Business Management and Leadership Book: The Best Source Guide into Management and Leadership for Business Success

By Abdi Abdillahi Hassan (Matan)

Working on business management can be exciting, but it can also create new challenges.
In this guide, the author draws on his experiences working in various countries to provide tips for managing a business or organization. He answers questions such as:
• What are the main components of business management?
• How do you develop a successful business model?
• What are the differences between leaders and managers?
• How do you connect with business prospects?
• What steps can you take to optimize financial management?
Other topics include business policy and strategy, business communication, sizing up competitors, analyzing consumer behavior, and the five key product levels.
The guide is divided into nine units, with each chapter consisting of several articles on a particular topic, so you can hone your leadership and management skills.
Filled with definitions, theories, and real-life examples, this guide will serve as a treasured resource for leaders and managers who want to optimize business operations.

• Language: English
• Publisher: AuthorHouse UK
• Release date: Jun 8, 2023
• ISBN: 9798823083041

Book preview

© 2023 Abdi Abdillahi Hassan (Matan). All rights reserved.

No part of this book may be reproduced, stored in a retrieval system, or

transmitted by any means without the written permission of the author.

Published by AuthorHouse   06/07/2023

ISBN: 979-8-8230-8305-8 (sc)

ISBN: 979-8-8230-8304-1 (e)

Any people depicted in stock imagery provided by Getty Images are models,

and such images are being used for illustrative purposes only.

Certain stock imagery © Getty Images.

Because of the dynamic nature of the Internet, any web addresses or links contained in

this book may have changed since publication and may no longer be valid. The views

expressed in this work are solely those of the author and do not necessarily reflect the

views of the publisher, and the publisher hereby disclaims any responsibility for them.

To my parents, my father, Abdillahi Hassan Matan, and my mother Ebado Esse Egeh. They are both dead. I pray to God to shower His mercy on them. I would also like to dedicate to all my brothers, uncles (ANJHKW), aunts, and a large family of Hassan Matans.

