Introduction to business- business functions

What are the 4 business functions?

• Finance

• Marketing

• Operations

• Human Resources

Classifying a business by industry

Fashion, cosmetics, technology, medical

How to Classify a business by sector

• Primary- business involved in the extraction of raw materials

• Secondary- business involved in the manufacturing of raw materials to become finished goods

• Tertiary- business providing services or retailing goods

How to classify a business by geographical scope

Local business- serve to a specific local clientele, try to be different to compete against larger stores.

National business- have locations across a whole country, aim to take advantage of chain restaurant status.

International business- operate in multiple countries, adapting to various markets and regulations, relies on consistent product and service, big logistics costs to go with benefits of a global brand.

How to classify a business by size - measures of size

• market share

• Profit

• Number of employees

• Number of outlets

• Value of company by stock market capitalisation

• Turnover

• Level of output

How to classify a business by objectives

• most businesses operate in the private sector to achieve profit maximization, growth, and sustainability.

• Non-profit organizations aim to fulfill social missions or community needs, these are in the public and the third sector.

• Public sector- funded by government

• Third sector- charities or social enterprises whose primary aim is not to make profit.