- By now you should appreciate the fact that not all businesses are the same
- Businesses often differ in terms of how they are owned and controlled for example sole traders and companies, they differ in size, they differ in vision and mission statement and they differ in sector (primary, secondary and tertiary) as well as operations
- Despite their differences, most businesses share a common set of functions that are critical to their success, including marketing, production, human resources, finance and accounting, and research and development.
- Businesses often organize their operations according to function, with different departments or teams responsible for specific functions within the organization.
- These functions work together to ensure that the business operates efficiently and effectively and that it is able to meet the needs and expectations of its customers.
- Most businesses have the following functions often these are divided into departments (more on that in later in the syllabus see functional organisation)
Marketing:
- Popular features include market research, advertising and promotions, and product development.
- The role of marketing is to identify customer needs and wants, and to develop products and services that meet those needs.
- Marketing is also responsible for promoting the business and its products to customers, and for creating and maintaining the business’s brand identity.
- Marketing depends on other functions such as production and research and development to ensure that products and services are developed and delivered in a timely and efficient manner.
Production:
- Popular features include production planning, inventory management, quality control, and logistics.
- The role of production is to manufacture or deliver the products or services that the business offers.
- Production is responsible for ensuring that products are made to the right quality standards and that they are delivered to customers on time.
- Production depends on other functions such as marketing and finance to ensure that the business has the resources it needs to manufacture and deliver products.
Human Resources:
- Popular features include recruitment and selection, employee training and development, performance management, and compensation and benefits.
- The role of human resources is to manage the people who work for the business, and to ensure that they are motivated and engaged.
- Human resources is responsible for hiring, training, and developing employees, and for managing their performance and well-being.
- Human resources depends on other functions such as finance and production to ensure that the business has the resources it needs to hire and retain employees.
Finance and Accounting:
- Popular features include financial planning and analysis, accounting and bookkeeping, and cash management.
- The role of finance and accounting is to manage the business’s financial resources, and to ensure that the business is profitable and financially stable.
- Finance and accounting is responsible for managing the business’s cash flow, tracking its expenses and revenue, and preparing financial reports.
- Finance and accounting depends on other functions such as marketing and production to ensure that the business has the revenue it needs to operate and the resources it needs to invest in growth.
Research and Development:
- Popular features include product research, technology development, and innovation.
- The role of research and development is to create new products and services that meet customer needs and wants, and that differentiate the business from its competitors.
- Research and development is responsible for developing new technologies, improving existing products, and identifying new market opportunities.
- Research and development depends on other functions such as marketing and production to ensure that new products are developed and delivered in a timely and efficient manner.
