Business Management and Strategic Decision-Making

Production and Economic Structures

Economic Phenomena: A set of phenomena related to production. This encompasses the sum of the output of all production units, creating value added throughout the economy. It's crucial for understanding the overall economic structure and short-term cycles.

Business Management: One type of business management focuses on formulating and implementing strategies. This involves making contingent decisions and considering various factors, such as access to financial resources, fixed capital, and renewal investment. Financial returns and recovery time are key considerations.

Productivity and Efficiency: Output per unit of employee input is a vital metric. Intensive operations management is essential for achieving high levels of productivity and efficiency. A 2.5% increase in productivity can significantly impact overall output.

Financial Management and Solvency

Financial Resources: Access to financial resources is critical for business success. Creating or expanding social capital and maintaining a solvency position are essential aspects of financial management. A dynamic vision of the company's financial reality is necessary for effective decision-making.

Legal Advice: Providing legal advice to the buyer is crucial in business transactions. This ensures that all legal requirements are met and protects the interests of both parties involved.

Organizational Structures and Design

Organizational Design: Organizational design must be consistent with the requirements of a particular situation. Different structures, such as functional, mechanistic, and organic structures, exist. Max Weber's bureaucratic model is a classic example of a mechanistic structure.

Span of Control: The number of people who must respond to a particular head is known as the span of control. This is a key factor in organizational design and impacts communication and efficiency.

Limited Liability Company: The Limited Liability Company (LLC) is a common business structure that offers limited liability to its owners. Understanding the structure and functions of a company is crucial for effective management.

Divisional Structure: The divisional structure consists of self-contained organizational units, each responsible for a specific product or market. This structure can improve efficiency and accountability.

Network Dynamics: A company in the form of a network dynamic emphasizes flexibility and collaboration. This structure is well-suited to rapidly changing environments.

Strategic Decision-Making and Analysis

Strategic Decisions: Strategic decisions are crucial for long-term success. Bounded rationality, as described by Herbert Simon, recognizes the limitations of human decision-making. Intuition and the prospect theory of Kahneman also play a role in decision-making.

Strategic Analysis: Analyzing the environment, including threats and opportunities, is essential for strategic decision-making. Quantitatively assessing various dimensions of the environment, such as competition, price targets, risk, and uncertainty, is crucial.

SWOT Analysis: A SWOT analysis helps identify strengths, weaknesses, opportunities, and threats. This framework is valuable for formulating strategies and making informed decisions.

Project Management and Execution

Project Planning: Project planning involves defining objectives, scope, and deliverables. Economic and technical feasibility studies are essential for successful project execution. The time-cost-quality triangle is a key consideration in project management.

Project Evaluation: Net Present Value (NPV) and recovery time are important metrics for evaluating project profitability. A summary of actions for execution and cost analysis is crucial for effective project management.

Contract Management: Contract management involves negotiating and managing contracts with suppliers and other stakeholders. Understanding contract terms, such as the warranty period and payment terms, is essential.

Project Lifecycle: The project lifecycle typically includes launch, development, and termination phases. Monitoring progress and managing risks throughout the lifecycle is crucial for project success.