Cardenas 1 It’s hard to imagine a car traveling down the highway without a driver driving it and notthinking “That car is headed for a disaster.” A business without business administration would beheading for the same kind of disaster. Business administration is managing the operation of abusiness. A business has to have good administrators in order to produce capital. A business hasto deal with downturns but they have some qualities to survive it. Without good businessadministration and good financial managers a company fails. Business administration manages the operation of a business. Business administratorscontribute to the prosperity of a company by giving financial stability and good leadership. Theadministrators go by many names such as Chief Executive Officer, Chief Financial Officer,manager, and accountant. Without them a company would not have a good administration. Theywork hard for the company to have good production and to make it grow. Without a businessadministration and good financial managers a company fails. Every organization bases its future and growth on the administrative skills of itsadministrators. Creating a successful business has always been a challenge and to do thisadministrators need solid knowledge, excellent training and a serious set of skills. Eachadministrator has a special quality in the company so when they work together it is easier forthem to manage the business and make it successful. A Chief Executive Officer is responsible tocarry out the strategic plans and polices as establish by the Board of Directors and is the head ofoverall operations of business administration. (A chief) A Chief Financial Officer is responsibleto manage all of the company’s financial activities such as signing checks, monitoring cash flowand financial planning. (A chief) A manager is responsible for planning and directing the work ofa group of individuals. (A manager) The accountant evaluates records composed by thebookkeeper and shows the results of this investigation as losses and gains changes in value, he
Cardenas 2also has to reveal the progress of failures of the business and also its future limitations andpossibilities. (The) Although administrators have different goals, they have in common to makethe company successful. Productivity and efficiency are very necessary in every company andprofessionals with business degrees are the experts in minimizing waste while maximizingprofits. Business managers face many problems when keeping their business successful due tothe economic recession or downturn. Everybody is aware of the pain caused by a downturn;Companies lay off workers, jobs become hard to find, and the people that remain employed oftenhave their wages and benefits cut. “A downturn is a period of zero or negative economic growth,it puts huge pressure on a business as sales and profits fall. During this period most businessdecreases marketing expenses, quality and staff to bring up their bottom lines.” (A downturn)There are many facts which can lead to an economic downturn. “As sales revenues and profitsdecline, the manufacturer will stop hiring new employees. In an effort to low costs and improvethe bottom line, the manufacture may stop buying new equipment, cut back research anddevelopment, and stop new products rollouts.” (As sales) When the revenues decline themanufacture’s stock price may decline. The accounts receivable is also impacted by the recessionwith the reduced revenues the company will pay its bills slowly, late, or in small profit than theoriginal credit agreement required. Late payments will reduce the valuation of the corporation’sdebt ant the ability to obtain financing. The business may cut employees, and more work will bedone by less people. Productivity per employee may increase and work becomes harder. Wageincreases are stopped and fear of further layoffs continues. The real test of a company’s strength is how it handles bad times like downturns. Mostcorporate managers in the Unites States certainly feel that living through the longest economic
Cardenas 3growth ever experienced was fun while it lasted. Launching new products, opening new officesand hiring new staff can be hard work, but it is much more pleasant than hacking and sacking.The way that a company deals with a downturn is not only the best proof of its bosses’disposition; it may also determine how well a business does when things improve. One problemis that the precipitate length of the growth means that most of today’s chief executives were atbest middle managers last time around. Almost no executives who are under the age of fortyhave any first-hand experience of what it is like to manage through the downturn in the businesscycle. A company that badly runs in good times will not do any better during a downturn. In adownturn managers need to be careful of risk, knowing that one mistake can be a killer.(NCWiseowl)There are ways to deal with an economic downturn. Getting finances stable and becomingfinancially successful requires the development of good financial habits. “Some important thingsto do during things to do during an economic downturn are to have solid communication skills,ability to take initiative, have ambition, and to be reliable.” (Some) Managers should know howto avoid debt, continue to read about business finances and look to grow the company in order tomake good financial stability. (Eliminate) “A business can hope to survive the downturn andgrow after the downturn ends only if it adopts different ways of cutting costs in areas that securethe future business.” (A business) “Retain the most important staff and maintain quality, don’tstart firing people and resist to cut back to cut costs.” (Retain) Be capable don’t be scared oftrying new technologies or marketing strategies, be open to experimentation.” (Be) Without thesequalities there is no change for success.
Cardenas 4 Best Buy is an example of a company that is dealing with some problems. The departureof Brian Dunn the CEO of Best Buy compounds the problems at the retailer which has beenwidely criticized for not responding fast enough to growing competition from Amazon.com andother online rivals and the changing shopping habits of Americans. (Brian Dunn) A few yearsago, Best Buy had been the big bully on the block, pulling shoppers away from small electronicsstores with its large offerings; now in the age of the internet those offerings look partly. (A fewyear) Best Buy and other retailers are finding that those big stores are no longer attractive toconsumers looking for one stop-shopping, instead they are using them as showrooms to browsefor products and then going online to Amazon.com and other rival sites to buy at a lower price.“Best Buy’s shares were down almost six percent, or $1.33, to close at $21.32 after initiallyclimbing higher on the CEO departure. Its shares have lost more than the half of their valuessince April, 2006 when they were trading at $56.66 per share”.(Best Buy’s) “Sales of TVs,digital cameras and video game consoles have weakened, while sales of lower margins items liketablets, computers, smartphones and e-readers have increased”. (Sales) The store has been tryingto repair its business; it showed a restructuring plan that calls for closing fifty of its U.S bigstores, opening one hundred small format stores focusing on its increase mobile business whichfocuses on cell phones it is also cutting $800 million in costs over the next five years. (Best Buy)Best buy has cut its square footage by fifty percent in about forty three stores by giving it back tothe landlords or by renting it to other merchants. (The Company) The company decided to searchfor new leadership and give them the challenges that the company faces. Best Buy has created asearch committee to choose a new CEO according to Dunn’s departure. Analysts say it is goingto be a big challenge to find a CEO to lead the company in this new area.
Cardenas 5 In conclusion a business without a good business administration and good financialmanagers fails. Business is managing the operation of a business and it has certain characteristicsto be successful. Administrators have to work with good qualities to make the businesssuccessful. A business has problems like downturns where there is zero or negative growth butthere’s also ways to deal with a downturn.