Business Management

Are mostly small and medium sized companies. They are a business organization, from inception seeks to derive significant competitive advantage from use of resources and sale of outputs in multiple countries 

Born again global firms are well - established organizations that have previously focused on their domestic markets, but which suddenly embrace rapid and dedicated internationalization (Google, Skype)

They work in many countries, securing resources and finding markets in whichever country is most suitable. Production or service processes are perfomed, and integrated, across many global locations - as are ownership, control and top management

- State ownership: Government ownership (assets belonging to a body of government) or public property (owned by government but avaliable for public use)
- Personal ownership: assets and property belonging to an individual
- Common ownership: Assets and property that are held in common by all members of society
- Collective owneship: Assets and property that belong to a collective group of owners (such as shareholders) own productive property that is used by emplyees usually for the purpose of generating a profit. 
 

For what purpose the company exist and on what they focus - values

Goal what a company have 

Forming an alliance in which the partners agree to form a separate, independent organization for a specific business purpose

tasks are grouped into departmenrs based on similar skills and expertise - such aws production, finance, marketing, or information service. This structure is suitable for stable environment with routine technologies where interpendence between departments is less needed and functional specialization is emphasized!

advantages: simple & comprehensible structure, use of specializing effets and expert knowledge, functional departments are well defined and easily controllable, commong professional interests support good internal relations

disadvantages: many interfaces between departements create a lot of problems of coordination, Conflict over priorities, risk of department egoism and suboptimal performance, work overload for the management because of coordination demands, overspecialization, limited possibilites for human resource development

Transporting physical products or delivering services across national boundaries
 

Defintion: Is the degree to which tasks are divided among separate people or departements

tasks are grouped in relation to their outputs, such as products or the need of different types of customers. Each division has self-contained functional units such aws R&D, Production marketing finance etc. Divisional organizations are applicable to middle-sized and big companies which produce different product lines or are spread across various geopraphical locations.

Advantages:
Staff focus on product and customer needs, dedicated facilites meet customer needs quickly (flexible), top managers have more time to develop strategy of parental company, divisions are highly motivated to fulful their tasks and can be easily evaluated, regional divisions use autonomy to meet local needs

Disadvantages:
Divisions are isolated from wider professional and technical development of the whole company, more line managers positions and central services necessary, costs of dublication across organization (e.g. distribution networks, computer system) 

Combines functional und divisional structure simulaneously e.g. product devisions and geographical territories 

Subordinates have two bosses.

Advantages: integrated knowleadge, flexible structure accoring to  customer needs, disburden top manager from operational responsabilities, staff gain variety of work, direct communication through product manager

Disadvantages: length of time to take decisions, unclear jobs and task responsabilites, unclear cost and profit responsabilites, high degree of conflict of competencies, risk of overorganization, high requirements for manager

Task required by one company are performed by other companies with expertise in those areas. The companies remain independent but agree to collaborate with each other to deliver products or services

Advantages: broad access to contacts, specialized knowleadge, cost efficiency, leveraged size (less financial requirements)

Disadvantages: Decentralized knowledge, division of responsabilites, coverage of financial risks

Companies, espacially those that depend on a steady flow of new products, organize work into teams to generate more flexibility, lower costs and faster responsability - the management delegates significant responsability and authority to an identifiable team, which is in then accountable for results.

Advantages: decision making processes is flitered down to each member of a team, multiple competencies in the teams, solving of complex issues

Disadvantages: value team performance over individual performance, decentralized - can lead to coordination and control problems for management, team often of temporary nature, disappearance of knowledge, cultural issues

proactive motivation: profit advantage, unique products, technological advantage, exclusive information, tax benefit

reactive motivations: competitive pressures, overproduction, excess capacity, saturated domestic market

- Export & Import
- Off-Shoring
- Foreign direct investment
- Licensing
- Franchising
-  Joint venture

Contracting out defined functions or activities to companies in other countries that can do the work more cost-effectively

General Managers: are responsible for the performance of a distinct (klar) unit of an organization 

