Acronyms Business

Business Administration Dictionary Definitions

Business administration, or “BA” for short by abbreviationfinder, is part of the field of economics. One of their goals is to run a company in such a way that the goods used are handled economically due to their scarcity. In this way, entrepreneurial decisions should be made even more well-founded (and of course for the benefit of the organization).

What is business administration?

The business decisions and definitions relate to the individual company. This should be able to work even more ecologically with the help of the respective processes and the decisions of the corresponding employees. Always in focus: the “correct” handling of the available goods.

In everyday life, on the basis of this task, there are also repeated overlaps with economics, “BA”.

Due to the special scope of business decisions, this area forms an important basis, both in small and large companies. In order to be able to make well-founded decisions and to work competently, you need extensive know-how and skills that are imparted as part of a business administration degree. Within the course of study, opportunities arise again and again to specialize and focus on different aspects of business administration.

Areas of business administration

In everyday business administration it is shown again and again how extensive this area actually is. After all, it is important for a company to act economically on various levels. Among other things, the respective decision-making areas relate to the following categories …:

The accounting

With the help of decisions in the area of ​​accounting, the success of a company can be controlled and influenced in the long term. Numbers from a wide variety of areas form the basis for this. On the basis of these figures, further developments can be planned and controlled even better . The accounting is referring to more than the bookkeeping and is “only” an important component of operational decisions.

The controlling area

In large companies in particular, there are separate departments that deal with the area of controlling and usually report their results directly to management. Your job is, among other things, to create sales forecasts and budget plans . In addition, the employees concerned monitor compliance with the specifications that are intended to control the respective operational processes.

The merchandise management

“Which goods leave the company?”, “How are goods recycled in the company?” – these questions become topical in the course of merchandise management . Here, too, there is a great deal of potential when it comes to optimizing the profitability of an organization. The corresponding requirements come into play primarily in the course of scheduling and logistics .

Human resource management

A company can also increase its profitability with the help of the right personnel planning. Those who deploy their staff well and prevent bottlenecks and idle times can use their budget even more effectively . It can also make sense to work with rewards for target achievement in this area.

Different investment opportunities

Among other things, specialists in the field of business administration deal with questions relating to sensible investments . Because: even if, for example, buying a new business premises or renting new office space is associated with an increased financial burden, it may be that this decision pays off in the long term from an economic point of view, as more goods can be produced and sales – with a corresponding demand – can be increased.

Financing decisions

Even large companies often do not have sufficient financial means to pay for new systems and buildings without financing. Well-founded action can be taken here on the basis of business decisions. Questions such as “Which financing model best suits the respective situation?”, “Which lender offers the best conditions?” And “To what extent is financing generally worthwhile?” Play a particularly important role.

Research & Development

In a time of growing competition, it can be vital for a company to constantly adapt its range of goods and services to the market and the respective trends. Before a new product can be created, however, (more or less comprehensive) investigations in the areas of research and development are required . These should of course also be planned comprehensively and adapted to the available budget.

Marketing

The possibilities that arise in connection with marketing at different levels are varied. This area of ​​business administration deals with the optimal use of the budget in this area and partially overlaps with opinion research and the user behavior of the potential target group.

Production

Using the “real” production volume , the leaves a company’s profitability control . Because: too high production increases storage costs, while too low production can lead to delivery problems (and thus to sales losses). Here it is important to find the right balance in order not only to save costs, but also to be able to trade profitably.

Division of business administration into a performance system and a management system

Even in connection with smaller companies, the business decisions are usually based on a division into the performance system and the management system . The basic assumption here is that the relevant specifications are decided by one department and implemented (ie “performed”) by another department.

In order to be able to present the individual areas of responsibility even better, work is carried out on the basis of organizational charts in most cases . Of course, these can be individually adapted – depending on the project.

Conclusion

Decisions from the field of business administration are up-to-date with regard to the most varied of aspects. Regardless of whether manager, controlling, marketing or other departments: the effects of correct (or incorrect) decisions often show up here on completely different levels. It is therefore self-explanatory why the decisions in the field of business administration are not only interesting with regard to the employees of the company management.

With the help of business administration, far-reaching conclusions can be drawn, particularly with regard to the profitability of a company. Because: the decisions in the different areas are repeatedly questioned, documented and can thus be adapted to the respective developments.

If you want to increase the profitability of a project or a company, you should not close yourself off to this important sub-area, but instead use the opportunities that are available to you. Thanks to the opportunity to work not only in general, but specifically and in a sector-oriented manner, this results in great potential, which should not be underestimated with regard to maintaining one’s own position on the market.

BA Business Administration