VOLUME 1 Paga 1 3. BusINESS ENVIRONMENT Page 2 5. MANAGEMENT - AN OVERVIEW Page 3 7. PLANNING - TYPES Page 4
BusINESS & MANAGEMENT All external factors that affect business operations Management is the art of getting things done
throuah others and
.
in a better yM.
Short Term Planning Less than 1 year
(e.g., Daily schedule)
(FUNDAMENTALS) Internat Environment
(Inside the Business)
Extermal Environment
(Outside the Business) IMPORTANCE
•Medium Term Planning 1-5 years
(e.g, Department goals)
1. WHAT IS BusINESS? • Economie Factors • Helps achieve goals Long Term Planning More than 5 years
• Employees (e.g-. Expansion plan)
Business is an activity of making, buying or Management
. Social Factors Improves fficieny
selling goods or providing services to earn profit • Technologieal Factars • Reduces cost and waste 8. ORGANIZING
Resourees
and satisfy uman needs • Political & Leqal Factors . Ensures qrowth and stability It involves grouping activities, assigning duties
Organization Culture and allocating resources.
. Natural Factors
BASIC PuRPOSE OF BusiNESs 6. FUNCTIONS OF MANAGEMENT TYeEs OF ORGANIZATION STRUCTURE
• Earn Profit
Quick Tip (Remember: POCCC)
Business exists 4. TYPES OF BusINESS ORGANIZATIONS Organization
Satisfy Customers Planning
Create Value where there is TYPE FEATURES ExAMPLE
a need and Sole Proprietership
. Groth & Expansion Oned Small shop,
• Innovation one person freelancer how to do, Line Functional Line & Staff Matrix
Controlling Organiaing Autharity flous (Based on (Combination of |(Dual authority
. Social Responsibility meet that
Partnership Two or more Laus firm,
need. persons Share Retail store Moniter perform Ar top to bottom) specialization both) system)
ond ssign
profit & loss. orrective
MANAGEMENT reseensibitties 9. LEADERSHIP
2. BASIC CONCEPTS Private Limited Separate leoal FUNCTIONS
TCS, Infosys
• Need i Something required for living Company entity., limited Leadership is the ability to influence a group
Want Something desired for camfort or luxury liability
towards achieving goals.
Commandina
Goods Tangible things like pen chair, book.. Publie Limited Shares sold to Reliance
Coordinating
(Leading)
TYPES OF LEADERSHIP
all edivities
. Services : Intangible activities like teachinq, Company public Industries Guide, metivake end Autocratie : Leader decides alone.
banking, consulting smeethiu. influence emplayees Democratic Leader involves team in decisions.
• Profit Excess f revenue over cost. Trick : • Laissez-faire Leader gives full freedom.
Sole Single Partner - Two or more Trick POCCC
Profit Total Revenue - Total Cost Private Limited to few I Publie - Open to all Plan Organize Command - Coordinate - Control Best Leader Good Planner Good Communicator
Good Listener + Good Motivater
10. MoTIVATION Page 5 11. DECISION MAKING Page 6 12. STRATEGIC MANAGEMENT Page 7 13. BASIc BusINESs MATH (vERY IMPORTANT) Page 8
Motivation is the internal or external force Decision making is the process of selecting the Strategic management is all about lonq -term 1. Percentage
that drives people to take action. best alternative from available options. planning and gaining competitive advantage. Part
Percentage Whele
100
THEORIEs OF MoTIVATION
STEPS N DECISION MAKING LEVELS OF STRATEGY
1. Maslow's Hierarchy of Needs Example: If proft is 250 on sales ef 200o,
(gruuth, creativity ) Identify the Problem Overall strategy Profit % 2000
100 - 12.5%
Higher for the entire Ratio
(respect, status)
Needs
Esteem
Collect Information organization Ratio (campare two quantities)
Social (belenging, love) DECISION MAKING
Generate Alternatives TYPES Business Strategy for Example If proft is 30 and loss is 20,
Basic Safety (security, stability) individual business
Strateay Ratio 30 : 20 3: 2
•Programmed units
Needs
Physiolagical + (fead, water, shelte) Evaluate Alternatives (Routine decisions) 3. Break-Even Point (Units)
Functienal - Strateay for different
deportme nts BEP (Units) Fise& Cests
2. Herzberg's Tuwo Factor Theory Strategy like
Selling Price per unit - Variable Cost per unit)
Select the Best Alternative NonPregrammed Marketing, Finance,
Motivators (Satisfaction) Hyqiene Facters (Diasatisfaction) (Ne & wnique HR, Operatiens. Example :
Implement the Decision decisions) Fxcd Cost t60,000, Selling Price 100,
Achievement Salar CoMMON STRATEGIES Variable Cost
Recognitie Company policy
..
Cost Leadership Become lowest cost producer. BEP 6o,000 60,000 1,500 units
Work -tself Working conditions Revicw the Result (100 - 60) 40
Responsibility Relationship with boss Differentiation offer unique products/services
Growth Job security Focus- Focus on specific market segment FINAL QuICK SuMMARY
• Business Value Creation
Trick A good decision today makes
Trick Motivate by adding Motivators tomorrow better.
Management Getting things done through others
Trick Strateqy without action is just a dream. Plan well → Organize well → Lead well Control well
not by removing Hygiene factors.