Functional managers: are responsible for the performance of an area of technical or professional work
  - Line managers: are responsible for the performance of activities that directly meet customers needs
  - Staff managers: are responsible for the performance of activities that support line managers

Project managers: are responsible for managing a project with an temporary team to change some elements of an organization or its context

Investing shareholder funds directly in another country, by building or buying physical facilities or by buying a company

Giving another firm the right to use assets such awss patents or technology in exchange to a fee

Extending a business by giving other organizations, in retun for a fee, the right to use your brand name, technology or product specification (Mac Donalds)

Management: is the activity of getting things done with the aid of people and other resources 

Manager: is someone who get things done with the aid of people

Informational:
- Monitor: Seek and receive information, scan reports, maintain interpersonal contacts
- Disseminator (dissemination=Weitergabe): Forward information to others, send memos/emails, make phone calls
- Spokeperson: Represent the unit to outsiders in speeches and reports

Interpersonal:
- Figurehead: Perform ceremonial and symbolic duties, receive visitors
- Leader: Direct and motivate subordinates, train, advise and influence
- Liaison: Maintain information links in and beyond the organization

Decisional:
- Entrepreneur: Initiate new projects, spot opportunities, identify areas of business development
- Disturbance handler: Take corrective action during crises, resolve conflicts among staff, adapt to changes
- Resource allocator: Decide who gets resources, schedule, budget, set priorities
- Negotiator: Represenr unit during negotations with unions, suppliers and generally defend interests

 

- Planning
- Organizing
- Leading 
- Staffing
- Coordinating
- Reporting
- Budgeting
- Controlling

Functional scope: Management covers tasks like planning, organizing, staffing etc. in a work divided organization with the purposwe of delivering performance

Social scope: Management describes all executives as a whole, who have authority in an organization to issue instructions, with the purpose of influencing behavior - manager must be a leader 

Mental scope: Through leadership management shapes spontaneous and beneficial order in a complex and dynamic environment by means of vision, values, goods and creativity

Efficiency: Doing things right
Effectiveness: doingt the right things

Management comprises of planning, organizing, staffing, leading, or directing and controlling an organization (a group of one or more people or entities) for the purpose of accomplishing a goal

Management of an organization is the process of establishing objectives and goals of the organization periodically, designing the work system and the organization structure, and maintaining an environment in which individuals, working together in groups, accomplish (purpose) their aims and objectives and goals of the organization effectively and efficiently 

A management model represents a more complex reality which aims to identify the essential elements and the relationship between them. No model offers a complete solution, so management problems has to be examined from several perspectives to be understood.

it is the choices made by a company's top executives regarding how they define objectives, motivate effort, coordinate activities and allocate ressouraces. In other words, how they define the work of management

Human relations model
Open system model
Rational goal model
Internal process model

- Stressing productivity, direction and goal clarity --> maximising output

Break a jobe by one man into several small steps

A single worker now performed each of these steps repetitively. This greatly reduced the overview over their work but, because each was able to specialize, output increased dramatically. 

he believed that this wsa one of the key ways in which the new industrial system was increasing wealth of the country

- Stressing productivity, direction and goal clarity --> maximising output

He analyized the advantages of division of labor:
- Lowers training costs
- Reduces labor costs because of lower salaries for the unskilled workers
- Saves the time of moving between jobs
- Increases their specialized skills 

- Stressing productivity, direction and goal clarity --> maximising output

Eliminate unnecessary motions time could be saved and output increased

- Use scientific methods to find best way of doing a task
- Select best person for the job
- Train them to follow defined procedures
- Provide financial incentives
- Shift responsability for planning from worker to the manager
 

- Stressing productivity, direction and goal clarity --> maximising output

Towards consolidation, continuity

He established 14 principles to run an organization efficiently:
Division of work, authority and responsibility, discipline, unity ofcommand, unity of direction
etc....
 

Towards consolidation, continuity

Proposed diffeent characteristics found in effective bureaucracies that would effectively conduct decision-making, control resources, protect workers and accomplish organizational goals. He observed that bureaucracy brought routine to office operations just as machines had to production