CONTENTS

Preface

Acknowledgments

Introduction

1.     Business Management

1.1. Introduction to Business Management

1.2. Business Objectives

1.3. General Analysis of Business Management

1.4. What Is a Business Management System?

1.5. Business Management Components

1.6. What Is a Business Model?

1.7. Business Management Pros and Cons on a Local, National, and International Levels

1.8. International Marketing

1.9. Conclusion

1.10. Recommendations and Suggestions

1.11. References

2.     Business Leadership

2.1. Differences between Leaders and Managers

2.2. Defining Business Leadership

2.3. Leadership Theory

2.4. Leadership Styles

2.5. Leadership Style Concept

2.6. Business Management and Leadership Pros and Cons

2.7. Conclusion

2.8. Recommendations and Suggestions

2.9. References

3.     Marketing Management

3.1. Customer Target Marketing Strategies

3.2. Scope of Marketing

3.3. Overview of Marketing Activities

3.4. Decisions Made by Marketers

3.5. Marketing Strategies

3.6. Marketing Objectives

3.7. Marketing Management Functions

3.8. Development of Marketing Concept

3.9. Marketing Values

3.10. Understanding Customer Needs, Wants, and Demands

3.11. The Five Key Product Levels

3.12. Marketing Plan

3.13. Marketing Mix

3.14. International Marketing

3.15. Marketing Management Pros and Cons

3.16. Conclusion

3.17. Recommendations and Suggestions

3.18. References

4.     Consumer Behaviours

4.1. Introduction

4.2. Consumer Orientation

4.3. General Analysis of Consumer Behaviour

4.4. How Consumers Behave

4.5. Consumers’ Behaviour: Pros and Cons on Local, National, and International Levels

4.6. Conclusions

4.7. Recommendations and Suggestions

4.8. References

5.     Human Resources Management

5.1. Introduction to HRM

5.2. Background

5.3. Current Forms of HRM

5.4. Functions of the HRM Department

5.5. HRM Objectives

5.6. The Current HR Situation

5.7. Pros and Cons of HRM

5.8. International HRM

5.9. Conclusion

5.10. Recommendations and Suggestions

5.11. References

6.     Operational Management

6.1. What Is Operational Management (OM)?

6.2. Production Management

6.3. Trends in PM

6.4. Operation-Linked Market Competition

6.5. Getting the Most from Market Competition

6.6. Operational Strategy

6.7. Advantages and Disadvantages of OM

6.8. Conclusion: How to Improve OM

6.9. Recommendations and Suggestions

6.10. References

7.     Financial Management

7.1. Financial Management in Business

7.2. The Concept of Financial Management

7.3. Objectives of Financial Management

7.4. Capital Markets

7.5. Financial Management and Its Functions

7.6. Financial Management Pros and Cons

7.7. International Financial Management

7.8. Conclusion

7.9. Recommendations and Suggestions

7.10. References

8.     Business Policies and Strategies

8.1. Introduction

8.2. Objectives for Business Policy and Strategy

8.3. Analysis of Business Policy and Strategy

8.4. Features of Strategies

8.5. How Business Policy and Strategy Apply to Reality

8.6. Developing a Business Strategy

8.7. Discussions Pros and Cons

8.8. Conclusion

8.9. Recommendations and Suggestions

8.10. References

9.     Business Communication

9.1. Introduction to Business Communication

9.2. Types of Communication

9.3. Analysis of Business Communication

9.4. How Business Communication Operates

9.5. Components of Communication

9.6. Business Communication Pros and Cons

9.7. Conclusion

9.8. Recommendations and Suggestions

9.9. References

About the Author

PREFACE

This book is for anyone interested in finding out how modern business operations work and the business skills that are required for success.

This book focuses on how to manage or lead a new or existing company which is managed by the founder or one of the company’s shareholders. This book will also benefit people who work for a company which runs another organization or business.

First, business means buying and selling goods or services, trading and exchanging them for money. Businesses can be either profit or non-profit.

Business is all about the growth of a company and making it profitable. Effective management is required to develop and grow a business. Business management can be defined as a group who aims to bring people together to reach the desired goals of the company.

This book can be used by:

• Small, middle, and large-sized businesses.

• Students and lecturers from different colleges and universities.

• Those interested in finding out more about how to lead and manage a business.

• Senior or middle managers who work for public, private, and non-governmental organizations.

• Human resource managers of various organizations.

• People researching trade, business management, and general management.

• Individuals working in marketing and promotion.

• People studying or are interested in economic growth.

A business requires a well-organized support system with a framework for action. Management of a business includes responsibilities such as organizing, planning, and executing the work so that it can operate as a productive system. Tasks can be allocated throughout the company or even be outsourced.

According to Mintzberg (2014), the word management is an English word originating from the fifteenth-century French word mesnager, which is used in the language of the horse. It means to hold the horse in hand or to control horses. It was incorporated into the English language in the seventeenth and eighteenth centuries and became the current word for management. Entrepreneurship is created when the needs and aspirations of people, organizations, and government customers in the market are realized.

Business management is the management, coordination, and organization of business activities. These include the supply of materials, resources, and machinery which deals with innovation, production, and marketing.

In other words, management work is the responsibility of planning, organizing, directing, and protecting revenue sources to achieve the goal of economic growth.

But it is more than that. Management also includes transformation and the exchange of human-made resources, natural resources, human resources, and technology resources. Effective business management facilitates a joint effort of all associated with the company to achieve its goals.

Management functions include the following:

• Organization

• Leadership

• Planning

• Staffing

• Organizational control

ACKNOWLEDGMENTS

I would like to thank the people who inspired me to write this book. First and foremost my wife, Ilhan Abdirahman Ibrahim; my niece, Saynab Mohamed Abdillahi, who edited the book; and my lecturers at Atlantic University. I would also like to thank everyone who contributed to the production and publication of this book.

INTRODUCTION

Working in business management can be exciting, but it can also create new challenges. Although management requires knowledge, experience, and skills that can be learned or gained, there are no specific skills or techniques you can study to become an excellent manager. However, in this book, you can find more information about and tips for managing a business or organization. As a result, you can lead your business or team to greater growth and greater productivity.

Business management is an important issue, both in terms of business operations and personnel management. I tried to start most chapters with the types of business management. I then give the definition of and theory about the subject being discussed in that chapter.

There are also examples and guides regarding how business management works. We also look at the topics covered in this book in both local and international formats, as well as the pros and cons of the topic. We conclude each chapter with suggestions and recommendations on the topic.

The book is divided into nine chapters, each chapter consisting of six to seven articles dealing with the management and leadership required in an organization or existing business. The titles of these articles are included in the contents.

Chapter 1 presents an introduction to business management. For example, what are the elements of good business management practice?

In chapter 2, the focus is on business leadership, the differences between management and leadership, and leadership styles.

Chapter 3 discusses marketing, including strategies and objectives, as well as customer needs, wants, and desires.

Chapter 4 introduces consumer behaviour, including how it applies to reality.

In chapter 5 we discuss the role of human resources management in effective business management.

Operational management is discussed in chapter 6, including its history and current trends, the effects of linking it to market competition, and how to improve a company’s or an organization’s operational management.

Chapter 7 highlights the objectives and functions of domestic and international financial management in business. Also discussed are the advantages and disadvantages of financial management.

In chapter 8, we look at business policies and how they relate to a business’s strategies.

Chapter 9 explores business communication. We cover the types and components of business communication and its relationship to reality.

CHAPTER ONE

Business Management

1.1. Introduction to Business Management

First, business means buying and selling goods or products that have been traded and exchanged for money. We can say that a business is associated with a business venture by an individual or organization that has a specific purpose for which the advertiser or a group member has specific interests and goals. This can be either profitable or non-profitable.

