- Manufacturers to consumers.
- Manufacturer to consumer via retailer.
- Manufacturer to consumers via wholesalers and retailers.
- Manufacturer to consumer via agents and/or wholesalers and retailers.
Costs: the longer the supply chain, the greater may the cost to the final consumer be.
Control: some manufacturers want to control the distribution channels they use carefully.
Legal factors: the law may affect how a product is distributed.
Effectiveness of different distribution channels
Company
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Wholesalers are businesses that purchase large quantities of products from a manufacturer and then separate or ‘break’ the bulk-purchases into smaller units for resale, mainly to retailers. They act as the intermediary between producers and retailers.
Benefits of using wholesalers:
- Bear storage costs.
- Lower transaction costs as wholesalers are the customer.
- Time is freed up for manufactures to focus on production not distribution.
Distributors and Agents
Distributors are independent specialist businesses that trade in the products of only a few manufacturers.
Agents are negotiators who act on behalf of companies to sell the products. They are often experts, who are given a commission for their services.
- Can use experts.
- Frees up time for producers to not spend on marketing products, rather producing.
Retailers Sellers of products to the final consumer, they are often refer to as ‘shops’. Retailers have the ability to reach large numbers of consumers, especial those with global reach.
Independent retailers: small vendors, sole proprietors. Usually sell a small range of products.
Multiple retailers: chain stores.
Supermarkets: sell food stuff, tend to buy their produce and products from other manufacturers, cutting out wholesalers.
Hypermarkets: Huge outlets that stock a broad range of products and consumer durables (e.g. Sams club).
Department stores: sell everything.
Frequently Asked Questions: Where Management Takes Place
No, this is a common misconception. While business is a very prominent context for management, the principles and practices of management are applicable and take place in a wide variety of settings beyond traditional businesses.
Management occurs in virtually any organized setting where resources (people, time, money, materials) need to be planned, organized, directed, and controlled to achieve goals. This includes:
- Non-profit Organizations: Charities, foundations, and community groups manage resources to achieve their mission.
- Government & Public Sector: Government agencies at all levels require management for public services, policy implementation, and resource allocation.
- Healthcare Institutions: Hospitals, clinics, and health organizations need management for operations, patient care coordination, and administration.
- Educational Institutions: Schools, colleges, and universities have management roles in administration, curriculum planning, and resource management.
- Sports Teams & Clubs: Managing players, coaching staff, logistics, and finances.
- Even Personal Life: Managing your personal finances, time, or projects applies management principles.
A business management background opens doors to roles in a vast array of industries and organizational types, not just large corporations. You could work in:
- Finance (banks, investment firms)
- Marketing & Advertising agencies
- Operations & Logistics
- Human Resources departments
- Consulting firms
- Retail and E-commerce
- Technology companies (startups to large firms)
- Non-profits and NGOs
- Government agencies
- Healthcare administration
- Educational administration
The skills learned in business management (planning, organizing, leadership, decision-making, problem-solving) are highly transferable.
There isn't a single "best place" as it depends on individual goals and specific interests. Factors that make a location desirable might include:
- Presence of world-renowned business schools.
- A strong and dynamic economy with numerous job opportunities.
- Being a hub for specific industries (e.g., finance in London or New York, tech in Silicon Valley or Shenzhen).
- Quality of life and cultural factors.
- Cost of living and education.
Major global financial centers (like New York, London, Tokyo, Singapore) and areas with strong innovation ecosystems often attract a lot of business management activity and talent.
Mathematics, particularly statistics and data analysis, has a significant "place" or role in modern business management. It's essential for:
- Financial analysis and modeling
- Operations research and optimization
- Market research and forecasting
- Analyzing business performance metrics
- Decision-making based on data
- Risk assessment
While not every management role requires advanced math, a solid understanding of quantitative methods is increasingly valuable for effective decision-making.
