Loosely, the words business and management have been interchanged so often that any misuse is now accepted. “I have a business in town” could mean “I manage or I own a retail store in town”. Management is generally defined as using all available resources to achieve preset goals and objectives. This act of managing is normally carried out by a qualified team or individual employed to oversee day-to-day operations. But the decision to own or invest in the retail sector in that town and the decision to continue the same operation in the same location and the decision to exit or change any aspect of the operation, now, that is Business.Business is making decisions regarding setting goals and objectives, while management is charged to implement those same goals and objectives. The process is called business planning and it can extend five to ten years or more in the future and is reviewed each and every year, if not less. Business Plans are based on a decision which is taken before, using publicly available information, as to what type of operation will most likely meet the owners or investors requirements. These needs can range from promoting personal skills, serving an unfulfilled market, enhancing cash flow, to the best return on investment.
The next decision in the business planning exercise is based on a feasibility study, research and development results, market surveys and product testing, all to guide owners or investors as to the levels of risk. The business plan must also address the operation’s reporting structure and the human resource needs, which would include management personnel by qualifications, experience and responsibilities. In small operations, the lines can easily be blurred as one person can be responsible for many functions. Hence, a manager/owner can be seen serving customers, supervising workers, dealing with suppliers, on the phone with bankers and after hours, reviewing or changing the business plan.
Business success stories always focus on having met or surpassed preset goals and objectives, while the truth is more on the subject of human happiness. The business plan, which is constantly revisited and when necessary altered, must offer that peace of mind to all stakeholders. Workers must feel confident that their efforts are rewarded as agreed, management contracted to produce results must feel trusted and owners or investors must see returns for there to be true success. If not, a decision to exit which is normally based on external factors or market conditions must be made. Exit strategies can be the sale of part or all of the operation or winding up and liquefying (cashing in) to stop all operations.
Clearly, business is the work involved in making a decision to buy, hold or sell (start, change or stop) operations or activities for profit, while management implements those decisions.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
