Difference Between Business Administration And Business
Business administration comprises all the arts and techniques of running a business. In capitalist countries, a business is both an independent unit in the economy, run for profit, and part of a complex political and legal system. Its managers must not only satisfy customers, they must also comply with the regulations of government agencies, meet the expectations of employees, bargain with labor unions, keep watch on competitors, and make a good impression on the public. To operate under these often conflicting demands and pressures, businesses have departments and personnel that specialize in particular functions, such as accounting and sales.
Major Components of Business
Most businesses have three major components: production, marketing, and finance. Production is the transformation of raw materials into goods and services that are sold to other businesses or to the consumer. In a wholesale or retail business, the purchase of articles for resale takes the place of production. The need to organize production as efficiently as possible has resulted in the specialties known as operations research and management science, which use complex mathematical techniques to analyze the way organizations function. On the production line itself, a specialty called production management is concerned with planning and routing materials so that time and energy will not be wasted. The design of complex machines and systems is called systems engineering.
How do your parents earn their living? How will you earn your living? Chances are that the answers to both questions will involve a business. Most people earn their livelihood either by working for a business owned by someone else, or by operating their own business.
There are many kinds of businesses, from small shops owned and operated by one person to large companies owned by many people and employing thousands of workers. A factory is a business. A store is a business. Other examples include beauty salons, professional sports, and all kinds of entertainment.
A business is any establishment that produces or distributes goods and services. Goods are tangible items like clothing and food. Services are intangible things like entertainment and the services of doctors and lawyers.