Unit 2. Business Management

Question 1

What is traditional definition of management?

Answer 1

the process of coordinating a business’s
resources to achieve its goals

Question 2

What is manager?

Answer 2

someone who coordinates the business’s limited
resources in order to achieve specific goals

Answer 3

• Human Resources: Employees, most important asset.
• Information Resources: Knowledge and data required for business operations.
• Physical Resources: Equipment, machinery, buildings, raw materials.
• Financial Resources: Funds used to meet business obligations to creditors.

Question 4

What is management? What are the key aspects of the management process?

Answer 4

It is the process collaboration is the strategic use of limited resources to efficiently and effectively achieve business goals in a dynamic environment.

• Getting the most from limited resources (efficiency).
• Achieving the goals of the business
  (effectiveness).
• Working with and through others.
• Coping with a rapidly changing environment.
• Balancing efficiency and effectiveness

Question 5

What is effectiveness? efficiency?

Answer 5

effectiveness measures the degree
to which a goal has been achieved
efficiency compares the resources
needed to achieve a goal (the costs)
against what was actually achieved
(the benefits)

Question 6

What does effective managers require? Explain each of them.

Answer 6

• Planning: Preparation of a predetermined course of action.
• Organizing: Setting objectives and deciding on methods to achieve them.
• Leading: Structuring the organization to translate plans into action.
• Controlling: Leading and controlling to influence and motivate people towards achieving objectives.

Question 7

Why is management important?

Answer 7

• Coordination of combined efforts is essential for efficient production of goods and services.
• This coordination should be managed at various levels, including within, between, and national/international levels.
• Businesses must cater to the needs of all stakeholders, not just individuals.
• The success of managers is more important than the number of managers or their titles.
• Managers need a range of skills to achieve business goals effectively.

Question 8

Review questions (Topic 5):
What is management? (2)
what is importance of coordination?
What is the role of an effective manager in effective management ad its importance?

Answer 8

Management is a fundamental activity that makes the business function.

1/ Management is the process of:
- coordinating a business’s resources to achieve its goals
- working with and through other people to achieve business goals in a changing environment.

2/ Whether the goals of the business are achieved largely depends on the skills and expertise of the management team in coordinating the business’s resources.

3/ Every business needs effective management to succeed. An effective manager needs to be good at planning, organising, leading and controlling.
- The role of effective management is to make sure the joint efforts of employees are directed towards achieving the business’s goals.
Effective management is usually the major factor influencing the success or failure of a business.

Question 9

What is a goal?

Answer 9

It is a target that a business or individual intends to achieve within a certain time frame to achieve a desired outcome.

Question 10

Why do businesses need goals? how should they achieve goals successfully?

Answer 10

• need to establish goals
• are required to undertake planning to successfully achieve specific goals.

Question 11

How does careful planning to achieve goals benefit managers?

Answer 11

• Goals serve as targets, aiding in coordinated decision-making at all levels.
• Specific goals serve as benchmarks for performance measurement.
• Goals represent a challenge, motivating employees and providing a basis for performance rewards.
• Goals also give employees a personal stake in the business’s success.

Question 12

How is Goal setting done?

Answer 12

Specific: Clear and focused.
Measurable: quantifiable
Attainable: Challenging but realistic
Relevant: Based on current market conditions and worthwhile as well as supporting other goals.
Time bound: A deadline or time limit.

Question 13

What do Business goals focus on?

Answer 13

• Profits.
• Market Share.
• Growth.
• Share price.
• Social.
• Environmental.

Question 14

What is profit maximisation? How can it be achieved?

Answer 14

profit maximisation occurs when there is a maximum difference between the total revenue (that is, the number of sales made multiplied by the price) coming into the business and total costs being paid out.
(TR -TC = P)
2/
- Lowering costs.
- Increasing Sales Price
- Increasing customer base.