Business Administration to Go – Compact Practical Knowledge for Entrepreneurs & Leaders: Easily Understand Economic Relationships and Make Informed Decisions – incl. Business Administration Glossary E-Book

Tobias Geuß

• Herausgeber: ONIX Media
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 235

Veröffentlichungsjahr: 2025

Beschreibung

Whether it's management, HR policies, leadership tasks, or your company's future vision, every business regularly faces critical decisions that determine its success. To make these decisions effectively, competently, and with an eye to the future, you need a solid understanding of business administration—and this guide delivers exactly that in a straightforward, practical manner. Controlling, SWOT analysis, compliance management systems, or market research: when you're first exploring how successful corporate leadership really works, it can feel overwhelming. Yet solid business know-how isn't rocket science and can be acquired through self-study—precisely what this book is designed for. You'll seamlessly dive into the fundamentals of leadership, management, marketing, legal structures, corporate finance, and more, systematically mastering each essential area. Then, with clear explanations and illustrative case studies, you'll deepen your expertise step by step, becoming equipped to tackle complex business scenarios. New to the field? No problem! With carefully curated information, plenty of examples, and easy-to-follow explanations, you'll start right where you are and build a strong understanding of business requirements chapter by chapter.

Leseprobe

Business studies to go

Compact basic knowledge to take away and keep incl. lexicon of terms

Author

All advice in this book has been carefully considered and checked by the author and the publisher. However, no guarantee can be given. The author and publisher therefore accept no liability for any personal injury, property damage or financial loss.

Copyright © 2024 www.edition-lunerion.de

All rights reserved, in particular the right to reproduce and distribute the translation. No part of this work may be reproduced in any form (by photocopy, microfilm or any other process) or stored, processed, duplicated or distributed using electronic systems without the written permission of the publisher.

For questions and suggestions:

[email protected]

Edition 2024

Contents

Get to know the world of business administration more closely and compactly1

Successful corporate governance2

Fundamentals of corporate management2

Leadership roles/leadership styles of a manager and their effects3

Strategic and operational management26

Strategy development and implementation37

Portfolio analysis46

Competitive advantage50

Personnel management51

Marketing and sales53

Market and target group analysis53

Competitive analysis56

Marketing strategies and instruments57

Sales management62

Marketing controlling and performance measurement64

Successful financial management66

Financial planning and analysis66

Investment calculation68

Cost accounting and controlling72

Types of financing76

Capital structure80

Legal form and compliance82

Selection of different legal forms82

Compliance87

Contracts89

Contract law90

Contract management90

Labor law provisions92

Efficient project and process management98

Project management98

Process management110

Product development111

Product life cycle113

Quality management114

Quality control / assurance122

Supply chain management (SCM)123

Intelligent corporate financing and risk management126

Borrowed capital126

Equity129

Further financing options130

Risk management133

Business insurance134

Business plan, financial and financing plan138

Business idea138

Market analysis139

Target group analysis142

Competitive analysis143

Finance/financing plan n145

Financing plan147

Liquidity forecast147

Structure of a business plan148

Structure of a business plan149

Presentation of a business plan154

Conversation156

Self-management157

Methods of self-management157

Time management160

Leadership competence161

Self-reflection165

Bonus: The business lexicon167

Let's go into practice!171

List of sources and further reading172

Get to know the world of business administration more closely and compactly

Every company has to make important decisions time and again in order to continue to operate successfully on the market. Regardless of whether these decisions relate to human resources, financial planning, controlling, the future strategic direction of the company or other areas. The important thing is

They must be taken!

In order to be able to make these decisions in a targeted manner, it is always necessary for all managers in a company to have solid business knowledge.

This book presents the most important business management aspects of successful company management. The chapters in this book are structured and practice-oriented. The systematically structured topics will help you to build up a basic knowledge of business management or to refresh the knowledge you have already acquired.

We would like to introduce you, dear readers, to the basics of business administration in an understandable way so that you too can gradually expand your understanding of the world of business and ultimately apply it effectively. We wish you every success in this endeavor!

