Business Management: Why Some Businesses Are More Successful Than OthersIntroductionThe mysterious dream of a successful business draws the attention of all business owners around the world. It is every business owners dream to have a successful business, marked by flowing profits, thrilled customers, industry respect and a balanced life. Business experts have identified numerous aspects that contribute to attaining business success, for instance, good working strategies, effective short and long-term goals, innovative and smart ideas, and plain luck among many other factors. It is also certain that some businesses turn out successful over night while others take some time to grow and mature.
However, business management and leadership skills are also major determinants of business success today. No individual has the right formula that could be applied by all businesses to attain success, but there are existing principles, theories and strategies suggested by business experts that could be applied to attain business success. The correct application of these ideas will drive the business towards success. This essay seeks to analyze the key theories and principles of business management and leadership to provide reasons as to why some businesses are more successful than others are.
It also provides the strategies that could be applied to attain business success. Measures/indicators of successSuccess in a business can be gauged using various factors, which include, profitability levels, a rising customer base, customer and employee satisfaction, owner satisfaction, professional recognition, among others (Ivancevich et al, 2007). A business that meets all these factors can term itself achievable as these factors are linked with goals and objectives of every business. Reasons for successIt is apparent that, some businesses are more successful than others are.
This is attributed by many factors portraying both the internal and external environment of a business including organizational structure and culture, strategy and business ethos. In evaluating the fact behind their success, we will consider some key theories and principles of business management and leadership. Leadership and management principles and theoriesLeadership is a process through which a person influences the others, with an aim of attaining some set objectives. From this definition, we can learn that leadership is a social process, which cannot take place without the followers.
Regardless of its precise nature, and the relationship it holds with certain variables such as commitment, performance and subordinate satisfaction, leadership remains as unexplainable concept (Lutherans, 2005). However, it is important to note that leadership is based on influence, the leader’s ability to influence his followers. A review of the existing leadership theories regarding the characteristics of an effective business leader reveals that the ancient theories placed more emphasis on the behaviours and characteristics of successful leaders while the contemporary theories consider the contextual character of leadership and the role of the followers (Steers et al.
1996). Management, on the other hand is defined as is defined as a set of practices involved in planning, leading, organizing and coordinating activities. However, the contemporary view of management considers the assertion that leadership is different from management. It is believed that managers do things right while leaders do the right thing. A manager only posses the formal authority by virtue of the office he holds and may not in essence be an effective leader. Some of the principles of management include: