Purpose of Business Management and Nature of Business

Purpose of Business Management and Nature of Business
Management is the act of getting people to gather accomplish desired goals and Objective using available resources efficiently and effectively.
Management comprises planning, organising, staffing, leading or directing and controlling an organisation or effort for the purpose of accomplishment.
The Nature of Business

Characteristics of Business

Uncertainty and Risks
The ultimate success of business depends upon the customers who are willing to use their purchasing power to meet their needs and competitive and alternative suppliers available in the market.
Business is done with uncertainties and risks. Technological changes such as use of canvass shoes instead of leather ones, may not give him the same scope to repair and with this change his business may shrink. He can only forecast business but is never assured of its outcome.

Minimising Uncertainty and Risks
Business will always try to minimise known uncertainty and risk. It does so by keeping to minimum the scale of operation. It has to find a scale of operation which will meet the cost and earn some excess to either grow business.
You may find that bigger business companies may offer better scales of pay but they will also demand much hard and smart work. Business will always try to reduce impact of business overhead by getting it compensated through hard and smart work. An average businessman works longer hours, more days in a year. It need more flexibility to face changing circumstances and demand and supply position in the market.

Need for Ownership and Entrepreneurial Characteristics
Either an individual or a group must play a role of an owner in any business. This is the only way to safeguard continuance and growth of business Decisions in business are such as what to exchange at what price it is to be exchanged and how exchange price is to be recovered are very basic.
To plan for business and its implementation one has to go through so many hurdles that one requires a high achievement motivation and single purpose devotion. This is truer when the business idea is new to the market.