Question

1. Listed below you will see the concept of a “business situation”. You may define/discuss “business situation” as you wish. The possibilities are endless – just be clear in your discussion. For example, it can be in your everyday management of a business or specifically related to a strategic action like an acquisition. This question has three major parts. Please answer ALL parts of the question. If you wish to tailor any or all of your response to a specific company or industry, please feel free to do so. You may certainly incorporate material from all your MBA classes to answer this question.

1. In your opinion, (1) what are the most important accounting and finance concepts/issues/measures (you can be both specific and/or broad) relevant for addressing and understanding a business situation – offer 3, and (2) how are these concepts/issues/measures used to address and understand a business situation?

2. In your opinion, (1) what are the most important management concepts/issues/measures (you can be both specific and/or broad) relevant for addressing and understanding a business situation – offer 3, and (2) how are these concepts/issues/measures used to address and understand a business situation?

3. In your opinion, (1) what are the most important marketing concepts/issues/measures (you can be both specific and/or broad) relevant for addressing and understanding a business situation – offer 3, and (2) how are these concepts/issues/measures used to address and understand a business situation?  

Answer 1

BUSINESS SITUATION:Business situation can be a professional operation or trading of goods and services. It could describe the company and its goals to achieve or can also refer to the marketing plans that the company is going to adopt.

A. MOST IMPORTANT FINANCIAL MEASURES ARE:

• Balance sheet: It provides the summary of financial position of the company by depicting the assets and liabilities the company.Its analysis provides a view of company's net worth from a book value perspective.
• Income statement: It provides details on the operating activities of business. It shows the direct,indirect and capital expenses incurred and revenue earned by the company.
• Cash flow statement: It shows all the cash transactions that tells about the liquidity position of a company. It is divided into operating,investing and financing activities which highlights the net increase or decrease in cash and cash equivalents.

B. MOST IMPORTANT MANAGEMENT CONCEPTS ARE:

• Functions of management: These are important to manage business situations. the functions include planning,organising,staffing,directing and controlling. These can be at various levels and situations of the business.
• Human resource concepts: This include managing personnel at workplace. job analysis, performance appraisal techniques are some of the examples which are important to manage.
• Business ethics: To understand what is right and what is wrong in context of social responsibilities towards the stakeholders,business ethics plays a major role.

C. MOST IMPORTANT MARKETING CONCEPTS ARE:

• Production concept: It is the oldest concept still in form. It says that managers should produce more and more of goods for mass distribution and achieve low costs.
• Product concept: It says that consumers focus more on quality products so managers should concentrate on the quality of the products.
• Selling concept: This concept is important because through this we will reach to the customers. This includes the aggressive selling techniques and the promotional activities so that the information of our products reach out to customers.