Business Functions 💚

Management role

Communicate with all departments to ensure that the organization is well run and performs well too

Managers role (management department)

Critical role, they oversee all the day to day functions and the business operations of a business

Main focus of managers (management department)

Maximization of profits through the efficient allocation of company resources (maximum results with minimum efforts). Managers must also focus on the wellbeing of employees and that of corporate social responsibility. All of this is done in hopes of achieving the company’s goals.

Levels of management

• Upper Management

• Middle Management

• Lower-Level Management

(Levels of Management) Role of Upper Management

To create long term goals and decisions

(Levels of Management) Middle Management role

Interprets plans and sets actions

(Levels of Management) Lower-Level Management role

Implements plans

Marketing Definition

Action of promoting and selling products or services, including market research and advertising

In Marketing products must:

• Satisfy the needs of the customer

• Be sold at a reasonable price

• Be distributed to a place that is convenient to the consumer

• Be brought to the attention of the consumer

Market research definition

The process of gaining information about the market (customers and competitors) through the collection, analysis and reporting of data related to a particular market

Market research when necessary

Adhoc

Market research that is regular and ongoing

Continuous

Auxiliary Services of Marketing

• Transport

• Storage

• Grading and standardization

• Financing

• Insurance

• Actual sales

(Auxiliary Services of Marketing) Transport

Bridges gap between the producer and the customer

(Auxiliary Services of Marketing) Storage

Bridges time gap as the time of production and the time of consumption must be bridged by storing the surplus products until there is a demand for it in the market

(Auxiliary Services of Marketing) Grading and Standardization

Man-made products are usually standardized and natural products are usually graded

(Auxiliary Services of Marketing) Financing

The business can borrow money from the bank or get credit from other businesses to buy stock. Credit is granted based on the creditworthiness of the customer

(Auxiliary Services of Marketing) Insurance

Taken out to protect the business against risks such as fire and theft

(Auxiliary Services of Marketing) Actual sales

Final steps that bridge the possession gap

Human Resources (HR)

Determines how many workers, level of qualification, skills and or experiences are required for a job. HR managers must create an environment conducive to productivity

Public Relations role

To create a favorable image of the business to all its stakeholders

Financial Function

Involves the acquiring and utilization of funds necessary for efficient operations.

Purchasing/Procurement Function role

To procure all the necessary materials needed for production or daily operation of the company, ensures the supply of goods, production materials and equipment so that a smooth production and sales process can take place

Must be done to ensure that the purchasing/procurement function is functioning well

Goods must be procured at the right time, in the right quantity and of the right quality

Factors of Production (FOP)

Natural resources/land, entrepreneurship, labour and capital (NELC)

Productions/Operations Function role

The combination of the Factors of production, the entrepreneur must combine the other 3 factors in profitable and efficient ways. As such the manufacturing costs (input) must be kept to a minimum without sacrificing the quality of the product (the output)

Administrative Function role

To support the key aspects of running and organisation, such as communication, record-keeping, decision-making, and data analysis. This information is used to improve business operations and make strategic decisions and gain a competitive edge.

Common name for the Administrative function due to tasks being done electronically

Information Management