Business Management

• Stakeholders


  Individuals or groups with vested interests in a business
• Strategies


  Address conflicting interests through transparent communication, fair decision-making, CSR initiatives, and balancing short-term profits with long-term sustainability
• Strategies that could reconcile the conflicting interests of stakeholders

  1. Transparent communication

  2. Fair decision-making

  3. CSR initiatives

  4. Balancing short-term profits with long-term sustainability
• Classical Approach


  • Management as planning, organising, and controlling
  • Hierarchical organisational structure
  • Autocratic leadership style
• Behavioural Approach


  • Management as leading, motivating, and communicating
  • Team-oriented approach
  • Participative/democratic leadership style
• Contingency Approach


  • Adapting to changing circumstances
  • Adjusting management style based on situational demands
• Qualities of managers who have exhibited high personal and ethical standards

  • Honesty, integrity, and fairness
  • Transparency in decision-making and communication
  • Upholding moral values even in challenging situations
  • Leading by example and fostering an ethical culture
• Coordinating key business functions for an SME

  1. Operations: Streamlining production processes for efficiency and quality

  2. Marketing: Identifying target markets, creating effective marketing strategies

  3. Finance: Managing cash flow, analysing financial statements

  4. Human Resources: Recruiting, training, and managing employees ethically
• Effective Cash Flow Management

  • Timely collection of receivables to ensure positive cash inflows
  • Managing payables to align with cash availability
  • Maintaining cash reserves for emergencies
  • Monitoring cash flow through cash flow statements
• Role of Income Statement

  Reflects a business's financial performance over a period, showing revenue, expenses, and profit or loss
• Role of Balance Sheet

  Presents a snapshot of a business's financial position by listing assets, liabilities, and equity
• Managing change in SMEs

  1. Identifying Change Need: Analysing internal and external factors driving change

  2. Setting Achievable Goals: Defining clear objectives for change initiatives

  3. Business Information Systems: Implementing tools to support and monitor change

  4. Addressing Resistance: Communicating change benefits, involving employees in the process

  5. Utilising Consultants: Seeking external expertise for complex changes
• Interpersonal


  An employee's ability to work well with others
• Communication


  The process of transmitting information, ideas, thoughts, or feelings between individuals or groups through verbal, non-verbal, or written means
• Strategic thinking


  The ability to envision and plan for the long-term goals and objectives of an organisation, considering various factors and potential outcomes
• Vision


  A clear and inspiring description of a desired future state or outcome that guides and motivates individuals and organisations toward a common goal
• Problem-solving


  The process of analysing and finding solutions to challenges or obstacles by identifying the root causes and applying logical and creative methods
• Decision-making


  The process of selecting a course of action from multiple alternatives based on analysis, judgement, and consideration of potential consequences
• Flexibility


  The willingness and capability to adapt, change, or adjust to new situations, requirements, or unexpected developments
• Adaptability to change


  The ability to adjust and thrive in the face of evolving circumstances, whether they are internal shifts within an organisation or external changes in the environment
• Reconciling the conflicting interests of stakeholders

  The process of finding common ground and mutually beneficial solutions when individuals or groups with differing goals or interests are involved in a decision-making process
• Achieving Business Goals


  • Profits
  • Market Share
  • Growth
  • Share Price
  • Social Goals
  • Environmental Goals
• Achieving a Mix of Goals


  • Balancing Objectives
  • Trade-offs
  • Synergy
• Staff Involvement for Goal Achievement

  • Innovation
  • Motivation
  • Mentoring
  • Training
• Achieving business goals involves a diverse set of objectives such as profitability, market share, growth, share price, social responsibility, and environmental sustainability. Striking a balance among these goals while involving staff through innovation, motivation, mentoring, and training contributes to a successful and well-rounded business strategy.