, 2015.

Fullerton, Rosemary, et al. “Lean Manufacturing and Firm Performance: The Incremental Contribution of Lean Management Accounting Practices.” Journal of Operations Management , vol. 32, no. 7, 2014, pp. 414-428.

Gmelin, Harald, and Stefan Seuring.”Determinants of a Sustainable New Product Development.” Journal of Cleaner Production , vol. 69, 2014, pp. 1-9.

Heizer, Jay. Operations Management. 11ed., Pearson Education India, 2016.

Jacobs, Robert, and Richard Chase. Operations and Supply Chain Management . McGraw-Hill Higher Education, 2013.

Khanna, Raymond. Production and Operations Management . PHI Learning Pvt. Ltd., 2015.

Mitra, Amitava. Fundamentals of Quality Control and Improvement . John Wiley & Sons, 2016.

Slack, Nigel, et al. Operations Management . Pearson, 2013.

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• Operations and Supply Chain Management in Business Process
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• Organizational Change’ Management Sphere
• Total Quality Management in Aviation Operations
• Leadership and Management: Exploring the Concepts
• The Role of Organizational Change in Business
• Lincoln Electric Company’s Management
• The Core Objectives of International Management

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As mentioned earlier, the CEO is the highest-ranking executive. Their focus? The company's overall vision, strategy and external business relationships. The COO, often seen as the second-in-command, is primarily responsible for the day-to-day administrative and operational functions of the business. This role is crucial for implementing the CEO's vision on a practical level. The COO oversees operations and often directly manages business units or functions.

The CFO handles all financial aspects of a company. These responsibilities include budget management, financial reporting, risk management and financial forecasting. The CFO also provides financial insights that help shape the company’s strategic decisions, and plays a key role in investor relations.

In terms of seniority or authority, the CEO holds the top spot. The COO and CFO are usually viewed as peers, reporting directly to the CEO. Together, they form a core executive team that collaborates to ensure that strategic initiatives are financially sound and efficiently executed. The COO and CFO align operational and financial strategies with the goals set by the CEO.

One key CEO skill is strategic thinking, including setting long-term goals and positioning the company to take advantage of future opportunities. Strong leadership and communication skills are also crucial. CEOs must inspire and direct diverse teams while also being a primary point of contact for stakeholders like the board, investors and public entities.

The best CEOs are resilient, adaptable, and proactive. They must function well in high-pressure situations and make difficult decisions, often in uncertain environments. Integrity and accountability are traits that help build trust both within and outside the organization.

CEO Qualifications

While there is no specific set of qualifications required to become a CEO, many hold advanced degrees such as an MBA or other specialized graduate degrees relevant to their industry. Practical experience, often in various roles and functions, is important. Broad exposure offers the depth of knowledge and personal network necessary to lead a company. The path to becoming a CEO varies widely but usually involves a combination of extensive experience, proven performance and a track record of leadership roles.

Social Skills Prioritized

One surprising change in the most important CEO skillset comes from a study published in the Harvard Business Review . Social skills proved to be more important than administrative, financial or operational expertise. Between 2000 and 2017, there was a 28% rise in CEO job descriptions mentioning strength in social skills. During the same period, job descriptions mentioning strength in managing financial and material resources declined nearly 40%.

Having a CEO is crucial to almost every organization. A CEO provides unified leadership, aligning all parts of a business with its strategic goals. A single leader also ensures consistent communication with stakeholders, including investors, customers, and the board.

Without a CEO, an organization may lack clear direction, leading to strategic conflicts and inefficiencies. Different departments or business units could pursue conflicting goals without a central figure to guide decision-making, compromising the company’s overall effectiveness. In short, a CEO is vital for maintaining operational efficiency and external confidence in the company’s leadership.

What About Co-CEOs?

The co-CEO model , where leadership responsibilities are shared between two executives, can be an effective strategy for managing extensive and diverse operations. For instance, Salesforce utilized this approach from 2018 to 2020, enabling Marc Benioff, previously the sole CEO, to focus on strategic initiatives like acquiring Slack and developing new businesses. Similarly, Netflix's appointment of Ted Sarandos as co-CEO alongside Reed Hastings was strategic in managing its global expansion and setting up a succession framework. The co-CEO model can leverage diverse expertise and leadership styles but requires clear role definitions and strong collaboration to mitigate the risks associated with divided leadership.

CEO salaries are highly dependent on the size of the organization and the industry. Job site Indeed.com reports that the average CEO salary in the U.S. is a relatively modest $146,000 plus a bonus of $25,000. Another job site, Payscale, estimates a similar average CEO pay package : $165,000.

