Organisational Functions

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Organisational Functions

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Organisational Functions

  1. 1. Organisational Functions 1 BTEC Business
  2. 2. What are an Organisation’s Functions? <ul><li>As we have seen, businesses exist to provide products or services that people want to consume </li></ul><ul><li>They do this by organising the firm’s resources to meet customers’ needs </li></ul><ul><li>Many organisations arrange these resources into different business functions </li></ul>
  3. 3. What are an Organisation’s Functions? <ul><li>Whatever the business, all organisations have to manage the following functions: </li></ul><ul><li>Sales and marketing </li></ul><ul><li>Accounts or finance </li></ul><ul><li>Human resources or staff </li></ul><ul><li>Administration </li></ul>
  4. 4. What are an Organisation’s Functions? <ul><li>Many businesses will also have the following activities that need managing: </li></ul><ul><li>Production </li></ul><ul><li>Purchasing or buying </li></ul><ul><li>Research and development </li></ul><ul><li>Whether they do or not depends on their industry or sector </li></ul>
  5. 5. Finding out more <ul><li>The following is a good source of information about organisational functions: </li></ul><ul><li>Biz/ed’s Virtual Factory </li></ul><ul><li>Find our more about production, marketing, accounts, stock control and design in a real world business at: </li></ul><ul><li>http://www.bized.ac.uk/virtual/cb/factory/reception/intro1.htm </li></ul>
  6. 6. Applying your Knowledge <ul><li>Now go to the following Biz/ed resource for more on a range of real world business organisations: </li></ul><ul><li>http:// www.bized.ac.uk/compfact/business_profiles.htm </li></ul><ul><li>Select two businesses and analyse their key functional areas. Be prepared to feed this back to the whole group. </li></ul>
  7. 7. Organisational Functions 2 BTEC Business
  8. 8. Administration <ul><li>Administration is about supporting the work of an organisation </li></ul><ul><li>It is not the central purpose of the business </li></ul><ul><li>But every business organisation must have someone to carry out these tasks </li></ul><ul><li>Otherwise there would be chaos! </li></ul>
  9. 9. What does Administration do? <ul><li>Most businesses rely on administration in order to be ‘organised’ </li></ul><ul><li>Often administrative staff are vital to a firm’s activities </li></ul><ul><li>They have a close understanding of the business across all of its functional areas </li></ul><ul><li>They need to know who does what in the firm </li></ul>
  10. 10. Is Administration Important? <ul><li>The administrative function is an indirect part of a business </li></ul><ul><li>It is also crucial to what a business does </li></ul><ul><li>Examples of administrative tasks are: </li></ul><ul><ul><li>dealing with enquiries </li></ul></ul><ul><ul><li>giving messages </li></ul></ul><ul><ul><li>producing documents </li></ul></ul>
  11. 11. Research and Development <ul><li>R&D is about improving the products a firm makes or the way it makes them </li></ul><ul><li>Many large firms have dedicated R&D staff </li></ul><ul><li>But R&D is an expensive activity </li></ul><ul><li>So firms often rely on using the ideas of others </li></ul>
  12. 12. Research and Development <ul><li>In some industries R&D is the main source of future business growth </li></ul><ul><li>Examples are: </li></ul><ul><ul><li>Car manufacturers (investing large sums of capital in developing new vehicle models) </li></ul></ul><ul><ul><li>Pharmaceutical companies (reliant on new drug products for future growth) </li></ul></ul>
  13. 13. What’s Next? <ul><li>How businesses organise their functions into structures that work (or don’t)! </li></ul><ul><li>The pros and cons of different business structures. </li></ul>

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