Business Management: A Comprehensive Guide
Item 1: Functional Areas and Entrepreneurship
Functional Areas of a Company
External Functions:
- Funding: Fundraising is essential for various investments.
- Supply: Structuring the acquisition of production factors for the production process or service.
- Marketing: Placing products or services in the external market.
Internal Functions:
- Production: Transforming inputs into finished products.
- Planning and Control: Establishing objectives and goals for the company.
Definition of Entrepreneur
Knight: An agent who acquires or hires production factors based on uncertain demand forecasts.
Schumpeter: An agent of innovation, implementing new products, production methods, and business practices.
Item 2: Optimal Dimension and Legal Forms
Optimal Dimension
Producing at the minimum possible cost; most efficient when the sector is optimal.
Multi-Value
Combining several criteria using a linear function.
Legal Forms of Companies
- Limited Liability Companies: Maximum 50 partners, minimum capital of 3,005.
- Corporations: Minimum capital of 60,101.21 (25% upon establishment), minimum 1-3 partners.
- Employee-Owned Companies: At least 51% of capital owned by employees, minimum 4 partners.
- Cooperatives: Capital determined by statute, minimum 3 partners.
Item 3: SWOT Analysis and Environment
SWOT Analysis
Summary of internal (strengths and weaknesses) and external (opportunities and threats) analysis.
General Environment
External factors with a broad influence on profitability.
Specific Environment
External factors with a direct influence on profitability and business objectives.
Company Location
Finding the optimal physical location based on market, supply, and transportation costs.
Social Responsibility
Analyzing the impact of business decisions on stakeholders (shareholders, employees, suppliers, etc.).
Item 4: Legal and Accounting Obligations
Commercial Register
A legal and advertising tool; voluntary registration for individual entrepreneurs, compulsory for companies.
Accounting Obligations
Maintaining orderly accounting records (daily and annual inventory, accounts, legalization of books, and annual accounts).
Regulating Competition
Addressing anti-competitive practices (agreements, abuse of dominance, mergers, and state aid).
Distinctive Features
Brand name, shop signs, trademarks.
Types of Contracts
Fixed-term, service, temporary, interim, part-time (fixed and handover), promoting permanent hiring and training.
Social Security
General and special schemes, compulsory registration of employer and employee, covering unemployment, disability, maternity, and retirement.
Taxes
Revenue-raising tools with components like taxable event, base, rate, debt, and tax class (taxes, levies, and duties).
Item 5: Production Systems and Costs
Types of Production Systems
By Time Span: Continuous and intermittent.
By Configuration: Workshop, production chain, and fixed position.
By Demand Response: Production for the market and to order.
Inventories
Used to avoid disruption costs and achieve economies of scale; drawbacks include ordering and storage costs.
Cost Analysis
Direct Costs: Directly charged to the product.
Indirect Costs: Require allocation criteria (fixed costs, variable costs based on production volume).
Breakeven Point
Q* = CF / (Pv – CVu)
Pv * Q = I = C = CF + (CVu * Q)
Productivity
Measures efficient resource utilization (products / (labor + capital + energy)).
Item 6: Marketing Philosophies
Marketing
A social and managerial process where individuals obtain needs and wants by exchanging valuable products.
Business Management Philosophies
- Production: Focus on product availability and affordability.
- Product: Focus on product quality and performance.
- Sales: Emphasis on persuading consumers to purchase.
- Marketing: Identifying and meeting consumer needs efficiently.
Business Decisions
- Product: Focus on consumer benefits, not just physical characteristics.
- Price: Consider both monetary cost and time spent (high quality/high price, low quality/low price).
- Promotion: Combining personal selling, advertising, public relations, and sales promotion.
- Distribution: Making the product readily available to the market.
Item 7: Differentiation and SME Strategies
Differentiation Strategies
- Cost: Offering the same product at a lower price.
- Product: Making the product appear different to consumers.
SMEs: Advantages and Disadvantages
Advantages:
- Customer proximity
- Flexibility
- Motivation
- Autonomy
Disadvantages:
- Lower economic efficiency
- Resistance to change
Growth Strategies
Stability: Slow and cautious growth.
Defense: Minimizing spending in challenging environments.
Growth Alternatives
- Increasing market share
- Diversifying product portfolio
- Diversifying activities
- Opening new markets
- Launching new products/activities
Item 8: Heritage and Financial Balance
Heritage Book
Record of all assets, rights, obligations, and debts of an enterprise.
Equity Items
Components of assets, rights, and obligations.
Accounting Equation
Assets (Current + Fixed) = Liabilities (Current + Long-term) + Net Worth
Financial Balance
Measuring the company’s financial structure.
Working Capital = Current Assets – Current Liabilities = Net Worth + Long-term Liabilities – Fixed Assets