Business Functions And Organisation


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Business Functions and Organisation

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Business Functions And Organisation

  1. 1. Business Functions and Organisation
  2. 2. Business Functions <ul><li>Human Resources </li></ul><ul><li>Sales and Marketing </li></ul><ul><li>Research and Development </li></ul><ul><li>Production/Operations </li></ul><ul><li>Customer Service </li></ul><ul><li>Finance and Accounts </li></ul><ul><li>Administration and IT </li></ul>
  3. 3. Human Resources <ul><li>Recruitment and retention </li></ul><ul><ul><li>Job descriptions </li></ul></ul><ul><ul><li>Person Specifications </li></ul></ul><ul><li>Dismissal </li></ul><ul><li>Redundancy </li></ul><ul><li>Motivation </li></ul><ul><li>Professional development and training </li></ul><ul><li>Health and safety and conditions at work </li></ul><ul><li>Liaison with trade unions </li></ul>
  4. 4. Sales and Marketing <ul><li>Market research </li></ul><ul><li>Promotion strategies </li></ul><ul><li>Pricing strategies </li></ul><ul><li>Sales strategies </li></ul><ul><li>The sales team </li></ul><ul><li>Product – advice on new product development, product improvement, extension strategies, target markets </li></ul>
  5. 5. Research and Development <ul><li>New product development </li></ul><ul><li>Product improvements </li></ul><ul><li>Competitive advantage </li></ul><ul><li>Value added </li></ul><ul><li>Product testing </li></ul><ul><li>Efficiency gains </li></ul><ul><li>Cost savings </li></ul>
  6. 6. Finance and Accounts <ul><li>Cash flow </li></ul><ul><ul><li>Monitoring income/revenue </li></ul></ul><ul><ul><li>Monitoring expenditure </li></ul></ul><ul><li>Preparing accounts </li></ul><ul><li>Raising finance </li></ul><ul><ul><li>Shares </li></ul></ul><ul><ul><li>Loans </li></ul></ul><ul><li>Links with all other functional areas </li></ul>
  7. 7. Production/Operations <ul><li>Acquiring resources </li></ul><ul><li>Planning output – labour, capital, land </li></ul><ul><li>Monitoring costs </li></ul><ul><li>Projections on future output </li></ul><ul><li>Production methods </li></ul><ul><ul><li>Batch </li></ul></ul><ul><ul><li>Flow </li></ul></ul><ul><ul><li>Job </li></ul></ul><ul><ul><li>Cell </li></ul></ul><ul><li>Efficiency </li></ul>
  8. 8. Customer Service <ul><li>Monitoring distribution </li></ul><ul><li>After-sales service </li></ul><ul><li>Handling consumer enquiries </li></ul><ul><li>Offering advice to consumers </li></ul><ul><li>Dealing with customer complaints </li></ul><ul><li>Publicity and public relations </li></ul>
  9. 9. Business Organisation <ul><li>Organisation by type </li></ul><ul><li>Global businesses – complex organisation structures </li></ul><ul><li>National – organisation possibly stretches throughout the country </li></ul><ul><li>Regional – could be through a county or wider area (North West, South East, etc.) </li></ul><ul><li>Local – small organisations serving local area or community </li></ul>
  10. 10. Business Organisation <ul><li>Authority – the right to make decisions and carry out tasks </li></ul><ul><li>Span of control – the number of people a superior is responsible for </li></ul><ul><li>Chain of Command – the relationship between different levels of authority in the business </li></ul><ul><li>Hierarchy – shows the line management in the business and who has specific responsibilities </li></ul><ul><li>Delegation – authority to carry out actions passed from superior to subordinate </li></ul><ul><li>Empowerment – giving responsibilities to people at all levels of the business to make decisions </li></ul>
  11. 11. Administration and IT <ul><li>Managing estates – cleaning, health and safety, maintenance, security </li></ul><ul><li>Reception </li></ul><ul><li>Clerical work – reporting, recording, record keeping, communication </li></ul><ul><li>Overview of quality control </li></ul><ul><li>Use of IT systems </li></ul>
  12. 12. Organisation Charts Hierarchical Structure Managing Director Sales Director Marketing Director Finance Director A B C D Market Research Strategy Purchasing Manager Sales Manager Accounts Manager
  13. 13. Organisation Charts Workers Pyramidal Structure Senior Management MD Middle Management
  14. 14. Organisation Charts Centralised/Entrepreneurial R&D Marketing Sales Production Finance MD
  15. 15. Organisation Charts Collaborative Sales Marketing Production Accounts
  16. 16. Organisation Charts Circular/Flat Marketing Sales Production Finance R&D
  17. 17. Organisation Charts Project Marketing R&D Sales Finance HR Production Matrix Structure
  18. 18. Organisation Charts <ul><li>Changes to business structures </li></ul><ul><li>Linked to new thinking on leadership and management </li></ul><ul><li>Less hierarchical </li></ul><ul><li>Emphasis on communication and collaboration between sections </li></ul><ul><li>Global businesses – more complex structures </li></ul>