Business Administration Report: Principles, Practices, and Innovation

This report provides a comprehensive overview of business administration principles. It begins by exploring the characteristics of different business markets, the nature of interactions between businesses, and how market dynamics shape organizational goals. The report then delves into business innovation, examining models, sources of support, and the product or service development process, including the associated benefits, risks, and implications. Further, the report analyzes the importance of financial viability, the consequences of poor financial management, and different financial terminologies. It also covers budgeting, marketing principles, sales processes, market research, brand value, and the difference between sales and marketing. The report concludes with a summary of the key findings, offering insights into the various aspects of business administration.

BUSINESS
ADMINISTRATION 5

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. 1 Explain the characteristics of different business markets.....................................................1
1 . 2 Explain the nature of interactions between businesses within a market..............................1
1 . 3 How an organisation’s goals may be shaped by the market in which it operates................2
1 . 4 Describe the legal obligations of a business .......................................................................2
2 . 1 Define business innovation..................................................................................................2
2 . 2 Explain the uses of models of business innovation.............................................................3
2 . 3 Identify sources of support and guidance for business innovation......................................3
2 . 4 Process of product or service development.........................................................................3
2 . 5 Benefits, risks and implications associated with innovation...............................................4
3. 1 Explain the importance of financial viability for an organisation........................................4
3. 2 Explain the consequences of poor financial management....................................................4
3. 3 Explain different financial terminology................................................................................5
4.1 Explain the uses of a budget..................................................................................................5
4. 2 Explain how to manage a budget..........................................................................................6
5. 1 Explain the principles of marketing......................................................................................6
5. 2 Explain a sales process..........................................................................................................6
5. 3 Explain the features and uses of market research.................................................................7
5. 4 Explain the value of a brand to an organisational.................................................................7
5. 5 Explain the difference between sales and marketing............................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business administration is a wide field that incorporates many types of management
positions and provide help the corporation to manage its operations as a result targets can be
accomplish. It includes all aspects of overseeing & supervising business operations, as well as
related field which involve finance, accounting and marketing. The main aim of this report is to
understand the principles of business. In this report, there are following are covered such as:
characteristic of different business within a market, legal obligations of a business, process of
product or service development, different financial terminology and sales process. Apart from
this, it will also discuss about feature and uses of market research and relationship between sales
& marketing.
MAIN BODY
1. 1 Explain the characteristics of different business markets
Business market is based upon the target customer segmentation and it depends upon the
products has being sold. Characteristic of different business market are as follows:
B2B ( Business to business) : B2B marketing states the marketing of goods & service to
other organisations. The characteristic of this type of market is that product does not directly sold
to the consumers and it being sold to the business houses. (Yilong and Shuqiang, 2012).
Service market: This refers to both B2B & B2C services, which involves marketing of
services like : financial services, telecommunication services, health care services, professional
services. The service market is one in which a business sells its services directly to the
consumers.
B2C (Business to consumer) : B2C refers to the transactions conducted directly among
an organisation & consumers who are the final users of products. The characteristic of this type
of business market is that products are directly sold to the consumers.
1 . 2 Explain the nature of interactions between businesses within a market
The nature of business to business market and service market can be distinct and are
often dependent upon parties involved. In B2B market interactions are usually speedy at the
offset, the basic purpose of this market is to ensure a healthy relation with the corporations as a
result business can increase in the future. So in this market there is long term with interactions
with the clients.
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The service market is generally quick but differs amongst distinct clients. . In B2B
interaction one organisation can interact with other company and discuss about its products and
ask other corporation to sell goods of it. (Yang, 2015).
1 . 3 How an organisation’s goals may be shaped by the market in which it operates
To establish the goals is important for an organisation and it should be match with the
plans and policies so that specific targets can be accomplish. An organisation should make the
plans and strategies and demand of market where it operates its business so that it can achieve its
goals. If market is more oriented towards technology than corporation should focuses to
introduce innovative technology so that cost of productions can be minimize and quality can be
improve. As a result it can operates its business in the market and accomplish its goals. (Weske,
2012).
1.4 Describe the legal obligations of a business
For an organisation it is necessary to fulfil the legal obligation of a business so that it can
effectively carry its operations.
Corporation Act, 2001 : For a company it is essential to follow the legal obligation of
corporation act so that it can follow all the requirements which are important and maintain its
structure of business.
Work Health and safety Act, 2011 : It is necessary for an organisation to follow the
legal recruitments of this act and protect the health of its employees and provide healthy and safe
working environment.
Equality Act, 2010 : A company is legally obliged to follow this act and does not
discriminate on the basis of gender, beliefs and age.
2 . 1 Define business innovation
For an organisation. it is essential to bring some innovative ideas so that it can lead the
market and maximize its profits. It is a process for introducing new thoughts, methodology,
workflows, products and service (Innovation. 2018). For example, if a company is involved in
car manufacturing business then it can bring innovation and use robots in manufacturing process
which is helpful to maximize efficiency and minimize the defects as a result quality products can
be produced and productivity can be enhanced. It is helpful for the corporation to grab more
market share and increase the revenue and beat the competition. (Storey, 2016).