Sundar Pichai was the highest-paid S&P 500 CEO in 2022

In contrast, CEOs of S&P 500 companies averaged $16.7 million in annual compensation in 2022. The highest-paid S&P 500 CEO that year was Google’s Sundar Pichai whose pay totaled $226 million . Job site estimates don’t include numbers like these because CEO positions in large companies are filled through an executive search process, not via public postings.

The pay CEOs receive is influenced by the size, complexity and financial performance of their companies. The stark difference between job site CEO pay averages and what S&P 500 CEOs make is due to the scale of responsibility, the impact of their decisions on the company’s global performance and the need to attract top talent in highly competitive industries. CEOs of large firms are paid comparatively huge sums because of the significant value boards expect them to bring to the company. These large pay packages are usually tied to the company’s stock performance and profitability, which boards believe depend on the CEO's strategic initiatives and leadership.

Particularly at large companies, CEO pay can create controversy. CEO compensation has grown far more quickly than pay for rank-and-file employees, creating an enormous disparity. One analysis found that CEO pay was nearly 400 times that of an average worker.

To become a CEO, there is no one-size-fits-all educational path. Many CEOs hold advanced degrees, such as an MBA, which can provide useful knowledge in business, leadership, and strategic thinking. But, an MBA isn’t essential. One survey reports just a third of CEOs have an MBA. Despite common wisdom that an elite MBA is the best path to a CEO job, only one in ten Fortune 500 CEOs holds an Ivy League MBA.

Experience often trumps education, especially in large firms. Here, career advancement usually involves climbing the corporate ladder across various senior roles and gaining experience in multiple business areas.

A CEO career path might include stints in operations, marketing or finance, providing a well-rounded skill set. In companies with diverse products and services, experience in several different business units is also helpful.

Demonstrated leadership is vital. A history of effective leadership roles in high-performing units is viewed as a key indicator of a candidate’s suitability for the CEO position. CEO job searches often look for a candidate’s ability to navigate complex challenges, drive growth and work well with people.

The role of the Chief Executive Officer has evolved significantly over time. It has transitioned from primarily operational overseers to visionaries who balance a broad array of stakeholder interests. These include not just maximizing shareholder value but also balancing environmental concerns, dealing with regulators, interfacing with the communities the firm is part of and building corporate culture.

Today, CEOs are more publicly visible and accountable, not just within their corporations but to society at large. Emerging trends include the increasing integration of technology in strategic decision-making. Data analytics and artificial intelligence are becoming tools central to competitive strategy, and CEOs must ensure their team has the skills and vision to drive change.

ESG (environmental, social and governance) concerns are increasingly important to the CEO role. While ESG risks are a major concern, there is also opportunity. According to a study by EY, 82% of U.S. chief executives see ESG as a value driver to their business over the next few years.

Looking ahead, future CEOs will likely need to navigate more complex regulatory environments and technology landscapes, manage more dispersed global teams, and lead their companies through rapid economic and technological changes.

Bottom Line

The CEO role is crucial in any organization, steering strategic decisions, overseeing operations and bridging communication between the board and company functions. CEOs are key in shaping the company's future and aligning diverse stakeholder interests. As the role of CEOs evolves, they will be responsible for navigating the complexities of emerging technologies, regulatory shifts and growing ESG demands.

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Business Analytics: What It Is & Why It's Important

• 16 Jul 2019

Business analytics is a powerful tool in today’s marketplace that can be used to make decisions and craft business strategies. Across industries, organizations generate vast amounts of data which, in turn, has heightened the need for professionals who are data literate and know how to interpret and analyze that information.

According to a study by MicroStrategy , companies worldwide are using data to:

• Improve efficiency and productivity (64 percent)
• Achieve more effective decision-making (56 percent)
• Drive better financial performance (51 percent)

The research also shows that 65 percent of global enterprises plan to increase analytics spending.

In light of these market trends, gaining an in-depth understanding of business analytics can be a way to advance your career and make better decisions in the workplace.

“Using data analytics is a very effective way to have influence in an organization,” said Harvard Business School Professor Jan Hammond, who teaches the online course Business Analytics , in a previous interview . “If you’re able to go into a meeting and other people have opinions, but you have data to support your arguments and your recommendations, you’re going to be influential.”

Before diving into the benefits of data analysis, it’s important to understand what the term “business analytics” means.

