Background information on the topic "Business Administration (BWL in German)"
Business Administration deals with the management of companies and the interactions between companies and their economic environment. The basic premise is that goods and means are only accessible and available to a limited extent.
The scarcity of goods makes it necessary for a company to operate in order to meet its resource needs. This is done according to an economic principle consisting of the following three components:
If one is looking for a way to achieve a maximum output with the available goods (given input), one calls this maximum principle. However, if you have a fixed production target (given output) and are looking for a way to achieve it with minimal input, you follow the minimum principle. If one looks for the optimum ratio of input and output, one speaks of the extreme principle.
Important aspects to consider in business administration are location factors. These can be divided into three categories:
- Input-related location factors include resources such as raw materials, energy, infrastructure, availability and skills of the workforce.
- Environmental conditions and social and political structures are among the throughput-related location factors.
- Output-related location factors are, for example, the proximity to the sales market and the competition.
Furthermore, accounting is of fundamental importance for every entrepreneur. A distinction is made between internal and external accounting. External accounting is regulated by law and for investors and authorities for the purpose of reporting. It includes bookkeeping, accounting, and the preparation of annual financial statements. Internal accounting primarily serves the purpose of internal information. It comprises cost and performance accounting, liquidity accounting, operational statistics and planning accounting.
Human Resources, which is divided into the areas of Recruitment and Personnel Development, is also essential. Finally, a central task of management is to find a suitable corporate policy. This will include the goals to which the company is committed and the corporate culture that is reflected in the conduct of its staff.
Finally, the interface with the market should be mentioned as a relevant domain of business administration. Marketing aims to optimise sales and uses market research and advertising measures.
The Management Institute Dr. A. Kitzmann offers seminars on business administration.
Author: Management Institute Dr. A. Kitzmann