Business Studies - Nature of management

·      features of effective management

The process of working with and through other people to achieve business goals in a rapidly changing environment 

- An effective manager must be good at: (P.L.O.C)

- Planning

- Leading 

- Organising 

- Controlling

·      skills of management

F.A.V.D.R.I.P.S.C) 

• Flexibility and Adaptability to change- Able to adjust to changing environments and adjust efficiently to change 

• Vision- Most effective way for managers to share the vision through business goals (short and long term) 

• Decision‑making: Identifying the options available and identifying the most suitable for a specific problem 

• Reconciling the conflicting interests of stakeholders- Both align with the law, but also socially just and ecologically sustainable 

• Interpersonal- Able to work together with employees and build positive relationships  

• Problem-solving- Identifying and them implementing a course of action to correct an unworkable situation 

• Strategic thinking- Ability to see the ‘bigger picture’

• Communication- Communicate clearly with employees and partners to influence decisions 

Setting Business goals:

•  (S.M.A.R.T.)

  • Specific 

  • Measureable 

  • Achievable 

  • Realistic 

  • Timebound 

Business goals

• (G.P.S.S.E) 

  • Profits- TOTAL REVENUE- TOTAL COST = PROFITS 

  • Market share- Reducing prices to increase competitors, more promotions to increase attraction 

    • Aldi selling name brand items for cheaper (Duping higher end products: Shapes => snakos) 

  • Growth- Increasing the businesses size by: 

    • Internally: Employing more people, increase sales 

    • Externally: Merging with or acquiring other businesses, expanding the location of the business 

  • Share price- Maximising the dividends for shareholders by increasing profit. The MORE profits, the HIGHER the share rise, attracting investors 

  • Social- Goals that benefit the community: 

    • Community service (McDonalds: Ronald McDonald=> charity)

    • Provision of employment (Hiring special need workers)

  • Environmental- Objectives promoting sustainability (Reduce waste in packaging and reducing carbon emissions) → Paper cutlery (straws) 

–        achieving a mix of the above goals

It is difficult for a business to achieve all its goals as they may conflict with each other. (Wanting to grow as a fast food business, but having to use less environmental safe products)

–        staff involvement

(T.I.M.M)

• Innovation + Motivation- An entrepreneur is an INNOVATIVE (creating something                                                                                     

                                     new) employee

                                                             -  Individuals who sustain and energise a person's               

                                                              behaviour 

(A GOOD MANAGER IS A GOOD MOTIVATOR) 

• Mentoring + Training-  Mentoring is the process of developing another individual (tutoring, coaching, modelling behaviour) 

                                                        - Training refers to teaching staff to increase productivity

                                                         enhancing efficiency and effectively