Successful corporate governance

Companies are generally made up of several sub-divisions with different tasks and objectives. It is completely irrelevant whether the company is in the process of being founded or has already established itself on the market. However, in order to operate successfully, all areas of a company must mesh together like cogwheels. This also applies if objectives are assessed differently. Only when you succeed in this can you speak of successful corporate management.

The following chapters are intended to help you achieve the goal of successful corporate management.

Fundamentals of corporate management

From a business management perspective, the term corporate management is divided into two separate aspects:

The first aspect refers to the

people who

head a company in

a managerial capacity

and manage it responsibly.

The second aspect is the actual

process

that enables a company to be managed

efficiently.

The sum of both aspects forms the basis for successful of successful corporate management.

In order to ultimately build successful corporate management on this basis, however, additional managers are required who not only have a high level of decision-making and assertiveness, but are also prepared to tackle the task with motivation so that the defined corporate strategy is successfully implemented and the set goals are achieved without major difficulties.

Tasks of a company management

Companies are not only different sizes, but also have different legal forms. This also has an impact on the management of a company.

For example, responsibility for successful company management usually lies with one person in small companies and with up to three people in medium-sized companies. Very large companies, e.g. stock corporations, on the other hand, are managed by a large number of people acting together as a board of directors. In this case, individual areas are in turn managed by a single person, who together take on the overall management of a large company. The spokesperson and main person responsible is the CEO of the company.

However, no matter how extensive the number of managers in a company is, all managers have to fulfill the following very important entrepreneurial tasks, among others:

They should manage the company and lead the employees.

You should be able to motivate employees.

They should be able to implement visions, but at the same time ensure that suitable framework conditions are developed.

They should always drive the successful development of a company.

They should keep decision-making processes to a minimum.

You should plan new processes, analyze their profitability and prospects of success, but always ensure that these processes are not protracted due to excessive attention to detail.

You should set a timeline for the implementation of these processes and strictly monitor compliance.

They should take control of all costs, especially for new processes.

They should be able to react quickly to any problems that arise, but should disregard their own ego and put the employees first.

In order to be able to fulfill these tasks, managers have a variety of entrepreneurial "tools" at their disposal - "tools" that contribute to the successful management of a company.

The most important tools are presented in the following chapters.

Leadership roles/leadership styles of a manager and their effects

The fact that managers should proactively contribute to successful corporate governance has already been described in the previous chapter. In addition, managers should also have two important characteristics for successful corporate management.

They should be able to take on

different leadership roles

in the company or in a process

depending on the situation.

You should use your personality to develop a

management style

with which you can

successfully

lead your employees.

Successful companies now make sure that applicants for new management positions either already have these two qualities or have sufficient potential to learn what they lack in appropriate seminars

Both characteristics inevitably set expectations in employees regarding the behavior of the manager and catalog this person in a preconceived role model. This is a completely normal reaction, as people embody a role model in all areas of life. If you are aware of this effect, you can act confidently and successfully as a manager.

Management roles/levels and personal skills

Leadership roles (also known as management levels) are not innate, but usually develop over the course of your career. Traditionally, this career starts with the role of supervisor of a group or department.

Unfortunately, the characteristics of a management role/level are not described in detail in any manual. However, no matter which role/level you have to fulfill, make sure you gain acceptance and respect from your employees.

This is not an easy task, as you were still a colleague, possibly even a friend, before your appointment as a manager. In your new role, however, you are now a superior and therefore authorized to issue instructions and may now assess processes and procedures differently than before your promotion.

Conflicts are possible, perhaps even foreseeable! However, these do not necessarily have to occur if you take appropriate countermeasures and adopt and implement a few key roles / levels that are directly related to successful leadership.

Guide rollers

As early as the 1970s, scientists recognized the special importance of leadership roles in business. The British management consultant Meredith Belbin (* 04.06.1926) worked particularly intensively on this topic. He recognized that both the members of a project team and the managers of these project teams exhibited different behaviours.

Belbin developed two theses from the findings of his studies:

The behavior of a manager has a direct influence on the performance and quality of the project team.

The more behaviors are present in team members, the more successful the results of the work will be.

As a result, Belbin developed his so-called team role model, which is still used today, particularly when filling management positions. This team role model describes a total of nine different roles, which Belbin divided into three groups of three roles each.

