3. 2/7/2016
SUGUTA COMPANY LIMITED
Business Functions
• Human Resources
• Sales and Marketing
• Research and Development
• Production/Operations
• Customer Service
• Finance and Accounts
• Administration and IT
4. 2/7/2016
SUGUTA COMPANY LIMITED
Human Resources
• Recruitment and retention
– Job descriptions
– Person Specifications
• Dismissal
• Redundancy
• Motivation
• Professional development and training
• Health and safety and conditions
at work
• Liaison with trade unions
5. 2/7/2016
SUGUTA COMPANY LIMITED
Sales and Marketing
• Market research
• Promotion strategies
• Pricing strategies
• Sales strategies
• The sales team
• Product – advice on new product development,
product improvement, extension strategies,
target markets
6. 2/7/2016
SUGUTA COMPANY LIMITED
Research and Development
• New product development
• Product improvements
• Competitive advantage
• Value added
• Product testing
• Efficiency gains
• Cost savings
7. 2/7/2016
SUGUTA COMPANY LIMITED
Finance and Accounts
• Cash flow
– Monitoring income/revenue
– Monitoring expenditure
• Preparing accounts
• Raising finance
– Shares
– Loans
• Links with all other functional areas
8. 2/7/2016
SUGUTA COMPANY LIMITED
Production/Operations
• Acquiring resources
• Planning output – labour, capital, land
• Monitoring costs
• Projections on future output
• Production methods
– Batch
– Flow
– Job
– Cell
• Efficiency
9. 2/7/2016
SUGUTA COMPANY LIMITED
Customer Service
• Monitoring distribution
• After-sales service
• Handling consumer enquiries
• Offering advice to consumers
• Dealing with customer complaints
• Publicity and public relations
10. 2/7/2016
SUGUTA COMPANY LIMITED
Business Organisation
• Organisation by type
• Global businesses – complex organisation
structures
• National – organisation possibly stretches
throughout the country
• Regional – could be through a county or wider
area (North West, South East, etc.)
• Local – small organisations serving local area or
community
11. 2/7/2016
SUGUTA COMPANY LIMITED
Business Organisation
• Authority – the right to make decisions and carry out tasks
• Span of control – the number of people a superior
is responsible for
• Chain of Command – the relationship between different levels of
authority in the business
• Hierarchy – shows the line management
in the business and who has specific responsibilities
• Delegation – authority to carry out actions
passed from superior to subordinate
• Empowerment – giving responsibilities to people
at all levels of the business to make decisions
12. 2/7/2016
SUGUTA COMPANY LIMITED
Administration and IT
•Managing estates – cleaning, health
and safety, maintenance, security
•Reception
•Clerical work – reporting, recording,
record keeping, communication
•Overview of quality control
•Use of IT systems
13. 2/7/2016
SUGUTA COMPANY LIMITED
Suguta 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
19. 2/7/2016
SUGUTA COMPANY LIMITED
Suguta Organisation Charts
• Changes to business structures
• Linked to new thinking on leadership and
management
• Less hierarchical
• Emphasis on communication
and collaboration between sections
• Global businesses – more complex
structures
20. 2/7/2016
SUGUTA COMPANY LIMITED
In order to survive and thrive in an increasingly competitive
global environment, Suguta manufacturers will need to develop
an ambitious vision and strategy that allows it to take advantage
of the opportunities arising from transformative technologies
and redefine what it means to be a manufacturer.
To succeed in the high value-add, low volume products in
which they are more likely to have a competitive
advantage, Suguta manufacturers should seek to bundle
products and services to sell solutions, rather than simply
tangible products. Those services may be explicit (such as
pre and after sales service) or, better still, embedded in
the solution. Whilst adding services to products may
require some innovative thinking, it is inherently less risky
to develop new services than new products. New product
development typically requires expensive re-tooling and
investment in expensive or untried technologies. New
service development can often avoid these costs.
Sell solutions
rather than
products
21. 2/7/2016
SUGUTA COMPANY LIMITED
Successful manufacturers recognize manufacturing is no
longer about mass production, but about providing
solutions for customers that are tailored to their needs.
Mass customization entails producing in both volume and
to the requirements of individual customer needs.
Successful manufacturers will recognize that this
fundamental shift will require new and different business
relationships and models.
Customization and
personalization
Both by partnering in global supply chains and by
meeting demands from their growing middle classes for
high value-add products, Suguta manufacturers can
capitalize on the rapidly emerging growth economies of
countries such as China and India.
Being connected
counts
Manufacturers must position themselves in rich webs of
relationships and knowledge flows. Knowledge is an
asset that can depreciate rapidly and needs to be
continually refreshed. Flows of knowledge are critical
and these only happen through people, their networks
and relationships.
Seek markets in
emerging growth
economies
22. 2/7/2016
SUGUTA COMPANY LIMITED
One dimensional buyer-seller relationships must give
way to a different and changing economic web of
buyers, partners, alliances, stakeholders, suppliers,
distributors and resellers. As companies know more
about their customers, they can provide products and
services that are tailored to their needs.
Stay close to
customers
The most potent forms of innovation are business
model innovation and organizational or managerial
innovation. Successful manufacturers will focus less
on scientific discovery and more on problem-
solving to achieve step change innovation that is
difficult for rivals to compete against.
Business model
and innovation
