Business Administration Basics

Business Administration Basics

Before one can delve deeper into the business administration subject, one must first acquire some basic knowledge. In this section, the essential basics of business administration are conveyed.

What Does Business Administration Mean At All?

BWL stands for business administration and deals with all processes and issues in a company, i.e., in a company. What is being produced? How is it made? How is the company organized? Which markets are relevant etc.?

In principle, business administration is part of the economic sciences, including economics as a subject. Economics focuses on economic theories in the field of politics. In business administration, on the other hand, the focus, as the name suggests, is on the economic ideas within a company or company. In essence, commercial activities are therefore in the foreground. In business administration, the topics that are important in running a company are of considerable relevance.

Also Read: Four Requirements For Small Business ERP Software

Central Topics In Business Administration

Unlike other academic subjects, the focus is not on one topic but 10 to 20 issues in business administration. All topics are taught that are of considerable relevance to a company. These include, above all:  Marketing, bookkeeping/accounting,  production, and logistics,  controlling, law, mathematics, statistics, tax law, etc. These and many other subjects are part of a classic business administration course. In this way, students get an overview of the system and the approach within a company. In all subjects, the focus is on minimizing costs and maximizing profits as much as possible. The capital is the scarcest commodity of a  company, which is also taught to the students. 

The individual subjects and their benefits are listed below.

Marketing

In ​​marketing, the focus is on the sale of products, i.e., theories are listed on how to use advertising and other means to bring the articles produced to customers. The idea is that products that nobody buys do not get any capital to the company.

Law

In law, essential legal topics are mainly dealt with, which are relevant in the economy and within a company or when founding a company. Here, issues such as claims for damages, types of company and their advantages and disadvantages are discussed in greater depth.

Production And Logistics

In production and logistics, the focus is not on administrative activities but coordination in ​​manufacture and transport. How and where can products be manufactured ?How many employees do you need to manufacture the products ?How do the products get from one company to another? These and many more are discussed in this subject.

Bookkeeping / Accounting

Bookkeeping and accounting are about numbers, receipts, and annual financial statements. This subject covers the complete range of office work within a company. I am posting documents, sales tax, statistics, evaluation of critical figures, the profit and loss account preparation, and the balance sheet. 

In accounting, the numbers of a company are in the foreground.

Statistics / Key Figures Evaluation

Statistics, another core element of business administration, is about the evaluation and processing of critical figures, i.e., how economic data can be evaluated as transparently as possible. Spreadsheets and stochastics, i.e., the classic probability calculation, are an essential component of statistics.

Corporate Taxation

The last important subject is corporate taxation. The focus here is on the individual types of tax. Countless types of tax, such as sales tax, capital tax, income tax, etc., are part of business administration. 

Centuries-old theories are also part of business administration, as this is where the roots of business administration lie. The teachings are often hundreds of years old and often date from the 17th or 18th centuries. These theories are the foundation and explain why the economy works the way it works. 

Objectives Of Business Administration

Of course, business administration as a science pursues a goal. While the science of medicine tries to heal illnesses and injuries, business administration focuses on applying theory to practice. 

On one side of the business, the administration is the theoretical knowledge that it is centuries old and is mostly not compatible with today’s technological progress. The goal is to apply theory to practice. This is often a significant problem because the approach cannot always be used to practice. A certain degree of flexibility in the area of ​​research is necessary for this. 

However, one thing should always be a memory. Only if you manage to put theory into practice will you get any benefit. A theory of no practical use is also a false theory in this respect. 

Therefore, research is constantly trying to present logical research results to achieve the most significant possible benefit for companies. The research results are thus mostly presented in graphics, tables, or the like to keep the difficulty as low as possible. 

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