ABM Full Form: Activity-based management (ABM) is the full form of ABM. ABM is a method of analysing a company’s profitability by examining each element of its operations to identify strengths and weaknesses. ABM is used to aid management in discovering which areas of the firm are losing money to fix or eliminate them.
In project management, activity-based management (ABM) refers to all of the actions that managers take based on ABC data to improve operations or decrease costs.
Benefits of ABM
- ABM can assist find opportunities to streamline or eliminate superfluous stages by identifying and analysing the activities that comprise a business process, resulting in more efficient operations.
- Increased cost visibility: ABM enables organisations to make more educated decisions about where to invest resources by providing a clear awareness of the costs associated with each action within a process.
- Enhanced customer happiness: ABM can help organisations deliver better products or services to their customers by enhancing the efficiency and effectiveness of business processes, resulting in increased customer satisfaction.
- Better decision-making: ABM gives organisations a deep insight into their business processes, which can inform decision-making at all levels.
- Improved competitiveness: Organisations can become more competitive in their marketplaces by continuously refining business processes with ABM.
Difference Between ABM and ABC
ABC stands for Activity Based Costing, while ABM stands for Activity Based Management. The ABC and ABM are both management tools that aid in the management of corporate activities.
ABM applies to virtually every industry, including non-profits, government agencies, manufacturers, schools, and service providers. It may also provide cost information for any firm operation.
However, implementing ABM can be time and resource intensive. As a result, use activity-based management when a company faces intense pricing rivalry. It is also more suitable for a company with complex products and procedures.
Other Full Form of ABM
The Anti-Ballistic Missile (ABM) treaty was a deal signed by the United States and the Soviet Union in 1972 that was in effect from 1972 to 2002.
The deal was intended to restrict the deployment of anti-ballistic missile systems capable of intercepting and destroying incoming intercontinental ballistic missiles (ICBMs) in flight.
During the Cold War, the treaty was viewed as a critical component of the two superpowers’ strategic stability, as it was feared that the development and deployment of ABM systems would lead to an arms race and destabilise the balance of power.
The United States suspended the treaty in 2002 and officially cancelled it in June 2002.
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