Business Management: What It Is, Importance and Specializations

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What is business management?

Business management is an area of business administration responsible for
managing the actions planned to achieve its goals. For this, it concentrates
efforts not only on the performance of the administrator, but depends on the
knowledge and skills of all those who work in the organization.

And it is important to say that management is not restricted to a macro scale,
looking at the company as a whole. It is also targeted at specific areas such as
marketing, finance, logistics and human resources.

Each of these fronts demands business management activities, which includes
leadership, control, monitoring, planning and organization.

In this way, engaging in business management means striving to achieve goals
and objectives effectively and efficiently, with productivity and profitability.
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Business Management.

Although management is not a skill, but it brings together a group of them,
owners, partners, managers, directors and managers need to have in it a real
capacity to conduct the necessary actions for the organization.

Personal, professional and business experiences contribute to the formation of a
good business manager, undoubtedly, but they are not enough for him to fully
carry out what is expected of the position.

That is why business management courses are among the most sought after at
undergraduate, specialization or professional upgrade levels, both by graduates
and by students of business schools.

What is the difference between business management and administration?

You may think of management and administration as synonyms. Or at least
you’ve read or heard the terms treated that way.

In fact, there is an undeniable proximity between them, but also particularities
in each concept.

Thus, business management is an essentially rational practice in which a
professional (called manager) is directly responsible for the conduct of the
actions so that the organization (or a sector of it) achieves its objectives.

Its function is to take every opportunity to optimize processes, reduce
errors and increase profitability.

This is the case, for example, of SWOT Analysis (which strengthens the
company’s strengths while correcting the weak), the GUT Matrix (used in task
prioritization) and the PDCA Cycle.

It also uses metrics and performance metrics, which helps you gauge how your
business is moving toward meeting your goals.

Management and the human factor

It realizes, roughly speaking, that administration is an exact science. Many of
these aspects also appear in the routine of business management, but it is
characterized by the emphasis given to the human factor in this process.

That is why, in the previous topic, we talk about the importance of everyone in
the organization to achieve its goals. Within business management, therefore,
there is the challenge of valuing and giving employees autonomy so that they
perform their functions in the best possible way, focusing on the same results.

A manager approaches the definition of leader more than an administrator,
therefore.

It is responsible for stimulating team motivation, engagement and cooperation,
as well as interacting with all stakeholders, which involves suppliers, customers
and even competitors.

It is interesting to note that business management is below the general
management of the company at the hierarchical level, although it has a broader
range of attributions.

These include conflict resolution, employee training, new work processes, and
valuable feedback (both giving and receiving). The importance of business
management for better management is total.

Given the differences between concepts, we perceive how one serves as
complement to the other.

The term “management” represents a more modern view of running a business.
It means managing without closing your eyes to your most valuable asset,
which is the collaborators.

Not that the classic concept of management ignores human resources, but it
focuses more on the logical and mathematical aspects of business, therefore,
more rational.

Only a company is not only made up of numbers, indicators and administrative
tools. Any loss in this chain of relationships inevitably impacts business results.
That’s why business management works with the most varied features, far
beyond numbers. Another of his contributions appears in the most executive
character, while the administration concentrates primarily on the planning of
actions.

The manager is also a leader, the one who inspires others, who guides, observes,
listens and actively participates in the day to day business.

Having an entrepreneurial project, getting an idea of ​​the role and starting a
business to call yours is a great achievement. It requires courage, planning and
patience to deal with the bureaucracies inherent in the process. It takes an
average of 79.5 days to have a formal business here.

But this represents only the beginning of everything, since entrepreneurship
alone does not hold up in the long run.

Enabling a company is very different from achieving its sustainability, the
growth needed for its maintenance for many years.

To have a healthy business, you need to know how to manage. This is where
business management comes in.

You need to know how to hire, advertise, sell, deal with finances and more,
much more. But also, to relate, negotiate, train, guide, listen and speak.

A company is only sustained if there is a manager ahead of it.

Otherwise, it will be another idea that went out of the way, but did not
overcome the barrier of the two years of foundation (25% of them in the
country) or, even more difficult, to reach the five years of life (60% of them).

What is the relationship between Business Management and Innovation?

Those who are motivated to undertake find two possible types of market.
In the first one, it starts a company among many competitors, having the
obligation to find a competitive advantage to remain strong and ahead of the
competition.

In the second, you need an idea or business model hitherto unpublished, or close
to that, so that it can be launched into the market as something new and
therefore free of competition until then.

What do the two scenarios have in common?

The need to combine innovation with business management. Innovation means
doing something different, promoting an unprecedented solution to a common
challenge.

It does not necessarily imply creating, which is more in keeping with the second
scenario we present.

On a day to day basis, business managers are constantly challenged by the
desire or even demand for innovation.

It could be a new way of running a process, a different approach to giving
feedback to employees, a training not tried before in the company, a negotiation
tactic with suppliers or customers that seemed to work in another activity
profile.

It is a characteristic that also appears in the mapping of opportunities and
threats, always in the comparison with the other competitors of the market.

All this indicates the innovation, the desire to propose solutions different from
those practiced until now, always with the purpose of qualifying the management,
acting in favour of the objectives of the company, including there the
greater productivity, efficiency and profitability.

As innovation joins management as a process and becomes part of the company
culture, all goals become more easily achievable. That the financial area of ​​a
company is its sometimes more sensitive point, nor would it need to remember.

It is imperative to have strict control over the money that comes in and the
money that comes out.

To do so, the administrator uses various instruments, such as cash flow, bank
reconciliation and others. On the other hand, as we have seen in this article,
business administration and management have their differences. And this comes
out clearly also when it comes to finances.

Often, the decision-making process in the company is related to them. Buying
planning, investing in marketing, launching a new solution, borrowing,
acquiring or selling a new unit.

All are projects of high degree of manager involvement, as they can bring the
business closer to its objectives. And it is important to warn here that in Brazil,
it is for financial reasons that most companies close their doors so early.

Also, you need to keep in mind that finances are not just about business money.
When combined with management, it also concerns economic, market and
strategic aspects.

They are two concepts closely related to market intelligence, which, as the name
suggests, is a strategy to investigate the environment in which the company is
inserted, obtaining insights to qualify internal processes.

Again, it has to do with achieving the goals and objectives of the company,
since it allows the manager to identify the needs of his audience, the way he
likes to be served and what type of solution he searches for, for example.

It also makes it possible to understand the movements of the competition, their
advantages and vulnerabilities, noting where the threats are to your project.

If you watch closely, you will see that all of them are information that you will
inevitably have contact with on the company’s path.

But when it is dedicated to research and data collection, betting on market
intelligence, the manager allows himself to take a step forward.

It acts proactively, anticipating competitors and expanding their ability to
innovate. It cannot be denied, therefore, that having market intelligence as an
instrument of business management brings the company closer to its
profitability objectives.

It’s even more of that, since it not only allows it to get to the desired scene
faster, but ensures that it will happen safely, with the least contingency on the
way.

It is interesting to say that, given the current high competitiveness, this
relationship between management and market intelligence has an almost
obligatory presence in the strategic planning of the company, whether it be
born, survive, grow or prosper.

Business management: learn all about this specialization

Professionals already graduates, who wish to broaden their knowledge and thus
act more assertively to achieve the goals of the company, should think about
continuing education. To do so, attending a specialization in business
management is a sure bet.

It provides the professional with the conditions they need to evolve in their
strategies, meeting the challenges of the market, expanding their ability to
innovate and make decisions focused.