Understanding Different Areas of Business Management
Summary: The management refers to a small team of executive officials who run a business. In a fashion brand, business management functions both in micro and macro setups and oversees the smooth running of its operations. Here are the different areas where business managers play an active role.
In today’s fashion brands, business management is accorded the highest priority. And, why not? It is the management that takes a call on the profit margins and procurement based on risk assessment. It practically drives the operations toward identified goals. With big brands in fast fashion and those in the niche segment of haute couture increasingly relying on global operations, a business manager has become a coveted position and a much sought-after job in the industry.
Let us take you through the different areas that management has to oversee during its day-to-day operations.
What is business management?
You might want to know what exactly business management is. There is a simple answer to it. Business management is a collective term that refers to an executive team that runs a business. But the scope of work for a business manager is more complex than this oversimplification would tend to reveal. The management oversees the execution of all policy-level decisions that encompass a network of overlapping roles such as procurement, staffing, finance, and planning. With such a challenging role engaging the entire resource pool of an organization, business managers use artificial intelligence (AI) and technology, such as business analytics, for smooth operations.
Scope of operations for a business management
The scope of operations for business management is not limited to the specialization in one key area. Rather, it deals with a set of cross-functional roles and the areas that fall under their supervision. The management of a business takes care of everything; right from streamlining operations and managing supply lines to inter-departmental planning, coordination, and profit maximization, business management has its hands full. The scope of operations for management in a fashion brand can be divided into these four key areas.
Profitability is every business’ ultimate goal. Business management works in the following areas of finance to keep a brand profitable.
- Cash flow: A cash-strapped business will not stay in the competition for long. Business managers are aware of the expenditure and the revenue streams. In eCommerce, cash-on-delivery (COD) remittances are essential to maintain cash flow.
- Profitability: Bottom lines and profit are intertwined in an organization. Business management is involved in the budgeting and allocation of finances.
- Planning: All clothing businesses have managers who plan revenues and decide competitive price points and procurement channels. Strategizing is an integral part of business management.
A business is as good as its human resources. Here are some of the key areas in human resource management.
- Communication channels: Motivating the employees towards a collective enterprise requires constant communication of goals and transparency in operations. Face-to-face communication or communication through Management Information System (MIS) is right up the alley of business management.
- Inter-department coordination: A critical component of business management is optimizing the efficiency of its employees. Proper coordination helps in cohesive functioning and removes overlapping and redundancy in work.
- Wage policy: A fashion brand has to commit itself to a fair-wage policy and reduce the pay gap between genders. Business management must determine the minimum wage policy.
In a modern-day fashion brand, procurement of materials, supply, and warehousing form a crucial role. Business management’s scope of work extends to:
- Supply chain: Most global brands such as Nike, H&M, and Zara have a global supply chain. Managers have to constantly monitor the supply chain to mitigate the effects of any disruption.
- Logistics: The backbone of business operations – warehousing, transportation, and last-mile delivery, all fall under the purview of business management.
Materials do not include just heavy machinery and equipment. Technology and AI used in business analytics and logistics also fall under business management’s scope of work.
- Equipment: The setting up of factories and investments in equipment fall under the executive role of a business.
- Technology: Be it investing in technology for sustainable fashion or new lines of fabrics or manufacturing clothing, all of this falls in the ambit of business management. Big data mining, business analytics, and customer data use are also essential tools of a business manager.
Driving operations toward the business goal
When it comes to a clothing business or a fashion brand, there is a team of executives working overtime to keep it operational and profitable. This motley group of executives who are in charge of all the operations is collectively addressed as business management. The management oversees the functioning of all departments, executes the policy, and drives the personnel toward organizational goals. The key areas of their work include planning and execution, operations and procurement, and finance and bottom lines.
If you want to streamline the business management of your fashion brand, Fashinza can help with timely procurement, supplies, and deliveries at competitive rates. Our AI-powered platform can ensure that your supply chain is optimized and scalable.
- Business management is the executive body of an organization that is engaged with decision-making on a daily basis.
- The scope of operations for business management can be largely classified into four main areas: money, manpower, materials, and machinery.
- A manager uses business analytics for the optimization of resources both at the macro and micro levels.
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