BUSINESS MANAGEMENT IN ACTION

Business management

in action

  Farah Nadiah Ali

University Technology Mara

Abstract

The purpose of doing this article is to identify and discussing about elements in business management in action. There is four elements that being discuss which is marketing, production, personnel, and financial management. It is important to have this kind of elements because it help in doing business strategy at the organization. Apart from that, this dissertation addresses the management techniques and styles which technique will be helpful in what circumstances. Besides that, it is also have been discuss about how business management is used to handle the organization business. It is important to associate with how the organization organize and how the organization plans to improve the organization profit to become success day by day.

Keywords- Business management, marketing, production, financial management, personnel

1.0 Introduction

Business management is a general management and measurement of business operation, efficiency and effectiveness and its impacts on the organization (Nurussobah, 2013). It is also include the organization to monitor the works that done by their employees and lead the employees to do a better work. Other than that, it is associated with how the organization organize and how the organization plans to improve the organization profit to become success day by day. Thus, it is the human efforts to achieve stated objective in an organization. According to Emerson et.al (2014) the development of organizational strategy depends on understanding the perceptions of their managers on what strategy and strategic management is actually. Besides that, in every organization they must have a person who is responsible to help the company to achieve their goals or aims that they have been decided early before they do the business. Hence, every organization that running a business must need a management. There is no organization that do not need a management, if they do not have a management, then how they want to manage their business accordingly. So that, business management is the process of the achievement of per-determined goals and objective of any organization. It include the planning, controlling, organizing and monitoring.

Apart from that, business management in action are a plan or method that organization used for achieving a specific goal. According to Jovanovic (2015), the risk of falling out of step with industry changes will almost certainly increase in the future as competition intensifies with existing and new technologies continue to be exploited. Every organization must have a goal and strategy in doing the business. Without a goal and strategic, they will facing a problem on how to manage their organization. If the organization fail to obtain the goal that have were set to reach, it can lead to frustration and in turn, the planning would have been waste of time. The organization also will face a loss of money because they are doing something that is not benefits and helpful for the organization. For a future, the organization might facing a problem and it can lead the organization to lose in a market. In this article, it will be focusing and discussing on business management in action. The element business management in action such as marketing, production, financial management and personnel. The existence of these elements may help an organization to manage their goals effectively and efficiently. Organization need to think carefully before doing something in a future so that they will not facing a big problem. Good managers understand their individual employees' priorities and find ways to create value for them and the overall business (Stark and Stewart, 2013).

2.0 Discussion

2.1 Element of business management in action

In business, it is important to have a goal when starting to do a business. In this article, it will be discussing four elements of business management in action, which is marketing, production, personnel, and financial management.

3.0 Marketing

             Marketing is a form of communication between seller and customers with the goal of selling the product or service to the customers. A good communicating with customers may give a good feedback to the seller. Customers will feel attract to buy the product because of a good communicating that show by the seller. If we ourselves feel in this kind of situation, we will tempted to buy a product that being sell. According to Mei (2011), marketing mix is a mix of product, price, distribution and promotional efforts. Marketing mix concept seems relatively simple once it has been expressed. Apart from that, a chart, which shows the elements of the mix and the forces that bear on the mix, helps to bring understanding of what marketing is. It helps to explain why in our dynamic world the thinking of management in all its functional areas must be oriented to the market.

Besides that, digital marketing is one type of marketing being widely used to promote products or services and to reach consumers using digital channels. Digital marketing extends beyond internet marketing including channels that do not require the use of the internet. It includes mobile phones, which is SMS and MMS, display advertising, social media marketing, search engine marketing and many other forms of digital media. Through digital media, people can access information any time and any place where they want. The existence of digital media, people do not need to rely to the company says about their brand but also they can just follow the media, friends, associations and peers.

