Business Functions

- Financial Management
- Production Management
- Marketing Management
- Personnel Management

Functional Areas of Business

Investment, financing

It is primarily concerned with __________ and _________ decisions

- Preparation of long-range plans and budgets for major investments
- Determination of the total amount of assets held by firm
- Capital budgeting process

Investment decisions should include what?

Capital Budgeting

Important financial policy area of concern of business

Capital Budgeting

A top level concern because it involves allocation of funds

Capital Budgeting

Involves the choice of capital projects to be undertaken by the firm

Identification and prioritization of various capital expenditure proposals given specific acceptance criteria

Critical Steps of Capital Budgeting

Financing Decision

Determination of the financing mix and sources appropriate for the requirements of the firm

Production Management

It covers production planning, production control, quality control

- Routing
- Loading
- Scheduling
- Dispatching
- Expediting

Production Planning and Control

Routing

Determines the operations to be performed and their sequence

Loading

Function of assigning work to a machine or department

Scheduling

Determines the time at which each operation is to take place

Dispatching

Authorizes the actual start operations

Expediting

Monitors the execution plans

Quality Control

Process of ensuring that products meet quality specifications

Wage Incentive Systems

Involve the determination of bonuses for meeting or exceeding production targets, the basis for payment of compensation and the penalties for poor performance

Marketing Management

It is analyzing marketing opportunities

Marketing Management

It deals with components of different marketing system

Marketing Management

Planning of marketing programs

Marketing Management

An operating plan that focuses on the production mix, prices, promotions, and channels of distribution with a timetable for each activity

Marketing Management

Formulating product strategies, product development, product phase-out, product planned obsolescene

Marketing Management

Administration of marketing program; evaluation of product performance, performance of marketing, sales and personnel; determination of bonuses if targets are met or exceeded

Personnel Management

It is concerned with the administration of employee benfits

Personnel Management

Recruitment process

Personnel Management

Performance evaluation of employees

Personnel Management

Orientation of new employees on company policies, personnel policies, company history, maintenance of personnel records

- Purchasing
- Public relations
- Financial, consumer, crisis, industry, government
- Research and development

Personnel Management is composed of?