Assignment:Development in Business Management
1. Introduction
1. Every organization has basic steps when starting a particular business. As much as the processes might be different, there are always basic components that opt to be included. Some of the components that should be included are things such as premises, resources, employees, and equipment. After these components have been met, there are also essential sections that must be included to make the management have a flow of activities.
2. Some of the departments that are often basic and essential for most of the organization include financial management, human resource, supply chain management, government compliance, and credential. Financial management involves planning, organizing, directing, and controlling the financial activities such as procurement and utilization of funds that belong to the enterprise. Financial management involves things such as investment decisions on fixed assets which are also known as capital budgeting.
3. Financial management. Financial management should ensure that organization's fund are regularly and adequately supplied. Besides, financial management also ensures that shareholders get adequate returns by charging the market price of the shares and go as per the expectations of the shareholders. Also, it is used to ensure that there is an optimum utilization of organization's funds once they are procured (Huston, 2010).
4. Human resource management. Human Resource Management should ensure that it obtains employees with required expertise and work capability. Human resource management is the face that determines organization's performance. Therefore, failure to recruit the right personnel can result in failure to achieve organization's objective (Porter, 2010).
5. Supply chain management. Supply Chain Management involves the movement of materials which involves transportation, warehousing, processing, packaging, and distribution of the final products to the end consumer. Supply chain management is one of the main factors that determines sales of a company. The main reason is that, the department involves customer relation services, supplier relation, and timely delivery of products that are used either in production or management (Choon Tan, 2001). Some of the strategies used here include lead time, Just-in-Time technique, inventory order management, and store management activities.
6. Government compliance. The business also has to comply with the government legal requirements. Thus, before starting the business, the owner has to be aware of the rules and regulations that apply to the business. Some of the legal formalities that are involved in businesses include business registration, licenses, Privacy Act, Employment Act, and tax permit.
7. Credentialing. Credentialing involves the verification of expertise, experience, interest and willingness to carry out a given form of activity that the business is established to take. Therefore, an organization has to ensure that its activities are well defined and must be put in writing.
2. Conclusion.
There are different types of businesses in different industries. However, how their activities are carried out in each department often take the same procedure. As a result, in researching the essential requirements of business, the project will mainly focus on the outstanding components that contribute to the establishment of a business/organization and its progress.
References:
Choon Tan, K. (2001). A framework of supply chain management literature. European Journal of Purchasing & Supply Management, 7(February 1999), 39-48.
Huston, S. J. (2010). Measuring Financial Literacy. Journal of Consumer Affairs, 44(2), 296-316.
Porter, C., & Spear, B. (2010). Strategic Human Resource Management. Human Resource Management Review, 14, 365-382.