Four stage into business management
Stage of administration
The administration, like all science, requires a process organized in four specific stages to proceed with the advances in the development of a business or company.
The traditional model presents us with every business as a commercial project where short-term and long-term tasks are being executed with an increasingly intense level of difficulty.
Management
For the purposes of this manual, we have classified it into four stages, which we detail below:
• Plan: It represents the first step of the future entrepreneur and visionary, who will be the leader of your own business idea. The Business Plan is a document that as a tool is very useful in this phase as it guides the manager in clarifying all aspects of his business that begins with a business objective or goal. Then it involves defining a strategy or methods with which you will define the foundation of your business operations. It is a strategic map where you will visualize the location, budget and number of staff that will have the ability to get involved. Possible strengths, opportunities, as well as weaknesses and threats (SWOT) must be taken into account from a logical starting point. This can cover a short term of 3 years, long term of 5 years up to more than 10. It is never final, since during the march and based on the tests and errors; The plan is modified or reoriented in its previous approaches to the most effective signs.
• Organize: Who will be necessary to fulfill the activities that the business will require. The are we going to count on to realize that business vision? Here it implies who will provide us with financial funds, in addition to what skills and abilities of the human resource time in which each activity will be carried out or executed, the period of time that will consume us within an operation design according to our industry, in what time sequence in a coordinated and synchronized manner between the partners, shareholders, co-partners, etc. The necessary financial, human, and technological resources materialize.
BUSINESS ADMINISTRATION HANDBOOK
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• Direct: It works like that stage in which all the machinery or business space is ready to operate and resources are invested or put up for sale to start generating dividends. The manager, businessman or trader must know when he is prepared to cover every need that occurs in the process of service operations or in the manufacturing process; in case of being a product. He will supervise that his junior employees timely coordinate each of his tasks with precision, and thus emphasize positive results to achieve the selected goals.
• Evaluate: Supervised is not controlled, responsibilities are subordinated. In order to evaluate the projects that are carried out, a cost-benefit analysis associated to their performance is carried out, whose calculation allows to define if this should be carried out, improved or discarded. In addition to economic aspects, social, environmental and political aspects are also taken into account. It is a very complex analysis by employing a series of technical criteria for decision-making, in addition to the fact that there is no previous market price and you must choose between different options, within an acceptable margin. Risk analysis is not a static process. The conclusions should be reviewed when additional information is obtained or when circumstances vary. It is normal to compare between different possible options, hiring risks and potential returns; The contrast hypothesis that is always used is the so-called “zero hypothesis”, that is, the option of doing nothing.
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