Motivate people - Take smart decisions Stay ahead
BusINESS & MANAGEMENT All external factors that affect business operations Management is the art of getting things done
throuah others and
.
in a better yM.
Short Term Planning Less than 1 year
(e.g., Daily schedule)
(FUNDAMENTALS) Internat Environment
(Inside the Business)
Extermal Environment
(Outside the Business) IMPORTANCE
•Medium Term Planning 1-5 years
(e.g, Department goals)
1. WHAT IS BusINESS? • Economie Factors • Helps achieve goals Long Term Planning More than 5 years
• Employees (e.g-. Expansion plan)
Business is an activity of making, buying or Management
. Social Factors Improves fficieny
selling goods or providing services to earn profit • Technologieal Factars • Reduces cost and waste 8. ORGANIZING
Resourees
and satisfy uman needs • Political & Leqal Factors . Ensures qrowth and stability It involves grouping activities, assigning duties
Organization Culture and allocating resources.
. Natural Factors
BASIC PuRPOSE OF BusiNESs 6. FUNCTIONS OF MANAGEMENT TYeEs OF ORGANIZATION STRUCTURE
• Earn Profit
Quick Tip (Remember: POCCC)
Business exists 4. TYPES OF BusINESS ORGANIZATIONS Organization
Satisfy Customers Planning
Create Value where there is TYPE FEATURES ExAMPLE
a need and Sole Proprietership
. Groth & Expansion Oned Small shop,
• Innovation one person freelancer how to do, Line Functional Line & Staff Matrix
Controlling Organiaing Autharity flous (Based on (Combination of |(Dual authority
. Social Responsibility meet that
Partnership Two or more Laus firm,
need. persons Share Retail store Moniter perform Ar top to bottom) specialization both) system)
ond ssign
profit & loss. orrective
MANAGEMENT reseensibitties 9. LEADERSHIP
2. BASIC CONCEPTS Private Limited Separate leoal FUNCTIONS
TCS, Infosys
• Need i Something required for living Company entity., limited Leadership is the ability to influence a group
Want Something desired for camfort or luxury liability
towards achieving goals.
Commandina
Goods Tangible things like pen chair, book.. Publie Limited Shares sold to Reliance
Coordinating
(Leading)
TYPES OF LEADERSHIP
all edivities
. Services : Intangible activities like teachinq, Company public Industries Guide, metivake end Autocratie : Leader decides alone.
banking, consulting smeethiu. influence emplayees Democratic Leader involves team in decisions.
• Profit Excess f revenue over cost. Trick : • Laissez-faire Leader gives full freedom.
Sole Single Partner - Two or more Trick POCCC
Profit Total Revenue - Total Cost Private Limited to few I Publie - Open to all Plan Organize Command - Coordinate - Control Best Leader Good Planner Good Communicator
Good Listener + Good Motivater
10. MoTIVATION Page 5 11. DECISION MAKING Page 6 12. STRATEGIC MANAGEMENT Page 7 13. BASIc BusINESs MATH (vERY IMPORTANT) Page 8
Motivation is the internal or external force Decision making is the process of selecting the Strategic management is all about lonq -term 1. Percentage
that drives people to take action. best alternative from available options. planning and gaining competitive advantage. Part
Percentage Whele
100
THEORIEs OF MoTIVATION
STEPS N DECISION MAKING LEVELS OF STRATEGY
1. Maslow's Hierarchy of Needs Example: If proft is 250 on sales ef 200o,
(gruuth, creativity ) Identify the Problem Overall strategy Profit % 2000
100 - 12.5%
Higher for the entire Ratio
(respect, status)
Needs
Esteem
Collect Information organization Ratio (campare two quantities)
Social (belenging, love) DECISION MAKING
Generate Alternatives TYPES Business Strategy for Example If proft is 30 and loss is 20,
Basic Safety (security, stability) individual business
Strateay Ratio 30 : 20 3: 2
•Programmed units
Needs
Physiolagical + (fead, water, shelte) Evaluate Alternatives (Routine decisions) 3. Break-Even Point (Units)
Functienal - Strateay for different
deportme nts BEP (Units) Fise& Cests
2. Herzberg's Tuwo Factor Theory Strategy like
Selling Price per unit - Variable Cost per unit)
Select the Best Alternative NonPregrammed Marketing, Finance,
Motivators (Satisfaction) Hyqiene Facters (Diasatisfaction) (Ne & wnique HR, Operatiens. Example :
Implement the Decision decisions) Fxcd Cost t60,000, Selling Price 100,
Achievement Salar CoMMON STRATEGIES Variable Cost
Recognitie Company policy
..
Cost Leadership Become lowest cost producer. BEP 6o,000 60,000 1,500 units
Work -tself Working conditions Revicw the Result (100 - 60) 40
Responsibility Relationship with boss Differentiation offer unique products/services
Growth Job security Focus- Focus on specific market segment FINAL QuICK SuMMARY
• Business Value Creation
Trick A good decision today makes
Trick Motivate by adding Motivators tomorrow better.
Management Getting things done through others
Trick Strateqy without action is just a dream. Plan well → Organize well → Lead well Control well
not by removing Hygiene factors.
Motivate people - Take smart decisions Stay ahead