Group 1: Communication-oriented role models

Pioneer:

He develops ideas and constantly looks for ways in which these ideas can be implemented by the employee team.

Advantage:

Managers in this role impress with their open-mindedness and enthusiasm. They are always looking for ways to lead the team towards the goal in a direction-oriented manner.

Disadvantage:

A lack of recognizable successes can lead to the original enthusiasm evaporating and the team finding it very difficult to achieve its goal.

Coordinator:

He delegates specific tasks to the employees and thus supports the team in focusing on the desired goal.

Advantage:

Managers in this role impress with their self-confidence and their very good contacts with other people. As a result, they always find solutions to problems and can always lead a team in a directional manner.

Disadvantage:

It can be manipulated by the distinctive network.

Employee:

The employee is not afraid to actively participate in the team and is diplomatic and empathetic.

Advantage

:

It creates a strong collegial atmosphere within the team.

Disadvantage

:

He tends to be indecisive when faced with difficulties.

Group 2: Knowledge-oriented role models

Innovator:

He impresses with his pronounced creativity, with which he reacts to problems and difficulties in unusual ways.

Advantage:

Thanks to the pronounced creativity, a suitable solution is found for all problems.

Disadvantage:

Creative people sometimes tend to ignore important details and thus make problem solving more difficult.

Specialist:

He has a high level of specialist knowledge, which is specifically incorporated into teamwork for special tasks / activities.

Advantage:

He convinces with his determination, his commitment and makes his expertise available to the team for the workflow.

Disadvantage:

He can also block the workflow due to his special expertise because too much attention is paid to details.

Observer:

He convinces with his logical thinking and a close look at the ideas of the team members.

Advantage:

He impresses with his sobriety and strategic way of thinking. Before making decisions, he carefully weighs up all the specifics.

Disadvantage:

sobriety can also lead to a critical approach. This makes it difficult to motivate employees and provide impetus for teamwork.

Group 3: Action-oriented role models

Implementer:

He develops practicable strategies and has them implemented in a targeted manner.

Advantage:

He convinces through his reliability, his thoroughness and his comprehensive organization for a work order. This role is often seen as meticulous by employees.

Disadvantage:

Thoroughness often slows down the implementation of a work order and results in an inflexible response to problems.

Perfectionist:

He constantly looks for possible sources of error and monitors the entire work order with constant and high quality control.

Advantage:

His conscientious search for errors leads to perfect, error-free completion of the work order.

Disadvantage:

He often thinks too much about a perfect workflow. He constantly weighs up positive and negative aspects and sometimes makes decisions too late as a result.

Doer:

He constantly creates movement and pressure in the team and is a constant driving force.

Advantage:

It convinces with its dynamism and ensures that problems are immediately clarified and overcome.

The disadvantage is that

its dynamic can have a hurtful effect on employees.

Competencies

Regardless of the classification in a role model, as a manager you should have distinctive skills that enable you not only to explain the meaning of the planned corporate goals to employees, but also to inspire them to successfully follow and complete the path together.

If skills are used correctly, employees will see this as a sign of trust and develop the feeling that their work is valued within the company.

These most important competencies within employee management include above all

Lead through active action!

Commit yourself to the goals of your employees and set a good example at the same time. Don't sit on an imaginary throne, but take an active part in shaping the process!

Accept practicable suggestions from the team!

Analyze the results together with the team and advocate their implementation with your superiors. Don't be upset if your superiors don't agree, but refine this proposal together with your team members and make corrections if necessary.

Allow justified criticism!

Admitting criticism in general is not easy for most people. However, as a manager, your openness to justified criticism is an important skill that is crucial to the success of a company. Criticism always has a trigger! Criticism is usually voiced after mistakes have been made. "If only we (you) had ...", for example, is a recurring opening to criticism. However, always view criticism as positive feedback that creates potential and see it as an opportunity for improvement. Mistakes happen, but how you deal with them is crucial for success.

Encourage teamwork!

Successful teamwork is essential and can easily be achieved through various measures, such as

All members of the team should always have the same level of knowledge!

All employees receive personal appreciation and equal treatment. This should come from both the line manager and the other members.