            According to Yasmin et al. (2015), social media marketing is one important technique in digital marketing as companies can use social media form to distribute their messages to their target audience without paying for the publishers or distributor that is characteristic for traditional marketing. Pointed out that many countries in Asia are taking advantage of e-commerce through opening up, which is essential for promoting competition and diffusion of Internet technologies (Waghmare, 2012). There is differences between traditional marketing and digital marketing that give a benefit to people. Traditional marketing is the most recognizable form of marketing. Traditional marketing is non-digital way used to promote the product or services of business entity. Hence, digital marketing is the marketing of products or services using digital channels to reach consumers

Traditional Marketing	Digital Marketing
Traditional marketing includes print, broadcast, direct mail, and telephone	Digital marketing includes online advertising, email marketing, social media, text messaging, affiliate marketing, search engine optimization, pay per click
No interaction with the audience	Interaction with the audience
Results are easy to measure	Results are to a great extent easy to measure
Advertising campaigns are planned over a long period of time	Advertising campaigns are planned over short period of time
Expensive and time-consuming process	Reasonably cheap and rapid way to promote the products or services
Success of traditional marketing strategies can be celebrated if the firm can reach large local audience	Success of digital marketing strategies can be celebrated if the firm can reach some specific number of local audience
One campaign prevails for a long time	Campaigns can be easily changed with ease and innovations can be introduced within any campaign
Limited reach to the customer due to limited number of customer technology	Wider reach to the customer because of the use of various customers technology
24/7 year-round exposure is not possible	24/7 year-round exposure is possible
No ability to go viral	Ability to go viral
One way conversation	Two ways conversation
Responses can only occur during work hours	Response or feedback can occur anytime

  

Table 2.1: Traditional marketing and digital marketing comparison (Source: Afrina Yasmin, Sadia Tasneem, Kaniz Fatema)

4.0 Production

Product management is an organizational lifecycle function within a company dealing with the planning, forecasting, and production, or marketing of a product or products at all stages of the product lifecycle. Similarly, product lifecycle management (PLM) integrates people, data, processes and business systems. According to Colin et al., (2010), they see production as bringing about unique processing of an item at the time of study, conferring distinctiveness upon the item. Production management deals with converting raw materials into finished goods or products. Production management also deals with decision-making regarding the quality, quantity and cost of production. It applies management principles to production. Production management is a part of business management. It is also called "Production Function." Production management is slowly being replaced by operations management. The main objective of production management is to produce goods and services of the right quality, right quantity, at the right time and at minimum cost. It also tries to improve the efficiency. An efficient organization can face competition effectively. Production management ensures full or optimum utilization of available production capacity.

5.0 Personnel

Personnel are a body of persons usually employed as in a factory or organization. Many companies have implemented tools for measuring their performance in order to stay in business and been exposed to tough competition. Organizations must face not only to more demanding conditions but also in the current period to the world financial crisis as well. Due to these reasons, the organizations is forced to measure performance of the organization and contribute to the stability of the organization in today´s competitive environment. There were defined tools by various authors for measuring the HR capital. Srimannarayana (2010) brought brief overview of invented methods to evaluate HR capital. The company has to have the proper expertise in key areas to succeed; however, not every company will start a business with the expertise required in every key area. Therefore, the proper personnel have to be recruited, integrated into the development process, and managed so that everyone forms a team focused on the achievement of the development goals.

6.0 Financial Management

            Financial management and control is the bedrock of government management and its framework should provide the principal source of reference for guiding managers and their financial advisers in the efficient, effective and proper use of public resources. Financial management is an integral part of overall management. It is concerned with the duties of the financial managers in the business firm (Paramasivan,2016). A good financial management can control the organization profits. According to Turyahebwa et al. the research they do at Uganda, it say that the benefits of the small and medium enterprises in Uganda economy cannot be overemphasized. Other than that, the three common statements are a cash flow statement, an income statement and a balance sheet. Most entrepreneurs should provide them and leave it at that but not all do. As a rule, stick with the big three such as income, balance sheet and cash flow statements. These three statements are interlinked, with changes in one necessarily altering the others, but they measure quite different aspects of a company's financial health. It is hard to say that one of these is more important than another. Hence, out of the three, income statement may be the best place to start.

7.0 Conclusion

            In a conclusion, every organization need to have a goal to achieve their organization to success in a future. So that they can generated, the profits to become increase day by day. Besides that, in the business plan, they need to create an analysis statement for the balance sheet just as need to do for the income and cash flow statement. The analysis of the balance sheet should be kept short and cover key points about the company. Organization need to have person that will in charge on monitoring employee’s works, so that a work will become quickly prepared. Customers will satisfied with the organization work and they will not become annoy and disappointing.

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