If you have launched a business, congratulations! This is one of the many first steps to achieving your entrepreneurial goals. The challenge now is to keep the business alive and make it thrive. Having some knowledge in business administration will equip you to manage your enterprise.
Having a degree in business administration is essential, but knowing the basics is always a good place to start.
What is Business Administration?
Business administration is how you manage the material and immaterial resources to reach your business goals. It’s the systems in place to smoothly run the business. It covers all aspects of a company: finance, human resources, accounting, and marketing.
Business administration oversees that each area of a company is functioning well and work together for the business’s growth.
Important Areas of Business Administration
A successful business administration takes care of every aspect that makes the business run.
The strategic management process is the assessment of the current situation of an organisation. During this process, managers plan, survey, and analyse the company’s needs to meet the goals and objectives.
This is an ongoing procedure of adjusting, redefining strategies and adapting to changes in the business environment. Strategic management guides employees and organisations.
Logistics and Supply Chain Management
Control of the goods provided by the company occurs through the logistics and supply chain management. Logistics management takes care of the origin and maintenance of the goods. This ensures that the company offers quality products or services. Supply chain management coordinates and facilitates the collaboration of different parties such as suppliers, distributors and customers.
Production management involves managing the resources available (materials, human resources, and capital) to produce the final product or service. It’s a process of coordinating all aspects of production. It involves planning, executing, and directing operations to reach the desired products and services offered.
Marketing and Sales
The marketing and sales management process involves all activities necessary to bring finished goods to the customer. Marketing management refers to the planning, execution, and control of marketing campaigns. It focuses on presenting the company’s offers to the market.
Sales management revolves around sales operations. It focuses on the actual sale of the product or service.
Accounting and Controlling
Accounting and controlling refer to the management of risk in an organisation. It includes many separate control activities which aim to prevent the loss of assets, ensure that objectives are met, that the financial statements are true to the company’s financial results and guarantee that laws and regulations are followed.
Finance and Investment
Finance and investment management ensure a company’s assets are maintained and well-utilised. It’s creating a short or long-term strategy to meet investment goals. It also includes banking, budgeting, tax services, and duties.
Technology and Innovation Management
Technology and innovation management is to oversee, guide and manage the ideation and execution of new strategies and technologies to support business growth.
Innovation management concentrates on the production of new ideas and methods. It includes managing the creation of ideas and the actions to make them a reality.
Technology management focuses on how the company control and coordinates its technological products, processes and services.
Human Resource Management
Human resource management is the administration of people in a company. It’s the practice of recruiting, hiring, deploying and managing employees. Its main aim is to use the knowledge, skills and motivation available to the company as human resources. Effective human resource management maximises employees’ performance to reach the company goals.
Information management ensures that the right people access information at the right time. It’s the collection and distribution of information from different sources to different audiences. It involves the control and organization of the structure, processing and delivery of information.
Sustainability management refers to the practices established to ensure the viability of the company for generations to come. The approach takes into account economic, environmental, and social factors over the long term to balance organisational performance and results. It can also involve organising social and environmental activities in line with the company’s strategic and business goals.
Functions of Management in Business Administration
Business administration is managing all areas of a company. Here are the four main functions of management to help you succeed:
Planning: the planning stage is when you set the company’s goals and create a plan to achieve them. In this stage, you finalise the course of action to complete tasks and meet objectives. Planning paves the way to where you want to be. It includes all the future steps to take to reach your goal.
Organising: the second stage of management consists of distributing the resources and tasks to complete goals. Organising involves determining and assigning the tasks, appointing responsibilities and coordinating the achievement of activities.
Leading: this stage consists of encouraging people to induce productivity. It focuses on the people and the relationship between team members and employees. Leading is pushing people to work at their best. Here, you can learn the skills needed to be a great leader.
Controlling: in this stage, you test the progress of the plan. You check how things are working and make adjustments when necessary. Controlling involves keeping track of the employees’ work while giving feedback for improvement.
There’s a lot to take into account to manage a business. These elements are only the basis of business administration. If you want to know more, you might want to enrol in a business administration program.