All employees have coordinated scope for the individual design of their work tasks. This individuality reveals the different skills of each team member and ensures optimal cooperation.

Create a positive working environment!

A positive working environment is quite easy to achieve. Two aspects play a decisive role here:

Always address your employees openly and honestly. Your feedback on your employees' work performance should be honest, even if criticism is expressed.

Probably the more important aspect is the well-being of your employees in the workplace. Nobody likes working in a dark basement with outdated furniture and technology. Success is unlikely to be achieved in this way. Instead, provide a light-flooded workplace with ergonomic furniture and modern technology.

Provide support in the event of problems!

Show understanding for your employees' personal problems and look for solutions if necessary. Deal with the problems in a positive way and avoid assigning personal blame. A functioning team always works together, solves problems together and is successful together.

Make decisions!

As a successful manager, you are expected to make decisive, clear and comprehensible decisions when really serious problems arise. Contrary to the general assumption that employees see you as a patriarch in such cases, they actually expect you as a manager to make smart and goal-oriented decisions.

Define goals and business objectives clearly and unambiguously!

Employees often complain that they are not sufficiently informed about the company's objectives. This inevitably leads to employees being demotivated and performing the well-known "work to rule". However, success cannot be achieved this way!

As a successful manager, you should pay particular attention to this aspect.

So consider the following:

Formulate goals in as much detail as possible!

Coordinate appointments together with your employees!

Therefore, hold regular discussions with your employees and update existing goals or targets if necessary.

Measure progress in the work process and evaluate it.

Work processes should be constantly monitored to prevent sudden failure. Involve your team and jointly define fixed points at which the progress of the order is checked and evaluated. All employees should be aware of these fixed points. This is the only way you can work towards achieving the goal.

This list is just a small selection of the many different roles and levels that you should master in order to lead successfully.

Important:

Not every role has to be perfectly mastered by a manager. However, if you look at it objectively, you should recognize each of your strengths and weaknesses yourself. This would be the ideal starting point for working on yourself as a manager. Countless seminars and training courses in the field of management training and development can provide support. Take advantage of these offers! As a manager, it won't do you any harm!

Leadership styles and their effects

However, it is somewhat more difficult with your leadership style. Contrary to popular belief, leadership is not innate, but often manifests itself as an ingrained pattern of behavior. In principle, leadership styles can be learned in seminars. However, ingrained and established patterns of behavior are difficult to change in the course of your professional career. Psychologists do not consider an ingrained behavioral pattern to be completely changeable, as it is part of your personality.

Nowadays, leadership styles are defined in different categories. As early as 1922, the German sociologist Max Weber (* 21.04.1864, † 14.06.1920) defined four leadership styles, which he referred to as "pure leadership styles". Weber was referring to the forms of power structures that had existed in the world for centuries, which he regarded as the basis for these leadership styles.

The four "pure leadership styles" include the

autocratic management style,

patriarchal management style,

charismatic leadership style,

bureaucratic management style.

Autocratic management style

The term "autocratic" is formed from the ancient Greek words "autòs" (= self) and "kratèin" (= to rule) and can be roughly translated into German as "sole rule".

This management style involves the unrestricted "rule" of a manager within a company, department or process. An autocratic manager makes all decisions alone, without involving the employees. However, they expect their employees to comply with all decisions, orders and instructions without contradiction.

An autocratic manager intensively monitors compliance with these measures, leaving employees no room for maneuver or development in their daily work.

OBJECTIVE(S) of the autocratic management style

In today's modern business world, this form of employee management may seem very outdated, but this management style can be beneficial in some companies. On the one hand, by speeding up the implementation of decisions, orders or instructions, immediate results can be achieved with a high level of effectiveness, while on the other hand, the strict discipline of employees has a positive effect on productivity. For the most part, the autocratic management style is found in companies with totalitarian governance.

ADVANTAGE(S)

DISADVANTAGE(S)

Employees know exactly which rules apply in the company or a process!

The implementation of rules in the daily workflow is faster, as no contradiction has to be decided again!

Employees often find this management style relieving, as they do not have to make any decisions themselves and are therefore relieved of any responsibility.

