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Organisational Functions


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Organisational Functions

Organisational Functions

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  • 1. Organisational Functions 1 BTEC Business
  • 2. What are an Organisation’s Functions?
    • As we have seen, businesses exist to provide products or services that people want to consume
    • They do this by organising the firm’s resources to meet customers’ needs
    • Many organisations arrange these resources into different business functions
  • 3. What are an Organisation’s Functions?
    • Whatever the business, all organisations have to manage the following functions:
    • Sales and marketing
    • Accounts or finance
    • Human resources or staff
    • Administration
  • 4. What are an Organisation’s Functions?
    • Many businesses will also have the following activities that need managing:
    • Production
    • Purchasing or buying
    • Research and development
    • Whether they do or not depends on their industry or sector
  • 5. Finding out more
    • The following is a good source of information about organisational functions:
    • Biz/ed’s Virtual Factory
    • Find our more about production, marketing, accounts, stock control and design in a real world business at:
  • 6. Applying your Knowledge
    • Now go to the following Biz/ed resource for more on a range of real world business organisations:
    • http://
    • Select two businesses and analyse their key functional areas. Be prepared to feed this back to the whole group.
  • 7. Organisational Functions 2 BTEC Business
  • 8. Administration
    • Administration is about supporting the work of an organisation
    • It is not the central purpose of the business
    • But every business organisation must have someone to carry out these tasks
    • Otherwise there would be chaos!
  • 9. What does Administration do?
    • Most businesses rely on administration in order to be ‘organised’
    • Often administrative staff are vital to a firm’s activities
    • They have a close understanding of the business across all of its functional areas
    • They need to know who does what in the firm
  • 10. Is Administration Important?
    • The administrative function is an indirect part of a business
    • It is also crucial to what a business does
    • Examples of administrative tasks are:
      • dealing with enquiries
      • giving messages
      • producing documents
  • 11. Research and Development
    • R&D is about improving the products a firm makes or the way it makes them
    • Many large firms have dedicated R&D staff
    • But R&D is an expensive activity
    • So firms often rely on using the ideas of others
  • 12. Research and Development
    • In some industries R&D is the main source of future business growth
    • Examples are:
      • Car manufacturers (investing large sums of capital in developing new vehicle models)
      • Pharmaceutical companies (reliant on new drug products for future growth)
  • 13. What’s Next?
    • How businesses organise their functions into structures that work (or don’t)!
    • The pros and cons of different business structures.