1. PREPARING FOR THE
IT3401
Business
Management
bm@ict.cmb.ac.lk

2. OPTIONAL PAPERS
OFFERED
for Year 2 Semester 3
 BUSINESS MANAGEMENT
 OPERATIONAL RESEARCH
 WEB DEVELOPMENT
TECHNIQUES

3. Optional Paper –
BUSINESS MANAGEMENT
INTRODUCTORY NOTE

4. What is BUSINESS MANAGEMENT
• The subject Business Management will
impart knowledge that is necessary to
manage the total functions of a business
in an efficient and effective manner.

5. OBJECTIVES OF THIS MODULE
 Improve management skills
 Understand a basic marketing plan
 Understand and interpret financial
statements
Contd…..

6. Objectives of this module (Contd.)
 Apply cost accounting principles in
decision making
 Apply economic principles in businesses
operations
 Apply an effective inventory control
system
Contd…….

7. Areas covered in BUSINESS
MANAGEMENT
• MANAGEMENT
• MARKETING
• FINANCIAL ACCOUNTING
• MANAGEMENT ACCOUNTING
• ECONOMICS

8. MANAGEMENT
 Evolution of Management
The Management process
Schools of thought and
management theories
 Managerial Roles & Skills
Roles of a manager
Management skills
Challenges of management

9. MANAGEMENT (Contd.)
 Planning, Organizing, Leading, &
Controlling
Major functions in Management
The formal planning process and
strategic planning.
Basics in organizing.
Leadership as a function of
management.
Control Function

10. MANAGEMENT (Contd.)
 Organizational Structure & Behaviour
Organizational structures
Co-ordination, communication,
delegation and empowerment
Concept of Centralization and De-
centralization

11. MANAGEMENT (Contd.)
Motivation & Leadership
Content, Process, and reinforcement
theories
Theories in leadership
Trait, Behavioural and contingency
approaches

12. MARKETING
Basic principles in marketing
Marketing mix
Process of segmentation
targeting, and positioning
Basic Product life cycles and BCG
Matrix
How to develop a marketing
strategy

13. FINANCIAL ACCOUNTING
Financial Accounting Principles
The principles and conventions in
financial accounting
Different forms of ownership in
business entities

14. Financial Accounting (Contd.)
Double Entry
Principles of Double Entry
Writing up the ledger accounts
Extraction of the Trial Balance

15. Financial Accounting (Contd.)
Preparation of Final Accounts
Profit & Loss Account
Concepts behind a Profit & Loss
Account
Preparation & interpretation of a
Profit & Loss A/c.

16. Financial Accounting (Contd.)
Preparation of Final Accounts
Balance Sheet
Concepts behind a Balance
Sheet
Preparation and
interpretation of a Balance
Sheet

17. MANAGEMENT ACCOUNTING
Ratio Analysis
The use of ratios to interpret
financial statements
Different ratios commonly used.

18. Management Accounting (Contd.)
Cost Accounting and Decision Making
The basic cost accounting
principles
Relevance to pricing of
products/services

19. Management Accounting (Contd.)
Inventory Control
Different types of Inventory costs
Stock Control methods
Stock Pricing methods
Economic Order Quantity (EOQ)

20. ECONOMICS
Managerial Economics
Basic theories of Economics
Demand and Supply
Different types of markets
Principles of costs –
Short-run/Long-run
Basic Macro Economic
principles

21. Why Select Business Management
Help in the future career path by giving
a better understanding of the business
world
Ability to communicate with businesses

22. How will BUSINESS MANAGEMENT
help you in other areas
 Develop IT Solutions for
Organisations
 Provide Background knowledge to
be an entrepreneur

23. Develop IT Solutions for Organisations
 Organisations require IT Solutions to:
Reduce Operational costs
Speed up operations
Ready access to any managerial
information
Low cost production
Facilitate Value for money
pricing
Improve Profitability

24. Provide Background knowledge to be an
entrepreneur
Cost product/service
Price product/service
Develop a marketing strategy
Compare performance with that of
your Competitors
Prepare a budget
Evaluate performance – both
marketing and financial

25. Business Management skills will help in
understanding to:
 Identify the problems faced by a
business
 Take timely decisions for
corrective action
 Steer the Organisation to success

26. Examination- Year 2- Semester 3
Optional Paper – Business Management
Examination Paper will be for 3 hours:
Part 1 – 1.5 hours
Multiple Choice Questions
Part 2 – 1.5 hours
Structured Questions.
A Case Study

27. Business Management –
Recommended hours of teaching
Evolution of Management - 4 hours
Managerial roles and skills – 3 hours
Planning, Organising,
Leading and Controlling - 5 hours
Organizational Structure &
Behaviour - 4 hours
Marketing - 6 hours
Motivation and Leadership- 5 hours

28. Business Management –
Recommended hours of teaching (Contd.)
Financial Accounting - 2 hours
Double Entry - 2 hours
Balance Sheet - 2 hours
Profit & Loss Account - 2 hours
Ratio Analysis - 4 hours

29. Business Management –
Recommended hours of teaching (Contd.)
Cost Accounting and
decision making - 6 hours
Managerial Economics - 12 hours
Inventory Control - 3 hours
TOTAL 60 HOURS

30. Business Management
Books Recommended
MAIN READING:
 Management 6th Edition by James
A.F.Stoner & R. Edward Freeman
Principles of Marketing (8th edition)
by Philip Kotler & Gary Armstrong
Spicer & Pegler’s Book-Keeping and
Accounts 19th edition by Paul Gee

31. Business Management
Books Recommended
MAIN READING (Contd.)
 Management Accounting 3rd Edition
by T. Lucey
An Introduction to Positive
Economics 6th Edition by Richard G.
Lipsey
Quantitative Techniques 4th Edition
(Chapter 11 to 14) by T. Lucey

32. Business Management
Books Recommended –
Supplementary Reading
 Management by Cole
 Marketing Management 9th edition
by Philip Kotler
 Costing –An Instructional Manual
2nd Edition by T. Lucey
Quantitative Methods Management
1st Edition by K.R.M.T.Karunaratne