Check out our video on business analytics below, and subscribe to our YouTube channel for more explainer content!

What Is Business Analytics?

Business analytics is the process of using quantitative methods to derive meaning from data to make informed business decisions.

There are four primary methods of business analysis:

• Descriptive : The interpretation of historical data to identify trends and patterns
• Diagnostic : The interpretation of historical data to determine why something has happened
• Predictive : The use of statistics to forecast future outcomes
• Prescriptive : The application of testing and other techniques to determine which outcome will yield the best result in a given scenario

These four types of business analytics methods can be used individually or in tandem to analyze past efforts and improve future business performance.

Business Analytics vs. Data Science

To understand what business analytics is, it’s also important to distinguish it from data science. While both processes analyze data to solve business problems, the difference between business analytics and data science lies in how data is used.

Business analytics is concerned with extracting meaningful insights from and visualizing data to facilitate the decision-making process , whereas data science is focused on making sense of raw data using algorithms, statistical models, and computer programming. Despite their differences, both business analytics and data science glean insights from data to inform business decisions.

To better understand how data insights can drive organizational performance, here are some of the ways firms have benefitted from using business analytics.

The Benefits of Business Analytics

1. more informed decision-making.

Business analytics can be a valuable resource when approaching an important strategic decision.

When ride-hailing company Uber upgraded its Customer Obsession Ticket Assistant (COTA) in early 2018—a tool that uses machine learning and natural language processing to help agents improve speed and accuracy when responding to support tickets—it used prescriptive analytics to examine whether the product’s new iteration would be more effective than its initial version.

Through A/B testing —a method of comparing the outcomes of two different choices—the company determined that the updated product led to faster service, more accurate resolution recommendations, and higher customer satisfaction scores. These insights not only streamlined Uber’s ticket resolution process, but saved the company millions of dollars.

2. Greater Revenue

Companies that embrace data and analytics initiatives can experience significant financial returns.

Research by McKinsey shows organizations that invest in big data yield a six percent average increase in profits, which jumps to nine percent for investments spanning five years.

Echoing this trend, a recent study by BARC found that businesses able to quantify their gains from analyzing data report an average eight percent increase in revenues and a 10 percent reduction in costs.

These findings illustrate the clear financial payoff that can come from a robust business analysis strategy—one that many firms can stand to benefit from as the big data and analytics market grows.

Related: 5 Business Analytics Skills for Professionals

3. Improved Operational Efficiency

Beyond financial gains, analytics can be used to fine-tune business processes and operations.

In a recent KPMG report on emerging trends in infrastructure, it was found that many firms now use predictive analytics to anticipate maintenance and operational issues before they become larger problems.

A mobile network operator surveyed noted that it leverages data to foresee outages seven days before they occur. Armed with this information, the firm can prevent outages by more effectively timing maintenance, enabling it to not only save on operational costs, but ensure it keeps assets at optimal performance levels.

Why Study Business Analytics?

Taking a data-driven approach to business can come with tremendous upside, but many companies report that the number of skilled employees in analytics roles are in short supply .

LinkedIn lists business analysis as one of the skills companies need most in 2020 , and the Bureau of Labor Statistics projects operations research analyst jobs to grow by 23 percent through 2031—a rate much faster than the average for all occupations.

“A lot of people can crunch numbers, but I think they’ll be in very limited positions unless they can help interpret those analyses in the context in which the business is competing,” said Hammond in a previous interview .

Skills Business Analysts Need

Success as a business analyst goes beyond knowing how to crunch numbers. In addition to collecting data and using statistics to analyze it, it’s crucial to have critical thinking skills to interpret the results. Strong communication skills are also necessary for effectively relaying insights to those who aren’t familiar with advanced analytics. An effective data analyst has both the technical and soft skills to ensure an organization is making the best use of its data.

Improving Your Business Analytics Skills

If you’re interested in capitalizing on the need for data-minded professionals, taking an online business analytics course is one way to broaden your analytical skill set and take your career to the next level

Through learning how to recognize trends, test hypotheses , and draw conclusions from population samples, you can build an analytical framework that can be applied in your everyday decision-making and help your organization thrive.

“If you don’t use the data, you’re going to fall behind,” Hammond said . “People that have those capabilities—as well as an understanding of business contexts—are going to be the ones that will add the most value and have the greatest impact.”

Do you want to leverage the power of data within your organization? Explore our eight-week online course Business Analytics to learn how to use data analysis to solve business problems.

This post was updated on November 14, 2022. It was originally published on July 16, 2019.

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