6 Fundamentals of Business Management

,

Having a true passion for the business you are managing is very important for your success. But passion alone is not enough. You also need core business skills to properly launch your organization and survive over the long term. You need to understand business planning, strategy, finance, and marketing. If you plan to hire people to help run things, you need communication skills, leadership skills and an understanding of how to motivate and reward employees. You need a clear strategic vision for the company and an ability to make informed management decisions based on research and analysis of the market, the competition and any other internal or external forces that can impact your business.

In short, starting and managing a business takes a great deal of business knowledge and experience across six functional areas: accounting, finance, operations, human resources management, marketing and strategy.


1. People

Human resources are your company’s greatest asset and how you lead, motivate and inspire your employees can have a huge impact on the success of your company. Key leadership and communication skills are necessary to be a successful leader and build a strong organization.

 


2. Operations

Have you ever wondered what happens behind the scenes of a major new product launch such as a new iPhone or the latest version of a popular video game? Managing a supply chain and making sure production meets demand under tight deadlines can be incredibly complex and is critical to business success. Understanding key aspects of business operations including capacity planning, productivity analysis and improvement and quality assurance.

 


3. Accounting

Proper management of the day to day accounting and finances of a business is critical to operations and learning how to read, analyze and prepare financial statements is an essential skill if you plan to start or run a business.

 


4. Strategy

How does your business compete in the industry? How can you create a competitive advantage? Are you able to adapt to a changing business environment? The ability to take a high-level, strategic view of a business is necessary to identify opportunities and to stay ahead of external forces such as new competition and changing consumer demand.

 


5. Finance

The growth and maintenance of your business may require making major purchases, investments, mergers and acquisitions and more. Smart financial planning and decision-making create value for your organization and ensure its growth into the future.

 


6. Marketing & PR

Marketing is much more than simply advertising a product or service. You must identify and interact with your customer, stay on top of their changing needs and desires and deliver a strong value proposition. Learning core concepts of marketing including segmentation, targeting, differentiation, product positioning and much more are essential.

Read more about the ICB’s Business Management Programme here.

Adapted from: https://blog.edx.org/