1. Cardenas 1
It’s hard to imagine a car traveling down the highway without a driver driving it and not
thinking “That car is headed for a disaster.” A business without business administration would be
heading for the same kind of disaster. Business administration is managing the operation of a
business. A business has to have good administrators in order to produce capital. A business has
to deal with downturns but they have some qualities to survive it. Without good business
administration and good financial managers a company fails.
Business administration manages the operation of a business. Business administrators
contribute to the prosperity of a company by giving financial stability and good leadership. The
administrators go by many names such as Chief Executive Officer, Chief Financial Officer,
manager, and accountant. Without them a company would not have a good administration. They
work hard for the company to have good production and to make it grow. Without a business
administration and good financial managers a company fails.
Every organization bases its future and growth on the administrative skills of its
administrators. Creating a successful business has always been a challenge and to do this
administrators need solid knowledge, excellent training and a serious set of skills. Each
administrator has a special quality in the company so when they work together it is easier for
them to manage the business and make it successful. A Chief Executive Officer is responsible to
carry out the strategic plans and polices as establish by the Board of Directors and is the head of
overall operations of business administration. (A chief) A Chief Financial Officer is responsible
to manage all of the company’s financial activities such as signing checks, monitoring cash flow
and financial planning. (A chief) A manager is responsible for planning and directing the work of
a group of individuals. (A manager) The accountant evaluates records composed by the
bookkeeper and shows the results of this investigation as losses and gains changes in value, he

2. Cardenas 2
also has to reveal the progress of failures of the business and also its future limitations and
possibilities. (The) Although administrators have different goals, they have in common to make
the company successful. Productivity and efficiency are very necessary in every company and
professionals with business degrees are the experts in minimizing waste while maximizing
profits.
Business managers face many problems when keeping their business successful due to
the economic recession or downturn. Everybody is aware of the pain caused by a downturn;
Companies lay off workers, jobs become hard to find, and the people that remain employed often
have their wages and benefits cut. “A downturn is a period of zero or negative economic growth,
it puts huge pressure on a business as sales and profits fall. During this period most business
decreases marketing expenses, quality and staff to bring up their bottom lines.” (A downturn)
There are many facts which can lead to an economic downturn. “As sales revenues and profits
decline, the manufacturer will stop hiring new employees. In an effort to low costs and improve
the bottom line, the manufacture may stop buying new equipment, cut back research and
development, and stop new products rollouts.” (As sales) When the revenues decline the
manufacture’s stock price may decline. The accounts receivable is also impacted by the recession
with the reduced revenues the company will pay its bills slowly, late, or in small profit than the
original credit agreement required. Late payments will reduce the valuation of the corporation’s
debt ant the ability to obtain financing. The business may cut employees, and more work will be
done by less people. Productivity per employee may increase and work becomes harder. Wage
increases are stopped and fear of further layoffs continues.
The real test of a company’s strength is how it handles bad times like downturns. Most
corporate managers in the Unites States certainly feel that living through the longest economic

3. Cardenas 3
growth ever experienced was fun while it lasted. Launching new products, opening new offices
and hiring new staff can be hard work, but it is much more pleasant than hacking and sacking.
The way that a company deals with a downturn is not only the best proof of its bosses’
disposition; it may also determine how well a business does when things improve. One problem
is that the precipitate length of the growth means that most of today’s chief executives were at
best middle managers last time around. Almost no executives who are under the age of forty
have any first-hand experience of what it is like to manage through the downturn in the business
cycle. A company that badly runs in good times will not do any better during a downturn. In a
downturn managers need to be careful of risk, knowing that one mistake can be a killer.
(NCWiseowl)
There are ways to deal with an economic downturn. Getting finances stable and becoming
financially successful requires the development of good financial habits. “Some important things
to do during things to do during an economic downturn are to have solid communication skills,
ability to take initiative, have ambition, and to be reliable.” (Some) Managers should know how
to avoid debt, continue to read about business finances and look to grow the company in order to
make good financial stability. (Eliminate) “A business can hope to survive the downturn and
grow after the downturn ends only if it adopts different ways of cutting costs in areas that secure
the future business.” (A business) “Retain the most important staff and maintain quality, don’t
start firing people and resist to cut back to cut costs.” (Retain) Be capable don’t be scared of
trying new technologies or marketing strategies, be open to experimentation.” (Be) Without these
qualities there is no change for success.

4. Cardenas 4
Best Buy is an example of a company that is dealing with some problems. The departure
of Brian Dunn the CEO of Best Buy compounds the problems at the retailer which has been
widely criticized for not responding fast enough to growing competition from Amazon.com and
other online rivals and the changing shopping habits of Americans. (Brian Dunn) A few years
ago, Best Buy had been the big bully on the block, pulling shoppers away from small electronics
stores with its large offerings; now in the age of the internet those offerings look partly. (A few
year) Best Buy and other retailers are finding that those big stores are no longer attractive to
consumers looking for one stop-shopping, instead they are using them as showrooms to browse
for products and then going online to Amazon.com and other rival sites to buy at a lower price.
“Best Buy’s shares were down almost six percent, or $1.33, to close at $21.32 after initially
climbing higher on the CEO departure. Its shares have lost more than the half of their values
since April, 2006 when they were trading at $56.66 per share”.(Best Buy’s) “Sales of TVs,
digital cameras and video game consoles have weakened, while sales of lower margins items like
tablets, computers, smartphones and e-readers have increased”. (Sales) The store has been trying
to repair its business; it showed a restructuring plan that calls for closing fifty of its U.S big
stores, opening one hundred small format stores focusing on its increase mobile business which
focuses on cell phones it is also cutting $800 million in costs over the next five years. (Best Buy)
Best buy has cut its square footage by fifty percent in about forty three stores by giving it back to
the landlords or by renting it to other merchants. (The Company) The company decided to search
for new leadership and give them the challenges that the company faces. Best Buy has created a
search committee to choose a new CEO according to Dunn’s departure. Analysts say it is going
to be a big challenge to find a CEO to lead the company in this new area.

5. Cardenas 5
In conclusion a business without a good business administration and good financial
managers fails. Business is managing the operation of a business and it has certain characteristics
to be successful. Administrators have to work with good qualities to make the business
successful. A business has problems like downturns where there is zero or negative growth but
there’s also ways to deal with a downturn.

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