Overall Performance

Purchasing function

Buys goods and services needed by all departments in the business.

Return on Investment (ROI)

Measures profit made from owner's money invested (profitability).

Supply Chain Management (SCM)

Oversees flow of materials and information from supplier to customer.

Procurement

The overall process of acquiring goods, services, and works.

Production function

Combines factors of production to create goods or services.

Automation

Using machines to perform tasks previously done by humans.

Quality control

Checks products to ensure they meet set standards.

Sampling

Testing a few products from a batch to approve the whole batch.

Inspection

Testing each individual product against quality standards.

Financial function

Manages business capital, profit, liquidity, and solvency.

Statement of Comprehensive Income

Financial statement showing revenue, expenses, and profit.

Statement of Financial Position

Financial statement showing assets, liabilities, and equity.

Profitability

Ability of a business to generate profit from its investments.

Liquidity

Ability of a business to pay its short-term debts.

Current capital ratio

Compares current assets to current liabilities (liquidity measure).

Acid test ratio

Compares liquid assets (excluding inventory) to current liabilities.

Solvency

Ability of a business to pay all its debts in the long term.

Credit policy

Rules for allowing customers to buy goods and pay later.

Bad debt

Money owed by a customer that cannot be collected.

Human Capital Management (HCM)

Manages employees, their skills, motivation, and well-being.

Labour Relations Act (LRA)

Framework for collective bargaining and workplace discipline.

Basic Conditions of Employment Act (BCEA)

Guidelines for leave, working hours, and termination.

Skills Development Act (SDA)

Aims to upskill workers and provide new learning opportunities.

Occupational Health and Safety Act (OHSA)

Ensures a safe workplace for employees.

Broad-Based Black Economic Empowerment (B-BBEE)

Creates opportunities for black South Africans in business.

Marketing function

Promotes and sells products or services to customers.

Marketing mix (4 Ps)

Product, Price, Place (distribution), and Promotion strategies.

Market research

Gathers information about target customers and markets.

Public Relations (PR) function

Manages the business's image and relationships with the public.

Administrative function

Handles paperwork, record-keeping, and data processing.

General Management function

Oversees all other business functions and sets strategy.

Risk Management

Identifies, assesses, and addresses potential business risks.

Strategic Risk

Risk of not identifying or executing business strategies effectively.

Credit Risk

Risk of financial loss when a customer fails to pay debts.