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2 . 2 Explain the uses of models of business innovation
To bring innovation is the need of business so that it can beat the competition in the
market and grab market share. There are various models for business innovation which is useful
to bring new thoughts and ideas. The 4Cs model of business innovation are as follows :
 Challenge assumptions
 Communicate differently
 Compare the idea with others which is helpful to generate new thoughts
 Connect- To create connections and links among the issues and other contexts &
applications (Scheer, 2013).
With the help of 4Cs issues can be analyse and it is helpful to identify the gap in the
market so that organisation can bring innovative products and services which can fill the gap as a
result corporation can grab market share. As a result, profit can be maximized.
2 . 3 Identify sources of support and guidance for business innovation
To bring innovation an organisation need support from various sources such as :
investors, they provide the funds so that company can bring innovative products and expand its
business. Research & Development department can support to make research as per the current
market demand so that superior and innovative product can be manufacture as a result consumer
can attract towards the corporation. It is helpful to grab more market share and generates higher
profits. A company cannot survive for a long time if it does not change as per the recent market
trend and to survive in the market it is essential to bring some unique things so that competition
can be beat.
2 . 4 Process of product or service development
To generate profits it is essential for an organisation to develop its products or services so
that it can sell and earn revenue. The process of product or service development are follows :
Idea generation : It is the first process to generate innovative idea for the product or service
development (Nielsen, 2013).
Product evaluation : Before the development product should be evaluate properly which give
value to the organisation.
Initial feasibility testing : It provide help to know that it feasible to introduce new product and
who are the targets consumer which buy it so that product development can be successful.
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Business analysis : It provide help to know that how much business can be grow so that
company can earn more revenue and survive for a long run.
Product development: After business analysis product has developed as per the market
research and recent demand.
Market testing: After product development, it introduce in the market for sell so that company
can know the response of consumers. It is helpful to know that product is developing as per the
requirements or not.
2 . 5 Benefits, risks and implications associated with innovation
There are various benefits of innovation such as : it is helpful to bring efficiency,
reduction of unnecessary expenses, improve quality of products an services, maximize the
productivity and profitability, beat the competition in the market etc.
The risk is involved which is : failure to operate or maintain the finance of new service
or idea, lose the market share if innovative product does not satisfying the demands of
consumers.
The implication of this would be a huge money loss or bankruptcy, image of corporation
can be affected if it provides a bad quality product which does not fulfil the requirements of
consumers. So it can be said that innovation is helpful for the organisation to earn higher profits
as a result it can capture more market share and expand its business (Nakamaki and et. al., 2015).
3. 1 Explain the importance of financial viability for an organisation
For an organisation it is essential to have financial viability so that it can operate it
business activities in effective manner and generate higher revenue so that it can survive for a
long run in the market. Financial viability is important for the company so that it can take better
future investment decision for the growth of organisation. It can understand where should it
invest so that more returns can be generated. As a result it can earn higher revenue.
3. 2 Explain the consequences of poor financial management
Financial management involves the planning of financial activities so that funds can be
properly utilised by the organisation. All companies have financial advisor who assist it to make
effective decisions so that investments can be done in that manner which brings higher return. If
financial management of corporation is not effective than it cannot survive for a long time. As a
result organisation have to take loans from the other institutions and it return company have to
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pay interest. If business does not producing sufficient profits then it cannot pay the amount of
interest and then situation of bankruptcy can be arise. In such case there will be one option
available that is to wind up the company. So it is essential to manage the finance in appropriate
way so that organisation can generate more profits and sustain in the market for a long run.
3. 3 Explain different financial terminology
For an organisation it is essential to have sufficient knowledge about the financial
terminology because it is needed in every business. All companies have to prepare books of
accounts and financial statements and its finance does not aware about the financial
terminologies than it can not contribute towards the corporation in order to achieve success and
growth. There are various financial terminologies such as :
Financial accounting : It is the specialized branch of accounting which records the
financial transactions of company during a particular financial year. It is helpful in recording,
gathering, summarizing and reporting the transactions of business activities (Lee, 2015).
Management accounting : It is the process of making management reports and book of
accounts which is helpful to provide relevant information and data which required by the
management to take regular business decisions.
Net profit : Net profit it also known as the actual profit which is earned by the company
after made working expenditures.
4.1 Explain the uses of a budget
For a company it is essential to make budget so that it estimates of revenue and
expenditures over a certain period of time. It is always made for future period and it is prepare on
basis of past performance and future expectations. It is useful for the corporation to make future
plans and strategies so that targets can be accomplish effectively and uses of budget are as
follows :
Project planning : Provide help to manage organisational project cost and allocations.
Documentation: It is useful to manage & monitor corporation income, expenses and
performances.
Funding: Companies make budget for its specific purpose and for each activity such as :
purchase, sales etc.
So there are various uses of budget which is helpful for the company to achieve its
objectives as a result unnecessary expenditure can be control (Lakhal and Frenette, 2015).