If the autocratic manager is absent, e.g. due to prolonged illness, a power vacuum is created and necessary decisions are not made.

For employees with a creative approach to work, this management style is an absolute nightmare.

The lack of opportunities to develop and have a say means that employee motivation is "in the cellar". As a result, creativity and ideas for moving the company forward suffer.

Violations of decisions, orders or instructions by employees are "punished" with sanctions.

The experience gained by employees over a long career or the "fresh knowledge" that new employees bring to the company through their school education cannot be incorporated into everyday working life.

Wrong decisions due to an autocratic management style cannot be corrected and can contribute to considerable financial losses.

Patriarchal management style

The term "patriarch" also comes from the ancient Greek vocabulary and is derived from the words "patér" (= father) and "arches" (= head) and can be roughly translated into German as "Herrschaft des Vaters" (rule of the father).

The autocratic and patriarchal management styles are actually directly comparable. In contrast to the autocrat, however, the patriarch does not see himself as the despot of the company, but as a father figure, i.e. the somewhat "friendlier way" of managing the company. However, the patriarch also makes his decisions alone without restriction. However, an important criterion for his decisions is responsibility, almost care, for the employees. The patriarchal management style is mainly found in companies that were founded in the 1970s or 1980s and are still managed by the company founder himself or his children. These founders take the view that they have personally gained an advantage over their employees in terms of knowledge and experience over the course of time and conclude from this that they have a personal responsibility for the well-being of their employees. Otherwise, the patriarchal management style is considered outdated today.

OBJECTIVE(S) of the patriarchal leadership style:

The family management of the company should make employees feel comfortable and increase their motivation in order to achieve positive results with a high level of effectiveness.

ADVANTAGE(S)

DISADVANTAGE(S)

Business decisions do not require lengthy discussions.

There are clear specifications and guidelines for employees to follow.

The emotional attachment of employees to the company is very high.

The patriarch slips into an entrepreneurial "father role". This means that employees are looked after more intensively than by a manager with an autocratic management style.

No room for creative thinking. The boss is in charge!

Wrong decisions by the patriarch cannot be corrected and are prone to errors.

Unconditional obedience can lower morale, despite emotional attachment.

Charismatic leadership style

The term "charisma" also has its origins in ancient Greek. The verb "charitsesthai" is formed from the word part "char", which can be roughly translated as "to show favor". Its translation ranges from "to bestow", "to endow", "to donate" to the word "to radiate".

Charismatic managers are people with a special charisma. In the area of employee management, this charisma can lead to employees doing things for the manager that go far beyond the norm.

Steve Jobs (* 24.02.1955, † 05.10.2011), CEO of Apple Inc. for many years, is an impressive example of charismatic corporate leadership. He fascinated thousands of employees with his charisma, who worked enthusiastically on the future of the company and played a major role in its success. This charisma still shines through the company today, even after the death of Steve Jobs.

OBJECTIVE(S) of the charismatic leadership style:

Although requirements are defined by the manager, they are then delegated to the employees. In this way, employees are not only shown trust, but also appreciation. All employees feel positively addressed and demonstrate this through effective performance.

ADVANTAGE(S)

DISADVANTAGE(S)

The motivation and identification of employees with their company is very high.

When problems arise, the charisma of the manager can convey confidence.

With a charismatic manager, employees can bring a degree of self-determination to the process, despite having sole decision-making power.

You have to have charisma! Charisma cannot be learned!

The performance of employees is heavily dependent on the charismatic manager. If they are absent for a longer period of time (e.g. due to illness), this can have a negative impact.

Bureaucratic management style

As the term suggests, the bureaucratic management style is a method that is primarily used in public authorities and offices. The clear structure of authorities, with their regulations, rules, instructions and laws, does not really allow for any other management style. If other management styles are applied, they are usually doomed to fail very quickly.

OBJECTIVE(S) of the bureaucratic management style:

Clear rules and regulations for all processes!

Strict adherence to these rules and regulations in order to present itself as a trustworthy organization to the outside world!

ADVANTAGE(S)

DISADVANTAGE(S)

Employees are not subject to arbitrary orders from superiors!

Due to the existing rules and regulations, managers can be replaced quickly without delaying processes!

