The document provides an overview of key concepts in business management including the 5 functional areas of business (management, operations, marketing, accounting, and finance), and factors that influence businesses both internally and externally. It discusses management, operations, marketing, accounting, and finance functions. It also explains internal factors like leadership and resources, and external factors like political, economic, social and technological aspects that impact businesses. SWOT and PEST analysis frameworks are introduced to analyze strengths, weaknesses, opportunities, threats, and external environmental factors.
2. FUNCTIONAL AREAS OF
BUSINESS
The activities needed to run a business can be divided
into 5 main functional area:
Management
Operations
Marketing
Accounting
Finance
3. MANAGEMENT
Management involves planning ,organizing, staffing, directing, and controlling
a company’s resources so that it can achieve its goals.
You plan your goals and strategies to achieve them, Planning is deciding in
advance - what to do, when to do & how to do.
Organize activities and resources to achieve those goals
Do staffing of qualified people to help you
Directing is the process of supervising and motivating your employees to
achieve organizational goals.
.
controlling them to achieve organizational goals, involves comparing
actual to expected performance and taking corrective action when
necessary.
4. OPERATIONS
All companies must convert resources (labor, materials, money,
information, and so forth) into goods or services.
Some companies, such as Apple, convert resources into tangible
products—iPhones, iPods. Others, such as hospitals, convert
resources into intangible products—health care.
The person who designs and oversees the transformation of resources
into goods or services is called an operations manager . This individual
is also responsible for ensuring that products are of high quality.
operations management performs a transformation role in the process
of converting inputs such as raw materials into finished goods and
services.
5. Marketing
Marketing consists of everything that a company
does to identify customers’ needs and design
products to meet those needs.
Marketers develop the benefits and features of
products, including price and quality.
They also decide on the best method of delivering
products and the best means of promoting them to
attract and keep customers.
They manage relationships with customers and
make them aware of the organization’s desire and
ability to satisfy their needs.
6. ACCOUNTING
Managers need accurate, relevant, timely financial
information, and accountants provide it
. Accountants measure, summarize, and communicate
financial and managerial information and advise other
managers on financial matters.
There are two fields of accounting. Financial
accountants prepare financial statements to help users,
both inside and outside the organization, assess the
financial strength of the company.
Managerial accountants prepare information, such as
reports on the cost of materials used in the production
process, for internal use only.
7. FINANCE
Finance involves planning for obtaining and
managing a company’s funds.
Finance managers address such questions as:
How much money does the company need? How
and where will it get the necessary money? How
and when will it pay the money back? What should
it do with its funds? What investments should be
made in plant and equipment? How much should
be spent on research and development? How
should excess funds be invested?
Good financial management is particularly
important when a company is first formed, because
new business owners usually need to borrow
money to get started.
8. NON PROFIT ORGANIZATION
NON PROFIT ORGANIZATIONS:
Some organizations are not setup to earn profit(non profit)
they are established just to provide social services such as
red cross, Edhi centers ,TCF
These organizations establish goals and work to meet them
in an effective, efficient manner. Thus, they follow most of
the business principles
10. INTERNAL FACTORS
AFFECTING BUSINESS
Internal factors include factors within organization that
impact the success of your business
The company has control over these factors some of these
factors are:
Leadership style
Financial resources like funding, investment opportunities,
source of income
Human resources such as Strength of employees ,
volunteers
Physical resources- location, premises, equipment
Strategic risk like failure of business plan, technological
evolution or customer’s perception about your product.
11. SWOT ANALYSIS
What is SWOT?
SWOT analysis is a framework for identifying and analyzing the
internal and external factors that can have an impact on the viability
of a project, product, place or person.
The framework is credited to Albert Humphrey, who tested the
approach in 1960s and 1970s at the Stanford Research Institute
(SRI).
As its name states, a SWOT analysis examines four elements:
Strengths - internal attributes and resources that support a
successful outcome.
Weaknesses - internal attributes and resources that work against a
successful outcome.
Opportunities - external factors the project can capitalize on or use to
its advantage.
Threats - external factors that could jeopardize the project.
12. CAREER PATH swot
Strengths:
• Your personality strengths_ focused, friendly, cooperative,
groomed, self motivated,
• Your educational strengths like qualification, skills, Certifications,
• Communication skill
• Your strengths identified by others
• Your achievements
• Your connections with other influential people
• Think and compare your strengths with other people of same
profession around you. There is a difference between your
strengths n job requirements
13. Weaknesses
• When and why you feel less confident
• Your weakness identified by others
• Poor communication skill
• Identify your personality weaknesses like your temper,
dedication, motivation level, punctuality etc
• Identify your academic weaknesses
• Identify your workplace negative habits
14. Opportunities
• Identify your organizational task which you can do to improve your
skills
• What courses, conference you can take to improve your future
• What role/responsibilities you can take in your organization beside
your usual task
• What opportunities you can create for yourself by eliminating some of
your weaknesses or by using your strengths
15. Threats
• What obstacles do you currently face at work?
• Are any of your colleagues competing with you for projects or roles?
• Is your job (or the demand for the things you do) changing?
• Does changing technology threaten your position?
• Could any of your weaknesses lead to threats?
16. EXTERNAL FACTORS
AFFECTING BUSINESS
Various external factors can impact the ability of a business or investment
to achieve its strategic goals and objectives. These factors help the
strategic management to plan for company’s future planning. The
importance of all these factors is different for different companies or
industries but comprehensively they play a crucial role in deciding the
future action of every organization. These external factors include:
Political factors- government policies ,political stability ,tax policy,
employment laws, tariffs, trade restrictions
Economical factors-inflation, interest rates, exchange rates, economic
growth, unemployment rate
Social factors-cultural limitation, population rate customer demographic,
life style attitude and education
Technological factors-technological advancement, role of internet and
17. PEST ANALYSIS OF HOTEL INDUSTRY IN
PAKISTAN
• Unfavorable political situation of the country
• Terrorism
• Lack of government interest to promote tourism in country
• Inability of government to deal with national disaster,
malfunctioning of disaster cell.
• Lack of infrastructures
• Low GDP, as consumers avoid to spend on traveling due to
terrorism,
• Inflation
18. PEST ANALYSIS OF HOTEL INDUSTRY IN
PAKISTAN
Cultural limitations, no cultural activity to attract local or
foreigner tourist
Middle class is shrinking due to high level of inflation
Electronic media, print media and social media are not
promoting the tourist spots, should promote hospitality culture of
Pakistan
lack of power generation plants are also influencing hotel
industry
Global warming and rapid change in country’s climate