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4. 2 Explain how to manage a budget
For a company it is essential to make and budget so that it can plans its income and
expenses which contribute the organisation to get success and growth. There are various steps
which are involved to manage a budget.
Plan or goal setting: While preparing a budget it is essential to make plans or set goal
which should be specific. For example, company has planned to increase the sales and for it
organisation have to produce more, in that case it need funds so that it can buy raw material.
Identify income and expenditure: It is necessary to analyse the sources of income and
on the basis of it future expenses can be planned.
Design budget: To design the budget it is essential to make appropriate action plan
which provide help to accomplish the targets which are set by the organisation.
5. 1 Explain the principles of marketing
Marketing is the management process through which goods and services can move to the
consumer. It involves four elements of marketing such as: product, price, place and promotion. It
is responsible to identifying, anticipating and fulfilled the needs of consumers so that they can
satisfy. Marketing can be done effectively when organisation is able to analyse the need of
consumers and on the basis of it products can be placed. To know the target market segment is
necessary so that product can be customised which can satisfy the needs of consumers. It is
helpful to aware the persons about the products of corporation so that more number of customer
can attract towards the corporation which is helpful to generate more revenue (Lakhal and
Frenette, 2013).
5. 2 Explain a sales process
The ultimate goal of company is to maximize the sales so that it can earn more profits
and it is helpful to expand the business so that it can run for long time. Sale takes place among
two parties where the buyer receives the goods in exchange of money. The sales process are as
follows:
Information gathering: To sell the products it is essential to gather the information
about the targets and potential consumers who can buy the goods of company.
Matching: To discuss the advantages and features which should be matching as per the
desire of consumers so that they will show their interest to purchase the goods of organisation.
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Closing the sale : The sale has being closed when consumer buy the products on the
basis of consideration (Dhiman, 2012).
5. 3 Explain the features and uses of market research
Company can use market research to introduce the new product or service so that it can
know about the preferences, likes and recent demand so that product can be made on the basis of
these things. As a result needs of consumers can be satisfy. It is set of processes that links the
procedures, customers and end users to the marketer through information has utilised. It has
various features such as: It is helpful in decision making for future expansion and growth, links a
company to the consumers and public, collects and analyses data, reduces gap among consumers
and producers. There are various features of market research which are as:
Systematic & continuous process : It is a system & continue process which is helpful to
identify the problems and take effective decisions.
Emphasises on accurate data collection : It is useful to gather the data so that effective
decision can be taken for the growth of organisation.
Tool for managerial decisions : It is very useful tool which can be used by corporation to take
relevant managerial decisions with the helpful of market research.
5. 4 Explain the value of a brand to an organisational
Brand name is used for the identification of any particular business products. According
to current scenario, there are lots of products available in the market. To create difference
between the products company need to set brand name. It is helpful for the consumers to
differentiate products by their brand name For example: - Apple, Nike and McDonald's these are
the most popular brand name of the world. So it is plus point for these organisation because
consumer aware about this brand and the name also. If customer like the brand then they surely
come back for the next visit. A popular brand name have it's value which is worth it and can be
destroyed if any business do something unethical. Basically it will take so long time to create
brand value but one unethical action can destroyed everything.
5. 5 Explain the difference between sales and marketing
Marketing and sales are two different concept but mostly people think that they are same.
Marketing include the all activities which is helpful for the organisation to increase it's sales.
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Marketing is the process of delivering products & services to the consumers through different
channel of distribution. Sale is simply exchange of goods and services, there is no other activities
involve in the sales process. But marketing process increase the number of sales through various
efforts done by the organisation. Other activities also required enough amount of investment.
Marketing and sales both are inter related but not exact similar to each other. Sales team giving
their effort to convince customer to purchase their products and make sure that the consumer
satisfy with the product. So they can come again for the further visits (Cooke and Alcadipani,
2015).
CONCLUSION
As from the above report, it has been concluded that business market is helpful to identify
the needs of consumers. For a company it is essential to follow the legal obligations so that
business can smoothly operate. To bring innovation is helpful for the corporation so that it can
grab more market share, beat competition and maximize its profits. Budget can be prepare
effectively so that sources of income can be analyse and unnecessary expenses can be control.
Market research provides help to identify the recent market trend and demand of consumers.
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REFERENCES
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Fisheries Business Administration General. Journal of Fisheries and Marine Sciences
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Nakamaki, H. and et.al., 2015. Enterprise as an Instrument of Civilization: An Anthropological
Approach to Business Administration (Vol. 4). Springer.
Nielsen, T., 2013. Changes in BSc Business Administration and psychology students’ learning
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Storey, D. J., 2016. Understanding the small business sector. Routledge.
Weske, M., 2012. Business process management architectures. In Business Process Management
(pp. 333-371). Springer, Berlin, Heidelberg.
Yang, K., 2015. From administration to management. Public administration evolving: From
foundations to the future pp.103-122.
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Innovation. 2018. [Online]. Available through :
<https://www.lead-innovation.com/english-blog/definition-innovation-management>