Wrong decisions are virtually impossible due to the limited scope for decision-making on the part of managers.

Employees cannot act flexibly.

Creative employees are restricted in their work.

This lack of freedom can lower morale (work to rule)!

Excursus: The three classic leadership styles according to Kurt Lewin

In 1938, the German social psychologist Kurt Lewin (* 09.09.1890, † 12.02.1947) defined further forms of leadership styles. In his research, he examined the group behavior of young people. Based on the results, Lewin defined three leadership styles, which he referred to as "classic leadership styles".

The "classic management styles" include the

hierarchical (authoritarian) management style,

cooperative management style,

Laissez-faire management style.

Hierarchical (authoritarian) management style

In the first half of the last century, the authoritarian management style was seen as a signpost for the success of a company. This management style was characterized by adherence to strict rules and clear guidelines from the superior at the top of the hierarchy. Put simply, the boss takes responsibility, makes all decisions and delegates from above. Nowadays, it has been recognized that this management style is anything but successful. On the contrary! Personal initiative, commitment, enthusiasm and motivation are stifled by the authoritarian management style and make teamwork difficult. The resulting dissatisfaction ends in the "inner resignation" of employees. Business failure is thus pre-programmed. However, the hierarchical management style also has a decisive advantage: in a crisis situation, only one person makes decisions and takes responsibility.

OBJECTIVE(S) of the hierarchical management style:

Please note: The terms "authority" and "authoritarian" should not be used synonymously. While "authority" reflects the power or prestige of an individual person, "authoritarian" stands for negative criteria, such as "dictatorial" or "totalitarian". In life, this term is used to describe a person's unconditional obedience to another person - by no means a contemporary variant when applied to the topic of leadership style.

The focus is placed exclusively on entrepreneurial success and the success of the process.

ADVANTAGE(S)

DISADVANTAGE(S)

This makes perfect sense if the process requires quick decisions and the manager is also an expert in this field.

Competencies are clearly defined.

Control of the process in one hand.

Bundling of information at management level.

Decisions are made strictly from the top down.

Incorrect decisions by managers can have a significant impact on the process.

If the manager is absent, e.g. due to illness, no decisions are made and the process comes to a standstill.

Dissatisfaction among employees is very high and "internal resignation" is inevitable.

Cooperative (democratic) management style

The cooperative management style, often referred to as the democratic management style, is now regarded as the most modern management style in today's working world. Here, the manager and their employees work very closely together. This management style combines three important cornerstones of today's modern working life:

Cooperation,

Cooperation,

Teamwork.

In a cooperative management style, the manager knows how to encourage their employees, who have different skills, through open communication with each other and with jointly defined goals in such a way that the success of a process is predetermined. A cooperative manager values their employees and gives them their full trust. The resulting positive working atmosphere not only allows employees to take the initiative, it is even expressly encouraged. However, a manager with this management style also expects employees to provide unrestricted support in the event of conflict. Due to the many freedoms that employees have, a cooperative manager should be strong-willed and assertive. New findings have shown that a cooperative management style is primarily used in young companies that have links to the political, democratic environment.

OBJECTIVE(S) of the cooperative management style:

Finding solutions amicably within the team

Jointly representing decisions

constantly increase the motivation and commitment of employees

ADVANTAGE(S)

DISADVANTAGE(S)

Through their openness, managers recognize the potential of every employee.

Employees feel comfortable in a team. Teamwork is the norm.

There is always room for new ideas and solutions.

The employees' identification with the company is increased.

Employees feel the appreciation.

The decision-making process may be slower, but the result is optimal.

The amount of ideas and opinions can lead to tensions in the team.

In addition to a great deal of patience, the manager must have a high degree of assertiveness towards the team members without being seen as authoritarian at the same time.

Laissez-faire management style

In a laissez-faire management style, the manager largely refrains from intervening in a process. This management style emphasizes the independence of employees, especially when extensive creativity is required of them. Employees are not bound by fixed rules, make their own decisions and control themselves within the team. The scope for shaping their working environment is therefore left to each employee.

OBJECTIVE(S) of the laissez-faire management style:

Transfer of direct responsibility to employees

Increasing the creativity of employees