Conceptual Framework of Business Management

Since the evolution of this world, Trade, business, Commerce, Export, Import, retailing, gambling, buying and selling had been the leading entrepreneurs in all the development of the planet. Same as the management has become a big question mark before us. Many scientists like economists, sociologists, public administration experts, public policy analysts, business analysts, human resource developmental experts, philosophers, astrologists, political panels and religious practioners have defined the business management in their own observation. Where the majority of them characteristically elucidate the business management as the symbolic value of planning, organization, leadership, control, capital, financial, machinery and technologicalism, human being assets as well as the nature’s resources.

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Every business owner should have knowledge of economics and the law of demand and supply, no matter how rudimentary it may be.In the study of economics, the law of demand and supply states that when demand of a product or commodity increases and the supply stays the same, then prices are expected to go up.In the same manner, when the demand for the product or commodity decreases, its price in the market is normally presumed to go down.By studying market trends, evaluation of the demand of the target market, and even the prices of related products, an entrepreneur will be able to increase demand and maximize profits.

First of all as a businessman, you need to analyze the current demand of your product. The demand and supply relation can be determined by doing an analysis of the trend in the market.Once you have outlined the demand patterns of your customers, you can then set about controlling the supply of your product.Taking into consideration the shelf life and expiration date of your product from the date of manufacture, you need to be able to manage the number of your product supply to ensure that this is just enough for the available demand. When your product supply exceeds too much the market’s demand and the products end up in spoilage, then this means decreased profits.

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Franchising is one business alternative for any new entrepreneur.It is also a viable business strategy for an established business or company meant to generate an increased share of the market.A well-known business that has already instituted itself may decide to franchise some of its rights and business systems to a franchisee.This is done with the goal of augmenting exposure and brand recognition. Furthermore, any budding entrepreneur can benefit from choosing a franchise business, instead of having to create and develop a product and business name from scratch.

However, franchising is not for everyone and it is important to make a thorough evaluation before jumping into the franchising bandwagon.Much of the growth attained by businesses nowadays like fast food chains, bookstores and spas as examples can be rightfully attributed to the franchising strategies adopted by its owners.It cannot be denied that when a business starts to distribute franchises, publicity and identification are most likely to follow.People will start to recognize more of a particular business offering, whether it is a set of products or services.If the business is managed appropriately by the franchisee it may very well soon witness an increase in market demand.

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High value of the yen and intense decline in the US car market became the cause of 41% fall in Nissan half-year profits.

Nissan made a net profit of 126bn yen between April and September, while it was 212bn yen a year earlier.

There was an overall 4.7% rise in sales, but in the US it fell 3.4%.

Nissan, looking ahead, has also warned that its profits for the financial year by the end of March can drop more than two thirds.

The company is expecting a net annual profit of 160bn yen, while it was 484bn yen a year back that is well short of the company’s 340bn yen previous forecast.

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A sharp rise in Asian financial markets is observed after fresh moves to deal with global financial crisis. In morning trading, Nikkei gained 13% while Sydney up by 5%.

On Monday, Wall Street shared rocketed 11% and the mentioned gains in Asian financial markets came after that.

In Wall Street, the investors welcomed the fresh moves to deal with financial crisis, as there was news that the US government wanted to implement its $700bn bank bailout plan quickly.

A similar package of A$10.4bn for economic stimulation has been announced by the Australian Prime Minister Kevin Rudd. …read the rest of this entry»

The predicted market share for the third quarter has been lowered by the world’s largest mobile phone maker. The statement became the cause to push its shares down 9.6% to 14.20 euros that was the lowest level since 2005.

According to Nokia, problems with the production of its new mid-range phones and rivals’ aggressive pricing for the downrange are the factors behind market share loss. However, it says that it would recover its market share during the rest of the year.

The company says that its market share will be lower in the third quarter than its share in the second quarter that was around 40%.

The increasingly aggressive pricing strategies of rival phone makers have also been flagged up by Nokia.

Rick Simonson, who is the chief financial officer, says that the company doesn’t believe that such a strategy can be maintained. …read the rest of this entry»