There is a need to work on this business, which is called management. We can say that management means performing the required work. Business management aims to bring people together to achieve the desired goals and benefit the organization.

We regard the business as a well-organized support system with a framework for action. Management could be defined as the human behaviour of doing work such as planning and executing the work, organizing, and then stopping so it can operate as a productive system. The work that is being done is either allocated to someone or sent to a group of people to perform it.

Business is all about the growth of a business and the sources of production that generate profits related to the goods or services it provides. As mentioned previously, whether the business is profitable or not.

We learned in the Preface that, according to H. Mintzberg (2014), the word management is an English word originating from the fifteenth-century French word mesnager, which means to hold the horse in hand. In other words, to control the horse. And entrepreneurship is created when the needs and aspirations of people, organizations, and government customers are realized in the marketplace.

Scholars have given different views and definitions of management:

• Henri Fayol (1841–1925) said, Management is planning and vision, management, command, coordination and control.

• Fredmund Malik (1944–) described management as changes in the use of resources. Management is the coordination and use of all production tools and equipment including machinery, equipment, human resources and finances.

• Ghislain Deslandes defines management as a weak force, a pressure to achieve results and a given triangular power of restraint, modelling and imagination, operating at individual, institutional levels and environment.

• Peter Drucker (1909–2005) saw the basic function of management as two factors: marketing and creativity. However, creativity is also linked to marketing (product innovation is central to strategic marketing and business management knowledge.

When managing multiple complex tasks—such as setting up a strategy for a company or organization and staffing—using available resources such as money, natural resources, technology, and personnel is required to balance market fluctuations in products and demands based on existing customer needs in the market.

Managing requires knowledge, competence, perseverance, and consistent decision-making. You study at colleges and universities to earn a diploma, bachelor’s degree, master’s degree, or a PhD degree in assorted specializations.

1.2. Business Objectives

Businesses should have a set of goals. In general, business companies have the following objectives:

1. To efficiently and effectively produce products or provide services to meet the needs and demands of users in the market.

2. To generate enough income to make a profit.

3. To protect the well-being of employees. To achieve this, personnel management and labour relations are needed.

4. The business should also act to ensure good social relations with its neighbours and citizens of the city or town where it is located. To do this, the company may perform special social obligations, such as providing access to roads and scholarship awards to eligible students, farm neighbours, or working children.

1.3. General Analysis of Business Management

Business management includes the coordination and organization of business activities, including the supply of materials, resources, and machinery. This deals with innovation, production, and marketing. In other words, management is the responsibility of planning, organizing, directing, and protecting revenue sources so the goal of economic growth is achieved.

According to Andrew J. Dubrin (2009), most companies and corporations have three hierarchical structures that are structured like a pyramid structure as follows:

Top executives: They lead the company as members of the board of directors and the CEO. They set the policies and strategies for running the business. They also decide on an organization’s or a company’s overall structure.

Senior managers: These individuals are usually knowledgeable and skilled in business management. They are responsible for leading and directing the central management of an organization or company. In order to do so, they have open communication channels with middle management and senior management of the company that owns or manages the business.

Middle managers: These are the heads of the mid-level administration, especially the managers of the departments or branches of an organization or company, regional managers, and divisional managers based on the company’s or organization’s structure. They also guide and provide frontline managers.

Intermediate managers: These individuals direct and communicate to subordinate management the policies and strategies set in place by the company’s or organization’s top management.

Subordinate managers: Subordinate managers are the ones who oversee the workplace and frontline executives. They provide instructions and advice on how to do the job.

These components make up the company’s management chain. The individuals in those positions must communicate trust and co-operation for the company or organization to achieve its goals.

Company CEOs and managers are responsible for managing and ensuring the smooth running of business activities and making decisions required to be made there. Management is everything related to any business—from one with a few employees in a small to mid-sized location to a large company or organization with a thousand employees in different cities and countries.

Policies are defined by the company’s board of directors and enforced by general managers and subordinates. It is possible to assess the future of the company and the value it will then have based on the knowledge, experience, and quality of its managers.

Management functions include the following:

• Organization

• Leadership

• Planning

• Staffing

• Organization control

Management also includes the transformation and the exchange of resources—natural resources, human resources, and existing technology resources. Managing a business facilitates a joint effort to achieve the company’s goals.

1.4. What Is a Business Management System?

A business management system is a tool used to implement the planning and strategies of business processes, structures, and policies. Also included are the procedures to deliver, implement, and develop business strategies and plans, as well as everything else related to business management activities. The system aids in making strategic and tactical business decisions about current processes, work, and implementation that address the overall specific goals of the organization or company depending on meeting customer expectations and needs.

A business management system provides management with the tools to monitor, plan, and control business activities and measure business performance. Such a system also aims to implement a system that promotes sustainable growth. This management approach conveys the principles of company sustainability and impacts the overall business’s road map. These lead to different levels depending on how the for-profit organization or company