The Importance Of Business Management

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Any company that sells products that are bought on credit will suffer when interest rates go up more so than companies that don’t (obvious) (cars, tvs, washing machine …)

More money spend on debt means less money reinvested into your business

Turbulence of the environment (the change in demands) is not the same across the environment

Turbulence drives the success of the company. The more the turbulence the better the management. The better the management the more money the company makes Always start at the end. Are the outputs accepted. If the outputs aren’t accepted then they will not have the resources to buy the raw material to make up the inputs. Acceptance customer satisfaction loyalty market share Decision making (upper level management) effectiveness Process efficiency (outputs/ inputs. The most o for the least i) Effectiveness is doing the right thing while efficiency is the thing right Taking the right idea and how can you make it affordable – efficiency Profitability is measured by the amount f money in the bank and share price Availability of inputs materials, energy, man power Strategy- the critical step in your business model to beat your competition. Efficiency gives a good assessment of your production possibility but not a good assessment of the market profitability Unique/single contracting - an exclusive relationship with another company Increase in demand tc= time of

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