management process - term 2 Flashcards
what is the management process
The management process is about ‘how’ things get done.
what are strategies
Strategies are a series of actions undertaken to achieve an end result.
Strategies outline how the business will attempt to achieve its goals.
what do strategies involve
Strategies involve:
What has to be done
Who is to do what
When it has to be done
What resources will be needed
who makes decisions about strategies
managers
what are the 4 key business functions
the actions a business takes to achieve specific goals including:
- operations
- marketing
- finance
- human resources
In order to achieve these strategies, managers will need to coordinate the key business functions
role of operations (4 key business functions)
focus on strategies to improve production processes and to create the ideal factory layout
role of marketing (4 key business functions)
determine the appropriate markets for the business’s products, and decide on pricing, product features, promotion and channels of distribution
role of finance (4 key business functions)
are responsible for the financial requirements, budget allocation and financial record-keeping
role of human resources (4 key business functions)
are concerned with the recruiting, training, employment contracts and separation of the employees who are required to run the business successfully
how do the four key business functions operate
The key business functions are interdependent each relies on the other to perform effectively
In large businesses, the key business functions are often separated into divisions or departments.
In small businesses, the key business functions are not separated but often overlap.
what have successful businesses achieved
Successful businesses have achieved effective interdependence between the business functions.
what is the importance of coordinating business functions
All the functions must work towards the same business goals.
When for example, the top management team makes the decision to, say, manufacture a new product, all the functions will apply their particular expertise to implementing that decision.
what is operations
Refers to the business processes that involve transformation or, more generally, ‘production’.
Operations refers more specifically to the processes involved in turning raw materials and resources into outputs of finished goods or products
what is marketing
Is about meeting the needs and wants of consumers through provision of products (both goods and services) at prices that the market is prepared to pay
Looks at all aspects of buying and selling e.g. analysis of why people buy, to pricing, product development, promotion and distribution
Marketers attempt to maximise the earning capacity of their businesses through sales
what is finance
Is concerned with recording and summarising financial transactions into a series of reports that can be easily interpreted
Determines the amount of money the business has earned after its expenses have been paid and how much money can be allocated to spending
Construct financial reports and budgets. These reports provide crucial information about the past, current and future financial position
